When looking for a place to live in Southern California, one of the first decisions you will have to make is whether you should rent or purchase a home. With many pros and cons associated with both options, you need to carefully consider your lifestyle and your future goals as you determine which is best for you. Here are a few things to consider when deciding whether to rent or buy.
How Long Do You Plan to Stay?
If you only plan to stay in a particular area for a couple of years or if you are still trying to decide which neighborhood is right for you, it might make sense for you to rent now rather than buying a home. Obviously, if you are still deciding where you want to live, renting a home will help you check out a neighborhood that is of interest to you without making a full commitment. It will also give you the flexibility that you need to check out other communities until you find one that is the right fit. Similarly, if you only plan to stay in a particular neighborhood for a couple of years, it might make more financial sense to rent rather than purchase a home. To determine this, you will need to crunch some numbers to see if the cost of renting is more or less than the cost of closing on a home purchase.
How Involved Will You Be with the Community?
If you want to enjoy a sense of stability with strong community involvement, purchasing a home may make more sense for you. In fact, you may want to purchase a home in a community where rentals are not permitted. This way, you can be sure you will not be living with a transient community, but with people who are also committed to staying in the area on a long-term basis.
Do You Want a Return on Your Investment?
When you purchase a home, you are paying toward ownership of the property. With prices continuing to rise in Los Angeles, you are almost guaranteed to receive a hefty return on your investment when you purchase a home rather than renting. After all, every time you make a payment on a home that you have purchased, you are working toward building equity. On the other hand, there are many costs associated with homeownership that you don’t typically encounter as a renter. These include property taxes, trash pickup, water and sewer service, homeowner insurance, pest control, tree trimming and other costs of repairs and maintenance.
What are Your Lifestyle Preferences?
Renting can often be a more attractive option over homeownership simply because you do not have to worry about taking care of repairs and maintenance of the property. This gives you more free time to do what you please. Furthermore, rental properties may come with amenities, such as swimming pools and tennis courts, for you to enjoy. Of course, you can also purchase these services and amenities for your home if you prefer the privacy and stability that homeownership provides.
These are just a few things to consider when deciding between renting or purchasing a home. If you are ready to buy a home in Southern California, contact our team of luxury real estate agents. We specialize in high-end homes in the area’s most exclusive communities.
$2,790,000 : 1995 SUNSET PLAZA Drive, Los Angeles4 beds, 4 baths
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$3,395,000 : 1282 CASIANO Road, Los Angeles4 beds, 5 baths
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(all data current as of 7/23/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.