Buying Vs Renting in 2025: Why Homeownership Still Wins

 Deciding whether to buy or rent in 2025? You’re not alone! A recent report found that in most areas of the U.S., owning a home is still more affordable than renting a three-bedroom home. While both renting and buying require a significant portion of income, homeownership remains the better long-term investment for those who can secure financing and a down payment.

Why Buying a Home is More Affordable Than Renting

- Homeownership Takes a Smaller Portion of Income – In nearly 60% of U.S. counties, the monthly costs of owning a single-family home consume less income than renting a three-bedroom property.

- Home Values Continue to Rise – While home prices have increased, so have wages in most markets. Many homebuyers are building equity instead of spending on rising rent costs.

- Rent Costs Are Climbing Faster Than Home Prices in Many Areas – In places like Houston, TX, Columbus, OH, and San Antonio, TX, rent is outpacing home prices, making ownership an even smarter move.

Regional Trends: Where Buying Makes the Most Sense

Best Areas for Homeownership:

- The Midwest and South are where buying is the most affordable, with 80% of counties in the Midwest and 60% in the South showing that homeownership is the better deal.

Cities Where Buying is the Best Option:

- Suffolk County, NY – Owning costs 59% of local wages, while renting takes 159%

- Naples, FL – Owning costs 79% of wages, renting costs 127%

- Chicago, IL – Owning costs 31%, renting costs 36%

Best Areas for Renting:

-The West Coast stands out as the one region where renting is the better financial choice. In about 80% of western counties, rent is a more affordable option than buying.

Cities Where Renting is the Better Option:

- Oakland, CA – Renting costs 48% of wages, while owning takes 87%

- Honolulu, HI – Renting costs 64%, while owning takes 103%

- San Mateo County, CA – Renting costs 31%, while owning takes 69%

Why Homeownership is Still the Smarter Move

- Equity Growth – Unlike rent, homeownership helps you build wealth over time. You’re investing in your future instead of paying your landlord’s mortgage.

- More Stability – Rents can rise unpredictably, while owning a home gives you financial stability with fixed mortgage payments.

- Tax Benefits – Homeownership can provide tax deductions that renting does not.

- Long-Term Savings – While down payments may seem like a hurdle, homeownership pays off in the long run compared to renting.

Key Takeaways

- In most of the country, homeownership is still more affordable than renting.

- The Midwest and South offer the best affordability for buyers.

- If you’re in the West, renting might be the better short-term option, but long-term homeownership still wins.

- Building equity and gaining financial stability make homeownership a smart investment.

Thinking about buying a home in 2025? Let’s explore your options and find the right mortgage solution for you!

#BuyingVsRenting #HomeBuying2025 #HousingMarket #Homeownership

Joe and Marni Costa and the Park Place Collective Group

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

Income Stacking Guidelines

📢 Product of the Month: Income Stacking! 🚀

Joe & Marni Costa | The Park Place Collective Group

🏡 Self-Employed and Struggling to Qualify for a Mortgage? Joe and Marni Costa and The Park Place Collective Group has a Solution!

Introducing Income Stacking, our Product of the Month, designed specifically for self-employed borrowers who need more flexibility when qualifying for a home loan. By combining multiple income sources, Joe and Marni Costa and The Park Place Collective Group can help you or your clients secure financing that traditional lenders might deny.

✅ Tax Returns – Use reported income to strengthen qualification

✅ Profit & Loss (P&L) Statements – Show real-time business earnings

✅ Asset Depletion – Convert assets into qualifying income

✅ Bank Statements – Prove cash flow and financial stability

💡 Why Does This Matter?

Many self-employed buyers struggle with traditional lending guidelines—but Income Stacking allows them to leverage all their financial resources to qualify for the home they deserve!

🚀 More Opportunities = More Closed Deals!

If you're a real estate agent, this strategy can help more of your clients get pre-approved and into homes faster! Joe and Marni Costa and The Park Place Collective Group are here to help.

