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Should You Rent Instead of Purchasing Your Next Home in LA?

Should You Rent Instead of Purchasing Your Next Home in LA?

Whether you’re moving out on your own for the first time, relocating, or simply need a change in housing due to family additions, the question of whether to purchase or rent is at the forefront of everyone’s minds when looking for a new home. For many years, financial experts recommended purchasing over renting, but in today’s economic climate, that’s not always the best solution. In Los Angeles, the benefits of renting are numerous. 

Renting Provides Flexibility

For those looking for flexibility, the benefits of renting can’t be denied. This is especially true for younger generations, who have different values than their parents and grandparents. A mortgage can lock an individual into an area, and for those hoping to change cities, jobs, or have a family in the future may prefer to take advantage that the flexibility a rental provides. Generally, tenants need provide only 30 days’ notice should they decide to move. If you decide to move after purchasing a home, you’ll need to perform repairs, use a professional real estate agent company like Big Block Realty to sell your home, and wait for escrow to close.

You Lack the Funds for a Down Payment

Purchasing a home requires a great deal of upfront capital, and for many, coming up with that down payment can be very difficult. It can be almost impossible to garner loans for housing from banks these days, as the recession almost a decade ago caused many financial institutions to tighten up regulations. Depending on where you live, or where you plan to move, the cost of purchasing a home may be akin to a pipe dream, as a saturated market creates a bubble that’s almost impossible to burst through. This is apparent in many Los Angeles neighborhoods this year, unlike years past; if you dream of living in certain areas, you’ll be forced to rent due to low inventory of houses available for purchase.

Less Responsibility

If you’re looking for a hands-off living situation, renting is the best bet. Homeowners must deal with repairs and maintenance all on their own, and while a measure of this care is present in any home, those who are renting generally rely on a landlord or property manager to fix any minor or major issues that arise in a property. This could be plumbing issues, roof repair, appliance replacement, and all the extra responsibilities that come with maintaining a living space. Not only does maintenance require responsibility, but it can also drain your bank account. Maintenance also includes things like property tax and insurance, and as both of these seem to rise year after year, the costs can increase exponentially.

Simplify Your Payments

If you own a home, you’ll pay monthly and yearly costs, including the aforementioned insurance, property taxes, and a variety of other expenses. Renters are blessed with a simplified payment system; pay your rent each month and any utilities you might be responsible for, and you’re in the clear, no unexpected expenses to worry about. That’s the beauty of renting, and one of the main reasons modern tenants have decided to stick to

A Foray into the Renter’s World

If you do decide to rent, there are a variety of things to keep in mind. As you begin searching, be aware of scams, which have unfortunately saturated the rental market in accordance with its rising popularity. Be sure to use certified listing websites like LiveLovely to help narrow down your search; this site offers high quality photos and great filtering features that will aid you in your quest of finding the perfect space. When landlords screen, always be sure they’re using bona fide services like MySmartMove; handing over your social security number and other personal information without the help of these professional sites can make you vulnerable to opportunistic scammers. Be sure to always tour the houses you see as well; never send money before doing so. Keep in mind that pictures can be deceiving, so don’t place all your hopes on one place before seeing it. It’s also important to always come prepared. Because many have elected to rent, the competition can be fierce, so you’ll want to have all the paperwork, checks, and anything else the landlord requests on hand.