Should you rent or buy a house?
As Beverly Hills plumbers, we work with both homeowners and renters. While most people are comfortable with their type of residence, some Los Angeles citizens face the question of whether buying a house is right for them. For many people, owning a home is proof of success, family, and the reality of The American Dream. Others, though, simply don’t want the excessive costs and maintenance headaches of owning, and prefer the freedom of renting.
So which choice is right for you? Consider these tips to see if you’re a buyer or a renter.
How long do you plan to stay?
Homes are typically more appealing to those of us who want to plant roots. If you’ve found the perfect neighborhood and know that you’ll be in Los Angeles for many years to come, or anticipate starting a family soon, buying is a good option.
On the other hand, experts say that if you can’t commit to a location for more than 4 years, rent instead. Buying is a big investment and meant for those who seek permanent residence. Unlike renters, who typically move around a bit more, you’re committing money and resources to one place. Renting is ideal if, say, you’re a bit younger, aren’t completely set in your personal or professional lives, and may consider moving in the near future.
Calculate all costs of ownership
Renting is appealing for its predictable costs. You have one dedicated monthly expense plus renter’s insurance if it’s appropriate for you. But otherwise, all surprise costs are covered by the landlord. As a result, you have more money to spend how you please.
When buying a home, the costs add up and become more complicated. Experts recommend that you spend no more than 28 – 30% of your pre-tax income on the monthly mortgage payment. This percentage includes everything from principal, interest, property taxes, insurance, and HOA dues. The trade-off, of course, is that once you own, you don’t have to answer to a landlord, who may raise the rent on a whim, procrastinate fixing important repairs, hire ineffective labor, etc.
Are you handy?
Being a handyman in your spare time isn’t a prerequisite to owning a home – but it does help. No matter how new and reliably built your house is, all homes inevitably need repairs. Whether it’s hot water heater replacement, sewer line repair, or just a simple clogged drain, plumbing and other issues affect everyone. Fortunately, if you get into a jam, all you have to do is call the most reliable plumber in Beverly Hills for help. Hammer Plumbing & Drain can service your home quickly and affordably, whether you live in a residential area near The Four Seasons Hotel or occupy real estate within The Platinum Triangle.
Additionally, if you want to buy and are considering a fixer-upper to save money, make sure you can either do the fixing yourself, or have a dependable budget in place before you make a bid. Otherwise, the low price tag may suddenly skyrocket.