Everyone knows that prices continue dropping in many areas, including Illinois suburbs. But those low prices couldbe good enough for buyers to consider making a purchase this year. An easy way of figuring out if it's worthwhile purchasing a home vs. renting is to figure out what your mortgage payment would be compared to current rental prices. You also need to take into consideration tax deductions for mortgage interest and real estate taxes for home owners, although they might not last forever.
There is More to it Then Just Monthly Payments
Even if your mortgage payment is more than a local rental, there is a completely different lifestyle in owning your own home vs. living in someone else's property and having to follow their rules. Many landlords don't allow painting or pets.
With today's low prices and interest rates, you could purchase a single family home for the same or a little more than an apartment rental payment. Instead of living the apartment lifestyle with other tenants close by, you could own your own piece of property, and possibly have a yard to relax in, garden and have a place for children and pets to play in.
When I was younger and rented my first apartment, my goal was to own my own home as soon as I could. I purchased my own home at the age of 21 and I've never looked back.
I made a profit on every home I ever sold except one, which was sold during the recession of the '80's. I was getting divorced and we agreed to sell, even though we had only lived in the home for less than 3 years. We didn't take a huge loss, but at that time it wasn't common to lose money on a real estate sale.
Look at Home Ownership as a Lifestyle, Not an Investment
Most home owners feel grounded and a part of their community. They usually stay put longer than renters. When I was growing up, we only moved once into a brand new home. I was 10 at the time and not happy about the move, but I made new friends quickly and loved our new house. My parents kept that house until my Dad retired and they were ready to move to Arizona.
For some reason, people have become transient and don't stay put as long as they used to. Many younger people do not want to live in a "starter home" and some of those people purchased their dream home during the seller's market when it was easy to get a mortgage.
It is still difficult for sellers to understand that they cannot get the prices that homes were selling for during the seller's market. Unless someone absolutely has to move I always suggest they stay put. I can understand job transfers or financial difficulties, but if you want a larger or smaller home this might not be the time to sell.
But if you have enough equity or you're just starting out, it might be the greatest time to buy. Call Judy Orr at 708-536-8200 or James Herter at 708-207-5324 if you are interested in buying and/or selling. Or fill out our Automated Home Finder's Form to get listings sent directly to your e-mail.
We specialize in Homer Glen or Orland Park homes for sale but sell in a large area of the southwest and near west Chicago suburbs. If we don't work in your area we can find you a great agent that does. Give us a call first! 708-536-8200