Episode 16: Is Renting Or Buying Right For You?
When you rent, there are rules and regulations. When you buy, you have more control. But what's the best decision for you and your family? What questions do you even ask yourself? When? Why? What?
Takeaways:
Ask yourself when is a good time to buy a home?
Why should I buy a home?
What other options are there to consider?
What about costs?
What does it provide you?
Did you watch our video on how to clean your windows? Check it out here!
Have you been considering your real estate options? Is it the best decision to rent or to buy a place?
Let’s walk through the similarities and differences and find the best choice for you.
Check out Part 1 to this topic here.
The Question:
What’s the difference between renting or buying a home?
We covered that a bit in our last episode, and in today’s episode we are going to dive in to the deeper realities of what it’s like to rent.
When you own, you have more control. When you rent, your Landlord has the control.
Recently a client of ours reached out to Lori and told us about an unfortunate event.
A Landlord had said, “You have 30 days to vacate the garage, because they are converting it to an apartment and also be adding a bathroom on to the house and renting it out, and we are also going to be increasing your rent by $300.”
Ouch. What do you do?
You may ask, “What rights do I have in all of this?"
Well, the Landlord can do that. The Tenant had a month to month lease, and that means, they only need a month notice to vacate. Of course all circumstances are different, but it can happen. So verify with your own legal advisement for your specific situation if you’re unsure of your rights.
New Home Dwelling Law
Recently, January 2020, the government passed a clause that benefits low income family home ownership opportunities. ADU’s (Accessory Dwelling Unit) and JADU’s (Junior Accessory Dwelling Unit) are now acceptable in California.
It’s fantastic that the government is encouraging real estate opportunity. But on the other end of it, when you’re the Tenant affected by this change, you may not be too happy.
What are your options as a tenant affected by this law?
We suppose you could rebel and not move your things, but that is not encouraged.
The best tip we can offer is to check into your legal rights in this situation. And in general be aware of your rights when you’re renting a property.
When is a good time for you to buy a home?
Both ways of using your money, renting or buying, provide you with security, a place to rest, a place to work, a place to workout in, a place to hang out, to entertain, to lay your head.
One is controlled by someone else. One is controlled by you.
Are you up for responsibility?
Owning a home does take some investment and comes with other maintenance obligations. When your plumbing leaks, you’re responsible for fixing it. You can’t just call your Landlord and say, “Hey this happened, fix it.”
Home ownership takes time and energy you need to choose to spend. If you’re up for maintaining the property, fixing things, and enjoying the luxuries of calling it your own, it may be the option for you.
COVID-19 Impact
Our Market Is Different
Some parts of Downtown Los Angeles are actually offering incentives for people to rent in that area. People have been shifting and moving further out due to job changes, job losses, income changes, and availability to work virtually for their employer.
A lack of inventory of homes available for purchase will result in an increase of people choosing to temporarily rent until they find the right house. And maybe that’s where you are. Maybe you have been searching and cannot find what you’re looking for.
And that’s why we are here. To help you walk the journey to finding your home sweet home that’s right for you. We can set you up on a search in your specific area with you desires and needs, find out your financial goals, and when it hits the market, you can be ready to make an offer and switch from Tenant to Owner.
It’ll happen when the time is right for you.
Don’t just buy a house because someone tells you to. Make sure it’s the smart move.
Things to Consider
When you look at a house, you want to think about:
What do I need?
What do I want?
Where am I going?
Renting is a great alternative to waiting for when it is the time to buy.
Homeownership Takes Work
Getting into home ownership is not easy.
You need to get ready. Get educated. Save money. Align yourself with the right professionals to support you. And then continue to build your real estate portfolio.
“I want to be a Landlord”
So now that you’ve purchased one home, you’re thinking, I want to buy another house.
A lot goes into that. You need to be informed. There are government laws and regulations you need to follow.
There’s a thing such as the 10-31 exchange, and taxes to consider on that growth of equity, and a ton of other things. And again, why we say you need someone to talk and walk with you through that journey until you understand what you’re doing.
You don’t want to be blindsided by fees, illegalities, and the like and lose all you’ve worked for.
In Conclusion
Enter Homeownership when you’re ready.
We are just a family that loves serving families. We encourage you to schedule an appointment with as and start your journey.
If you want to get started on your home ownership journey check out our Buyer’s Consultation and see what it’s like when you have a FREE Buyer’s Consultation with us.
We don’t decide what’s best for you. You do. We just give you great information to make the right decision.
Call us and find out what’s best for you.
909-227-4196
Thanks so much for reading. We look forward to helping you with your real estate goals.
Check out Part 1 to this topic here.
Lori Alvarez has been in the Real Estate Industry for almost 15 years. If you’d like to contact her call her at 909-227-4196. She loves helping families find their home sweet home.
Our podcast is geared towards our current clients. We love to give our buyers and sellers great information. Wondering about something we haven’t covered? Send us a message.
Thanks for reading. What’s going to be your next step to finding your home sweet home?
Real Estate is an ongoing, beautiful story. That’s why we love to share ours and to help you begin yours! Tune in to the next episode where we will continue the conversation.
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