Real Estate Tip Tuesday #3- Renting Vs. Buying (what are the Advantages of Home Ownership?)
Welcome Back Everyone!
It’s Melissa Okabe with Alta Properties, with our 3rd installment of Real Estate Tuesday Tips, a series in which I’ll be answering all of your real estate related tips straight from the audience!
Today’s question comes Derek in Long Beach, and Derek’s question is: “In today’s market, is it truly better to buy vs. rent?” That’s a great question Derek, and an understandable one, considering the price of housing in our local Los Angeles market. So today I’m going to give you 3 Advantages of Home Ownership, and how being a property owner can benefit you vs. renting.
Building Equity: Homes/ Properties in general tend to increase in value over time. That means that as a property owner, you are building equity, and each time you make your monthly mortgage payment, that’s actually going towards your future nest egg, not into the pockets of your landlord.
Stable Costs Long Term: With 30 year fixed interest mortgages, your monthly payments are typically more steady over time, vs. renting when your landlord can increase your rent to their discretion (*up to 8% per year per new rent control ordinance 2019).
Tax Advantages: Your mortgage payments and property taxes are tax deductible when you file your tax returns.
BONUS: Pride of Ownership
Finally, there is pride of ownership- that emotional satisfaction of owning a home, one of the most impactful experiences you will go through in life… I see and feel it with my first time home buyers as they get handed the keys and open the door to their home, the home that they own, and the smile that comes onto their faces when that happens. It’s a very beautiful moment and an emotion unlike any other. I hope that you all get to experience that soon.
Thank you again Derek for your question, and audience members as a reminder, if you have any questions at all regarding real estate, please call me, email me, message me on Instagram @melissaokabe- I’d be happy to provide professional value to you in any way that I can!
Photo Credit for Cover Image: Pexels- Pixabay