Why is it a good time to buy? What are some of the key factors in renting vs owning a Maui home?
The key factors in deciding to rent vs own should be based on sound financial analysis of the buyers employment stability, the buyers ability to make a payment that not only includes a mortgage, but the taxes, insurance, and the ability to pay for any repairs to a home. A buyer has to have the ability to budget for things from termite tenting to a new roof.
The buyer should have a clear goal of home ownership, their “5-7 year life plan” and receive professional advice from a REALTOR, mortgage lender, and a tax advisor prior to purchasing or even looking for a property. Too often renters make the error of comparing what they are paying in rent as compared to a mortgage and don’t factor in all the other costs associated with buying a home. I want to look back with a client and have them thank me 5 years from now that they made a sound financial decision as well as an emotional one.
Interest rates are at HISTORIC lows. I recall refinancing on one of my homes and thinking I was lucky to get a 7% rate. People need to realize that if they can lock in now to a 30 year fixed rate under 5% that this is a huge benefit that won’t last forever. It is rare in Maui Real Estate to have both the interest rate and prices both be this low as they are today. Home ownership can lead to security and stability for a buyer. It is a great piece of mind to know you can live in your Maui home for as long as you want to and not to have your landlord sell or renew your lease.
You are able to personalize your Maui home or your Maui condo and receive the benefit of a mortgage interest tax deduction, and appreciation & something tangible for your investment. If you invest in the market and your stocks go down you don’t have a tangible asset like a home. As FDR stated, ” A nation of homeowners is unconquerable.” Home ownership not only brings personal satisfaction it builds community, and creates jobs. Many studies including a Harvard study on The Social Benefits and Costs of Home ownership and the National Association of Realtors August 2010 Social Benefits of Home ownership and Stable Housing bear this out.