Renters need to consider buying this year
Published - 01/16/21 - 12:39 PM | 3882 views | 0 0 comments | 15 15 recommendations | email to a friend | print
If you are currently a renter or know a renter, please read this column carefully. You are likely aware of the government money printing occurring — the trillions of dollars of stimulus for struggling taxpayers and businesses. While I certainly support the idea of aiding society during these unprecedented times, an issue I want to highlight, as any economics professor will tell you, is that increasing the money supply without additional economic output leads to a weakened dollar and eventual inflation. Simply put, flooding the economy with additional dollars makes each current dollar worth less and likely leads to rising prices, including higher food costs and higher rents coming soon.

The absolute best protection against this coming inflation is to own hard assets, which includes real estate. As the dollar weakens and inflation accelerates, expect both rents and real estate prices to significantly increase over time. A slow economy is masking this inflation effect currently but as the pandemic wears-off and this economy heats up, many experts are saying to expect rising prices for everything.

If you are currently renting, contact me at your earliest convenience for a more detailed discussion of your purchasing options. Purchasing a property this year will lock in a fixed housing payment for many years to come and protect you from rising rents. Additionally, much of your housing payment is typically tax deductible, possibly saving on annual income taxes. Other benefits of purchasing property include building equity as San Diego real estate prices appreciate and additionally, gains on primary residences are typically partially or fully tax-free.

San Diego real estate values are still discounted compared to other areas of California and land here in America’s finest city is scarce. Demand for property continues to increase and supply is limited. There has never been a more important time to own valuable real estate.

If you are renting, please consider purchasing a property this year. It is time. Let me address some of the typical buyer concerns I have heard over the years. For one, your first home does not have to be your forever home. You can live in a property for a couple of years and then either stay, sell and move up, or rent the property out.

One method (I have used myself) is to purchase a new primary property every few years and then rent out your existing property. That way you can start building up a small portfolio of rental properties.

Another issue worrying buyers is having a lack of down payment. However, there are many programs that only require a 3% to 5% down payment and for most veterans, a zero down payment program is available. On my first two properties, I only put down 3.5% on each one. The key is that mortgage approval is mostly based on credit score and income.

Something else to consider are mortgage rates. Rates are still ridiculously low but a weakened currency generally causes interest rates to increase, especially when the economy starts growing. In fact, mortgage rates, while still quite low, are starting to increase.

Another item to consider is that there are actually a lot of desirable properties that continuously come on the market but you need an experienced buyer’s agent to uncover excellent properties, present a clean offer, and get an offer accepted. I have an outstanding system and track record for finding my buyers desirable properties and getting offers accepted. I work closely with my buyers throughout the buying process.

So if you are renting, think seriously about the idea of a property purchase this year. Now is the time to finally start the process of becoming a real estate owner, protect yourself from increasing rents, and build long term wealth. Call me: 858-431-6043.

—Sarah Ward is a realtor with Fine & Coastal Real Estate. Reach her at
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