A Spectacular Investment

If you’re young or living on a tight budget, renting a home makes a lot of sense. But there’s no substitute for the power of homeownership to build wealth and financial security. So how do you get the most out of your investment?

CHIC (Pearl)

The benefits of ownership vastly outweigh the upsides of renting, especially over the long term. According to the S&P CoreLogic Case-Shiller Index, home prices in the San Francisco Metro Area rose a whopping 375% from 1990 to 2021, and every mortgage payment builds your equity and allows you to leverage more of that value. Speaking of payments, instead of basically throwing money away on rents that increase with inflation, a fixed rate mortgage locks in your monthly budget for the duration of the loan. You can also deduct interest payments on your tax return and take advantage of other tax incentives. And if you don’t need the home, you can always rent it out and get an even greater return!

GEEK (Kevin)

No matter if you’re buying to occupy or rent, the home you purchase should fit your life goals — and your monthly budget. Buying your dream home might not make sense if you’re starting a family or embarking on a new career. Quick turnarounds can also get you into trouble responding to market fluctuations instead of betting on trends. And it’s incredibly tempting to borrow against your growing equity to pay for non-essentials like a new car when you should be accruing wealth and setting yourself up for the future. A better option would be to consider refinancing as mortgage rates decline. You could also think about maintaining a “rainy day” reserve fund for those unexpected curve balls life likes to throw.

Buying a home is a deeply personal decision and possibly the most significant financial transaction you will ever make. We’re here to help, but in the end, it’s your future — and your choice!

Aging in Place - Silicon Valley Style!

As people on the verge of retirement consider the considerable costs of staying in the Bay Area, one senior decided to take advantage of updated rules and added an ADU in her backyard that will generate enough income for her to age in place.

The Mountain View Voice has the story.

Two Homes for the Price of One

Savvy home buyers willing to spend a little more in the short term could reap a tremendous long-term reward by investing in a single-family home with an existing ADU — perfect for renting out one home while you live in the other!

Have a look at some properties that fit the bill.

Chic vs. Geek: Starter Home vs. Forever Home

Jumping into the homebuying market for the first time? Before you go straight to the deep end of the pool to find your forever home, think about the pros and cons of a starter home.

CHIC (PRO)

Affordability

Housing prices remain high despite a dip in the market, and a starter home makes more sense (or cents) if you need to stay within a budget.

Expedience

You won’t need as much for a down payment on a starter home, so you can afford to buy earlier.

Investment

You don't necessarily have to sell your starter home once you're ready to move. You can rent it out to generate a passive stream of income.

GEEK (CON)

Size matters

Starter homes are typically more modest than what you’d want from a forever home, and it may not have enough space for you right now either.

Interest rates

Mortgage rates are on the rise, so it might make more sense to wait on such a huge investment.

Buying to sell

Choosing a starter home means you'll eventually have to go through the hassle of buying another home and selling (or renting) this one.

The Rent is Pretty Darn High, Too

With increasing interest rates and inflation catching up with the real estate industry, rents are also on the rise, making a lot of folks dream of a fixed-rate mortgage. Want to see the trends in your city? Use this tool from Zumper.