Los Angeles Times just ran a story pertaining to the pros and cons of buying a home now or waiting.  "..Others contend that prices are low enough that renters who aspire to own should buy now so they can start building their equity……"

Let’s look at how renting vs. ownership stacks up in Glendale and La Crescenta by examining a sampling of homes listed in the Multiple Listing Service available for both lease and sale.  

In my Los Angeles neighborhood, It costs more to buy a home than to rent. In the sub prime heyday renters were able to purchase a home for about the same cost as renting– but the payments were not sufficient to pay down the loan, there was negative amortization and the loan balance and monthly payments often increased.  Many if not most of these homeowners are losing their homes. This was not the answer.

Homeownership provides tax benefits, which you should discuss with a CPA or financial planner.  Very loosely (I am the Realtor, not the CPA) for every $3.00 in principal and interest about $1.00 is written off.  Homeownership generally requires a degree of sacrifice – it’s a relationship – and as with any relationship there are benefits and compromises.  Perhaps instead of paying $6500 in rent for the Cumberland Heights home you could purchase something smaller and for the same payment (taking taxes into consideration) you could own your own home.  Or perhaps you prefer renting, we all have different desires.

*Interest rates vary by lender, loan fees and APR's vary, call a lender for a more accurate interest rate and payment quote.  Interest rates are higher for jumbo money.