Home prices are very low in the Covina area. A nice entry level home is around $ 325,000. Assuming a down payment of 3.5% and an interest rate of 4.25% the mortgage payment (principal and interest) would be approximately $ 1,543 with tax and insurance it would be close to $ 2,000. Don't forget the tax benefit.
Rent in the area for an average home is a little over $ 1,800 and there is no tax benefit.
After the tax benefit the monthly mortgage is likely a little less than rental in the area.
I think that with such low home prices and low interest rates, buying far outweighs renting.
I just read an article that says that we are exporting a lot of our gasoline and thus are more open to price fluctuations and increases. And that this is the reason for our recent jump in gas prices. Should we really be doing this to ourselves. Our country is experiencing enough pain and maybe the gas companies should help not hurt us!
On 10/27/2011 there will be a car auction in Rancho Cucamonga. These are government seized cars. At tiems a really good deal can be had on a decent car. Follow this link for more information: http://www.appletowing.com/teamappleauctions/Auctions/California/auctions_la.htm
There was an article in the news recently that says that according to Barclays Capital there may be a tri0ple dip in real estate prices coming this winter.
This is not great news if you are planning on selling but it is great if you want to buy.
In Covina we hit a low price in February 2009 and than lower in February 2011. In between the prices moved upo and down in about a 5% range.
See the report here: http://www.teamszucs.com/CovinaHomeSalesActivity.
Where do you think prices will go from here?
you cna read the article here: http://www.linkedin.com/news?actionBar=&articleID=842933165&ids=0Rc30Pd3AUd3wIdjsQdzgMcPgUb3oVejoUdPcPe2MRdz4PcPAOd3wIdj8Oe3wUd3cU&aag=true&freq=weekly&trk=eml-tod-b-ttle-44&ut=30TS6X9FsDrkY1
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