📞 Let’s Talk! Call us today at 619-990-7552

📆 Book a quick strategy session: Schedule a Call

#IncomeStacking #SelfEmployedLoans #MortgageSolutions #TheParkPlaceCollective #JoeAndMarniCosta

Joe and Marni Costa and The Park Place Collective Group

402 West Broadway Suite 400

San Diego, CA 92101

www.parkplacecollective.com

The Importance of Planning Ahead With Life Insurance Protection

Joe & Marni Costa and The Park Place Collective Group offer Life Insurance Protection

The Importance of Planning Ahead Many homebuyers focus solely on securing their mortgage and closing their real estate transaction, unintentionally neglecting life insurance as part of their financial strategy. However, planning ahead can prevent unnecessary stress and financial hardship for your family. By securing life insurance, you are not just protecting your home—you are ensuring your loved ones can maintain their standard of living should anything happen to you. With various options available, we can help tailor a policy to fit your needs and budget.

 

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Protecting Your Future with Life Insurance: A Crucial Step in Homeownership

At Joe & Marni Costa and The Park Place Collective Group, we are dedicated to helping our clients achieve their dreams of homeownership while ensuring they are financially secure for the future. Whether you have utilized our comprehensive suite of services—including mortgage and real estate—or not, we want to emphasize the importance of Life Insurance Protection.

Why Life Insurance Matters in Real Estate

Purchasing a home is one of the biggest financial commitments you will make in your lifetime. However, one crucial aspect that is often overlooked in the process is life insurance. What happens to your loved ones if an unexpected tragedy occurs? Will they be able to keep the home you worked so hard to provide?

Life insurance offers peace of mind, ensuring that your family is protected in the event of an untimely death or serious illness. The last thing you want is for your loved ones to struggle financially during an already difficult time. Having the right life insurance policy in place can cover mortgage payments, household expenses, and even future financial goals such as education and retirement.

The Importance of Planning Ahead

Many homebuyers focus solely on securing their mortgage and closing their real estate transaction, unintentionally neglecting life insurance as part of their financial strategy. However, planning ahead can prevent unnecessary stress and financial hardship for your family.

By securing life insurance, you are not just protecting your home—you are ensuring your loved ones can maintain their standard of living should anything happen to you. With various options available, we can help tailor a policy to fit your needs and budget.

How Joe & Marni Costa and The Park Place Collective Group Can Help

Our team is committed to guiding you through every aspect of your financial journey, including ensuring you have the right life insurance coverage. Whether you are a first-time homebuyer, an experienced homeowner, or simply looking for additional protection, we are here to assist you.

Joe & Marni Costa and The Park Place Collective Group provides personalized consultations to help you:

1. Understand the different types of life insurance policies
2. Determine the right coverage amount based on your mortgage and lifestyle
3. Navigate policy options to find one that suits your needs and budget
4. Ensure your family's financial stability for years to come

Don't Overlook This Essential Protection

Life insurance is not just an add-on—it is an essential part of responsible homeownership and financial planning. By taking this important step now, you can have confidence that your family will be cared for no matter what the future holds.

Joe & Marni Costa and The Park Place Collective Group are here to help ensure this crucial coverage is not neglected. Contact us today to learn more about how we can provide you with the protection and peace of mind you and your loved ones deserve.

Joe and Marni Costa

The Park Place Collective Group

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com

Maximize Your Homebuying Power: The Key to TBD Approval

 

Are you looking to buy a home but feeling overwhelmed by the mortgage approval process? Joe and Marni Costa and the Park Place Collective Group understands that navigating the world of homebuying can be daunting, but fear not – we're here to provide you with the key to TBD approval and maximize your home buying power.

When it comes to home buying, the last thing you want is to be left in the dark about your mortgage approval status. That's why understanding the importance of TBD (To Be Determined) approval is crucial for empowering yourself in the homebuying process.

TBD approval is a game-changer in the homebuying journey. Unlike a pre-qualification or pre-approval, TBD approval allows you to get a head start on your mortgage process by getting your loan approved upfront, even before you find the perfect home. This puts you in a stronger position as a homebuyer, as sellers are more likely to take your offer seriously when they see that your financing is already secured.

