The majority of Americans dream of homeownership. Buying a home has many benefits. Yet, buying a home in Silicon Valley has its unique advantages. June is “National Homeownership Month.” To celebrate I’ll share several of the many reasons why my clients aspire to buy and live in the San Francisco Bay Area.
Recent reports indicate that rental prices may be dropping. San Francisco rents have dipped nearly 10% year-over-year according to one property management firm. According to RentCafe, the average rent in the South Bay hovers between $2,215 to $3,054 for an 896-square foot apartment. Even so, control over your housing rests in the hands of your landlord. The availability of where you live depends on your landlord’s goals. They decide on lease duration, when to remodel, and putting a property up for sale. Many families, especially those with school-aged children, want to avoid the upheaval of having to move often or on someone else’s timetable.
Stability applies to how long you want to live somewhere, yet it also applies to your monthly expenses. Buying a home enables you to establish fixed housing costs such as mortgage payment, taxes, and insurance. You have the peace of mind of knowing what you’ll be paying year over year.
The National Association of Realtors studied homeownership and wealth creation. The analysis looked at home price gain or loss during the period when a home was owned. In the San Jose-Sunnyvale-Santa Clara area homeowners who owned their home for seven years saw 38.8% in value appreciation, averaging $226,800 in accumulated home equity wealth. When extending tenure to ten years, appreciation rose to 50.6% and $326,300 respectively.
This confirms what I often tell my homebuying clients: investing in Silicon Valley real estate is an excellent long-term investment. You build wealth by adding equity with each mortgage payment, property-related tax deductions, and appreciation over time.
Personalizing Your Home
With rental agreements, there are often many rules when it comes to personalizing a space. When you own your home, you choose how to make the space your own. Want to paint a room purple? Sure, if that strikes your fancy. Just know that permanent unconventional choices may limit your home’s marketability when it’s time to sell. The point here is that as a homeowner you can modify your home so it fits you and your lifestyle.
Growing Community Roots In a World-Renowned & Desirable Location
I’ve lived in the Bay Area for over twenty years. One of the most enjoyable aspects of living here is a diverse and cosmopolitan community. Silicon Valley is a global hub for business and culture. It’s reflected in our museums, restaurants, art, and community events. We’re blessed with Mediterranean-like weather with easy access to beaches, mountains, and vineyards. This is one of the many reasons why the San Francisco Bay Area is one of the most desirable places to live.
Reach Out & Connect
I’m optimistic about the Bay Area real estate market regardless of economic and market fluctuations. In spite of Covid-19, I’m seeing positive signs for the summer home-buying season.
I remain committed to serving my clients and providing you with the most accurate information available. We can connect virtually via phone and video conferencing, or by appointment — masks and social distancing included 😉
Whether you’re looking to buy or sell, you need an experienced guide in this complex and fast-paced real estate market. I’ve helped hundreds of individuals just like you successfully negotiate the most important financial transaction you’ll ever make.
Photo credits: Blue Skye Media