Renting vs. Buying a Home in Phoenix or Mesa, Arizona!

1. April 2009 by Teri Ellis.

I have always been a proponent of purchasing a home rather than renting one; however, it seems that more and more people are contacting me to find them a rental home. They want to “rent” a home rather than to buy! Just this past week, I showed two separate clients a rental.

I am also receiving calls from those that have purchased a home through me – and are now foreclosing or considering short sales.

Almost without exception, these homebuyers who purchased a home through me have refinanced or acquired a second loan on their home purchased six or seven years ago.  Due to our market, they are upside down and cannot sell their home. As a result, they need to “rent.”

There are, of course, other reasons, but being upside down due to refinancing seems to be at the top of the list.

Many former homeowners are now needing “or” wanting to rent a home. Because of their inability to pay the loan on their home thereby short selling or foreclosing, investors are flooding the market picking up homes at prices not seen in years. Typically an investor makes needed “fixes” and “repairs,” and then puts the most recent purchase on the market as a rental. Therefore, purchasing property as a rental has become increasingly more affordable.

So? If you were to ask me if it’s a good idea to purchase a home NOW, I would say a resounding YES. Whether for investment purposes or to live in – I’ve never seen a better market to purchase. Just be very careful when thinking of a short sale – or a bank owned. Become educated on what that is about.

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