Renting vs Buying – Something to Carefully Consider
The downtown St. Louis market offers a very diverse range of styles and price ranges. When looking for a new loft or condo you should rely on someone knowledgeable of the St. Louis market in every facet. I have lived downtown for the past 9 years and watched it evolve into an energetic, vibrant, lively urban space. Moving downtown was the best decision I ever made. It is a great place to live and very walkable with a variety of dining, entertaining and sports venues to enjoy. For some clients this isn’t enough. They want more reason to purchase a loft or condo downtown than just having fun and experiencing the urban lifestyle. So what else are clients evaluating when answering this age old question?
Today, interest rates remain low. Of course, low is a relative term that means something different to everyone. For clients who purchased property in the past interest rates below 8% are incredible. Most purchased homes in the past when rates were at 8%, 10% or, for some, 15%. For first time homebuyers today, interest rates above 5% seem unreasonable. Regardless of the frame of reference many potential renters are now considering buying. When they look at rental rates compared to monthly mortgages it just makes sense to buy with so many good deals available and the market trending up.
If you are considering renting ask your Realtor to put you in touch with local lenders to see what a monthly mortgage would be compared to the potential rent on a given property. And don’t forget the tax benefits of buying vs. renting. Your accountant will provide you with insight and guidance.
Without a doubt today is a great time to buy. AND, it’s the start of the new year, so what better way to get the new year off to a great start than purchasing your new residence!
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