Buying is somehow still cheaper than renting in LA

by Elijah Chiland

Over time, homeowners will pay 32.7 percent less than renters. To buy or to rent? The answer isn’t hard if you move around a lot or don’t have the cash on hand to cover a down payment, but for those looking to settle into a community for a number of years, the decision can come down to a simple question of finances. And according to a new report from Trulia, it’s still cheaper to buy in Los Angeles in the long run—in spite of sky high prices.

The bad news for homebuyers: Historically low interest rates haven’t done much to increase the overall benefits of buying over renting. Last year, when mortgage rates were slightly higher, it was 37.2 percent cheaper to buy; this year, the number has risen only slightly, to 37.7 percent, nationally. In Los Angeles, the savings are lower, with buying about 32.7 percent less expensive.

Read more at…