Making the Transition from Renting to Buying

in Carlsbad, CA

Why should I buy, instead of rent?
Answer: You'll love the feeling of having something that's all yours - a Carlsbad California home where your own personal style will tell the world who you are. A thriving vegetable garden in the backyard, a tiled entryway, a yellow kitchen...when you own, you can do it all your way! But there's more to owning a Carlsbad home than personal satisfaction. You can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes, too. And interest will compose nearly all of your monthly payments, for over half the number of years you'll be paying your mortgage. This adds up to hefty savings at the end of each year. And you're also allowed to deduct the property taxes you pay as a homeowner. If you rent, you write your monthly check and it's gone forever. Another financial plus in owning a Carlsbad home is the possibility its value will go up through the years.

There are advantages to buying a Carlsbad California home versus renting. View these advantages in a financial comparison of buying versus renting in the Buy vs. Rent Calculator.

Savings: Buying

In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.

Buy vs. Rent Comparison
The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a Carlsbad home for $110,000 and pays a monthly mortgage of $1,000 After 6 years, the homeowner's payment is lower than the renter's monthly payment With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years

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Monthly Expenses: Buying

Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:

·  Carlsbad Home Taxes and Special Assessments

·  Home/Hazard Insurance

·  Utilities

·  Maintenance

·  Home Owner Association (HOA) Fee: Doesn't apply to all purchases. It pays for trash and   maintenance of common grounds if applicable.

   Membership Fee: It may pay for recreational facilities and other services (cable TV).

Looking for an apartment? It can be both exciting - and frustrating! But if you approach the whole process systematically and if you know your rights, apartment hunting doesn't have to be a hassle. Read through this Renter's Kit before you begin. And happy hunting!

Before You Start Looking...
Know your rights and responsibilities: Federal law prohibits housing discrimination based on your race, color, national origin, religion, sex, family status, or disability. If you have been trying to rent a Carlsbad home or apartment and you believe your rights have been violated, you can file a fair housing complaint. When you live in an apartment, you have both rights and responsibilities. Be sure you know what's expected of you - and what you can expect in return.

Figure out what you need: It's a good idea to think through what you need in an apartment BEFORE you begin shopping. How many bedrooms do you need? Do you need to be close to schools? Do you need parking? Make a list before you begin...that will help you narrow down your search.

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