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Ken Dang's Blog

By Ken Dang | Agent in Silver Lake, Los Ang...

Are You Paying Someone Else's Mortgage?

The Renter's Incentive as a First Time Home Buyer

Most renters become complacent with renting from a landlord, because sometimes it is just easier and there is no home ownership responsibility attached to renting. However, here are some benefits of home ownership vs. renting that might motivate you to work towards home ownership:

  • Home ownership allows for tax deductable interest on home loans.  Renting does not.
  • Home ownership increase your net worth.  Renting does nothing at all to increase your net worth.
  • Home ownership builds wealth through equity and appreciation. Renting does nothing to build your wealth.
  • Home ownership could lock in a monthly payment on a fix rate mortgage. As a renter, your monthly rent can increase on average 2 to 3% per year depending on where you live an your citie's rent control laws.
  • Home ownership provides the opportunity to resell your house and profit from it due to the home's appreciation.  As a renter you have nothing to resell and therefore no potential to make profit from the building you live in.
  • Home ownership allows you autonomy in the decisisons you make about your home i.e. decor, remodels, etc.  As renters, you are restricted to what is acceptable to the landlord and/or property owner.

If you are a first time home buyer and wondering if this is the right time to buy your first home, the answers is a resounding " YES."  Especially in the area of Silver lake, Echo Park, Los Feliz and Hollywood - all neighborhoods in Los Angeles, CA.  It is currently a buyer's market, and with low home prices and home loan programs with low interest rates such as FHA financing, buying a home now would be a wise decision.  Savvy home buyer's know that with a fix rate mortgage they will save thousands of dollars over the term of their loan if they buy now as oppose to waiting.  Interests rates are again rising ever so slightly, but they ARE beginning to rise andhome prices have already begun to rise as well.  Now you just need to ask yourself.  What is stopping you from buying into the dream of owning your own home.

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