One of the fundamental questions that always starts a persons real estate journey – Should I rent or buy?!
At the moment, mortgage rates and prices are lower than before meaning that the math may well favor buying for you! Meaning that a mortgage payment may be less than what you would pay for rent!
Here in Malibu California we have a great selection of homes available (including condos on the coast!) and with mortgage rates in the low 5% range at the moment buyers have the best market conditions for years!
Think about it – at the end of a lease you have paid thousands of dollars and have nothing to show for it. Yes it may be quicker to sign a lease than save for a downpayment, shop for a home, apply for a mortgage etc. But in the long run if you own the property and make your mortgage payments in an stable or appreciating market you build a nice amount of equity! Which, in turn is the downpayment for the next property etc. etc.
Of course the old saying is true – location, location, location! But the question of where to start is often a thought – a house or a condo?
Well, condominiums are a great starting point – if the units are high rise it is suggested to consider buying a unit on the “best” floors with the “best” views as this will help resale.
New development or old? A new development can in an appreciating market make you money – buy at the early stages of a development and by the end of construction when you move in and the unit could be worth more than you paid for it. Or buy a used unit – one that needs some light cosmetic renovation and you could make money on resale by renovating the property down the line.
Monthly maintenance fees are a factor to consider – and can effect mortgage qualification. Also, if the development is already being lived in, talk with existing owners about the building, management company etc.
With the tax credit deadlines looming – now really is the best time for switching from a renter to a buyer!
If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
Subscribe to our blog using our RSS feed. (Click here!)
Judy Kunisaki – CA DRE license 00963582
