It’s no hidden secret that renting long term is not an sound investment, but to buy a house is often intimidating because you need a large amount of money saved all at once for a down payment and to qualify for a loan. Have you ever wondered how long you can go renting before it becomes a good financial decision to buy instead of rent? Curbed LA recently helped break down the timing of when it makes more sense to buy instead of rent. They considered all costs including rent, utilities, mortgage, closing costs, insurance, taxes, etc.; what they found was that LA as a whole takes about 5.1 years of renting before it’s smarter financially to buy. They also broke LA down by region showing their breakeven length in years. Places like Hellman and Zaferia Long Beach break even at about 2 years, Hollywood comes in at 3.8 years, Northridge comes in at 4.4 years, down town Los Angeles breaks even at 5.6 years and South Pasadena comes in at 11 years. It’s a pretty great list of have if you are considering buying soon.
See more of the list here
By Torrey Felber, Marketing Director at Town Square Real Estate , .
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858-829-5054
