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by Southern Californias Top Producing Mother & Son Te

Every now and then we come across some good info on the whole buy vs rent debate.  Here are some great reasons for you to consider to help you make a decision on whether it's better for you to buy or rent.  Let us know what you think...


Rent Advantages


May be cheaper than a mortgage payment

Fewer (if any) maintenance costs

No down payment required (less deposit)

No real estate taxes (renters insurance optional)

Less stress (who cares, it’s not yours!)

Freedom to move or downsize when necessary

No risk of home price depreciation

Some utility bills may be included

“Free” amenities such as pool, gym, security

Money can be used for other, more profitable investments

Can’t be foreclosed on

Rent Disadvantages


Rental payment may exceed monthly cost of mortgage

No ownership or wealth creation

Payments never stop when renting

Rent will rise over time

Must deal with a landlord or management company

No tax benefits Rules, regulations, and limitations

More temporary, less stability

Always at the mercy of the property owner Pets may not be allowed


Ownership Advantages


You can build home equity and wealth

Status- Status-Status

Sizable tax deductions possible

Your space, your rules (pets welcome)

Ability to remodel, expand, tear down

Pride of ownership (social status, accomplishment)

Potentially better for children, family structure

Mortgage can improve your credit history/score

Ability to borrow against your home (HELOC or cash-out)

No more monthly payments once mortgage paid off

Fixed payments (if you choose a fixed mortgage)

Mortgages are the cheapest loans available

No landlord

Can exclude capital gains when you sell (partially)

Inflation hedge

Can rent out to others

Can sell and use proceeds for bigger/better home

Retirement nest egg

It’s the American Dream!


Ownership Disadvantages


Home prices may lose value

Could overpay for your property

Obtaining a mortgage (and finding a home) is a hassle

Not everyone qualifies for a mortgage

You must pay taxes and homeowners insurance

Total housing payment can be more expensive

Mortgage payment can rise (if an ARM)

Sizable down payment necessary

Maintenance costs can be excessive P

ricey HOA dues (if applicable)

You’re “stuck” in a home (long-term commitment)

Increased liability and responsibility

Transactional costs of buying and selling

Ownership is stressful!

Taxes and insurance generally rise

Your home can be damaged or destroyed (and not fully insured)

Can be foreclosed on and lose your home

I hope this helps earn you commissions.






by Southern Californias Top Producing Mother & Son Te

When opportunities arise be sure to ask us questions and take advantage quickly because the property you have your eyes on may not be around for too long.  We had this 4-unit Downey listing on the market for a little over a month.  A cash buyer came and just like that we closed in a week!  

It all comes down to whether or not you have a plan or a vision for your investment.  This property was a fixer.  It's going to need a little upgrading, however once those upgrades are done the owner will be able to reap from his investment because he will be able to collect more rent easily.  If you want to be the owner of units you have to have a plan and a vision.  If you don't you will end up having to pay a premium on any investment property when you're buying in areas likeDowney, Lakewood, and Bellflower.  

We'd love to help you on your next sale or purchase.  Sellers:  We know how to get you what you want for your property.  Right now is the perfect time to sell especially with the school year starting just around the corner!  Call Maria Directly:   562-883-1003.



New Record High!

by Southern Californias Top Producing Mother & Son Te

So once again home values shoot higher.  We are now at the highest average sales price in Downey and surrounding areas since the "Bubble" burst back in 2008!  Average sales price for the month of July came in at $491,336.  That's a 9.7% increase year to date and a 22.5% increase from Jan/2013.  We can't even tell you how many emails we received from people saying that home values were going to go further down after they had already dropped 40%-50%.  People waited and waited and now look at home values.  They have drastically recovered.  Sellers out there please, we urge you to take advantage of this market.  The market will not always be like this. 

Believe it or not we are in a market that favors both buyers and sellers!  That doesn't happen too often in life.  Interest rates are still very low.  According to the average 30 year fixed loan in California is 4.19%.  Buyers can take advantage of low monthly payments while sellers can get more value for their home then what they would've got selling it a year ago.  It's a win win!  Yes, if you're a buyer you may be kicking yourself in the but if you actually had the opportunity to buy earlier but you waited. 

Be sure to check our inventory.  We are going to be adding a few more Listings to our properties page and of course if you are registered on our site you will see them first.  

Displaying blog entries 1-3 of 3




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Contact Information

Photo of The Mother & Son Team - Maria Palacios & Chris Gon Real Estate
The Mother & Son Team - Maria Palacios & Chris Gon
Berkshire Hathaway HomeServices, California Properties
16911 Bellflower Blvd
Bellflower CA 90706
(877) 883-1003
Fax: 562-381-9113