The average cost of renting in Los Angeles is about $2100 per month according to CNN. That means if you were to rent for 10 years you would spend $252,000 on rent. money.cnn/gallery/real_estate/2014/03/03/buy-vs-rent/3.html Rent Disadvantages Vs Ownership advantages Rental payment may exceed monthly cost of mortgage No ownership or wealth creation Payments never stop when renting Rent will rise over time Must deal with a landlord or management company No tax benefits Rules, regulations, and limitations More temporary, less stability Always at the mercy of the property owner Pets may not be allowed Ownership Advantages You can build home equity and wealth Status- Status-Status Sizable tax deductions possible Your space, your rules (pets welcome) Ability to remodel, expand, tear down Pride of ownership (social status, accomplishment) Potentially better for children, family structure Mortgage can improve your credit history/score Ability to borrow against your home (HELOC or cash-out) No more monthly payments once mortgage paid off Fixed payments (if you choose a fixed mortgage) Mortgages are the cheapest loans available No landlord Can exclude capital gains when you sell (partially) Inflation hedge Can rent out to others Can sell and use proceeds for bigger/better home Retirement nest egg It’s the American Dream!
Posted on: Sat, 26 Jul 2014 17:22:22 +0000
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