Real Estate is likely the best investment you'll ever make.

It's easy to think renting isn't that much different a payment than owning when you just look at the monthly payment. When you include the tax deduction (the mortgage insurance is deductible), real estate appreciation (5% national avg. 12.2% L.A. avg. /10 yrs), and the fact that you're actually making payments toward a fixed principal (vs. throwing rent away), owning your first residence is of paramount importance. Watch what happens here:

Let's say you buy a condo for $150k, and don't even put in ceiling fans. 7% APR on the loan, 8% yield on the $297 invested difference between rent vs. payment:

Buy scenario, 5 years out.
You will pay a monthly PI (Principal and Interest) payment of: You will gain a tax advantage of: You will gain an equity appreciation of: Totaling a net value gain of: Selling the home in 5 years will incur closing costs of:	$997.00 $14,300.00 $44,501.00 $58,802.00 ($5,743.00)
Giving you a total net benefit of ownership of:	$53,059.00
Rental Scenario, based on the same 5 year period:
Had you bought you would have paid home buying expenses of: You will pay rental expenses of: Giving a difference of:	$59,877.00 ($46,397.00) $ 13,480.00
Investing the avg difference of $2,696.00/yr for 5 yrs at %8 yields:	$17,081.00

That's based on 5% appreciation, the U.S. average. Los Angeles is about 12.2%, the economy is slow, so let's say your investments are weak at 6%, and still no ceiling fans...the numbers still come to:

Buy - $123,820.00 vs. Rent - $16,109.00.

Put in some paint, love, and ceiling fans and you may do even better.

Let's get you in a home! Are you...