Whether you’re a first-time homebuyer or a seasoned veteran of the San Francisco housing market, the benefits of homeownership in San Francisco are hard to ignore. No matter how you measure it, structurally, emotionally, financially, or practically, investing in a San Francisco property is a smart move to make.
#1. It’s More Economical than Renting
The average rental price for a two-bedroom apartment in San Francisco (as of September 2017) is about $4500 monthly. Rental prices have remained high over the past five years, and the figures show no signs of receding. That’s money that you’re spending on housing, but you’ll never see it again.
Buying a home, on the other hand, lets you invest that money for your future. Though a chunk of your monthly mortgage payment will go toward the interest on your loan, the lion’s share will be turned right back into equity on your home. The practical value of that money stays in your pocket.
#2. You’ll Have the Freedom to Renovate
When renting, you rarely have full control over the property. Even something as simple as keeping a pet or painting a wall can be a hassle, and don’t even think of knocking out a wall or adding a deck. If you own the property, you’re mostly free to improve it any way that suits you. Maybe you’ve always wanted a reading bench or a breakfast nook. As your family grows, maybe it would be useful to put an expansion over the garage. Even something as simple as redoing the kitchen can make a world of difference to your quality of living, and homeownership gives you the freedom and control to make it happen.
#3. You Can Put Your Property to Work
Many San Francisco homeowners treat homeownership not just as an investment, but a practical source of income. Converting a room (or that extension over the garage) into a self-contained rental apartment is an excellent way to generate income. Depending on your location and your mortgage, it’s possible to rent the property for as much as the full monthly housing cost. Your home can literally pay for itself.
#4. You’ll See Growth on Your Investment Almost Immediately
The median home price of an existing single-family home in California has steadily increased by nearly 10% per annum since 1969. There have been brief periods of slower growth here and there but housing prices, especially in San Francisco, continue to climb steadily. That’s why it’s so important to buy something at the top of your practical price range, as soon as possible.
As the value of your home increases, you’ll have the option of either keeping it as an investment, or selling, and putting the returns towards an upgrade. After even just a few years, it might be practical to upgrade to a home with more square footage, a few extra bedrooms, or in a better location.
#5. You Can Have Animal Companions
San Francisco may be a dog-friendly city, but many rental units do not allow pets. One of the biggest perks of homeownership for many people is the ability to have animal companions — dogs, cats, parrots, backyard chickens, you name it! A recent survey by Harris Poll on behalf of SunTrust Mortgage, a division of SunTrust Banks, Inc. (NYSE: STI) even uncovered that the number one factor motivating millennials to buy their first home is so that they can own a dog. Homeownership in San Francisco means the ability to finally have that puppy you’ve always wanted.
#6. Homeownership Builds Confidence and Peace of Mind
An unstable living situation is a massive source of stress, but homeownership gives you an anchor to depend on. Owning a property takes away that stress and uncertainty. Knowing you’ll have a home that won’t be sold out from under you, that you’ll have full control over, brings peace of mind. A stable investment for your future, growing in value every year, gives you the confidence to live a better life.
The benefits of homeownership in San Francisco are clear, so don’t hesitate to reach out! Danielle Lazier and Associates, in collaboration with COMPASS San Francisco, are ready to find you the perfect San Francisco home. No matter where you are in the process, whether you’ve got a down payment in the bank or you’re just starting to plan, please get in touch with us today about a free consultation and we’ll get you on the path to buying your next perfect San Francisco home.
