Should I Buy Or Rent?
September 19, 2016 10:29 am
The housing market in California has been in recovery for a while now and approximately 80 percent of people believe it’s a good idea to buy a home, according to the National Association of Realtors’ 2013 Housing Pulse Survey. There is a lot of preparation that goes into purchasing a house. Should I rent or buy a home? If this is something you’re starting to ask yourself, then it’s time to sit down and examine the advantages and disadvantages.
The Many Considerations
Right now, home prices are pretty high in the most desirable areas of Southern California. It can be difficult to get into a house in west LA and Palos Verdes. It takes a lot of money upfront to purchase a house. While there are programs that might assist many consumers with a down payment of 3.5 percent or less, there are still closing costs, a deposit, and an emergency fund that you will need. Not to mention that when you buy a house, you should plan to live there for a while. If you have established your family and have a firm five to 10-year plan that keeps you in the area, you might be ready for a home.
Pros and Cons
While it might seem like homes are difficult to get your hands on, there are many affordable options available in hot spots of Southern California including Culver City, Hawthorne, San Pedro, Torrance, Westchester, and a variety of other areas. It’s even possible to purchase a condo right in LA. Having your own home also puts you in control of your own property to do with it as you please—within city regulations, of course.
On the flip side, one of the nicest aspects of renting is the freedom of responsibility. The landlord tends to be in charge of repairs and yard work. When you own your own home, it’s important to start a budget of one to three percent of the home’s value in order to keep up on repairs and regular maintenance each year. Don’t forget about property taxes, which is something you continue to owe even after paying off the house.
Are You Ready?
The debate between renting vs. buying a home is largely a personal one. There are many advantages to renting, but when you have a solid five-year-or-longer plan, you know how large your family is and will be, and you’ve created a budget to account for all of the different financial responsibilities of homeownership, then you might be ready to start looking for a home in Southern California. When the time is right, Levine Homes will help you through the entire process. Call us at (310) 796-9088.
