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Owning a home does not make financial sense, according to Rich Arzaga, a financial adviser and adjunct professor at UC Berkeley.
He made the comments in an interview answering the question, is it better to rent or own a home?
Arzaga says the cost of owning a home is much higher than anyone expects... so much so that it hurts your long-term financial goals.
He performed a study of 250 homeowners that purchased their home in 2005 and 100 percent of the time, renting was better than owning.
Rich Toscano, a financial adviser who also has a website about San Diego property prices, says the key to deciding whether to rent or buy is to determine by asking two things: Can if you can afford the monthly payments and costs? And is the home a good value?
“That's gonna be the primary thing that's going to make a difference as far as whether it's gonna work out for you as an investment,” said Tascano. “You can't really make a generalized statement that it's good or bad to do one thing or the other without the valuation of what you're buying. Whether it's cheap or expensive.”