• Greater mobility. Selling or buying a home has transaction cost and can take time.
• You can call the landlord for repairs
• There’s no resale risk. While home prices have been rising in San Diego County, there’s no guarantee that the value will increase over time.
Cons of renting:
• The landlord can kick you out if, for example, he or she decides to sell the place
• No equity is built up: “Renting is throwing money away,” said Linda Lee, president of San Diego Association of Realtors.
• You can’t paint or remodel without the owner’s permission
Rates near historic lows
The monthly average 30-year, fixed mortgage rate rose nearly one percentage point from May to August to 4.46 percent, according to Freddie Mac, the government-controlled mortgage buyer. However, mortgage rates are still near historic lows. Throughout the 1980s, for example, they ranged from 9 percent to 18 percent.
For the San Diego metro area, mortgage rates would have to climb to 7.3 percent for renting to be cheaper than buying, according to a Trulia report released Thursday. Trulia calls this the mortgage-rate tipping point. The last time 30-year fixed mortgage rates were that high was about 12 years ago, according to Freddie Mac.
By comparison, the mortgage rate tipping point is 7 percent for Orange County, 5.7 percent for the San Francisco metro area and 5.2 percent for the San Jose metro area.