Is it better to buy or rent a property in San Diego? Like most things in life, it depends on your perspective. Most Realtors will say it’s better to buy because it will get them your business, while most property managers or complex owners would say it’s better to rent. I happen to have my foot in both worlds, so I’d like to think I can give you some clear, unbiased thoughts on the dilemma. Before going any further, there are three questions you need to consider when deciding whether to buy or rent.
1. Do you love the Home and the Location?
2. Do you think you will live in that house for seven years or longer?
3. Do you have the funds? This includes 20% for a down payment, along with cash reserves to handle maintenance and property taxes.
If you can answer yes to all three of these questions, you should definitely buy a home. Over the long term, Trulia says buying is 32% less expensive than renting in San Diego. Here are five more reasons why buying over renting makes sense:
1. It’s a leveraged investment. This can amplify your gains.
2. You’re paying for Housing one way or another. Do you want to pay down your mortgage, or your Landlord’s mortgage?
3. When you make a Mortgage payment, you are paying down the principal balance. Over time, this is like a forced savings account and will provide substantial equity.
4. Substantial tax savings include write-offs for property taxes and mortgage interest payments.
5. Owning real estate is a great hedge against inflation. Inflation helps Owners and hurts Renters.
Buying a home is a leveraged investment.“
As you can see, it’s better to buy in most cases, but there are situations where renting is the right choice. It all depends on your individual situation. If you have any questions for me, don’t hesitate to reach out and give me a call or send me an email. I would love to hear from you soon.