Residents across the country are faced with a difficult decision, should you rent or buy a home? In San Diego, many renters think the idea of owning a home is a lofty and unattainable goal due to the region’s higher prices.
Monthly, San Diego renters dutifully pay rent without seeing any return.
The belief that home prices are too high in San Diego should be dispelled. In May, Trulia found nationally it is 33.1 percent cheaper to buy than rent.
In San Diego, even after the interest hike in June, it is about 20 percent cheaper to buy than rent.
Let’s take a look at three different neighborhoods to determine whether is better to rent or buy a home in San Diego accounting for the June interest rate increase.
Pacific Beach is a neighborhood in San Diego known for relaxed beaches, great surfing, and a lot of real estate opportunity.
Yet, residents in that area often face the question of whether they should continue to rent in the area or if they should buy a home in Pacific Beach.
Most believe that owning an oceanfront home is out of their purchasing price range, but renting costs might actually be costing residents more.
Renting costs average $3,369 per month while buying costs average $2,756 per month, making the decision to buy a more cost-effective option.
Hillcrest is a quaint neighborhood tucked in just north of Balboa Park, and the area draws in many families who work downtown or enjoy being close to the city.
Residents rejoice! Renting in Hillcrest would cost a family $2,359 per month while buying costs only equate to $1,857 per month on average.
This substantial difference should have all renters tearing up their renting leases and begin house hunting immediately!
Mission Hills is an optimal neighborhood, right between the downtown area of San Diego and the sunny beaches along the coast. For this reason, many families flock to Mission Hills and are willing to pay more for this location.
A renter in Mission Hills will spend $2,503 per month on renting costs while a homeowner will spend $3,222 per month on buying costs. In these circumstances, residents might think about renting in Mission Hills.
While there are seldom instances where it is cheaper to rent in San Diego, it’s important to look at buying a home as an investment for your future.
Buying a home allows a family to put down roots and really establish themselves in a neighborhood. Buyers also face fewer restrictions and often experience tax advantages.