Exploring how much you may qualify to borrow is a great place to start your home loan journey. Pre-qualification has many benefits:

• It helps narrow your home search. • It shows real estate agents and sellers that you mean business. • It can streamline the application process. • It’s fast, free and there’s no commitment.

So, how do you maximize your home buying power with TBD approval? Park Place Collective Group has some key strategies to consider:

1. Know Your Financial Situation: Before diving into the homebuying process, take a close look at your finances. Review your credit score, outstanding debts, income, and expenses. Understanding where you stand financially will help you make informed decisions as you move forward.

2. Get Prepped for Documentation: When seeking TBD approval, you'll need to provide various financial documents to your mortgage loan officer. These may include pay stubs, tax returns, bank statements, and more. Being proactive and organizing these documents in advance will streamline the process and demonstrate your readiness to potential lenders.

3. Work with a Knowledgeable Mortgage Loan Officer: As you embark on your homebuying journey, partnering with a skilled and competent mortgage loan officer is essential. A knowledgeable loan officer will guide you through the TBD approval process, answer your questions, and provide tailored solutions to meet your specific needs.

4. Understand Your Options: TBD approval doesn't lock you into a specific mortgage product or lender. It's important to explore different mortgage options and find the one that best suits your financial situation and homeownership goals. Your loan officer can help you navigate these options and find the right fit for you.

5. Communication is Key: Open and clear communication with your mortgage loan officer is crucial throughout the TBD approval process. Don’t hesitate to ask questions, seek clarification, and express your concerns. Your loan officer is there to support you and ensure that you feel confident and informed every step of the way.

Remember, every homebuyer's situation is unique, and the path to TBD approval may vary from person to person. That's why we encourage you to reach out to us to discuss your specific needs. Our team of well-informed and competent mortgage loan officers is here to provide personalized guidance and support as you work towards maximizing your home buying power.

If you're ready to take the next step towards TBD approval and unlock your homebuying potential, Joe Costa and The Park Place Collective Group is just a call or message away. Let's connect and discuss how we can help you achieve your homeownership goals. Joe and Marni  Costa and The Park Place Collective Group look forward to talking with you. 

Park Place Collective

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com

Mastering Pre-Qualification vs. Pre-Approval to Enhance Your Client Experience

 

Joe and Marni Costa and The Park Place Collective Group would like to explain the difference between the two. 

In the world of real estate, knowledge is power, especially when it comes to helping clients navigate the mortgage process. As a local real estate agent, your clients look to you for guidance, and being well-versed in the nuances of mortgage pre-qualification and pre-approval can enhance their experience significantly. It’s not just about finding a house; it’s about making sure your clients are prepared and confident in their buying journey.

Let’s start by understanding what pre-qualification and pre-approval really mean. While both terms are often used interchangeably, they have distinct differences that can impact your clients’ home buying experience.

Pre-qualification is typically the first step in the mortgage process. It’s a basic assessment of a potential buyer's financial situation based on the information they provide. A client can usually complete this step online or over the phone, and it doesn’t require extensive documentation. While pre-qualification gives a general idea of how much a client might be able to borrow, it is not a guarantee. This step is like a quick snapshot of their finances.

On the other hand, pre-approval is a much more thorough process. It involves a deeper dive into the client’s financial background, including verification of income, assets, and credit history. For this step, your clients will need to provide documentation such as W-2s, bank statements, and possibly even tax returns. Once the lender reviews this information, they provide a pre-approval letter stating the maximum loan amount the client is approved for. This letter carries more weight and shows sellers that the buyer is serious and capable of securing financing.

Understanding these differences is crucial for you as an agent. When you encourage your clients to get pre-approved, you set them up for success. Not only does it give them a clearer idea of their budget, but it also boosts their credibility when making an offer. Sellers often prefer buyers who are pre-approved, as it minimizes the risk of financing falling through. 

Joe and Marni Costa and The Park Place Collective Group can provide your clients with in-depth consultations to help them understand their financial situation better and navigate the pre-approval process with confidence.

Another tip is to use technology to your advantage. Joe and Marni Costa and The Park Place Collective Group offers an online portals that allow clients to upload documents and check their loan status easily. Encourage your clients to utilize these tools, as they can make the process more efficient and less stressful. You can also help them by providing links to these portals or offering assistance in navigating them.

