Renting vs. Buying and waiting in Palos Verdes Estates Lunada Bay, Malaga Cove.
I would like to see a table or figure out the costs for renting vs. buying. I would like to buy into the Palos Verdes School District, near the ocean in Lunada Bay or Malaga Cove close to my surf spot. I am not flexible on the location. However, if I wait out the real estate until prices drop a bit... how can I figure out the real cost of renting vs. not buying. I am considering renting a house for approx 3k per month while renting out my house in another school district for 1500 or more per month, keeping my smaller home. How long would this be a good idea in this market. Would llke opinion of NewportFiji and other economists. Also interested in your opinions on if the election is going to make the prices drop further, or will they go up right after the election (no matter which side wins, or pick a side for your extrapolation and give supporting theory). I am talking about the entry level PVE homes 900k to 1.8 mil, not the
Manor Houses (2-8 mil).
Ka, the first question to ask is how long do you plan on staying in your home? If it is more than 3-5 years, usually purchasing is the correct route. There are other factors but this is key. No one has a crystal ball regarding prices, but you are assuming prices are declining in PV. The L.A. Times Real Estate section published an article on 4/20/08 that shows PV prices have appreciated 17% in Q1 2008 vs. Q1 2007. In terms of your areas of preference and price range, Lunada Bay is where you should target. There is only one SFR in Malaga Cove under 1.8M and it is a fixer with architectural plans included. Rents are over 3k in both areas. Living near, and surfing at Haggerty's, the Cove, or Indicators does come with a cost. Good Luck!
Hello Ka,
Are you already pre-approved for the purchase of the home in PVE up to $1.8 mil?
Jimmy Hutchinson
Atmosphere Realty
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