Rent or Buy? – A forever dilemma in Los Angeles

The housing market in Los Angeles is one of the hottest in the country. It has the fourth highest percentage of renters in the United States. When it comes to buying or renting a property in this city, numbers are not everything you will be considering.

Here are 4 factors you must consider when buying or renting in Los Angeles:

1. Relocation freedom

Ability to relocate is a crucial factor to consider when deciding whether to rent or buy a home in Los Angeles. Renters are not tied to their homes permanently but only for few years depending on their lease agreement. On the other hand, owners are constrained to their homes until the mortgage is paid off completely. They cannot sell the house unless they have cleared all the installments. Thereby, renting is the best option for those who want relocation freedom and looking for a living space for less than 5 years. People with nomadic lifestyle would find renting in Los Angeles a favorable option as they don’t stay at home much longer and travel frequently. But as long as you’re planning to raise a family in a house and would stay in a particular area for more than 5 years, buying a house is a more lucrative option.

2. Fluctuating home values

The real estate market in Los Angeles is totally unpredictable. Home values are every changing numbers that might turn out to be profitable as well as disastrous for homeowners. The fluctuating values of homes do not affect the renters much strictly follow their lease plan. But if you want to buy a house, this factor is something you must consider to make a final decision. You can always consult the best Financial Advisor in Los Angeles to make a profitable decision instead of wasting your money. Considering your financial condition and fluctuating values, they can help you decide whether to rent or buy.

3. Maintenance costs

Another thing you need to consider is the maintenance cost of the house. It is an easily overlooked matter but can add up to the overall cost considerably. For renters, fixing any problem is as easy as calling the owners for maintenance. Whether it be pipe leakage or wall breakage, renters are not responsible for residential repair. Homeowners are the ones responsible for maintenance costs and repair projects.

4. Credit requirements

Buying a home is a big investment that requires a strong credit development. For obtaining a mortgage to buy a house, you need to have much credit at your end otherwise your request will be denied. On the other hand, credit requirements for renters are much looser and easily manageable as well.

Buying or renting a property in Los Angeles is a forever dilemma that can confuse anybody. Investing in the real estate market in LA is a crucial decision and must be taken with the help of investment management services in Los Angeles.

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