Motivation To Own A Home Increasing
November 15, 2007
With rising rents and a few available rental units in many markets, the motivation for long-time renters to invest in their own home is growing. Today’s low mortgage interest rates often make it possible to pay less on a mortgage than the rental amount for a comparable unit. And, of course, there are tax advantages and potential capital gains benefits in homeownership.
Current market factors are driving a growing trend of converting existing rental units into condominiums. This is primarily seen in or near downtown core areas where many buyers seek a condo residence close to their point of employment. Commuting long distances is becoming less and less attractive, considering the rising cost of gas and increasing traffic congestion in many metro areas. From the investor’s perspective, it’s more appealing and feasible to develop and sell condos than build rental apartment structures requiring expensive and trouble-prone management services .
Posted in All Things San Diego, Lending, Local Business, Real Estate, Things of Interest
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