At Ali Safavi Real Estate we know owning a home is a big deal. It’s the American dream! But…should you? Maybe.
But, then again, maybe not. If you live in Kansas, for example, it’s probably a good bet. Chances are you can find an affordable home in a good area of town. New York, not as much. And the more expensive the real estate, the more chances there are for BIG losses.
Ali Safavi Real Estate Tip: Beware of Hidden Expenses
Think you know them all? Chances are you’ve forgotten one or two. Shoveling, painting, plumbing, gutters, carpets, crime, the wind…the list goes on. So you’re not just responsible for the mortgage and closing-costs, but for a never ending stream of updates and repairs. If you stretched yourself financially thin with an expensive home purchase, these extra costs can cause big problems with your bank account.
However, often it is still cheaper to own than rent.
In many towns, getting a home for $100,000 or less is absolutely achievable. The mortgage on that is less than you would pay in rent for the same location.
Cities like New York and Los Angeles are a whole different ballgame. There are more million dollar houses in those two cities than any other city in the country. Just to get a two-bedroom condo in Hollywood will cost you at least $750,000. However, if you’re renting, especially in a rent-controlled building, you can sneak away with paying under $1,000 per month. With prices artificially low like that, many residents don’t even consider saving up to buy a home.
The goal of owning can always exist, but all cities are not created equal. If you want to invest in an affordable home, go where the money isn’t.