On the San Francisco Peninsula I have to agree with this statement – Buying makes more sense than Renting these days.
I’ve had many requests this year to help clients find a rental. Sadly, when I get the budget and what they need – the search results come up nill. These days, for a studio (that means one room / no bedroom) rents on the peninsula start at $1500 and go up from there. Looking to rent a two bedroom? Better fork over at least $2000 a month – want a house, $3200+ easy – in choice areas. My eyes jump out of the head – $3000 a month – now that’s a mortgage payment!
Why are rents increasing? With the local Real Estate market hit with short sales and bank owned homes, many buyers are afraid to take the purchase plunge since buyers are unsure if we hit bottom. So instead of buying – they are renting. When demand for rentals rise above the supply of rental property – we see an increase in rents. It changes all the time. Real Estate is truly cyclical. As a Realtor – I can certainly say that Yes, on the SF peninsula we hit bottom in 2009/2010 for the single family homes market. Condos and Townhomes are on a different level – though they too will recover.
With the future changes in FHA lending, more up front mortgage fees, buying a home now will truly be less expensive for a buyer than in the near future. Right now Interest Rates are lovely and low – and as they increase, a buyers purchase power decreases.
So if you are on the fence, come in and chat with us. We’ll connect you with a lender who can give you your purchase price and then The Caton Team takes it from there – finding a home where your mortgage interest is tax-deductible, instead of a renting and paying too much!
Don’t just take my word for it – below is great article from CNN Money.
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