Santa Cruz County Home & Community Information

head_left_image

Renting vs. Buying in Santa Cruz

RENTING VS BUYING IN SANTA CRUZ

The Bay Area and surrounding communities are ranked as one of the most expensive and desirable real estate marketplaces in the nation. People who want to live here may not be able to afford to buy a home, and often end up renting. The Santa Cruz area offers many amenities that attract many home shoppers across a dynamic range. This range includes individuals looking for their first home, all the way up to folks that are looking to retire in the area. Whichever the situation may be, owning a home in the Santa Cruz area has far more advantages than renting. The factors below are important to consider when evaluating the the benefits of new home ownership over renting.

Buying vs. Renting: Financial Considerations

Many people who rent are essentially throwing their hard earned dollars away. Other typical expenses, in addition to high rents, could include: gas, food, utility bills and in some cases, childcare. People should consider buying a new home instead of renting for the simple reason: Make your hard-earned dollars work for you. To explain this concept, think of your future home as your investment. Home prices will continue to skyrocket in Santa Cruz, so your home's value will appreciate in the future as well. Equity is built into your home as you pay down principal and home prices increase, meaning you owe less and less on the home while its value continues to rise. Consider a $500,000 home that was purchased five years ago. Home values in Santa Cruz have increased nearly 50% over the past 5 years, meaning the home would be able to sell today for roughly $750,000. By simply living in the home and making your payments on it, you were able to profit nearly $50,000/year. Although this is a simplified example, the concept stands, and is one of the key benefits of home ownership. So the burning question now is: If it is so expensive to live in the Santa Cruz area, how can one afford to purchase a home?

Advice for the Prospective Homeowner: How to Get Started

So, we have established that homeownership is more sensible, but how can this be done on a tight budget? There are many properties available that people can afford which cost as much as renting. If you can’t buy the mansion on the beachfront at first, go with a starter home such as a condominium or townhome. In a few years, you will have built enough equity in the home to put a decent down payment on another home. You will find it reassuring that your hard-earned dollars are going towards a sound investment instead of a landlord's pocket. Also, you can even consider renting a bedroom inside your home if you decide to purchase, which will help offset monthly expenses.

As you can see, buying a new home has greater advantages than renting. Advice for those looking to buy is to get in a home now before it is too late, while prices continue to soar in the Santa Cruz area.

Google

Authored by Jessica Wallace, Santa Cruz Realtor

 
Search Santa Cruz Homes For Sale
 
What is your home worth?
Search All Homes For Sale
See Recently Sold Santa Cruz Homes
 
 
MY REVIEWS
 
 
 
Jessica Wallace
Realtor
Coldwell Banker
831 419 9345
Licensed In: Ca
License #: 01455690
Contact Me

You Can Also Visit Us At:      
 

Comment balloon 0 commentsJessica Wallace • May 23 2018 10:07PM

Comments

This blog does not allow anonymous comments