Living the San Francisco Dream

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Should you pay your landlord's mortgage?

It is no secret that San Francisco is the most expensive place in the country in which to live. If we can, those of us here are willing to pay that price to enjoy all the area has to offer.

Rents are sky high. Per Zumper in their January report, the median price of a two-bedroom rental in San Francisco is $4,630.00/month; a one-bedroom is $3,490.00

Although prices of condos in the City aren't low, the cost of buying, with interest rates remaining low to date in 2016, can make the monthly payment less than rent.

One way to avoid multiple offers in this market that favors sellers, is to purchase new. The snapshot below, part of the Mark Company Monthly Report shows that many people are doing just that.

Mark Report, condo projects in SF, June 2016

The Rockwell under constructionLet's look at The Rockwell, for example. This luxury project in lower Pacific Heights consists of 260 units priced between $713,000 and $3,105,000, for an average cost of $1,300/square foot. The West Tower is due to be completed in August, 2016; the East Tower not until September. As of June, only 22 units are still available. The Rockwell is not unique in the number of pre-sales.

Interested in finding out if purchasing now makes sense for you? Give me a call, or shoot me a text or email and we'll talk.

 

--- Come for a visit; Stay for a lifetime!

Lottie Kendall, Realtor®

Compass

CA DRE#10215160; 650-465-4547

Lottie@LottieKendall.com

www.LottieKendall.com

Peninsula Living Business Page

www.SFCondosForMe.com

 

 

Comment balloon 17 commentsLottie Kendall • July 17 2016 09:24AM

Comments

Good morning Lottie. Most times it pays to buy if you are going to be someplace long term. Still not a good idea short term! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 3 years ago

It is always better to buy vs rent in my opinion when one is staying in the area. If not, keep it as a rental hire a property management company to keep the asset.

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (RentVest) about 3 years ago

Hey Lottie! That's what I always say! Anytime someone says something like "I don't like debt and don't want a mortgage," I remind them they already are paying a mortgage... their landlord's.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) about 3 years ago

Hi Lottie Kendall For the rest of us, these prices are unbelieveable. How do people do it? And how high will it go?

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) about 3 years ago

That is an age old question that is hard for many Buyers to answer Lottie Kendall. Even with the facts in hand. 

Posted by Paul S. Henderson, REALTOR®, CRS, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) about 3 years ago

Great information and advice for your area Lottie Kendall . I don't think our rental rates were even that bad during the oil boom.

Posted by Bob "RealMan" Timm, Owner of Ward Co. Notary Services, retired Realtor (Ward County Notary Services) about 3 years ago

I am not a fan of paying someone else's mortgage, so I find it odd that so many people choose to do so.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) about 3 years ago

Hello Wayne Martin - real estate is a fabulous long-term investment

Harry F. D'Elia - I agree with you completely!

Nina Hollander - there's a difference between consumer debt (bad) and investment debt (i.e., mortgage - good.) Once people understand the concept, they can surge ahead.

 

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) about 3 years ago

Hello Bill Roberts - there's no doubt this (San Francisco and the Silicon Valley) is an expensive area. Even with prices to purchase as high as they area, rents are even higher. 

Paul S. Henderson, REALTOR®, Broker, Tacoma Washington - once people understand the concept, they can make wise choices and help themselves.

The rental prices here are mind-boggling, Bob "RealMan" Timm - better to buy if you can if you're going to be here a while.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) about 3 years ago

Brian England - once people have money saved for the down payment, I like to see them pay their own mortgage and reap the benefits for themselves.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) about 3 years ago

Those rental prices are breathtaking, but so are the selling prices. It's all relative, however. I think buying is cheaper than renting in many, if not most, places. 

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) about 3 years ago

Hi Marte Cliff - our prices are very high, but even here, with today's low mortgage rates, buying is less costly than renting a comparable place. 

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) about 3 years ago

Lottie - It boggles the mind. Your rent for one month would make a down payment on an average house here. 

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) about 3 years ago

I hope enters in the area will read this and buy a home and call you to be the agent.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 3 years ago

Saving for a down payment is often the biggest obstacle a first-time buyer faces, Marte Cliff 

Thank you, Gita Bantwal - if one can buy, and plans to be here 4-5+ years, they should strongly consider buying and make their money work for them, instead of for someone else.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) about 3 years ago

Wow those rents would buy 3-5 houses in my market !!!!!!!!!!!!!!!!!

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) over 2 years ago

I know, Michael J. Perry  - San Francisco and the Silicon Valley are tough markets. High prices, both rents and purchases, and little inventory. At least when you own a place, you pay your own mortgage and build equity.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) over 2 years ago

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