We’re all aware of the challenges of buying a home in the Bay Area. The high prices and large down payments required prevent many people from entering the market. Our market is competitive, with more buyers than sellers, so even with the means to purchase, buying a home here is still challenging. But for those who can overcome the challenges, the rewards are well worth it.
You have to live somewhere, anyway. Buying a property is a prudent long-term investment, but it’s also a place to call home, providing security and a sense of belonging in the community. Owning is more stable than renting because you have more control over the costs as well as the property itself. Even with the recent tax reform, the mortgage interest deduction is one of the most effective ways to reduce your tax burden.
Your home is an expression of yourself. In general, you’re free to modify your home the way you want. You can remodel the kitchen and bathrooms to your taste, choose the wall colors and plant your favorite flowers in the yard. Rental properties rarely afford you this freedom.
It’s an investment in your future. Historically, the bay area is a great place to invest in real estate. Houses appreciate faster than condos, TICs or Coops, but all of our property appreciates at a faster pace than the vast majority of other areas. A recent example is the sales history of 339 Chattanooga St, a house in Noe Valley that just came on the market.
- 1994: Sold for $420,000
- 2003: Sold for $900,000
- 2011: Sold for $1,500,000
- 2019: Listed for $2,250,000
It’s likely the buyers who purchased this house each time felt that they were stretching their budget, and maybe they wondered if the market would decline, which it did a couple of times, but the numbers speak for themselves. While the garden was recently redone and the house has been painted, the kitchen and bathrooms have not been updated, so we can only attribute the price increase to our strong market. I can’t think of another investment with such great returns, that is also useful in your everyday life and offers a tax break. When you or your friends are ready to jump in the game, we’re here to help!
