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Bay Area Real Estate: Trying to decide whether to buy or rent?

  
  
  

Bay Area Real Estate: Which is better, buying or renting property?  We have all been there.  Pondering this question every time we are about to move from apartment to apartment, or from house to house.  If you are a renter, then the question is, if you would be better off purchasing a home.  And if you're a property owner, you may be thinking to yourself if renting would be the better option when you start packing those bags and start looking for new homes in the Bay Area.

 

I remember many years ago after I got my first job, moved out of my parent's house, into my first rented duplex in Redwood City, that my rent seemed so cheap.  Then as a few years progressed, the property owner, who seemed to be well past 70 years old, would raise the rent every year.  And I thought to myself, he probably owns the duplex, or is close to paying it off, why does he need to raise the rent?  The only reason he hinted at was, since all the other rental properties in the area were going up, that since his rent was a few dollars less, that his new monthly charge was a fair deal.  So clearly, as a renter, you are at the mercy of the property owner concerning monthly rent.  They can raise rent any time they wish, and to whatever level they think is competitive in area prices.  And another thing is, they can evict you when they legally are able to do so, such as if they are about to sell the property, or are to do a major remodel, or etc.

 

rent or buy property in bay area

 

Now some fifteen years after my first apartment rental, I became a home owner, and found out it's not as easy as putting a down payment then making the monthly mortgage payment.  You have homeowner's insurance, property taxes, and maintenance of your real estate property.  Home ownership does have its benefits though.  The home is yours!  Well, actually the bank owns it, but after 30 years of monthly payments, the house is yours!  Another perk of home ownership, I can nail anything anywhere on any wall without having to worry if the landlord is going to like more tiny holes in the wall! I know it may sound funny, but some landlords do have these small restrictions on their renters.  Another positive of home ownership is knowing that all that money you put into it, will not be going to some one else's bank account.  Also, if you're on a 30 year fixed rate home loan, your monthly payments never go up!

 

Homeownership
Pros
-Stable monthly mortgage payments
-Property is yours when mortgage loan is paid off
-Tax write-off
-Upgrade property when and how you desire
Cons
-Property taxes
-Insurance payments
-Maintenance
-Bigger down payment needed

Renting
Pros
-No property taxes
-No property insurance needed
-Maintenance responsibility falls on owner
-Able to move to a different property with minimal paperwork and down payment

Cons
-Monthly payment can go up every year
-Can be evicted at any time
-Money goes into someone else's investment
-No return on investment

 

Although the pros and cons may be evenly balanced, the biggest benefit vs loss is the money that you will be paying every month.  Do you want to pay for someone else's property, or do you want to have that money work for you by owning your own real estate property?

 

Apartments for rent, or houses for rent in the Bay Area seem to be in the area of $2k a month, that's $24,000.00 dollars a year you can be investing in your own property!  And multiply $24k by 30 years, do you really want to give your landlords $720,000.00 in rent money that you could have used to pay down your own house? (That's almost a million dollars of your own money down the drain!)

 

With real estate property still near record lows, and interest rates also at historic lows, now is the best time for you to get out of that rent rut, and contact Paymon about steering your rent money to that future real estate property that you can call your own!



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