Should You Buy or Rent Your Next San Diego Home?


Buy or Rent

To Buy or Rent that home or condo?

This is a dilemma facing not only our San Diego Millennials, but many others as well. Many think: Why not let the landlord take care of repairs and maintenance? Others opine: Why should I be making mortgage and property tax payments for some landlord?

Both points are valid, but one thing is certain and that is the fact that owning a home is different that renting one. With ownership, you inherit all the problems as well as all the advantages. you are responsible for repairs and carrying insurance for the big ones. The mortgage payments you make each month pay down that loan and one day, if you stay there long enough and don’t keep refinancing, you might own the home free and clear.

Listed below are some of the advantages to owning the home you live in (and perhaps even the ones you don’t!)

Predictable Mortgage Payments

Unlike San Diego rents, which keep going up each year, your mortgage fixed rate mortgage payment will remain stable each month. Predictable payments allow you to create and stick to a budget. With rents, you could end up being priced out of your neighborhood.

The Beauty of Equity

Unless you have an interest only loan, each mortgage payment will reduce the principle balance on your loan, which will increase the equity stake in your San Diego home. Contrast this to renters, whose lease payments go to increase the landlord’s equity. The equity in your home can also increase with the cost of living and provides a mighty hedge against inflation. It also insures you have a roof over your head in tight real estate market as we have today, when BOTH rentals and homes for sale are in tight supply (welcome to the San Diego real estate market!)

Predictable payments

As property values and costs increase, rents go up. If you are not in a rent-controlled situation, you have no control over what your lease payment will be from year to year. When your current lease ends, you may find yourself priced out of your building or neighborhood. When you buy a home with a fixed-rate mortgage, particularly in an area that does not have association dues, your monthly and yearly outgo is steady and stable. Having predictable payments allows you to stick to your budget.

A place that reflects YOU

HOA rules and regulations (if you have them) may not allow you paint your home purple, but the rest of your home will be a reflection of you and your own creativity. You can upgrade in the fashion you wish and have the power to increase the value of your home if upgrades are done right. Want hardwood flooring? You will likely recover much of the cost when you sell your home. Ditto for upgraded kitchen and baths–if you don’t already have them.

The value of owning a home goes beyond the dwelling. You are now a rooted member of the community and have the opportunity to form lasting relationships with your neighbors. Thbis is also possible when renting, as long as the owner doesn’t decide to sell the home you are leasing or raise rents beyond your means.

If you have questions or would like to discuss the pros and cons of buying and renting, feel free to reach and give Scott or Roberta Murphy a call at either 760-942-9100 or 760-613-6190. Alternatively, you may email: In the meantime, feel free to search for all listed and currently available homes for sale in San Diego area.