Is Renting a Better Option Than Owning a Home in Beverly Hills and Los Angeles, CA Right Now?

Is Renting a Better Option Than Owning a Home in Beverly Hills and Los Angeles, CA Right Now? | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

There has been recent news about it being better to rent than own a home. However, it is important to understand what these claims are based on before making any decisions. Reports often assume unrealistic scenarios for the average household. For instance, one report claims renting is the smarter financial option due to the opportunity to invest money elsewhere, but it assumes renters invest the money they would have spent on buying a home. This is not the case for most renters in Beverly Hills and Los Angeles, CA.

According to Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, many renters simply spend the money they save from not owning a home, which leads to wealth destruction. Homeownership, on the other hand, is one of the best investments one can make because it helps to build wealth. This is evidenced by the significant difference in net worth between homeowners and renters.

If you are considering renewing your rental agreement in Beverly Hills or Los Angeles, CA, think about the opportunity that homeownership provides for building wealth. The bottom line is, if you are unsure whether to continue renting or to buy a home, it is important to connect with a professional who can help you make the best decision for your situation.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value