~VS~ Renting in the San Francisco Bay Area
It can be a hard decision when it comes
to a choice of buying real property or renting it. For
many it is a matter of convenience, maintenance, expense
or financial planning. The simple truth is that owning
real property of any kind in the San Francisco Bay Area
will definitely appreciate in value over time.
owners often struggle with having to pay high rents
where if the business owned the building, some of the
space could be rented to other businesses. Homeowners
have to pay on the note every month where renters are
paying someone else’s note for the property. With
extremely high prices for Bay Area real estate there
is really no way to go around having to sacrifice in
some way to get into the market. Banks and lenders have
to find new ways of creative financing every month to
provide ways for first time home buyers to enter the
market. Team Enterprise knows that everyone who can
afford to own real property in the Bay Area will create
wealth and prosperity as a result. Here are some of
the advantages and disadvantages to owning or renting:
advantages to renting property:
· No caring for a yard or area
· It costs less to get in
· No property tax expense
· Many rental units have amenities such as a
swimming pool, tennis courts, a gym, hot tub, etc.
· It is easier to move to another location
· In most cases rent will be less of a payment
than the payment of the note for an owner.
· In most cases less insurance coverage is required
Some advantages to owning property:
· More space
· More storage
· In most cases the ability to re-model, paint,
or set up the space without getting permission.
· Tax benefits and or deductions
· Property tends to go up in value over time
creating a higher net worth
· Property owners generally have higher credit
· No landlord to raise the rent
· A stronger sense of security and belonging
· A stronger sense of accomplishment
· Assets can be leveraged and borrowed against
Owning real estate
is a big responsibility and should be looked at like
an investment because it really is. It is much nicer
to have the freedom to make changes and be in control
of property rather than having someone else use that
leverage. A landlord is taking in rents to cover the
note to the lender and also to make a profit. If a renter
is paying $1500.00 a month, (just to pick a number),
that would be $18000.00 a year that was paid to someone
else. The same dollar amount over five years would be
$90,000.00 that was spent paying someone else’s
note to their lender. This in addition to market appreciation
could ad up to be a significant amount of money. There
are also many tax advantages to be had for property
owners. Team Enterprise would advise speaking to a CPA
or a financial planner to obtain more specific details.
The very moderate climate in the San Francisco Bay Area
allows for many different species of plants, trees and
flowers to grow well and the great weather 9 months
of the year in inviting. The Bay Area is a wonderful
place to live, work, start a business, and invest in
real property. Call us today to help with a real estate
transaction or to consult about Bay Area Real Estate.
Team Enterprise is here to help!
Matt Larsen & Associates
Your Bay Area Professionals!
Specializing In Bay Area Real Estate
from the past, Working
in the present, Planning
for the future!