Rent Control: Prop 10

Filed under: Market Comentary

One of the things Californians will be voting in November is Prop 10. I won’t get into the details of the proposition, but the 30,000-foot view is that it’s deciding whether jurisdictions can pass rent controls on homeowners. Today I’m talking about how buying a house can put you in a position so that you aren’t worried about needing a rent-controlled home when you are retired.

I’m not interested in getting into the political arguments on either side of the fence. Regardless of political views, I think that Prop 10 is one of those things that drives home the notion that I’ve been talking about:

The Best Way to Avoid Having Problems with Higher Rent?

If you are worried about issues with rent control when you are on a fixed income during retirement, the best way to avoid the problem is by owning your home so that you don’t have to worry about rent. It’s the same advice that I have shared over and over again: buy early, have a long-term perspective, and get your house paid off so that you don’t have to worry about someone raising your rent.

The topic of rent control points us back to the real reason you would buy real estate in the first place. Owning the asset means that you aren’t subject to the rent fluctuations or other changes as determined by other people who own the rental property. Paying off your home could be the most important retirement planning tool that you have.

You need to live somewhere, so you might as well pay off the mortgage over the years. By the time you reach the age where you are ready to retire and you are on a fixed income, then that house payment is out of the way.

Finding a Solution for You

Everyone has concerns about buying a home, such as coming up with a down payment or other details that are needed to qualify for a mortgage. I would love to chat with you about this topic to find a solution that matches your needs. Call me any time.

It really doesn’t matter what happens with Prop 10 or any other laws relating to rent control. Your best solution is to buy the house and get it paid off so that you don’t have to worry about this legislation when you reach retirement age.

What are your thoughts about this topic? Like, share, and comment, I’d love to know what you think!

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