Buy a Home and Gain Independence From Renting

Dated: 07/10/2019

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I want you to buy a home from me. So stop renting and start putting your money to work for you instead of someone else. It’s not as far-fetched as you might think. Rents in Southern California are at an all-time high with home prices approaching that mark as well.

Home inventory is currently better than it’s been in years. Rates have dropped back down to 3.75-4.25% depending on the type and length.

Did you know that avg. rental cost for a single family 1600sq ft 3bd/2ba in the popular Lakewood Plaza District is $3030? Did you know that if you bought an avg. sale price $702K home your net cost every month is $2,554? That’s a savings of roughly $475 a month. What could you do with an extra $475 a month? 

So let’s take a look at the breakdown of this 702K house to see how it can be more affordable to buy instead of continuing to rent. 

As you can see from the example above even if you went into your new home @ 3% down (FHA Loan) and paid PMI you STILL save $475 a month! If you are able to pull together a 20% down payment and have no PMI then savings will be even greater.

What if you do end up paying PMI? Well, the good news is that it doesn’t continue forever. Once you build some equity through price appreciation and/or loan pay down, usually having 80% LTV it can be removed or refinance out of it.

Afraid you've missed the boat on tax deductions due to the new tax code? Not necessarily true, and here's why: You can still deduct the full interest for loans up to 750K and up to 10K in SALT (state and local taxes). For lots of people in my market this means you are not losing much if anything in the way of deductions. And isn't the ability to itemize and get at some additional deductions better than taking the standard deduction? Generally, YES!

One last thing to consider. The above savings worksheet doesn’t into account price appreciation which can fluctuate but historically always goes up. Now I know lots of people reading will be thinking wait a minute, the housing market has ups and downs including the market crash of a decade ago. That’s a true and fair statement, especially in Southern California where we do have boom and bust cycles however the reality is in Southern California where raw land is scarce and new building is limited that prices always make a comeback. This has been especially true the last few years with ultra-low rates. If appreciation continues to trend in the up direction not only does that mean more money for you. On the flip-side price appreciation can also hinder your ability to buy into the housing market.

Do you want to be priced out? No, you don’t. Call me today and I will help get you started down the road to housing independence.

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Jason Hull









Hi there! Thanks for stopping by. If you think it doesn't matter who you hire to represent you to sell your house or buy one, think again....

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