Gay realtor Los Angeles has noted that in the past the big trend in real estate used to be to leave home, buy a smaller home, eventually flip that, and then buy a second home for raising a family. However many young people are postponing buying that first home and instead renting smaller closet like condos to live in until they can afford a permanent investment.
This means that the old saying that “rent money is dead money” may no longer be true. Owning a house may be an overwhelmingly expensive proposition for young people leaving the nest who cannot afford homes. Even though it does not seem that wise to pay down someone else’s mortgage rather than investing in your own hard equity, the amount that you pay monthly in rent may be less than you have to pay for a monthly mortgage and property taxes in some areas of Los Angeles.
Gay realtor Los Angeles suggests a new way of looking at being a renter is to look at it as a way of enabling you to do your own thing and save for that down payment while doing it. It can be ridiculously expensive to live in a well-heeled glamorous part Los Angeles. Instead of buying in a popular area and having no money to enjoy life for years to come, why not rent in a slightly less developed area and put the money that you save by not paying property taxes and a high mortgage into a high interest bank account. Even if you were paying only $12000 a year in rent as opposed thousands more in equity ownership obligations, you could make money by investing in a share portfolio that has a high return.
Another virtue of renting and waiting to buy a home is that you do not have to spend thousands fixing up a starter home. Instead you can save up to buy a home that is in good shape in the first place. Furthermore, if you are renting and something breaks down you are not liable for paying thousands of dollars to fix it. In fact, this can be so much cheaper than owning (especially an older house) that many people have gone from owning to leasing just to save themselves of thousands of dollars in repairs and upgrades.
According to Gay Realtor Los Angeles “dead interest” on a devalued old home is just as money-sucking as “dead rent money” and depending on your situation it just simply might be more lucrative to rent and put the money in the bank until you can afford your dream home. However if you are going to rent as a strategy to save money then make sure that you are renting at a low price and have a rock solid lease that guarantees no rent raises and you’re really saving money!
Ultimately the goal is homeownership ~ no other investment over time has done better than a single family home.
If you’d like to investigate the options and costs of home ownership vs. renting, gay realtor Los Angeles will be happy to meet with you for a no-cost, no-obligation consultation.