Rent costs are rising, so home buying in Los Angeles, CA is the smart financial choice.
People tend to associate home buying with money. They’re right to do so. When you buy a home, you spend more money than you’ve likely spent on any other single purchase.
Just because it’s a big buy doesn’t mean it’s a bad money move. In fact, buying a home is actually one of the best financial decisions you can make. Rather than throwing money away on rent month after month, owning a home allows you to build significant equity.
Your equity isn’t the only financial benefit, either. You’ll also be escaping a cycle of skyrocketing rent costs. Right now, Yahoo reports that renters in America spend just under a third of their monthly income on rent. This is of great concern because housing experts consider an individual “rent-burdened” if he or she is paying over 30 percent of his or her income for housing costs.
What’s more, rent costs aren’t going anywhere but up. Researchers project that more and more people will rent rather than buy, which will drive up rent prices. In fact, the Urban Institute predicts that there will be 2.2 million more rent-burdened Americans by 2025.
The good news? There’s an alternative to renting! Owning a home is 35 percent more affordable than renting, on average. With down payments as low as three percent right now, owning is a great way to get out of being subjected to rising rents!
Want to learn more about the smart financial move of home buying in Los Angeles, the San Fernando or Conejo Valleys? For insider insight and a personalized approach, contact me, Betsy Dittman. As a luxury real estate agent, I’ve seen firsthand how owning a home has offered major financial benefits to my clients and I am dedicated to helping you realize those benefits yourself!