Ultimately, deciding whether to buy or rent a home will depend primarily on the existing market and your specific financial situation. In Sacramento, there has been a steady appreciation in both rent and home prices. This means that rental properties are in demand, which brings the prices upward. However, the rent prices seem to be increasing at a rate relatively consistent with average wage costs, so it actually requires a smaller percentage of average income to rent than other nearby areas.
It is important to take several things into consideration prior to making a final decision on whether to buy or rent a home. There are many monthly costs associated with either option. If you rent, you will have to figure a monthly rent and, often utilities, into your normal budget. When purchasing a home, there will be mortgage payments, insurance payments, taxes, maintenance costs, and more. Do your research regarding the average expenses in Sacramento prior to making the decision.
Renting Vs. Buying
Purchasing real estate property can be an incredibly valuable investment, as the building will appreciate in value. However, this is often only particularly beneficial if you intend to keep the property for at least 5 to 7 years. For shorter time frames, it is likely that you should rent rather than buy. Consider how stable your income is and whether it will be able to handle the additional costs of owning property. One thing you may want to consider about buying vs. renting is that you can potentially convert real estate property into rental property.
Both renting and buying have their advantages and disadvantages. Due to the consistent increase in prices, it is best to make a decision sooner rather than later. Consult with our experts at the Keyrenter in Sacramento to learn more about the benefits of renting or buying property in the area.