Furthermore, consider the emotional aspect of home buying. For many clients, buying a home is not just a financial decision but an emotional journey. Pre-approval can help alleviate some of the anxiety that comes with purchasing a home. When your clients know they are pre-approved, they can focus on finding the right home instead of worrying about their financing options. Remind them that this step is an investment in their future and can lead to a smoother, more enjoyable buying experience.

Lastly, keep in mind that every client is unique. Some may have straightforward financial situations, while others might have more complex needs. By working closely with Joe and Marni Costa and The Park Place Collective Group mortgage, we can help tailor the pre-approval process to suit each client’s circumstances. This tailored approach not only enhances their experience but also builds trust and sets the foundation for a lasting relationship.

In summary, mastering the differences between pre-qualification and pre-approval is essential for real estate agents looking to elevate their client experience. By fostering a strong relationship with a reputable mortgage company, you can provide your clients with the support and knowledge they need to navigate the home-buying process confidently. Encourage them to seek pre-approval early, educate them on the timelines and documentation necessary, and keep the communication lines open.

If you want to dive deeper into how pre-qualification and pre-approval can work for your clients, or if you have specific questions about the mortgage process, don’t hesitate to reach out. Joe and Marni Costa and The Park Place Collective Group are here to support you and your clients every step of the way. Let’s work together to enhance the home-buying experience for everyone involved.

Joe and Marni Costa

Park Place Collective

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com

Bridge Loans Your Key Solution for Guiding Home Buyers Through Transitions

 

Navigating the world of real estate can often feel like a juggling act for home buyers, especially when they are trying to transition from one property to another. The process can be complicated and stressful, but there’s a solution that can make it smoother and more manageable: bridge loans. Understanding bridge loans and how they work can empower you as a real estate agent, allowing you to better serve your clients and help them successfully navigate these transitions. Joe Costa and the Park Place Collective Group is here to help better educate sellers and buyers on how to leverage this product. 

So, what exactly is a bridge loan? A bridge loan is a short-term loan that provides immediate cash flow for home buyers who are in the process of selling their current home while simultaneously looking to purchase a new one. This type of financing is designed to "bridge" the gap between the sale of one home and the purchase of another, enabling buyers to act quickly in a competitive market without the stress of timing issues.

One of the key advantages of bridge loans is that they offer flexibility. Many buyers find themselves in a situation where they have found their dream home but haven’t yet sold their current property. In such cases, a bridge loan can provide the necessary funds for the down payment on the new home, allowing buyers to secure the property they want without waiting for the sale of their existing home to go through. This can be particularly beneficial in a fast-paced real estate market where desirable homes tend to sell quickly.

It is important to note that bridge loans are typically short-term loans, often lasting from a few months to a year. This means that they are meant to be a temporary solution rather than a long-term financial commitment. The interest rates on bridge loans may be higher than traditional loans, but the trade-off is the ability to close on a new property without the delay of selling the current one first or having to include the cost of the bridge loan in the debt-to-income calculations. 

Another nuance to consider is that bridge loans can also be structured in various ways, depending on the borrower's needs. Some lenders might offer a loan based on the equity of the current home, while others may provide a loan that considers the future value of the new property. Joe Costa and The Park Place Collective Group have both all the available guidelines. This means that it’s essential for you, as an agent, to work closely with us so we can provide your clients with the proper guidance and best options available.

An essential aspect of leveraging bridge loans in your practice is staying connected with Joe Costa and The Park Place Collective Group. When you have a competent partner in this area, you can confidently refer your clients for bridge loan inquiries, knowing they will receive the best possible guidance throughout the process. This collaboration not only enhances your service as an agent but also builds trust and loyalty with your clients.

Additionally, we will host informational sessions or workshops for your clients that focus on bridge loans and their benefits. By becoming a knowledgeable resource on this topic, you position yourself as an expert who truly understands the challenges home buyers face. This not only sets you apart from other agents but also strengthens your relationships with clients, as they will appreciate the added value you provide.

