To Rent or To Buy?

It seems every week I speak with people that will ask me “what are the benefits of homeownership?”  Homeownership has long been a part of the American Dream. There is a sense of pride in owning your own home. People tend to feel a stronger sense of community when they own the home in which they live. One advantage of home ownership versus renting is that it gives you the freedom to make whatever changes to the home you would like. You may ask, beside the emotional reasons to own your own home, are there really any financial advantages to owning anymore?

Yes, unlike rent payments, each monthly mortgage payment builds equity in the home. Real estate taxes and a portion of your mortgage interest can be tax deductible. With fixed rate mortgages below 5% (historically low!!) your monthly housing payment won't change for the life of the loan unlike your rent. Yearly rent increases are a fact of life in most areas. Trulia's latest "Rent vs. Buy Index" was released yesterday and it shows the Sacramento area as one of the top areas to buy vs. rent. Now is your best opportunity to buy a new JMC home with interest rates so low, the best pricing in years and builder incentives galore!!