Should you buy or continue to rent?

We know there are plenty of reasons for folks to rent their homes. Young people just out on their own who haven't built good employment or credit history are the obvious ones. Folks with transient employment that causes them to move frequently are not good homeowner candidates. Some people have sold their homes and have opted for retirement community living, so they rent apartments there. All of these create competition for the available rental properties.

These last few years have added some atypical competition though. People who found themselves unable to make their house payments due to pay cuts, job loss, illness, injury or because their loans re-adjusted and sent their payments higher are now renters. After all, we all need a place to call home.

This new competition for available rental housing has caused rents to rise and makes it more difficult to find a respectable, affordable place to live for many people. The rental market is so strong in fact that one property management company recently quoted an 8 percent fee, where only a year ago it was 15 percent. That should support any argument that it is difficult to find rental inventory.

Given the challenging rental market, some people are beginning to explore their options for buying their own house. Often, in today's market with so much discounted inventory and persistently low mortgage interest rates, buying a home can be as cheap, or cheaper than renting.

We know of some folks who traded their three-bedroom apartment for a three-bedroom home and their payment is just a few dollars a month more than the rent they were paying. This even after they figured principle, interest, taxes, insurance, loan origination fees, etc. In fact, with the mortgage interest deduction, still available at this writing, they will be money ahead at the end of the year in addition to any small equity they may realize in the short term. In the long term of course, we fully expect the housing market to recover and once again be providing an investment quality return to homeowners.

Another couple moved out of their rented townhome into a manufactured home on acreage, with a shop. Their payment is less than $600 a month with all the expenses associated with the loan.

We have often touted Idaho Housing and Finance Association here. Most local lenders, probably your bank among them, offer loans underwritten by IHFA (ihfa.org). On Friday IHFA was still showing a 4.25 percent rate on a 30-year fixed mortgage. At their website you can check your eligibility and calculate your mortgage payment to see how much you can invest in a home while maintaining a manageable monthly payment.

If you are thinking of becoming an ex-renter but are short on cash, you will want to explore IHFA's down payment assistance program. Contrary to today's common misperception, you do not have to have perfect credit to obtain a home loan. Although the federal tax credit for home buyers is long gone, IHFA still offers a program where qualified individuals can get up to $2,000 every year in the form of a credit.

If you want to break away from your landlord and start paying for your own home, now is as good a time as any. Go online and explore your options, call your banker, credit union or friendly mortgage broker to help you qualify, then find a Realtor who is willing to work hard to help you find an affordable home.

Trust an expert... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.