Rent vs. Buy

Okay. I’ll be the first to admit the real estate market in Asheville is depressed and the U.S. economy and all things related, also depressed. But, a soft market does bring some positives. One being that it is a great time to purchase real estate. The adage “buy low, sell high” is very applicable here. As a renter/first-time home buyer, you have an even greater advantage, you don’t have a home you must sell first in order to make a purchase (that is what is preventing most buyers from being able to make a purchase now, they can’t sell the home they have very quickly). 

Here are my top three reasons to make a real estate purchase now:

1. The Asheville market is flooded with real estate inventory. With more competition among sellers comes a greater willingness to negotiate, bringing prices down. Plus, this greater inventory brings more to choose from when shopping.
2. Interest rates are at historic lows. If you are financially qualified and confident that your means of making payments is solid (i.e., you are not in fear of losing your job), it IS a good time to borrow money. You can get more house for the money. Or, better still, you can enjoy a lower mortgage payment on the house you need.
3. Real estate is the #1 way Americans amass “wealth.” The U.S. Federal Reserve Board’s Survey of Consumer Finance showed that home owners have an average financial net worth 46 times greater than that of a renter. Take a look at this example, an excerpt from Gary Keller’s Book, “Your First Home.”