Those looking to move to California or just changing residences have big decisions to make. Is it better to purchase a home or rent? Many factors play a role in this decision.
· How long do you plan to stay in California?
· Are you looking for a long-term home or temporary residence?
· Do you have the money for a down payment on a home?
· Do you have enough available cash for the upkeep and maintenance of a single-family home?
· Can you afford to choose a home in your desired area?
There are pros and cons to every scenario, so it is best to think everything through before you make a financial decision you will one day regret.
The Dream of Home Ownership
According to Today’s Homeowner, this a large part of the American dream was purchasing a home. Purchasing a home signifies financial stability, becoming an adult, and settling into a home you will live in for many years. On the other hand, those who chose to rent were considered to be throwing away their money each month.
The concept of homeownership is somewhat new because, until the 1940s, less than half of the population owned their own home. Today, around 66% of the U.S. population own their own home. But with fewer homes on the market and interest rates rising, many are asking themselves the question, “Is homeownership the right choice for me?”
Apartments May be the Answer for Many
There’s no question that homeownership is not in the cards for everyone. Many people cannot afford the down payment and monthly mortgage payments. For those people, there are rentals. Investors like Steven Taylor LA, a successful real estate investor that owns numerous apartments. They have been popular options for apartment-dwellers.
For many, apartments are the only way to go, especially in areas where there is a big turnover, such as in larger cities like West Hollywood and Los Angeles. Many people with big dreams flock to the area hoping to join the entertainment industry. Until they get that big break, they are often working low-paying jobs and must lease apartments until either their money runs out or they secure a high-paying position.
Homebuying vs Renting
Home prices in Los Angeles are some of the highest in the country, so many Angelenos are unable to realize their dream of homeownership. But for many, this isn’t a bad thing as there are pros and cons to each.
According to Curbed LA, some people choose to be apartment dwellers, so they don’t have the physical upkeep of a home and the cost involved with continual maintenance, taxes, and abiding by HOAs.
Though apartment rentals can be expensive, many of the most popular apartments are large enough for two to share, splitting rent and utilities. This has become a popular scenario in many of the apartment complexes in the LA area.
Many look at how long they plan to be in a home before they make an apartment vs. home decision. According to ListWithClever.com, in some areas, homeowners spend more than renters over a 30 year period, even with tax incentives.
The average rent in California is around $2,600 but can be more in highly desirable areas. Steven Taylor Los Angeles believes that the rent vs. buy decision should be made after careful consideration of both options. It is an individual decision based on many factors.