Renting beats owning a home in California and many other markets
June 25, 2012 Leave a comment
Even though owning a home is still cheaper than renting nationally there are many markets where it is still cheaper to rent than own. One of those markets is all of California! This is according to a Deutsch Bank housing survey cited in an article posted on-line in SmartMoney. With housing price declines and record low-interest rates it should be cheaper to own real estate but in California and the northeast and elsewhere it is still in fact cheaper to be a tenant.
According to the same article homeownership is slipping. It is down from a high of 69% in 2004 to a low of 65% and it appears to be still falling. More and more people seem to have caught wind of this fact and they are becoming tenants. Apparently one-third of all rentals are single family homes as the number of single family homes for rent grew by 2 million from 2006 to 2010. There are currently a total of 13 cities where it is cheaper to rent than own now.
So don’t despair if you don’t have a piece of the American dream. Don’t worry if you have been foreclosed on and you now must rent. If it is cheaper to rent then maybe renting is a good idea for a while. It is doubtful that their will be any meaningful appreciation in housing anytime soon so why buy? When you add in the costs of maintenance, insurance, mortgage, and taxes it is very expensive owning a home. Let the landlord worry about that stuff and be happy renting!
Now may also be a good time to clean up those debts yo have accumulated over the years too. Paying rent is always easier without paying for all those credit cards, personal loans, auto deficiency balances, and medical bills. Try bankruptcy to eliminate those old debts and get a fresh start.
I am a San Diego bankruptcy attorney. For further questions please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com. Or call my office for a free consultation or for any other advice about bankruptcy or debt at (619) 702-5015. Call now for free credit report and analysis!
For a free e-book on “13 things to do to prepare for your bankruptcy filing” please e-mail me at firstname.lastname@example.org.
For rent photo courtesy of Billy Alexander. Houses for rent photo courtesy of cdsessoms.