10 Reasons Why Renters Should Buy Real Estate Now!

Life is full of milestones.  As a real estate professional, one of my personal favorites is when people make the leap from renting an apartment to owning their own home. Achieving the America Dream marks a significant change in a person’s life. But with daily headlines blasting stories of lower property values, foreclosures and economic downturn, many people are taking a good hard look at their options before signing their name on the bottom line, as well they should.

Despite the headlines purchasing your own home is still a sound economic investment. I have always encouraged potential buyers to carefully consider all of their options before moving forward with purchasing a home. Now more than ever many people can significantly benefit from purchasing a home as compared to remaining in their rental.

Below are 10 reasons why you may want to consider purchasing a new home:

1. Save money: It may be less expensive to own than rent. Your mortgage payment may even be less than your monthly rent.  Even if your mortgage is higher, the tax benefits may outweigh the added expense.

2. Desirably: Trulia.com analyzed the largest 50 cities in America as to which are better to buy in versus rent in. They ranked Mesa #6 and Phoenix #8 as best areas to buy!

3. Affordability: Many buyers who could not afford to buy a home a few years ago can now afford to buy. The Greater Phoenix median purchase price level is close to what it was in the year 2000.

4. Interest rates are very low! Save money! The lower the interest rate the lower the monthly house payment.

5. Save on taxes: If a buyer itemizes on their federal tax return, they can deduct mortgage interest and property taxes. These tax deductions may mean it costs less to own your 1500 square foot house than to rent a 900 square foot apartment.

For example, if someone paid $12,000 in mortgage interest in a year and were at a 20% federal tax rate, they may receive up to a $2,400 annual tax deduction. (The buyer needs to see their accountant as to which is better for them: itemizing deductions versus taking the standard deduction before buying.)

6. Supply: A home buyer has so many choices – one-story or two; patio or backyard; Tuscan or southwestern.  The choices are endless.

7. Negotiating power: Since it is a buyer’s market, the seller often will pay many of the buyer’s closing costs and prepaid expenses.

8. If you previously owned and lost your home to a short sale or foreclosure you may still be able to buy again and don’t know it.

9. Home ownership means a place of your own and place to put your own stuff!  All of it – no more storage units.

10. Someday home prices will go up again!

At the end of the day, purchasing a home is a huge responsibility.  However many people stand to benefit from purchasing a home over renting. Consider the benefits and don’t be paralyzed by fear. See your Real Estate Professional for details and recommendations based on your personal circumstances.

Focusing on Purchasing a Closet, Not Staying in It.

As a real estate professional and member of the gay community, I am often asked, “Why do you focus on the gay community?”  I am a real estate agent; I help people buy and sell houses.  Sexual orientation does not change that fact. But it occurs to me that the majority of Realtors do not understand the gay community or their wants and needs.

It’s not that gay and lesbian home buyers are that different.  Actually, we are quite the same. However, as a real estate professional, I understand that a good agent does more than just “find a house.” We Realtors provide understanding and guidance on the largest purchase in a person’s life. But more than that, buying a house should be a fun and personal experience.

Over the years, I have worked with several clients that have come to me after a negative experience with other realtors. It’s not that these real estate professionals aren’t good Realtors.  Rather, that buying a house is still a process firmly associated with a “traditional” heterosexual family.  The advantage in working with a professional who specializes in the gay market is the process and perhaps the result.  Instead of defining (or defending!) yourself against the assumed norm, you are allowed to be you, without the embarrassing questions.

In buying your previous homes, you may have heard, “Surely you want separate bedrooms and baths, so I’ll show you homes with two master suites.”  What possible answer is there:  1) Make it clear that you are sleeping in the same bedroom…..and then the awful answer, “oh, I see”, followed by the uncomfortable pause; or 2) Say nothing.

Some of my clients are still not “out” or want their privacy or just don’t want to answer these kinds of questions.  The buyers may fear being disrespected by the agent, not getting quality service or perhaps creating an uncomfortable situation for both parties.   

Or buyers are asked, “Which one of you will be on the title?” The assumption being that one person is making the purchase and the other will be a renter.  Many laws that govern home ownership and property are still based upon heterosexual norms and legal definitions of marriage. Understanding those regulations and protecting the rights of both parties does require a level of expertise and knowledge that many real estate agents lack.

My partner Kris and I know all too well the pain and discomfort that comes from these questions.  The good news is, not all real estate agents ask them. That’s why I specialize in the gay community. Instead of questioning your personal sleeping preference, what we really want to know is “Do you want a pool?”, “How many bedrooms and baths would you like?”, “How much do you want to spend?”  You know the important stuff in buying your next home.  It’s this level of understanding, protection and empathy that every home buyer deserves. So, yes, I do specialize in the gay community not because they are special, but they are special to me.