April 14, 2020
Many have dubbed owning a home as the American Dream. That being said, renting a home oftentimes makes the most sense. It also gives you the freedom to move from place to place a little easier. It’s a lot harder to pickup and move when you have a home to sell.
In many cases, renting a home is cheaper than owning one, even in San Diego where we have seen a steady rise in rental rates. While a tenant typically supplies a deposit in a lease, that deposit a lot less than a typical down payment. Tenants are also not burdened with maintenance costs and real estate taxes, which can really add up.
While rents may rise, you’re never at risk to lose investment money when renting. In fact, renting may free up some capital to invest elsewhere.
Renting does have its disadvantages too. In many cases renting a home is more expensive than a mortgage on that same home. That’s typically not the case in San Diego, but in other states this is not uncommon. Additionally, house payments never cease when renting. That being said, when you purchase a home there is a term for your payments. There are no more housing payments at the end of a typical 15 or 30 year fixed mortgage. The whole goal of owning a home in my eyes is to actually own the whole home down the line. You don’t get that when renting.
Another disadvantage of renting is that your payments typically rise with inflation. They’re not fixed like a mortgage payment. They payment doesn’t inflate away like a mortgage payment. Many of us have heard about our parents and grandparents low mortgage payments. Ask the older generations… those payments were high when they started 30 years ago.
Speaking of rising rents, you’re always at the mercy of the landlord when you rent their home. They choose the wall colors, and they control the amenities. They may or may not allow you to have pet. It’s their rules. They also control whether or not they want to continue to rent the home to you. You never know when they will sell the home.
Renting a home can make perfect sense. Hopefully it comes with the ability to save for the purchase of your own home. If you would like to discuss your plan for homeownership reach out to us.
Stay up to date on the latest real estate trends.
September 28, 2022
Mortgage interest rates play a huge role in home values. These rates are now at 2002 levels, up sharply from all time lows in 2021. The average 30 year fixed mortgage …
April 7, 2022
Let’s face it… A lot of real estate investors are priced out of California, and prices are continuing to climb. Here is an example. In 2012 an investor could purchase …
April 6, 2022
Let’s face it… A lot of real estate investors are priced out of California, and prices are continuing to climb.
March 16, 2022
Market Real Estate specializes in selling inherited properties. Oftentimes our clients have a quite a project on their hands. One of their biggest concerns is what to …
March 15, 2022
Market Real Estate specializes in selling inherited properties.
January 6, 2022
We highly recommend a fresh coat of paint. Paint creates a huge return on investment. The “in-style” colors seem to change fairly quickly these days. We went from tans…
December 30, 2021
Going back a few generations there was very little credit extended to people interested in purchasing real estate. Fast forward to the first decade of the 2000’s credi…
December 14, 2021
There is a lot of competition amongst buyers in our housing market. There are simply more buyers than properties available. There also happens to be quite a few buyers…
November 4, 2021
Zillow’s CEO stated, “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated.” I Think it’s incredibly hard to predict home p…
You’ve got questions and we can’t wait to answer them.