As you connect with local real estate professionals, share insights about the importance of bridge loans and how they can benefit their own clients. Encourage them to recognize the potential value of these loans in easing the transition for buyers, especially those who might be feeling overwhelmed by the process. By fostering a network of supportive agents who understand the intricacies of bridge loans, you create an environment where everyone can thrive.

For agents, the key to success in the real estate market often lies in being proactive and staying informed. Equip yourself with the knowledge of bridge loans and how they can make home buying transitions smoother for clients. Encourage your clients to explore this financing option, and work hand-in-hand with Joe & Marni Costa and The Park Place Collective Group to ensure a seamless experience.

If you want to learn more about how bridge loans can benefit your clients and how we can work together to provide them with the best possible solutions, reach out today. Let’s connect and discuss your specific needs and how we can collaborate to help your clients smoothly transition into their new homes.

Joe and Marni Costa

The Park Place Collective Group

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com

Home Prices Are Rising...But That's A Good Thing

 If you’ve been keeping an eye on the housing market, you may have heard that home prices are still increasing. According to experts, prices grew by 3.4% year-over-year in November 2024, and experts predict another 3.8% increase by November 2025. But don’t worry—this isn’t the rapid, unsustainable growth we’ve seen in past years. Instead, price growth is moderating, creating a more balanced market that benefits both buyers and sellers.

Why a Balanced Market is Good News

After years of rapid price increases, a moderate, steady rise in home values brings stability to the market. This means:

For Homebuyers:

Less Competition – With prices increasing at a steadier pace, buyers have more time to find the right home.

Sustainable Appreciation – Homes are still gaining value, making them a smart long-term investment.

More Inventory – As market conditions normalize, more sellers are listing their homes, giving buyers more choices.

For Homeowners & Sellers:

Equity is Growing – A steady rise in home values means homeowners continue to build wealth through homeownership.

Strong Buyer Demand – With the market stabilizing, buyers are still motivated, creating strong opportunities for sellers.

More Predictability – Unlike previous market spikes, moderate price increases allow sellers to price their homes competitively and attract the right buyers.

A Look Back: When Was the Last Balanced Market?

The period from 2012 to 2016 is often cited as one of the last true balanced markets in the U.S. housing sector. Following the 2008 financial crisis, home prices grew at a sustainable pace, interest rates remained favorable, and inventory levels supported both buyers and sellers.

Why This Matters:

• For Homebuyers: Prices weren’t skyrocketing, allowing buyers to purchase homes without the stress of bidding wars.
• For Sellers: Steady appreciation meant sellers could list their homes with confidence, knowing they could attract serious buyers.
• For the Market: A balanced market created opportunities on both sides, leading to more successful transactions without extreme price jumps.

What’s Next for the Housing Market?

According to some experts, home prices will continue to grow at a steady pace, and lower mortgage rates this year could increase home sales and refinance opportunities. This stability means homeownership remains a strong investment, whether you’re buying or selling.

Final Thoughts

While home prices are still rising, they’re doing so at a more manageable pace, making 2025 an excellent time to buy or sell. If you’ve been waiting for the right moment to make a move, now’s the time to start planning!

Thinking about buying or selling? Reach out to Joe & Marni Costa and The Park Place Collective Group to learn more about your options and find the best strategy for your goals!

Joe & Marni Costa

The Park Place Collective Group

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com

 

How the Latest Executive Order and Mortgage Rates Impact Homebuyers in 2025

 On January 20, 2025, President Donald Trump signed an executive order aimed at tackling inflation, with a major focus on reducing housing costs and increasing affordable home availability. While these policy changes are designed to ease the burden of rising home prices, mortgage rates remain a key factor in affordability—and as of now, they haven’t budged.

What the Executive Order Means for Housing

Lower Housing Costs – The order directs federal agencies to remove regulations that drive up home prices, aiming to make homeownership and renting more accessible.

More Homes on the Market – To address inventory shortages, federal agencies are pushing for policies that encourage more housing development.

Energy Policy Changes – The administration has reversed certain energy policies, with the goal of lowering energy costs, which could reduce some homeownership expenses.

What’s Happening with Mortgage Rates?

