Should You Rent or Buy in Orange County, California?
Faith Led Interior Design Show | Episode 55
"Should I rent or buy a house in Orange County, California?" This is a question many folks grapple with for themselves or their children.
In today’s episode, I am sharing a case study with Danielle, a single mother and teacher in Orange County, CA. Danielle shares her personal journey of making this crucial decision in 2021. With only three months left on her lease, she faced the dilemma of continuing to rent or taking the plunge into homeownership.
I showed Danielle that buying a home can be cost-effective. In the process, she not only found her dream home but also reaped incredible equity gains, paving the way for future investments.
I also explore the synergy between real estate and interior design, showcasing how my design expertise maximized Danielle's returns.
So if you are grappling with the rent vs. buy dilemma, this episode is for you. Join me and Danielle as we unravel the benefits of homeownership, from building equity to the potential for investment properties.
Follow the Faith Led Interior Design show on Apple Podcast, Spotify, or Google Play.
Listen to the Episode
Be Blessed Verse
This week’s verse is Proverbs 31 Woman
The Proverbs 31 woman, often referred to as the "virtuous woman," is a biblical figure celebrated for her wisdom, strength, and virtuous character.
Described in the book of Proverbs in the Old Testament, she is portrayed as a woman of noble character who embodies qualities such as industriousness, integrity, and kindness.
She is known for her ability to manage her household, her care for her family, and her dedication to her work.
This iconic figure in biblical literature has served as an inspiration for countless women throughout history, encouraging them to strive for excellence in various aspects of life.
Should You Rent or Buy in Orange County, California?
About My Guest
Danielle is an Orange County resident. She is a single mom to a lovely daughter. She is a teacher and has a deep reverence for God.
She has been renting and her lease was coming up in about 3 months. In 2021, Danielle had to make a decision - rent vs. buy.
Here is my conversation with Danielle:
We talked about the possibility of buying instead of continuing her lease. But the challenge is that she is on a limited budget. We need to determine precisely what she can afford and what she cannot.
I told her that I believed she could buy for the same price as renting and that way her money would be purchasing her own home instead of paying someone’s rent and paying their mortgage essentially.
Renting vs Buying a Home With a Focus on Personal Finance
Sheree: Danielle, what were your thoughts on all this? I know you were scared and wondering if that was true, but I said, “Let’s walk toward it, pray, and see what doors open.”
Danielle: It was a big transition out of a home that I previously owned and into a rental unit that was pretty expensive. It was really one of those things that doing it on my own was stretching a bit, but I was able to do that.
You encouraged me to be in a place where I'm paying myself as opposed to paying someone else's mortgage. That really motivated me to try to find a place that was going to be essentially the same as my rent. I thought, “Wow! I don't know if that is possible.” But with your help, I noticed that there are properties that I could get into and pay the same if not even a little less than what I was paying in my rent. So that was kind of the start of the process.
Home search? Many yucky and then, you & I agreed this was the one.
Full price offer. They accepted it right away and did not leave it on the market over the weekend, which we couldn’t believe. I’m sure the price would have been bid up, but God…
With your design help, I've been able to make something that I love and is a home for me and my daughter.
Sheree: How did the transaction go for you? Was it hard because you weren't used to doing it?
Danielle: It was a little scary. But with your help - you intervened with the lender - and you made it so that it was an easy process.
There were like little hiccups about like, '“Oh, well! There is $1,000 here and 2000 there, and I was just wondering what it means. Why am I paying this part?”
And you were able to explain that to me easily so it just felt peaceful throughout, even though it was a difficult decision and kind of a scary one.
So yeah! You helped me by reminding me that this is good to walk towards and a blessing and it really has turned out to be. So that's been amazing!
The Benefits of Buying a Home Versus Renting
Sheree: As a Realtor, I always share the advantages of homeownership, such as building equity, stability, and the potential for investment properties.
Now, tell us about what has happened with your property.
Danielle: Amazing equity, proud owner - never thought I could profit as I have. It has enabled me to think about buying my second home.
Again, I don’t know how this is going to work, but I trust you. I am in the process of seeing what I can qualify for at this time and am excited for the opportunities and future.
Design Changes With a Pro Interior Designer
Sheree: I was really proud of you for how you handled everything. Do you have anything else you want to add?
Danielle: You mentioned about the design piece. I think that was something that has made it feel more like a home.
It was very outdated when I moved in, and very like from the 80s. You helped me with navigating what things need to be changed, as opposed to what things I could live with.
For example, the kitchen. It isn't my dream kitchen but you guided me like, “Well take out this box lighting and that'll open up the space…and put in this ceiling fan here… take out this track lighting…” Things that I wouldn't have known on my own.
Then, you helped me with the grid wall! You did all of that. It was just a simple change, but really adds a huge dimension to my kitchen area.
Also, I fit in all my furniture, the way that it should because the way that it was laid out, when I looked at the place was completely different. That helps with making the space feel more open, inviting, and a little bigger than it actually is.
Your design background is AMAZING - in the home buying and selling process!
I wasn’t sure what would bring the most return on our search for a home and I am excited to use you for the staging process if I sell my home. I have seen that your work gets top-dollar returns on properties.
I am planning to keep my condo as a rental which is well over what I pay for my mortgage, so I will have a rental income, which I can use against my new mortgage.
So excited!
Again, your design expertise creates top dollar and I would not consider buying or selling without your design input too.
Sheree: Thank you, Danielle!
Right now I have a listing that needs to be renovated. They are fixing it up before the sale to get top dollar! The last house I sold they did not want to fix a thing. I staged it and it still sold for $75K over the asking price, but it would have sold for more if they had fixed it up.
Your property has new floors and new piping, both done by the hoa, so that was cool too.
Lots of good things have happened from that purchase.
Danielle: Thank you! Everything went so smoothly.
You recommended the lender and that was fantastic. In 30 days, I was a homeowner! I didn’t realize that all of this was possible.
Are you thinking about selling your home?
Do you want to know what is the best decision and the most important things you should do to get top dollar?
I would love to help by doing a value report on your home. Call or text me! Let's chat!
Ending Blessings to you and your families.
As our verse for this week says, The Proverbs 31 woman, often referred to as the virtuous woman, is praised for her strength, wisdom, and compassion. She is described as a woman of noble character who exemplifies diligence, care for her family, and a deep reverence for God. That fits Danielle!
Next episode, I will talk about "Preparing Your Home for Sale: Where to Start". I will talk about the initial steps homeowners should take when preparing to sell their homes, such as decluttering, cleaning, and organizing.
Until next time…
Now, Stop Dreaming, Start Designing your luxury home within your budget!
Blessings and See you next episode…
Resource
Get my free paint color guide
Get my free, “The Investment” Brochure to give you the average costs to hire my company
Browse samples of the furnishings that can go with your style here.
