Should you buy or rent? Does buying a home make more financial sense than renting a house?
Either way it is very costly in California. For buying a home, the total costs compare the total amount of money you would be spending over time, minus the potential value you might receive if you someday sell your home. Keep in mind that a financial comparison is just one of many factors when deciding whether to rent or buy?
Based on the realtor.com rent vs buy calculator for Paso Robles, CA 93446.
A desired home price of $450,000 vs a desired monthly rent of $2,000.
Buying becomes less expensive than renting after 6 years.
Buying average net costs 2,281 vs Renting average net costs $2,321.
If you stay in your home 6 years, buying is the less expensive option. You will save $2,847 an average of $40 per month.
The longer you live in your home, buying becomes even more affordable than renting.
For example: If you were to live in your home 7 years the savings of owning a home as oppose to renting a house is even more.
If you live in hour home 7 years, you will save $12,296 and average of $146 per month.
If you were to live in your home 10 years, you will save $43,522 and average of $363 per month.
However, if you were to stay in your home 5 years renting is the cheaper option.
Buying average net costs $2,362 vs renting average net costs $2,260
You will save $6,153 an average of $102 per month.
The amount of time you plan on living in the home, has a major impact on renting or buying.
Keep in mind owning real estate, historically has been one of the best ways to create wealth in America and the appreciation of real estate & the rents in California are the highest in the country, given the shortage of housing for the population of 40 million people.