Which is Better: Owning or Renting a Home?

U.S. Census Bureau report reveals home sales increase, but Davies Company Real Estate explains when owning or renting is the better choice

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We encourage potential homebuyers to think in terms of their own long-term plan. If someone is thinking about leaving the area in less than two years or wants flexibility in their residence, they should not buy a home.

San Luis Obispo, CA (PRWEB) March 27, 2013

More people are buying new homes now than they were this time last year, but that doesn’t mean buying a home is right for everyone.

The number of new single-family home sales for February 2013 nationally was 12.3 percent above February 2012, according to a report released yesterday by the U.S. Census Bureau. And San Luis Obispo County average sales prices are up 15.4 percent, according to the California Association of REALTORS®.

But Dawna Davies, owner and broker of Davies Company Real Estate in San Luis Obispo, CA, says that not everyone should rush to buy.

“We encourage potential homebuyers to think in terms of their own long-term plan. If someone is thinking about leaving the area in less than two years or wants flexibility in their residence, they should not buy a home,” Davies said.

She explained that homeownership is ideal for people who like to have more control over their living space, want the potential economic and emotional benefits of homeownership, have enough income and downpayment to qualify for a loan or pay cash for a property, can find an acceptable property in the location where they are willing to live, and can benefit from the current homeowner tax benefits.

“But not everyone fits in these categories,” Davies added. “Some need to evaluate their lifestyle and income before they start searching for a home to buy.”

Renting is ideal for people who are not prepared for the responsibilities of homeownership, including repairs and maintenance, and who don’t necessarily have enough income to shelter with tax-deductible homeownership costs. And while renters usually have a minimal number of expenses for their residence, including rent and utilities, homeowners must consider additional costs.

For example, homeownership may include payment of interest and principal on a mortgage, property taxes, insurance and even Home Owners Association dues or fees, if it’s a condo or in a planned unit development.

“The decision depends on a variety of factors. People should consider their own lifestyle, personality and the responsibility associated with homeownership. It’s not the right decision for everyone,” Davies said. “Every person is different, and every calculation can be different, depending on the house. That’s why counseling a client in advance of and during a purchase is so important.”

For more information, call Dawna Davies at (805) 544-5889 or visit http://www.DaviesCo.com.

About Davies Company Real Estate
Dawna Davies joined Davies Company Real Estate in the early ‘90s and is now the owner and broker. With more than 25 years of experience in home sales, investment properties, and property management on the Central Coast, she practices single agency real estate and has signed over 4,000 closed sales, purchases and leases in her career. For more information, visit http://www.DaviesCo.com, like her on Facebook at http://www.facebook.com/DaviesCompany or follow her on Twitter at @DaviesCompany.


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