How to decide whether it is better to buy or rent?

Purchasing or renting a home must be carefully thought out

Owning your own home in Santa Clarita, Valencia, Canyon Country, Newhall, Saugus, Stevenson Ranch or Castaic or renting locally, each have their own benefits. A careful determination or weighing of factors must be made between home ownership and renting. Timing of when to buy vs. renting is also a consideration. This decision is different for for different people and depends on what the person’s situation is at the time the determination is made.

Financial benefits to home ownership

When you own a home in Santa Clarita there are a multitude of tax benefits and mortgage deductions so your monthly amount is actually much less than what the identical amount of rental payments would be. Another important factor in home ownership is that your monthly payments can be “fixed” so that you always know what your payment will be each and every month for many years, it will never increase with a fixed rate mortgage.

Even if you purchase a condominium or buy a townhome which is quite common in areas such as Valencia and Canyon Country, which has a homeowners association fee(HOA), there is a limit each year on how much it can go up. It is also important to realize that you are building equity as your mortgage is being paid off. If you take out a 30 year mortgage when you buy your home you have the comfort of knowing that eventually your home will be paid off for your “retirement years.”

It is nice to own a home in Valencia, Saugus, Newhall or Canyon Country free and clear and enjoy your golden years without worry about having to make mortgage or rental payments. After we stop working and retire, it is important to have very fixed expenses such as a steady fixed and affordable mortgage payment or even better a house in Santa Clarita that is all paid for. It is impossible to determine the price of rental payments 30 years into the future, which at that time you may not be able to afford them. Also you have the flexibility to decide when and how you would like to decorate or remodel your home, make the decision as well as the freedom to make decisions about your home.

Renting does have the advantage that you do not have to pay to maintain the property. If anything breaks you can call on your landlord or property manager to make the repairs. It may be the right decision if you do not plan on living in any given area for more that a couple of years. However, for most people if you plan on living in an area for 3 years or more, it is probably a better decision to rent since as a homeowner you can take advantage of the tax deductions and appreciation on the home as it increases in value and the equity it should build over time in a normal or rebounding market.

How do I know that I am ready to buy a home and am ready to stop renting? Buying a home is a big decision. To help determine if you are ready to take the necessary steps towards home ownership ask yourself these questions.