HONOLULU (HawaiiNewsNow) - On today's Real Estate of Mind, how do you determine if it's better to rent or buy? Coldwell Banker Realtor Associate John J. Climarldi joined us in the Sunrise studio with some great tips. Check out the video and the bullet points below.
How long do you plan to live in a neighborhood or home? Are you going to move within 1-3 years?
o Renting is a good option if your time horizon is short since there are no ties to the home other than a rental contract.
o When you rent, you don't have to worry about market fluctuations from an investment standpoint, but of course when the market goes up usually rental amounts follow, so expect rent increases as the market goes up in value.
What are your current expenses to rent?
o Ask a realtor what properties are selling for in your area and figure out if it's comparable to what you are paying in rent now.
o In certain neighborhoods your monthly mortgage payment may be less than rent due to low interest rates and low prices. Interest rates are very low, making a purchase now more affordable for more people than ever before.
o Financing is available, but if you have had issues with credit, you will need to rent until you're able to improve your rating.
o Just as important as credit is your debt to income ratio. Take a hard look at credit balances, and anything you're finanancing.
o Look into HHOC: http://www.hihomeownership.org. They are a non profit that helps first time home buyers set realistic goals to get into home ownership.
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