Renting vs. Buying A Home in Long Beach
If your plan is to be in one area for five years or less think long and hard before you do anything, there may not be equity in your property when you need to sell it. You might be surprised that we tell you think before you purchase, for us it's not about the commission it's about making our clients happy. Our guarantee to you is this; we promise to tell you what you need to know, which may not always be what you want to hear. We feel this works best for us, in order for our clients to make the best informed decisions we show our clients all pros and cons associated with buying real estate in today's market.
Look at the buying vs. renting chart below; according to Ginnie Mae after 6 years is when you truly see a house payment being less expensive compared to renting, however after 3 years there are tax benefits. As always talk to your tax accountant to see how owning a property can benefit you in that aspect.
As illustrated in chart below, it shows you a cost comparison for a renter and a homeowner over a seven year period. The renter starts out paying $800 per month with annual increases of 5%. The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner's payment is lower than the renter's monthly payment. With the tax savings of home ownership, a homeowner's payment is less than the rental payment after 3 years.
* Make sure to speak to your CPA or tax accountant regarding any tax questions, we cannot give and tax or legal advice. This page is for informational purposes only and can be subject to change.