With the housing market in San Diego and across much of the US still struggling, the idea of new home ownership in our current economic climate has come with some trepidation. The consensus generally is that with home ownership you build equity and get to write off your mortgage interest. There’s also government incentives and the promise of turning a profit if and when you decide to sell your home. However consumer confidence remains shaky in the face of a weak job market, especially since San Diego remains one of the most expensive markets in the country.

So for many, the debate of whether to rent or buy has become a hot topic of discussion. Let’s take a look at what considerations you should have in making this decision. Renting is better if your rent is relatively low, especially if home prices in your area are quite high. Even in the down economy, the average price of a home in San Diego is above the threshold that many can pay.
Investing in a home also brings about many associated costs. Buying often costs more than renting: the rule of thumb is 30 percent more per month. Expenses of owning a home typically includes mortgage payments, property taxes and assessments, home and property insurance, utilities including water and trash, maintenance, and homeowner’s association fees to name a few. Read the rest of this entry »