As the economy and real estate industry continuously shift, the debate between renting and buying a home also continues. What many might be missing here is that there is really no fixed answer. Having a home to call your own is everyone’s dream, but is it the right move for you?
In choosing whether to rent or buy, your personal goals, financial situation, work, and lifestyle preferences all play an important role. Are you ready to settle down in one place or are you looking to travel more? Do you want a home in the middle of the city or by the beach? Interested in luxury homes in the SoCal real estate market? What is your budget? These are just some things to factor in when considering to buy or rent a home.
To get to know your options better, here are the benefits of each.
Benefits of Renting a Home
- The flexibility of changing locations anytime. If you haven’t decided yet on where to settle down for good, renting allows you to live in a place without having to fully commit to it. One day you are enjoying a tropical home in a breathtaking paradise while a year later, you might be living the luxury life in an upscale OC SoCal neighborhood.
- Less maintenance and repair costs. When you rent a home, regular repair and maintenance are often the responsibility of the landlord. You don’t have to worry about calling a plumber to fix a leak, or hiring a landscaper to maintain your lawn. Your landlord takes care of all that, including the costs. One thing to keep in mind is that homeownership comes with “hidden” costs in addition to monthly mortgage payments. These include maintenance, property taxes, insurance, and so on. Unless you’re financially prepared for these additional expenses, you might be better off renting a home.
- More time to save for your dream home. Owning a property in the luxury OC real estate market shouldn’t be hurried. Renting a place that resembles your dream home affords you to live in one while also giving you more time to prepare your finances. If you don’t feel ready, are not confident in your credit score, or have not saved enough for a down payment, it’s best to give it more time.
Benefits of Buying a Home
- Stability and creative freedom. There is nothing like a permanent home that you can call your own. The peace of mind and sense of fulfillment you get from owning your home is simply unparalleled. You won’t have to worry about increasing rentals or any possibility of eviction. You also get almost total control over what to do with the property. As long as you abide by any HOA rules, you can renovate and design your home to match your unique style and needs.
- Long-term investment and building equity. The money you spend on rentals is essentially money down the drain. When you buy a home, however, your monthly mortgage payments go into building your equity. When properly managed and maintained, a home can build value over time, allowing you to earn more from it. It is a fact that real estate values increase in the long run, and in general, you can expect a great return on your investment when it comes time to sell. In particular, luxury real estate has been proven to be an effective hedge against inflation as its intrinsic value can’t be wiped out even in an economic downturn.
- Take advantage of tax benefits. Homeownership comes with tax benefits. You can enjoy tax breaks through mortgage interest deductions, interest on home equity loans, property tax payments, home office expenses, and others.
To rent or to buy? It all depends on your personal goals, finances, and your vision on how to live your best life. As a buyer, take the time to assess these factors before making the big decision.
Looking for expert advice on OC real estate properties? Call me, Robyn Robinson, for all your real estate needs. As a top Realtor for OC Compass, I have the expertise and commitment to help you make the right decisions. Get in touch at 949.295.5676 or drop me an email today.