Neighbor News
Buying A Home in California Is Now 34% Cheaper Than Renting!!
The financial impact of buying vs. renting, with such low interest rate plus as low down payment as 5% don't miss the opportunity to buy!
The chart below shows a cost comparison for a renter and a homeowner over a 7 year period.
The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner’s payment is lower than the renter’s monthly payment
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With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after 3 years
Find out what's happening in Laguna Beachfor free with the latest updates from Patch.
The decision to buy or rent depends on your current financial situation, your future plans and the lifestyle you want to live. Both options have their own set of benefits, and potential drawbacks, that should be carefully evaluated.
Buying may make sense if you...
- Have reliable income, good credit and documentation to verify your savings.
- Can afford at least a five percent down payment and related closing costs.
- Want a chance to build equity and be eligible for homeowner tax breaks and credits.
- Are financially able to take on home-maintenance/improvement projects.
- Are planning on staying in your home for at least two years.
Renting may make sense if you...
- Have a career or lifestyle that requires you to move frequently or suddenly.
- Plan on downsizing your living space or retiring in the near future.
- Are experiencing a financial setback and/or rebuilding your credit.
The advantages of owning or renting are different for everyone, so be sure to consider these important personal situations and long-term goals before making your decision.
Amir Vahdat | Broker
p: 949-682-9090 f: 949-499-14174
e: amirvahdat@bhhscal.com
w: http://www.ocluxuryproperty.com
