Pros and Cons – Buying Vs Renting in San Diego
Here we go. Why rent? Why buy? I’ll tell you why.
Liability
Winner: Renting
Leaky faucet? Call the landlord. Mailman tripped on a sprinkler and broke his ankle in your front yard? Call the landlord. Garbage disposal stopped working? Call the landlord.
Need I say more?
Cost
Long-term Winner: Owning
Short-term Winner: Renting
For the most part, finding a sweet deal on rent would save you some cash, but for how long?
On a purchase, principle and interest are only the beginning. Add on maintenance fees, property tax, HOA fees, and mortgage insurance, and your monthly payment can go from $1900/mo to a whopping $2500 /mo in a heartbeat. But all is not lost. While your mortgage insurance can be removed after five years of ownership and property tax does not
raise after initial rate is established. That being said, if you purchased your home with a fixed 30 year mortgage, as 99% of homeowners do these days, your monthly payments remain the same until you own your home free and clear.
Rents on the other hand keep going up and up year over year. Bottom line, if you have a feeling you’ll be on this planet for longer than 15 years from now, buying will save you money in the long run.
Customization
Winner: Owning
Have you ever driven by a home and said to yourself “I want to do that!”? Adding a game room to your existing residence will always please your kids, but not the landlord. Whether it be a waterslide park in the backyard, a koi pond in the front yard, or an in-wall reptilian aquarium complete with waterfall in the living room, the sky’s the limit if you own your own home.
If you rent? well.. let’s just say that your projects are better saved for a friend’s house who does own.
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