Many citizens find it more practical to rent homes rather than to buy them. If you are contemplating moving to Los Angeles, you may want to consider renting a house, apartment or condo unit.
The costs of real estate properties are relatively low in most states of the country. Mortgage rates are also relatively low. One reason for this is the number of home foreclosures in different parts of the country. That is why many people are tempted to purchase houses in Los Angeles. However, renting can still be beneficial instead of making a purchase. You need to weigh the advantages and negative aspects prior to making any decision.
Buying a Los Angeles Property
Los Angeles real estate agents maintain that purchasing residential properties can turn out to be very good investments particularly in the long-term. Yet, buying a home can still be expensive because of property taxes, insurance, and maintenance and repair, along with cost of utilities. All you get are minimal tax deductions that can be very small compared to the high interest rates that you have to pay for financing or home mortgage. You will discover that the purchase is quite pricey after making your computations. In case you opt for a resale in the future, the accrued expenses over the years may not even be enough to offset these expenditures.
Benefits of Renting in Los Angeles
On the other hand, you can choose Los Angeles homes for rent. When you rent, there are no maintenance and repair expenses. Rental insurance is cheaper compared to premiums for homeowners. Moreover, you do not have to worry about real estate taxes or interests. Monthly rental fees for decent homes are also very affordable. This is definitely lower than mortgage payments.
Homes for rent are also more practical especially if you do not plan to stay long in a certain area. You might have to sign a one-year lease contract with the owner. This gives you enough flexibility to leave the moment you need to relocate. All you are required to do is give at least one month’s notice to the landlord and complete all rental fees. You can go anytime when you want to. Selling is not that easy because you cannot put up your house for sale if you will end up losing a lot of money. Having problems with your mortgage can lead to more serious problems. The only alternative open to you is look for someone who is willing to rent your house. You can always look for a competent Los Angeles realtor but this does not guarantee that your property will be sold immediately at the price that you really want. Expect the agent to ask for a hefty commission as well.
The rule is what will work for others may not necessarily work for you. It is not practical to rush things especially when you are planning to buy a home. You can consider homes for rent instead and save more money before eventually deciding to purchase your own abode. Seek the advice of relatives and good friends who have gone through this experience in the past. You can also ask a real estate broker in Los Angeles who will be candid enough to share the experiences of other home buyers. It is advisable to put off your investment plans rather than lose your hard-earned savings with a bad decision.