As the average person grows older, gets a job and moves into a stable career in Orange County, California, they will ultimately come to a crossroads in their life and ask the question “is it better to buy or rent a home?” To help potential homebuyers in Orange County answer this question we will break down buying vs. renting to help anyone who may be considering buying a home in Orange County California make an informed decision.
Renting A Home
Just about everyone in Orange County has considered renting an apartment, condo or home. Renting is typically easy because, as a renter, you will only be responsible for paying your monthly rent plus renters insurance and typical expenses that come from renting like electricity, water, sewer and trash, although many property owners typically cover most of these expenses for the renter, to make their condo, apartment or home more attractive for them to move there.
The biggest thing that renters lose out on are the tax benefits that come from buying a home but the freedom and flexibility that come with renting can outweigh the lost opportunities that tax benefits will bring to the average, Orange County homebuyer.
Buying A Home
When someone is ready to buy an Orange County home the average home buyer will be faced with having to pay a monthly mortgage payment for their principal and interest; they will also be responsible for paying possible HOA dues along with homeowners insurance and property taxes.
In order to buy a home, a homebuyer will have to meet the following criteria:
- Down Payment – The homebuyer must be ready to come up with a down payment of at least 20%
- Credit – It’s important to have good credit when buying a home, especially over the last four years as lenders have stricter requirements for the homebuyers they will lend money to.
- Income – When buying a home it’s important to have the income to support paying the mortgage. Many buyers over the last four years didn’t have adequate income to support their mortgages and ended up declaring bankruptcy or going into foreclosure.
- Debt – A homebuyer must be ready to shoulder the responsibility of debt and be ready to stay in one spot while they live in that home compared to renters who have the flexibility of moving whenever they want; unless they have a lease.
The biggest benefit that comes from buying a home, for any homebuyer are the tax deductions, tax benefits and possible income that can come from renting out that home. Over the course of six years, buying a home can save the average person over $10,000 and up to $2,000 per year.
Every Situation Is Different
To learn more about the benefits of renting vs. buying a home in Orange County California contact the top Orange County realtors at Fred Sed & Associates today at (949) 272-0125 or email us at firstname.lastname@example.org.