Analyzing all of the available statistics
It is very clear that home prices in Los Angeles are currently very high. Furthermore, increasing numbers of residents simply cannot afford to rent property in the city. This posing a very interesting question such as whether buying or renting is the best option. According to real estate experts particularly those among the real estate agents in Los Angeles, both of these options have their own set of pros and cons. Because of the current price of real estate property very few people have the financial means to purchase property in the city. However, there are still some cautious individuals who always ensure that they have some savings tugged away. The ability to supply a sizable deposit can make things considerably easier and can result in a lower monthly repayment amount. Even so property experts such as Amir Madani and other real estate agents in Los Angeles feel that both buying and renting have their set of benefits and ultimately it comes down to the needs of the individual.
The benefits of buying
When you first purchase a property it can be a daunting experience and on a limited budget the down payments can be intimidating. However, over time as more of the principle is paid off and a considerable amount of equity has been gained since the original purchase the situation starts to look more promising. The reality is that as you continue to make your down payments you have increased access to the total value of your property and the benefits when selling can be substantial. For those who find themselves in a position where mortgage payments and rent payments is approximately the same there can be no doubt that over the long run buying will save you money. This statement is especially true if the amount which is gained by selling the property is more than the amount which would have been gained by placing that money in some kind of investment fund. If you have followed the investment route then obviously you would have been required to continue paying that exorbitant rent to the landlord.
Looking at well-known facts
For those who make the decision to buy a median priced family home in the city which can cost approximately $600,000 then it can take as long as six-years to break even. However purchasing a more expensive property or alternatively finding a significantly cheaper apartment to rent will obviously swing the scales in the flavor offer renting. Likewise if you are paying $3000 or more for an apartment then obviously a person who has purchased his property will only require approximately one year to break even and to start benefiting. However, if you have purchased a house of just over $600,000 compared to renting an apartment costing $1500 then obviously renting will always be a better option. All of these calculations are based on the assumption that the value of residential property will increase by 5% annually. Although this is certainly possible it is by no means a certainty.
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