Rent At Your Own Risk

You’ve always wanted a Laguna Beach home. And now you’re ready to what…rent? Wake up, folks. This isn’t booming 2006. It’s snoring 2011. Home prices have plunged while rental demand has skyrocketed. The result? In most major U.S. cities, a two-bedroom home now is less expensive to buy than rent. Real estate website Trulia backs up this claim with a key stat – purchasing is cheaper than renting in 74% of our largest cites. The buy option gets even juicier when you factor in current bargain basement interest rates and a delicious selection of tax advantages for home owners.

To Buy or Not to Buy…

No clear cut answer on this one. But this mini-guide can help you clear up the murky territory:  

1. Divide the price of your chosen home by 20. If the result is higher than the annual rent for a comparable home, you’re probably better off renting.
2. Plan to keep a purchased home for a few years. If you bail out early, transaction expenses such as commissions and closing costs can gobble up your buying gains.
3. Arrive with a well-fed piggy bank. These days, wary banks require at least 20% down. Plus closing costs.
4. Make sure your pockets are deep enough to cover all costs. That’s monthly mortgage, plus property taxes, insurance, utilities, and maintenance.
5. Know the full extent of your tax advantages. This gift from the government is tied to your income.
6. Have enough stuffed in your pillow case to cover at least seven months worth of expenses.

If you meet these qualifications, then a home purchase very likely is your move. Not only will you have the Laguna Beach home of your dreams at a bargain price, you’ll be stockpiling equity and building a rock solid financial future. Unless you’d rather pay for your landlord’s Hawaiian vacation with the money you could be using for your own. I mean, do you really want to give your hard earned cash to somebody who’s telling you that you can’t paint the walls fluorescent green with red stripes, or have a full-grown zebra as a pet? I don’t think so.

With such incredible prices, rock bottom interest rates, and tons of tax advantages, there’s never been a better time to own a Laguna Beach home.  If you’re ready to discover the many opportunities here in the Laguna Beach Real Estate market, I’m ready to help. Feel free to connect with me at949.922.8490 or hillary@thecoastalpropertyexperts.com.

Until next time, Sunny Days and Smooth Sailing!

Regards,

Hillary Caston