| Today we’re tackling the topic of renting versus buying and I’m not going to pretend to present a neutral argument here! As a real estate broker, I’m in favor of ownership.
So let’s go ahead and jump into it. There are a few things you should consider when deciding whether or not you need to keep renting or if you can figure out how to scratch up that cash and make it happen.
Rent Cost
The first thing we’re going to consider is that rents are just going to continue going up. Real estate prices tend to have an ebb and a flow with a generally upward trajectory but there isn’t much flow going on in rents – they just keep marching upward.
Once you get that 30-year fixed mortgage, that’s going to stay locked in forever unless you decide it’s time to refinance or sell that home.
Customizations
When’s the last time you’ve looked at your walls and figured you’d rather have a different color on them, you’d like to install some shelving, or do some bigger modification like flooring or move a wall? Well, if you’re renting, it’s not an option.
Privacy, Privacy, Privacy
Your landlord has your keys, your landlord has the right to come in in the case of emergency and with notification, can come in for other reasons as well. If you own your home, you own the keys. I don’t think I need to say much more.
Relocation Flexibility?
Relocation flexibility is an argument that may seem to lean towards renting as opposed to buying. If I want, I can probably break my lease, take a bit of a fee on the chin and move on my way, or if you’re not in the lease, just tell your landlord and move. But if you live in San Diego, you have just as much flexibility as any renter as an owner. You can quickly sell your home, especially we’re in a market that is as hot and fiery as this one.
Moreover, since the market is so demanding, it’s easy to attract a renter to pay your mortgage for you and go about your way.
Building Equity
When you rent, you’re paying somebody else’s mortgage and they’re building equity. When you own, you’re paying your mortgage. Meanwhile, the value of your home is going up each year. It’s a no-brainer.
Tax Incentives
Finally, there’s even more incentive to buy thanks to our government. You receive tax advantages like interest deductions and more for owning a home as opposed to renting.
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