San Diego Homes

Renting vs Buying an Escondido Home for Sale

Home prices have fallen drastically over the past 4 years. Does that mean  if you buy a home right now that you won’t make a return on your investment? Maybe, maybe not. Let’s look at renting a home versus buying a home a little closer. We’ll look at the advantages of renting and the advantages of owning and any possible future costs. Then you can choose which strategy is best for you and your family.

Disadvantages to Owning your own home:

  • You’re stuck in the same place. Once you own a home, there’s no quick way to move. The home has to be sold which, even in the best of markets, takes some time.
  • You have to pay for all the maintenance and up keep on the home. There’s also a benefit to this you can paint and remodel anytime you wish.
  • You have to pay the HOA fees and the property taxes and the homeowners insurance and all the utilities plus your monthly mortgage payment. (It can add up quickly!)

Disadvantages to Renting a home:

  • The landlord can decide to stop renting at any time and kick you out of your home. Even if you pay your rent on time every month, you may get “evicted”. The landlord may decide to sell the property, and the new owner doesn’t have to rent the property out. So you may just be out of luck and out of a home.
  • You can’t choose the wall color or make any renovations. While there is a minimum standard that  a landlord needs to keep a house at, they don’t need to make any extensive renovations. So you maybe stuck with that “beautiful” avocado kitchen linoleum and the gold Formica counter top from the 70’s. As long as it’s functional, the landlord may see no reason to replace it.
  • In the not so distant future, rental rates could be facing a double digit increase, according to real estate experts.

Advantages to Owning your own home:

  • You have a stable place to raise your children. They’ll stay in the same school district and not hop from school to school.
  • You probably have more space and more room than if you were renting.
  • You have an investment that will appreciate over time. No matter what, if you keep your home for an extended period of time your home will appreciate. Maybe it won’t increase as fast as before the real estate bubble broke, but it still will appreciate. What that means is your money will be growing for you.
  • If you stay in the same house and pay off your mortgage, your monthly overhead, when you retire, will be considerably less than a renter. That means your retirement will last longer, you can live longer and have more fun.
  • You can change, paint, remodel, decorate your home to reflect your personality. You can even paint the walls PURPLE, if you want! 😉
  • Your home maybe able to help you with cash flow if you own a business, or fund a once in a lifetime trip.

Advantages to Renting a home:

  • You don’t have to foot the maintenance bills.
  • You pay the same fixed amount every month, no matter if the mortgage or the HOA fees or the property tax goes up. You probably don’t pay all the utilities, like water, sewer and trash.

Right now while home prices are low and interest rates are low, the monthly payment on a purchased home maybe the same or less than a rental.  Call Mindi Landry at (760) 737-3767. With her 34 years of experience as a local real estate agent, she’ll help you to choose whether renting or buying a new home is right for you.

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