I have an unbelievable deal on my rent. I live in Los Angeles, where the houses are expensive. Should I buy or continue to rent?
2007-01-11 14:00:14 · 7 answers · asked by traderb550 3 in Business & Finance ➔ Renting & Real Estate
Why would you want to buy? Renting means that you do not have to do maintenance. Real estate in general goes up, but there has been heavy downward pressure in many markets, including LA.
Buy because you want to be in a purchased place, financially you may be better off renting when you do the time value of money over appreciation of the property.
2007-01-11 14:18:54 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Usually, 25-30% is typical. If you are happy where you are living and the place suits your needs, then I would say continue to rent. Equity is a good thing, but house payments these days are placing hard-working families in a different house -- the POOR HOUSE! Taxes are out of control. My current escrow payment alone doubles the entire house payment for the house I grew up in. House payments are at record highs, relative to incomes -- despite current low interest rates. Keep renting.
2007-01-11 22:24:18 · answer #2 · answered by gregory_s19 3 · 0⤊ 0⤋
10% of your income on rent is below average when compared to a majority of renters. If you can afford a mortgage without changing your lifestyle, then it might be a good idea to pruchase a home.
However, if buying a home/apt/condo makes you stretch beyond your limits and lower your lifestyle standards, then it is a good indicator that you could not be able to afford the mortage and this would mean that you are a foreclosure waiting to happen.
2007-01-11 22:06:16 · answer #3 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋
If you can buy, I would do so, because prices will only go up, and if you buy, you will ahve equity and some place to stay when you retire. 10% is wa low. the guidelines for home loans is that it doesn't excede about 31% or so. Often they will go higher anyways. I would rent until you ahve saved up enough for a good down payment so you get a better rate on your home, but I would buy before the market heats up again.
2007-01-11 22:05:41 · answer #4 · answered by moonman 6 · 0⤊ 1⤋
That is a great % if you save the difference for six months and see if you can live OK may be i would think about it. If not and you save that that rate of 20% difference o f the normal 30%. you will have one great down payment, and save a boat load of money.
For no pmi.
2007-01-11 23:55:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Be glad you live in the City of Angels - here in New York, most of us pay AT LEAST 33% of our income on housing!
2007-01-11 22:02:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋
ur are lucky. that is below the North American average. keep renting, bcuz it saves u money on insurance, utilities etc.
2007-01-11 22:09:53 · answer #7 · answered by thundergnome 3 · 1⤊ 0⤋