Investing vs. Renting

1Buying a home is a big commitment, and for a renter, the idea of a mortgage is often scary. However, the reality is every month you do pay a mortgage… your landlord’s. In effect, you are building your landlord’s equity.

Consider investing in your own property that builds your own line of equity. Outpace inflation with a mortgage that is fixed throughout the life of the loan. Your monthly payments will stay the same while market rents tend to increase every year.

Instead of throwing your money away on rent, a real estate investment can make you money as you hold it, make you money when you sell it and give you the flexibility to borrow against it when you need liquid funds.

Investing in the stock market can be a risky endeavor and hard to control. However, you can maintain control over your real estate investment through improvement and upgrades at your pace.
Understanding the real estate market also positions you for better ROIs that often outperforms most stock portfolios. Learn about leverage below.

It’s a great time to buy. Since 2009, the average monthly mortgage principal and interest costs have fallen below average rental rates. The gap is wider now than it has been in the last 22 years.

With so many loans, down payment options and types of housing available, it might be an opportune time to make your money work for you that outpaces inflation.

How to Buy a home, First time buyer, how to get financed for a home, Get a home mortgageDownload the Californian Estates BUYER’S GUIDE

Californian Estates has produced this free, informative Buyer’s Guide to outline tips and potential pitfalls to your first purchase. Find out how to find a loan and how to put yourself in a position to receive the best possible terms. Learn how to strategize your home investment to make maximum money. The Buyer’s Guide will help you consider overlooked items that are critical when choosing your new home and neighborhood Finally, the closing process and closing costs are explained so that you can successfully get the deal done with ease so you can get on to the most important part of your purchase– enjoying your home.

Connect with your Californian Estates agent who can answer your questions about anew home (and asset).