To Rent or Buy in Pasadena and San Marino?


A decade ago, the answer to the rent/buy question was much easier.  In the mid-’90s, it was cheaper to buy than rent.  While rents continue to rise in the Pasadena area and more renters flood the market, the question of whether to rent or buy is more complicated.  In the LA Times article this morning, Buying Can Beat Renting After 3 Years, they offer compelling evidence that each person must make the decision that is right for them.  While the break-even point varies widely across the country, it appears that in Pasadena buying pays off after 6.4 years and an astonishing 11.4 years in San Marino.  This data comes from recent analysis by Zillow, and it reveals that there are many questions to ask when buying a home these days to fully weigh the break-even point: Can I put 20% down to make the break-even point shorter? Do I need to consider the cost of tuition if neighborhood schools will not be utilized? Do I plan to stay here for more than 5 years?  What is my overall financial picture and career goals?  Working with first-time buyers over the last 17 years has certainly had its ups and downs in terms of the rent/buy question, but The Maloney Group wholeheartedly believes that with affordability at an historic high, interest rates at historic lows, and home values in the Pasadena area relatively flat over the last few years, buying a home is worth serious consideration.