If you are thinking about becoming a homeowner in the East Bay, there are significant advantages to buying as opposed to renting. Here are just a few of the reasons why you may want to consider purchasing a home:

 

Owning a home can dramatically improve your financial position. In fact, home equity and retirement accounts combined account for over 60% of most households' net worth.

 

As you make mortgage payments you gain equity in your home. Your home is an “asset with value,” so as you pay the loan down over time, your equity increases as you get closer to owning the home outright.

 

Equity builds wealth for the homeowner because homes typically appreciate in value. This is clearly not a linear path, but has been proven true over the long term, especially here in the East Bay. Many people see their property values increase substantially over time - in fact, prices have more than tripled since 2000.

 

 

How long do you think you’ll want to stay in one place? Gauge your career goals and the likelihood of relocating to achieve them, as well as the priorities you hold for the cultural and educational qualities of an area (like the East Bay). If you’ve determined that your best move is to stay put, owning your residence provides stability in the long term.

 

If you use a fixed rate mortgage to fund your purchase, your payments will be predictable for the life of the loan. It’s always advisable to check with a trusted financial advisor when considering a home purchase. One of the benefits they will likely point out are the tax advantages. California even has some of its own.

 

As long as you conform to local ordinances and/or HOA requirements, if you own your home, you are free to customize and improve it.

 

Of course the needs of your household are a top priority, but ask us for advice if you’re considering a major renovation. We are more than happy to help guide you to the improvements that are most likely to provide a good return on your investment.

 

You may have heard how difficult it is to buy a home in the East Bay. At Red Oak, we are committed to our community and can offer tangible resources to help you reach your housing goals. We are always available to discuss options and offer reliable advice, just ask.