Real Estate of Mind - Rent or Buy?

HONOLULU (HawaiiNewsNow) - On today's Real Estate of Mind, Coldwell Banker Realtor Associate Florence Calica helps with a question many are pondering, "Should I rent or buy my next home?"

With mortgage rates still near historic lows, your monthly mortgage payment could be the same or even lower than rent. Plus, there are several Oahu neighborhoods with homes less than 10 years old selling at less than $500,000.

Florence also extended an invitation to Coldwell Banker's family-friendly grand opening of their Kapolei office coming up Saturday October 20 from 2:00 - 4:30pm.

You should read Florence's notes below and check out the video of her Sunrise interview.

Why some should buy a home rather than rent?
  • In many neighborhoods the monthly cost of rent is equal to a mortgage payment because of low interest rates. Rates are now lower than 3.5%. That rate allows a buyer more purchasing power. That said, if someone does expect a life change that would affect their income or where they need to live then renting may be an option.
What if your concerned about losing money in real estate because of the mortgage crisis of 2008?
  • Some people have concerns and the market did correct itself during the crisis. That said, if you look at the trend of home prices since 1987 they have doubled after each cycle. I have a friend who bought in Kapolei in 1999 for $274,999. The had their house appraised a few months ago at $560,000.
Are there areas on the island that are more affordable for first time home buyers?
  • We are seeing many first time home buyers look at neighborhoods like Kapolei, Ewa, Mililani and even the Leeward coast because of affordability. You can get a 4 bedroom home below $500,000 built within the past 10 years in those neighborhoods so it has become very attractive.
  • Areas like Kapolei and the Leeward Coast also offered 0 down payment loan programs through the USDA. This allows buyers to save their down payment to make improvements to the property they are going to buy instead of using for a down payment.
Here are some factors you should consider before purchasing?
  • Identify the right home and understand how it will shape your lifestyle. Commute, community and activities.
  • The amount of time you plan to live the home and keep the home. While values go up over the long term, values will go up and down.
Kapolei Office Family-friendly Grand Opening (newspaper ad attached if you want to use it)
  • Saturday, October 20, 2pm-4:30pm
  • Kapolei Commons, next to Down to Earth
  • Lego home-building contest among schools, with a school spirit prize.
  • face painting, balloon animals.
  • Our family welcomes your family!

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