5 Financial Reasons to Buy a Home verses Rent in California

by Sarah Bourke

I think we can all agree there are many reasons why owning your home can be a valuable investment as well as giving you and your family security, pride, and joy for many years.

What most people want to know now is... in this market, I am better off renting and watching the market for a year or more before buying? The answer is, it's always a good time to buy over the long term, and here's why.

I can tell you 5 Financial Reasons Buying makes Sense

1. Housing is the one leveraged investment available - Homes appreciate an average of 9% a year in California if you put 20% down on a home your not only earning that appreciation on your initial investment but on the entirety of the value of the home. An example would be you put 20,000 dollars down on a 400k home, that home appreciates 9% in one year, you just earned $36,000 instead of only $1,800, if you invested your 20k in an account giving you 9% interest...leveraging your money is key to long term wealth.

2. You're paying for housing whether you own or rent- Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord. Also, fixed mortgages stay the same over the term of the loan where rents rise over time.

3. Tax Benefits- Mortgage interest and property taxes may be tax deductible. As well as being able to write off depreciation (one of the best tax shelters available).

4. You can do what you want with your property - no approvals or security deposits lost. Paint, update or add on, the choice is yours!

5. Forced Savings - All your payments against principle are essentially savings back in your pocket! Before you know it you're paying down your mortgage and the less you owe the more equity you have. Even if you initially get a high-interest rate, after 6 months (or whatever your loan terms are) you can refinance and have a lower payment as well as pay off more debt while paying less interest.

Call me today to learn more! 619-972-9462 or CLICK HERE NOW to see homes for sale now in San Diego.

Thanks for reading, Sarah Bourke, Realtor®