Why Is Buying More Affordable than Renting?



I was reading an article recently by Jonathan Smoke about how renters are feeling trapped with all the rent hikes that have been happening lately. He warns that low rental vacancies and a lack of new rental construction are pushing rents up. He says we can expect rents to outpace home price appreciation in the coming year.

 Some stats says that 49% of rental households spend more than 30% of their income on housing. These households struggle to save for a rainy day and pay other bills, such as food and healthcare. The author goes on to say that housing is central to health and well-being of our country and local communities. In addition, this rental affordability crisis threatens the future of owned housing, as rent will trap more aspiring homeowners into a vicious financial cycle in which they cannot save and build a solid credit score.


 In more than 75% of the counties across the country it is actually more affordable to purchase a home than to rent. It's not that potential home buyers don't qualify in terms of their credit scores or in how much they have saved for their down payment, it's that they think they're not qualified. Bottom line: don't get caught in the trap so many renters are currently in.

 If you're ready and willing to buy a home, find out if you're able to! Give us a call or shoot us a call today and we'll put you in touch with a professional who can tell you whether you're ready to get a mortgage. We look forward to hearing you soon.
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Location: Orange County, CA, USA

How Interest Rates Impact Orange County




Although interest rates increased a quarter of a percentage, we predict 2016 may be a carbon copy of 2015. It all depends on the Federal Reserve since they’ve recently announced they’re doing away with historically-low interest rates. This is the first increase in nine years!

 Additionally, the Fed hinted at more increases in 2016. It could be as many as three or four. Long-term mortgage rates are not immediately impacted by changes in short-term rate. However, multiple increases will deeply impact the Orange County housing market.


 Like last year, buyers will be lining up to take advantage of the end of the low rates. The Fed will most likely make changes after the busiest real estate season of the year. We expect the seller's market we’re experiencing now will shift towards a more price-oriented market during the second half of the year. Pricing will be crucial for sellers later on this year.

 If you’re thinking about buying or selling a home, send me an email today! I am happy to serve your real estate needs.
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Location: Orange County, CA, USA
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