Why Should You Buy a Home Instead of Renting One?

In our current market, you’re much better off buying a home
instead of renting one. Today I want to tell you why.





Looking to buy a Los Angeles home? Search all homes for
sale 


Selling your Los Angeles home? Get a FREE home value
report



Why should you buy a home instead of renting one? There are three
good reasons I want to share with you today.  

The first reason is that the cost of renting is on the
rise. According to studies, rent increases have far outpaced
inflation in recent years. Vacancy rates are low, and the growth
in renter households is high. This means that landlords have
greater pricing power to set their rents.

The second is the high cost of not owning a home. The
average rate of a home price appreciation over the past 20 years
has been about 3% per year. Let’s say that you invested $10,000
into a home at a purchase price of about $200,000 and over a
period of a five-year hold, that property increased 3%. That
means your net increase in appreciation (or equity, if you will)
is about $40,000. If you subtract the first $10,000 for your down
payment, your total equity growth equates to $30,000. That amount
far outpaces anything you could’ve done while paying someone
else’s mortgage by being a renter.


Renting amounts to paying someone else’s mortgage.

The third and final reason is that there are many tax
benefits to owning a home. In many cases, mortgage interest
rates and property taxes are deductible every year. Let’s say you
pay $1,200 a month in mortgage interest and property taxes and
you’re in a 25% tax bracket. This means you’ll save about $300 a
month by owning a home versus renting one.

If you have any further questions about this topic, please don’t
hesitate to give me a call. I look forward to speaking with you
soon!