I talk to a lot of folks throughout the course of the day about real estate, and right now with all the coronavirus craze and the Feds lowering interest rates....people want to know! I will give you a few compelling reasons to get a pre-approval through a lender of your choice, or if you need referrals, we can talk about your situation, and I can match you up with the right lender within my team.
Up until a few years ago, I had a lot of folks complaining to me about how high the interest rates on loans were, so that's why they were going to wait, or the Southern California housing market is just too expensive for me to buy into. Oh, I beg to differ! My position on this issue has not changed since a few years ago. The facts are, Orange County and Los Angeles County rental rates are ridiculously expensive! I have been there. Having lived most of my life up and down Southern California from Beverly Hills, Koreatown, Downtown, Irvine/Newport Beach, Fullerton, Placentia, and La Habra, I can honestly say that in most instances, your rents are paying someone else's condo or single family home's mortgage. I have helped my rental clients who own the very rentals that you may be renting build wealth by renting their properties to folks who rent. So, there you have it, from the horse's mouth! I also invest, develop, and flip homes, just to give you my background and my expertise in this arena. Just in the Fullerton area, 2 bed / 2 bath apartment rental used to be about $1650/mo a month on average, and now, they go for $2200/mo or more. Can you purchase a condo next door in La Habra and pay at or less than what you are paying now on rent? ABSOLUTELY! This can be a start of you building equity on your starter home which would later allow you to upgrade to a larger home. But do you think the home prices will go up over time or go lower over time? Always up! So, the sooner you can get into a home of your own, you will have options.
Let me know if you a testimonial of my wife and myself when we bought our first home in 2013. We had just gotten married 4 months before we bought our home. We purchased a 3 bedroom / 2 bath, 1556 sq ft single family home in Placentia with a 5500 sq ft lot. We purchased it at that time for $370k. For a couple starting out, it wasn't cheap for us, although looking back, it was a bargain! Fast forward to 2019, we had sold the home for $520k. The house needed work as we rented the home out for a few years and had some wear and tear. But see where I am going with this? If we didn't buy this home in 2013, and kept renting a 1 bedroom luxury apartment in Mission Viejo for $1850 at the time, by 2019, if I kept renting that apartment, it would've gone up to $2100+ (Mission Viejo rental rates are a bit more expensive). So, for us, we made a bit of money selling the home and it allowed us to move forward in investing in other investment properties.
I hope this article has helped you as a buyer who has been on the fence in whether to continue renting or purchasing your first home or not to take the plunge and purchase while the interest rates are nearing record lows (this is a do over for some of you that have missed out during the frenzy few years back when rates were at record lows).
I am always available to talk and help you get into the best situation possible going into home.
I look forward to speaking to some of you who are reading this.
Realtor, CaDRE# 01988131
Coldwell Banker Realty