Should I buy or rent in Encino?
You’re ready to move and wondering whether to buy or rent a home in Encino (or anywhere in the San Fernando Valley). It’s a question most people face at some point in their adult lives, and though every situation is different, the primary factor to take into consideration is how long you plan to stay put.
According to Zillow’s recent breakeven horizon analysis, in half of metros in the U.S., buying beats renting after only two years. Rising rents and low rates on home loans have helped skew the rent vs. buy decision toward buying for those who can afford it, leaving renters wondering why they should renew their leases when they may be able to break even on a home purchase in less time.
Because conditions for buyers and renters can vary dramatically even within cities themselves, Zillow produces breakeven horizons down to the neighborhood level in order to give potential buyers and renters the most insight into local conditions where they’re considering living. Zillow’s breakeven horizon calculates the point, in years, at which buying a home becomes less expensive than renting the same home. It incorporates all costs associated with buying and renting, including upfront payments, closing costs, anticipated monthly rent and mortgage payments, insurance, taxes, utilities, maintenance and renovation costs.
We also consider the different asset streams available to buyers and renters. For buyers, the home equity grows. Alternatively, renters can invest some of the money they would have spent on a home purchase and earn interest. It then factors in historic and anticipated home value appreciation rates, rental prices and rental appreciation rates.
If you’d like a more detailed breakdown of what benefits buying in Encino have over renting, call me at (310)926-2386 or contact me through this site.