Why Owning a Home in San Diego is Better than Renting


Renting versus buying is a common conundrum for many people. Choosing to rent somewhere can be perfect for those who aren’t looking to put down roots, or who don’t want the financial commitment of a long-term mortgage.

In many parts of the U.S, renting is also much cheaper than buying a home. However, many people view home ownership as a sign of maturity and success. These buyers might be settled in their career and ready to put down roots in a specific area.

Choosing whether to buy or rent a property is a strictly personal decision, depending on where you are in your life right now and where you want your life to go in the near future are major considerations that you should make. 

However, you should also consider the area in which you wish to move to. In some locations, there are definite benefits to choosing home ownership over renting – including in San Diego, CA. 

Cheaper to buy than rent in the long-term in San Diego

If you are looking at staying in San Diego in the long-term, but still think that renting a home would be more affordable than buying, it may surprise you to know that it is cheaper in the long run to buy rather than rent.

A study by trulia.com at the end of 2016 found that buying a home was almost 38% cheaper than renting on a national basis. In fact, the financials stack up so much in favor of the homebuyer that interest rates would have to more than double to wipe out the financial advantage of buying. 

Tax benefits of home ownership in San Diego

One of the biggest advantages of any sort of property ownership is the tax incentives. This is especially true in San Diego. 

While most of the closing costs incurred in a real estate transaction in San Diego are not deductible, there is one important exception. Per tax code, the IRS allows the buyer to deduct discount points and origination fees, regardless of whether they actually pay for them. 

These can amount to quite a reasonable deduction, as they are normally calculated as a percentage of the total loan. 

Other great deductions homeowners can make include mortgage interest, property taxes and they can keep a sizable portion of any profit made on the purchase of their home if they decide to sell up.

Building equity

One of the main reasons that people choose home ownership over renting is that it gives buyers the possibility of building equity into their property. If prices rise, your new home could be worth much more than you have borrowed to pay for it. This means that your San Diego property could earn you money while you are living in it.

Equity puts you in a strong position if and when you decide to move, as you will have a greater amount to spend after you have sold your home for the new, higher price.

This means you could upgrade to a larger property or more desirable area. Alternatively, you could try and find a new home nearer the value of your current home when you bought it, and pocket the equity for your retirement, a vacation or simply a rainy day! 


San Diego is an area with so much to offer buyers of every age, and it is little wonder that the property market here is thriving. If you are looking to settle down in San Diego for the foreseeable future, buying a property is almost certain to be a sound investment.