It is no secret that the Staten Island residential real estate market has seen a major decrease in property values.  While Staten Island, Brooklyn and Queens have seen a lesser decrease than many areas it is not uncommon for some areas to be down up to 20% from the heights seen in 2006.  But this news is not all bad as many people can use this market downturn as an opportunity to become homeowners.  Every day I answer questions about the true cost of renting versus becoming a homeowner.  With falling home prices and interest rates now is the time for renters to get into the market.  After comparing the costs and potential benefits of homeownership many renters see this as the best time to get in on the American dream and purchase a home.

While people seeking to sell and buy a higher priced house and those seeking to refinance their existing mortgages can benefit form the current market weakness, renters and first time homebuyers have the best opportunity to profit from the market downturn.  Falling prices and interest rates makes homeownership more affordable than ever before.  With the number of foreclosures at an all-time high, more housing inventory is available and median home prices have fallen while rents continue to increase.  Coupled with lower mortgage interest rates the spread between the cost of owning a home and paying rent has narrowed.  All renters who intend to remain in a neighborhood for more than a few years really need to determine whether the tax benefits (and potential market appreciation) of owning a home make it a better decision than continuing to rent and making your landlord wealthy.  When looking at the actual cost of paying rent versus owning a home start with the cost of your rent and add in any anticipated increases for the next 5 years.  Now look at the cost of homeownership.  To determine the true cost of homeownership compare the ownership costs (mortgage, insurance, taxes, utilities, maintenance costs) versus the benefits of the tax deductions available for owners (mortgage interest and real estate taxes) along with the potential for increased property values when the market improves.  Many renters with good credit and the ability to pay a mortgage will find the benefits of homeownership worthwhile.