Buy vs Rent




This is for ever the question potential homeowners ask. The answer is pure simple:


B U Y ! ! !


Buying a home is the only way to inflation-proof your monthly home expense. As long as the economy is growing, things are going to be more expensive every year. So as the rental fee. The only way to lock your fee for the house for as long as you live/own is to buy: get a fixed mortgage. Then you are locking your housing expense at today's market rate.


Some may say how about property tax or home insurance? Yes, they are going to be more every year. But they will have a minimum impact since the fee is small to begin with. The major win here is to lock your major house expense with today's rate.


I bought my house 10 years ago. My house with 30 year fixed mortgage of less than $2000, plus $1,000/month for insurance and property tax comes $3,000/month expense. It will be around $3,025 or so the next year. If I were to rent, I will find a renter who are willing to pay at least $4,500/month today.


All I am saying is that if you can buy, BUY. It's hard to start but in the long term you are gaining your equity and paying less for your home.


Questions are always welcome.


H.

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© 2023 by Hiroko Tsumori, Bay Area Modern Real Estate, Cal DRE 01842561

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