Thursday, November 09, 2006

SHOULD I RENT OR SHOULD I BUY?

Owning a home of your own offers many advantages, including the opportunity to create an environment that is a reflection of your taste and personality, not someone else's. You can also move when you choose to move, not just when you’re forced to escape rising rents or noisy neighbors.

On the downside for some people are the expense and trouble of maintenance and upkeep. But high-quality remodeling and home improvements are a good investment in the long-term value of your home if you decide to sell it.

One of the most important benefits of home ownership is appreciation, the overall increase in the value of your home as the years go by. Owning a home not only provides you with an appreciable asset, but it also locks in the cost of shelter.

Here's how this works: According to the Bureau of Labor Statistics, renters have experienced a 3% annual increase in rents. That means that a $750 per month rental in 2003 will cost $978 in 2013. In the meantime, annual appreciation for housing has been approximately 4% per year, making a home worth $110,000 in 2003 possibly worth $163,470 or more in 2013. These figures differ region to region, but they give you an idea of the benefit of long-term appreciation.
Days on Market & Sold/List Price %
San Mateo County

There will be more specific information to follow, town by town on the coast. Our focus today is San Mateo County. Is the Market doing as bad as the media says it is doing? Feel free to include your comments...We would love to answer your questions.


SAN MATEO COUNTY - 14 MONTH TREND - 7/05 to 9-06
Click on the picture to enlarge
DETERMINING YOUR HOMES VALUE

Household incomes, mortgage rates, the job market, and affordability are all factors that help determine a home’s value. Yet another factor is a home’s amenities.

Of course buyers look at the number of bedrooms and baths and whether they have been updated or remodeled. They also look for an updated or remodeled kitchen, a family room or “great room,” two- or three-car garages, and an outdoor living area, such as a patio or deck.

With many people working longer hours, another factor that affects value is the condition of the property. Most people want a home that they can move into easily. Keeping your home in good repair is important to obtaining top dollar when it is time to sell, as well as for your own enjoyment in the meantime.

Maintaining your home consistently is the most efficient way to keep it in good repair. Seasonal chores such as checking the gutters and downspouts in the fall and checking the roof for weather damage in the spring can maximize their effectiveness and minimize the time it takes to keep them maintained.