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Renting vs. Buying a Home

Extremely low interest rates, lots of inventory, and cheap prices are all reasons why you should consider a home purchase. But, is it right for you to buy now? Let’s take a look at a few of the factors to consider when making the decision to buy or to rent:

When To Buy A Home

Buying a home is one of the biggest investments that you will ever make. If you have excellent credit, a stable job, and enough cash in the bank to make a down payment with money left over, then buying a home may be a wise financial decision for you. Depressed home prices have created great opportunities for Big Bear homebuyers. The advantages of home ownership are as follows:

Tax Deductions

Mortgage interest payments and property tax payments can be deducted from your taxes. This can add up to substantial savings over the life of the loan. Renting means you’re helping to make the mortgage payments for someone else.

Potential Appreciation

It may not seem like it, but home prices will rise again someday. The key is to purchase knowing that you’re going to hold onto the property for more than 5 years. If you look at history, real estate has always been regarded as one of the best investments any of us will ever make. As Will Rodgers once said, “Invest in real estate, it’s the one thing they’re not making any more of.”

Building Equity

Buying a home lets buyers build up equity which can be accessed in emergency situations. When the market does turn around you can expect pent up demand to push home values back up. Consider buying with a 15 year mortgage to build equity faster and save thousands on interest over the life of the loan.

Feeling of Pride That Comes With Owning Your Home

Home ownership is the American dream and brings a sense of pride and accomplishment like few other things in life. It also provides a sense of comfort and stability that renting just can’t duplicate.

Big Bear Lifestyle

One of the best things about living in Big Bear is the lifestyle that goes with living in the mountains. Fresh air, 300 days of sunshine, and some of the most beautiful scenery you will ever see are just a few of the perks of living up here. If you enjoy outdoor activities, whether it’s skiing, snowboarding, hiking, fishing, boating, or mountain biking, you’ll love living in Southern California’s backyard playground.

When You Should Rent

Although owning a home can be a wise decision for your financial future, there are some occasions when it makes greater financial sense to rent. Never buy a home if you are unsure whether or not you want to live in a particular area for an extended time period. Many people buy homes thinking that they can quickly sell them or rent them out if they choose not to live there anymore. You should never purchase a home unless you are willing to hold on to it for at least 5 years. Real estate is not a liquid asset and can be hard to sell during economic downturns.

Also, know your personal situation. If you’ve got debt up to your eyeballs or you’ve just gone through a big life change such as marriage, babies, divorce, or a death in the family, taking on the responsibility of owning a home might not be in your best interest.

One of the best ways to find out if buying a home in Big Bear is right for you is to discuss it with the folks that know Big Bear real estate better than anyone else, the professionals at The Tim Wood Group. We’ve been helping people make their Big Bear dreams become reality for over 25 years.

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