Buying a house is better than renting, right? Growing up, our parents raised us to believe that renting is a waste of money. And that buying a home is one of those markers of success in life. But as the economy and lifestyles change, this quandary is more debatable than ever. Buying a house is an expensive investment buying, and not always the better option. The Buy, Sell, Rent San Diego team is always happy to help our customers determine what options best fit their needs. This week, we will discuss how to weigh the decision carefully. To rent or to buy: that is the question.
Today, the costs of renting are often much more expensive than buying a house, but renting comes with considerable benefits.
Renting
- If your job or family require you to be always on the move, then renting may a better option for you. Flexible leasing options allow you to sign contracts for as little as 6-month obligations, and some property managers are even willing to go month-to-month, so you do not have to worry about packing up when work calls.
- In addition, renting comes with the benefit of included service. Sometimes they include daily amenities like utilities and laundry or parking. You’ll never have to worry about the high costs of home maintenance. Rentals are always move-in ready.
- Less-than-perfect credit? Property managers tend to care more about your income and references than that bankruptcy five years ago. Sure, they’ll check your credit, but it’s a minor consideration in the grand scheme of your application.
- As mentioned above, timing is everything. Buy a condo is just as subject to the rises and falls of the market as any other investment. If you are not willing to take the risk, renting is a better option.
Buying
- If you want to settle down, make a diversified investment portfolio and gain tax benefits; buying a house in Downtown San Diego (or any other preferred location) appears to be a good choice. No more miscommunications with your landlord. No more house hunting every year. Enjoy the solitude of your house. But Also,
- Buying a condo allows you to build your equity and credit. Every dollar you put on your home loan is a dollar in equity you may use later for low-risk investments. Making improvements to the property will boost that equity at an even lower cost.
- Maybe you think of your condo as your home and never plan to move. However, if you buy, your property does not have to be a burden. Turn it into a rental home and, you have an asset with monthly recurring revenue.
- If you want to decorate, redesign, reimagine your home and make it a truly custom space, you want to buy. Rental agreements usually come with a “no painting” clause which does not allow you to make alterations. Buying gives you all the creativity you can imagine.
Timing is everything!
Timing is the critical factor in deciding to buy or not to buy.
Imagine buying a downtown condo in 2007. The market was great, and prices were rising with no signs of the real estate costs decreasing in the near future. While it seemed like the perfect time to buy, buying while the market is high has significant risks. Customers who bought during 2007 suffered in 2008 when the great recession struck. Unfortunately, the price of apartments lost has value. On the contrary, if you purchased a condo during the recession period, your property has increased in value every year since.
In both the above scenarios, it is not just the timing and mentality, but various other factors play a part in a particular decision: cash flow, urgency, and desired condo availability. Therefore, the question of buying vs. renting is a difficult decision.
Planning
Whether you are looking to buy or rent, never do so impulsively. Long before you start your hunt, you need to have a solid plan. Make sure you are prepared to give your time, effort and money throughout the entire process. We always help our clients establish a that includes budget, timeline, needs, wants, and location. If you plan on making the hunt solo, ensure to make firm commitments to cost and timeframe finding your new place.
In the end
It is important to break our stereotype that it is a waste of money to rent, and buying a house is the only way you can secure your shelter. The circumstance differs for each, and each of those circumstances demands a different action.
Whether you are buying or renting in downtown San Diego, we are here for you. For all inquiries, reach out to Claudette Cooper at 619-458- 3196 today for a free consultation!
