Rent or Buy - What Makes More Sense in Los Angeles?
A delicate choice
Those who wish to become Los Angeles residents will most probably have to deal with a delicate choice. The decision of whether it's better to rent or buy in LA isn't a straightforward one. This is mainly because the prices in both cases are now higher than ever, which stands for all other destinations, not just LA.
The resolution you'll need to reach depends on numerous factors, such as your lifestyle, career choice, financial stability, and family situation. Even if everything leads you toward a specific preference, this is a decision no one should take lightly. On the contrary, it requires special consideration and thorough research. This article will share some crucial points you'll need to be clear about when deciding whether renting or buying in LA suits you.
Questions to ask yourself if you want to rent or buy in LA
Even if you just got a promotion in LA and are looking for a new place to settle in, it's better to take a step back. By this, we mean it would be best to consider all aspects and evaluate your decision in detail about whether LA is a good place to live. For instance, research whether it is a good place to live, crime rates, living costs, best neighborhoods, etc.
Once you're done with the basic research, it's time to have clear answers to specific questions regarding this situation. Of course, there's no right or wrong answer when wishing to rent or buy in Los Angeles. However, there's a suitable choice for each individual.
Deciding to rent or buy in LA depends on many factors, primarily your financial situation and future family plans.
For example, the flexibility of renting is something many people will find adequate at the beginning of their careers. But on the other hand, someone might wish to build equity and invest in their family's future. Therefore, we consulted experts behind bestlongdistancemovers.com, who are involved in the home buying or renting process daily. Together, we've come up with a list of things you'll need to be clear about to make the right decision.
These things include you're clear (or unclear) with:
your financial situation;
the current point you're in your life;
being aware of the buying responsibilities;
knowing the pros and cons of both choices;
your career.
What are your finances like?
Many people who've just got a sizable bonus might start considering moving from renting to buying in LA. However, this is a point where you should carefully evaluate whether the home-buying odds are in your favor.
An aspiring buyer should be prepared to cover a lot of costs. The average price for a median home is around $950,000. Furthermore, here are some of the things you'll need to take into consideration:
The costs of a down payment usually require a significant chunk of savings;
Additional fees you'll need to pay are broker fees, escrow fees, loan origination, and other similar expenses;
Before everything, you'll need to sort your finances out completely;
Then you'll be able to move on to accomplishing tasks like looking for the right home, finding the right agent and talking to them daily, and handling the purchase;
Finally, maintenance and upkeep costs of your new home are expenses you'll need to be aware of in advance.
Even if your promotion might be leading you towards home buying in LA, it's essential to consider all the other expenses this involves.
On the contrary, renting might seem like a more favorable option if you're not sure you'll have the things mentioned above covered. As a renter, you'll have flexibility in terms of location. Also, you won't have to worry about maintenance costs.
So, before deciding, ensure your financial situation gives you the confidence to handle all the costs involved in the home-buying process.
Where do you stand in your life at the moment?
Many of us start leaning towards buying when our lifestyle changes significantly. For example, adopting a pet, having our parents or in-laws move in with us, or when expecting a baby.
Having your kids running around a small apartment can be tricky, as everything will start to feel cramped, especially with all the toys kids have. Therefore, if you're at a point where you need to make significant changes, now is the time to start thinking about the buying possibility.
The buying responsibilities
Along with this possibility come the homeowners' responsibilities. Before considering this option, you should have saved enough for the down payment (usually around 20-25% of the total price) and have a strong credit score.
Once you have these boxes ticked, considering future maintenance costs will help you decide whether to rent or buy in LA. Renting won't build you any equity but won't make you worry about the upkeep costs, like lawn maintenance or roof condition.
If you are leaning towards buying and are confident with the above factors, purchasing a condo might sound like the most appealing option. You'll ensure being in the hub of happening, most likely close to work, while having enough space and not having to worry about maintenance, as condos have amenities and property managers that take care of the upkeep.
Rent or buy: pros and cons
Once you have a clear picture of your finances, it's time to think of both options' actual advantages and disadvantages. Once you list these, you'll be able to decide which option is the right one.
Buying a home in LA is a real estate investment. If you decide to buy, you'll ensure you build equity. Then, potentially, you'll be able to sell it for profit if you wish for a change in the future. Ultimately, now that prices are growing everywhere and in all fields, having a fixed mortgage rate seems more appealing than giving a check to your landlord each month.
On the other hand, renting allows freedom. With renting, you won't have any long-term commitments, and you'll be able to move more flexibly if the situation requires it. Also, you won't need considerable savings to rent. Therefore, this might be a better option for those at the start of their careers who might expect unexpected shifts in career terms and a need for location change.
Does your career lead you to make a specific choice?
The point you're in your career is a vital factor when making the renting or buying decision. For example, if your job involves constant moving, buying a home in LA might not be the right choice just yet.
While you're away, you might need to invest in a property manager who might result in different complications and seem overwhelming. However, if you have years of renting behind you and know LA, you might be familiar with the neighborhoods you love and see the buying costs and conditions. In addition, many of our clients have shared testimonials you might want to look at before making your decision.
Rent or buy in LA is a decision that depends on your familiarity with the city and its conditions.
The takeaway from deciding to rent or buy in Los Angeles
When deciding whether to rent or buy in LA, it's best to follow our advice to see which option your current lifestyle is leaning more towards. Whichever option you choose, there's beauty in both. For example, now might not be the right time to buy, but once you're familiar with the city and steady in your career, you should start thinking of becoming a homeowner.
