Buying Vs Renting

Everyone wants to own a home, but if the economic downturn is anything to go by, home ownership isn't really everyone's cup of tea. Some people are simply better off as renters. It's not just a question of money-it's also one of responsibility and long-term commitment. You may have the funds to buy that Laguna Beach home, but can you handle the physical and financial upkeep?

There are pros and cons to both buying and renting. Many people began as renters before investing in Laguna Beach real estate, and many find other benefits to renting-they can save up for better homes, not worry about maintenance, and focus on other aspects of Laguna Beach living. LagunaOC.com offers this quick guide to help you figure out whether you're cut out for home ownership, or whether you'd make a better renter.

How Long Do You Plan to Stay?

Most people buy Laguna Beach homes they intend to live in for at least the next few years. Home buying comes with a sense of permanence. Once you sign those papers, the home is yours as long as you want it-unless, of course, you default on your mortgage or move out. If you travel a lot or aren't sure whether you fit in, you might be better off with a Laguna Beach rental while you get to know the city.

Are You in The Right Place?

Some people move to Laguna Beach for work, others to raise a family, and others simply to enjoy the beach. One thing's for sure: you'll need to fit in if you want to enjoy your new home. If you have a permanent job close by and a good school to send the kids to, then a home may be a good investment. If not, however, you can rent a place until you've made more ties with the city or found a better home elsewhere.

Can You Afford It?

Needless to say, Laguna Beach homes require a solid financial plan. For instance, you'll need to make a sizeable down payment, hire a good agent, pay closing fees, and finance the move itself. The cost can easily add up to tens of thousands. And even if you have the money, will you have enough left over to pay the bills once you've moved in? Most people start out in apartments because they cost less, allowing them to set money aside for a home in the next few years.

Do You Want Bigger Returns?

Laguna Beach real estate may cost more at the outset, but they do give significant financial benefits in the long term. For one thing, owning a home allows you to build equity-basically the cash value of your home minus your mortgage balance. More equity means a bigger safety net for unexpected expenses, such as home repairs or medical emergencies. When you're renting, you're not building any of that-your rent just helps your landlord pay his taxes and build his own equity.

Can You Maintain It?

One of the most cited advantages to renting is maintenance. Apartment leases usually cover any repairs needed, such as cracked floors and ceilings, peeling paint, leaks, and even malfunctioning equipment. With Laguna Beach rentals, you get to enjoy all the little perks of home ownership-pools, gyms, gardens-without the burden of maintaining them. If you're not the type to roll up your sleeves and repair your own sink, then you may be better off as a renter.