Despite these policy shifts, mortgage rates remain steady, with the average 30-year fixed mortgage rate holding at 7.07% as of January 21, 2025.

Why Haven’t Rates Changed?

Mortgage rates are driven by many factors, including inflation, economic data, and Federal Reserve policy. While regulatory changes could influence home prices over time, they don’t have an immediate effect on interest rates.

What This Means for Buyers & Homeowners

• If You’re Buying: While home prices may become more manageable in the future, mortgage rates are still a major factor in affordability. Now is a good time to explore loan programs and down payment assistance options.
• If You’re Refinancing: With rates holding steady, it’s important to evaluate your financial goals and whether refinancing makes sense in today’s market.
• If You’re Selling: Increased inventory could create more competition for sellers, so pricing your home right will be key in attracting buyers.

What’s Next?

While housing affordability remains a top priority, it will take time to see how these changes impact the market. If mortgage rates start to shift or home prices adjust, being informed and prepared to act will be the best strategy for buyers and homeowners.

Want to discuss your homeownership options? Contact us today to see how these changes may affect you!

#EconomicPolicy #HousingMarket2025 #MortgageRates #HomeBuying 

Specific loan program availability and requirements may vary. Please get in touch with a Park Place Collective mortgage advisor for more information.

Park Place Collective

Joe Costa Broker/Owner

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com

Seller Financing: Is This Right For You?

 

Another advanced loan solution worth exploring is the potential for seller financing. In a competitive market, offering seller financing can attract buyers who might not qualify for traditional financing. This strategy can open up your clients' properties to a broader audience, enhancing their selling prospects. Educating clients about the benefits of this option, including the possibility of earning interest on the financed amount, can be a win-win situation for both parties.

To find out about any of our advanced loan solutions contact the Park Place Collective Group.

Park Place Collective

Joe Costa Broker/Owner

Marni Wolf VP of Operations

402 West Broadway, Suite 400

San Diego,CA 92101

619-990-7552

www.parkplacecollective.com

Home Equity Line Of Credit A Park Place Collective Advanced Loan Option

 

Another powerful tool in advanced loan solutions is the use of home equity lines of credit (HELOCs). For clients who have built up equity in their homes, a HELOC offers a flexible credit line that can be drawn upon as needed. This can be particularly helpful for clients needing funds to make repairs or renovations to enhance their property's appeal before listing it on the market. As an agent, encouraging your clients to consider a HELOC can empower them to maximize their home’s value, leading to higher offers and a faster sale.

For more information about our HELOC programs contact the Park Place Collective Group.

Park Place Collective

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

Bridge Financing A Park Place Collective Advanced Loan Solution

 

One of the most effective advanced loan solutions is bridge financing. This type of loan allows sellers to access the equity in their current home before it sells. This can be particularly beneficial for clients who have found their dream home but need to secure financing before closing on their current property. With a bridge loan, they can make an attractive offer on their next home without worrying about the timing of their current home sale. By positioning your clients to act quickly, you not only help them secure their ideal next property but also increase their chances of selling their current home faster.

To find out more about our bridge financing loan products reach out to one of our experienced mortgage advisors with the Park Place Collective Group. 

The Park Place Collective Group

Joe Costa Broker/Owner

Marni Wolf VP of Operations

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com

Park Place Collective Has Advance Loan Options

 

As local real estate agents, you understand the importance of providing your clients with the best possible service. Selling a home is one of the most significant financial decisions your clients will make, and ensuring that they have access to the right financial solutions can make all the difference in their experience. Park Place Collective has advanced loan solutions available for your clients. These powerful tools can help your selling clients achieve their goals, and knowing how to leverage these options can set you apart as a knowledgeable and trustworthy resource in your market.

When it comes to selling a home, many homeowners worry about how they will finance their next property while still in the process of selling their current one. This is where advanced loan solutions come in. These options offer flexibility and support that traditional loans may not provide, allowing your clients to focus on their selling strategy without the added stress of financing.

Reach out to the Park Place Collective Group to find out more about these advanced loan options. 

Joe Costa Broker/Owner

Marni Wolf VP of Operations

Park Place Collective

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552

www.parkplacecollective.com