Renting vs. Buying – Statistics released by the National Association of Realtors show that, across the country, half of tenants are paying more than 30% of their income as rent. Also, the number of renters paying more than half their income for accommodation has increased dramatically in recent years. If you’re choosing between renting in a luxury Southwestern community and buying, it’s always a very personal decision that’s dependent on many factors. However, once you’ve found a community such as PGA West, The Hideaway, Traditions or The Reserve, which suits your choice of lifestyle, you will most likely find that the high cost of leasing makes buying-in an extremely appealing alternative.
Habituated to The High Cost Habitat
Owning your own home has traditionally been preferable to renting, as renting accrues all of the investment value to the landlord. During the property and finance bubble of the last decade this basic truth was turned on its head, as housing prices spiked but rents did not keep pace.Even so, in many of the metropolitan areas of the country, tenants accept without question that they have to pay in excess of half of their income as rent. We, as a nation, have become so habituated to this that we often fail to see the alternatives, even when they are readily available.
With the collapse of the market and the rebuilding that has gradually happened over the last few years, the state of affairs has returned to its pre-bubble norm. Having stated that, the time to purchase your own home is always the time when you are ready to do so. The timeframe is unique to everyone. Leasing is a great way to discover a community and remain flexible; there are real short-term benefits. However, in the long-term, home ownership usually proves to be the better option.
If your payments for the home that you occupy are extremely high you want to build some equity. At the high end of the market the benefits of ownership are even more pronounced. Living in the right place and in a style of abundance is a fine end in itself but, with the high cost of renting, you never gain anything to show for it on your personal balance sheet.
If You Can Rent That Coachella Valley Home You Can Buy It
Too many people are paying an excessive share of their income as rent. This is particularly true for California residents, where property values and rents have been sky-high for decades. Not just in the lower income brackets but across the market as a whole. We have developed an acceptance of the high cost of renting, based on what we hear in the media, and become accustomed to the range of properties available at a given price level. It’s natural to aspire to the best possible living circumstances we can afford.
The dictum of location, location, location is deeply ingrained in our collective psyche. It’s the basis of the American Dream in the minds of consumers. Living in a luxurious abode is an achievable dream and one that can be afforded by many. It’s human nature to want to take it to the limit and keep up with the crowd. When we work hard we feel that we’ve earned it. So we cut back on other things to live in the nicer neighborhood and the bigger house with more luxurious amenities.
It seems that many people fail to question that if we can afford to rent in a great location then certainly we can afford to buy a similar home. Dollar for dollar a rental budget in the country club communities around La Quinta will get you a more luxurious home than in the big cities on the Coast. Joining a community that gives you the lifestyle of your dreams is affordable and you can have comparatively more for the same price, plus the equity of ownership.
When homeowners depend on financing, a large part of their payment is devoted to interest, that’s true, but they retain a growing equity share and tax time will often bring further benefits, depending on the circumstances. The simple fact is that the cost of financing for ownership is less than the cost of leasing a home.
Even with the added cost of insurance on a low down payment FHA loan the investment of ownership is still very competitive with the cost of renting. The value of the Coachella Valley region becomes apparent when you compare it with the urban areas of San Diego, Los Angeles and The Bay Area. It’s much more affordable to own here then on the coast. The investment that will get you a typical three bedroom home in Los Angeles has the potential to position your household in the country club luxury lifestyle to which we’re accustomed in La Quinta.
Some Thoughts on Lifestyle Choices
Home ownership is an integral part of the Coachella Valley lifestyle. Opportunities are abundant and the communities offer a rich array of activities and settings. The market has returned to levels that are comparable to historic norms. Our communities continue to grow and thrive as the secret of desert living spreads across the country and the world. Renters risk higher payments as the market improves, whereas owners gain equity and can keep their costs relatively flat as their home’s market value rises.
A lease on a luxury home in one of the communities around La Quinta, such as PGA West or Hideaway, will give you a splendid opportunity to explore our way of life. But, when you look at the big picture, you will still live far more comfortably when you take ownership of your abode.
Once you’ve decided to stay in the area you should consider how to explore the opportunities available for ownership of some of the finest luxury homes listed as available for purchase. Now that the market is in line with its historic trend it’s a great time to discuss how you can make the most of the Coachella Valley lifestyle.
Sources
http://realtormag.realtor.org/daily-news/2013/12/10/us-in-worst-rental-affordability-crisis-ever NAR shows high cost of renting
http://www.calculatedriskblog.com/2013/05/real-house-prices-price-to-rent-ratio.html Comparison of renting versus owning in the historic trends. From Calculated Risk Blog