Sitting in your apartment, writing yet another rent check, and thinking about how much you wish you had your own place? Been there. The good news is, you don’t have to stay there. Between the financial benefits and the many lifestyle advantages when you buy a Westside condo, there are so many reasons to kiss apartment living goodbye, including a few you may not have considered.
1. Because it makes good financial sense
Rents continue to rise across the country, continuing to beg the question of whether it’s even financially worth it—especially when you’re renting on the Westside, home to two of the most expensive cities to rent in L.A.: Marina del Rey and Venice. Curbed, via a new report from Trulia, offers a definitive answer for L.A. renters: “It’s still cheaper to buy in Los Angeles in the long run,” they said.
So, how much less expensive is it to buy in L.A. versus renting: 32.7 percent! “The 32.7 percent savings figure provides enough of a cushion that buying would still be cheaper unless home prices jump 52 percent or mortgage rates increase to 7.4 percent (neither a likely possibility),” they said.
2. Because the equity your place earns should be yours
Paying your rent every month gives you a roof over your head but nothing else to show for it. If your apartment ends up being worth more, the only person who will benefit from it is your landlord. When you buy a westside condo that then rises in value, the equity is all yours.
3. Because tax deductions are awesome
As you know, there is zero tax write off related to renting. No one is paying you back or giving you a year-end reward for living in an apartment. But the tax savings of homeownership can be substantial, between mortgage interest, property taxes, and any points you happen to pay on your loan. At this time of year, those who are thinking they might buy a Westside condo have another reason to pull the trigger now: Close escrow before January 1, and you can take advantage of those tax deductions on your 2016 taxes!
“There’s a huge tax benefit to housing which comes from the hidden ‘dividend’ it pays,” Erik Brynjolfsson, director of the MIT Initiative on the Digital Economy, said on Business Insider. “I’m not talking (just) about the (too) generous mortgage deduction, but rather the fact that you don’t have to pay taxes on the implicit rent you earn on your house since its paid to yourself.”
4. Because interest rates may never be this low again
Many of us take today’s low mortgage rates for granted because it’s all we’ve known, or because we have short memories. But when you take a look at the history of mortgage rates, it’s not such a pretty picture. The five percent rates in 2009 and six percent rates of 2007 are nothing if you consider that rates in the early 1980s were well over 17 percent!
Will they ever return to that level? We hope not, but the point is that you never know what could happen. Which is why so many people are looking to lock in crazy low rates and buy a Westside condo now.
5. Because you’re tired of being told what you can and can’t do in your space
Renting makes it hard to express your personal style if you can’t paint, wallpaper, hang a flat screen, or even put art up on the walls. It might be fine dealing with the compromises that living in a luxury Silicon Beach apartment forces you to make, but there’s going to come a time when you’ll want your home to reflect your taste.
When you own your own place, “You can put nails in the walls without worrying about recouping a deposit,” said NASDAQ. “When the place is yours, you make the rules.”
6. Because renting is taking a big bite out of your budget
You may think you’re saving money by renting, but are you really? According to a report on Patch, “Marina Del Rey residents pay an average of $3,640 a month for a two-bedroom apartment. The highest rent in the Southland is nearby Venice with $5,200.” Some of the most expensive apartments in Marina del Rey go well beyond that; Esprit in Marina del Rey is up to $11,991 per month, and even smaller units at Marina del Rey luxury apartments like Stella start at $3,766 for just over 1,000 square feet and go up to $7,350; Waves MDR is $4,700 for a two-bedroom apartment; and a two-bedroom at Forty55 Lofts is up to $5,065. At those prices, you could own a luxury condo in Marina del Rey.
And have you considered all the extras you have to pay to live in an apartment? Outside of your rent, there’s the security deposit and a pet deposit (if applicable) and then renter’s insurance, and don’t forget about moving expenses every time you have to find a new place to live.
7. Because you’re done feeling transient
By and large, apartments cater to short-term residents, which is why leases are generally signed a year at a time. But what if you’re ready to put down some roots or just get a little more serious about your surroundings? Luxury condos like X67 Lofts are a great choice because they also give you built-in lifestyle opportunities in the way of on-site amenities that help you “to feel more attached to the community”—another of Brynjolfsson’s reasons to buy instead of rent. X67 Lofts’ amenities include: A dipping pool with lounges and cabana-style pods; a Residential Concierge Attendant seven days a week; a community event room; a community fitness room; and an outdoor courtyard with BBQs and firepit.
8. Because your rent is just going to keep going up
The beautiful thing about a fixed-rate loan is it stays fixed. Unless you opt for an adjustable loan, which is rare in today’s real estate market, your payment is your payment. There’s no need to adjust your budget once a year, or, even worse, have to scramble to find a new place to live, because your rent went up—again.
9. Because: Dogs
And cats, for that matter. In many apartment buildings, pets are a no-no. And, if you can have one, you’ll have to pay a pet deposit and usually monthly pet rent as well. Not cool.
10. Because you’re already paying a mortgage
It’s just not yours! Yes, you’re contributing to someone else’s wealth, and you have nothing to show for it. Think on that one for a minute.
X67 Lofts offers 67 contemporary loft-style new homes for sale on the Westside with 15 uniquely designed floorplans ranging from 759–1,906 square feet and high-end features and finishes including gourmet kitchens with center islands and eating bar (per plan), KitchenAid® stainless steel appliances, frameless European-style cabinetry, and Caesarstone® countertops. The community is located within walking distance to the beach, Abbot Kinney, and to trendy shopping and dining opportunities, and in the perfect spot for those who work in the hot Silicon Beach shops.
You can also add your name to the interest list here to make sure you are kept up to date on sales and phase releases.