Redondo Beach Townhouses: Rent vs Buy

We've been blogging about the age old Rent vs Buy dilemma on and off for a while now. With interest rates as low as they are, there's no doubt that it makes a lot more sense to buy, rather than rent, most properties provided that you have the requisite down payment, credit score, and employment to secure a mortgage.

A good example is the "3 on a lot" attached townhouses found on Grant, Vanderbilt, Carnegie, Rockefeller, Mathews and some of the north-south streets such as Phelan, Felton, Blossom, etc.

Many of these properties are renting between $2800-$3200 a month depending on age, condition, location, and amenities. At today's interest rates, about $3000 of rent is equal to a mortgage payment on a $500,000 loan plus property tax and HOA dues. And you own which means that when the market turns around, and it will, you can expect 3-5% appreciation during the good years instead of making your landlord rich.

Since FHA is not a viable option on these units anymore, buyers will most likely need at least 10% down. But depending on the lender, that can come from a combination of your own funds, borrowing from your 401K, gift funds, and or family.

We're seeing a lot of nice properties listed under $600,000 and there have been some short sales and REOs considerably below that. Here's a quick search of real estate available for sale in North Redondo Beach today in the $400,000-$600,000 price range (or use any of the other free online MLS searches on this site).

The following video should also give you a good idea as to the typical North Redondo Beach Townhouse for for. Well, actually not quite typical. This unit is 4 bedrooms, most in the neighborhood are 4 and there is no common driveway. You can probably buy this property for about $565-575K in today's market. Why are you renting when you can own?

For more information on how to buy, sell, list, or invest in Beach Cities Real Estate in Manhattan Beach, Hermosa Beach, or Redondo Beach, call Ellis Posner at 310 975 5139.