With rents in the Bay Area accelerating higher and higher to increasingly astronomical levels, the age old question of should I rent or should I buy has again arisen.
Let's review, rent means simplistically speaking that you are paying down someone else's loan with no deductions or personal equity build up. Buy means you are paying down your loan, building your equity, and receiving tax deductions to lower your income tax due.
Yes, you also are responsible for maintaining your owned home. Generally, in the current financial environment, a person would be better off owning their home and starting the equity building process. Even that small condo represents a good start when the micro economy of the Bay Area is considered.
Remember that major employers here; Apple, Google, Facebook, and more are all expanding their campus capacities for more employees. The result is a strong local economy for the foreseeable future with both rent and buy prices rising.
WHAT TO DO?
Alternative Home Buying Locations:
While most people want to live as close to work as possible, that becomes more difficult with more buyers chasing the same goal. Think what has happened in Mountain View, Sunnyvale, Santa Clara, and Cupertino. Many multiple offers with huge over listing price increases.
Let's think alternatives.
First, a recent San Jose Mercury News article, "Home Buyers look East for Affordable Shelter," gives accurate information. Buying homes in the counties of Alameda and Contra Costa with lower prices than Santa Clara County is doable.
Also to be considered are homes in the San Jose areas of Blossom Valley and Santa Teresa or the cities of Morgan Hill, Gilroy or Hollister. Yes, these homes come with a commute, but they offer a chance to own a single family home instead of a condominium.
Want to explore your options? Give me a call for a personalized evaluation of your possibilities.
"Negotiating for your success!"
