Santa Cruz is a premier destination in California that is known for its fantastic beaches and laid-back lifestyle. It has also become a technology hub in recent years, and has plenty of amenities available in the local vicinity. Therefore, it is no surprise that it has become one of the most desirable locations to move to. The choice between renting and buying can be a tough one, especially when it comes to the Santa Cruz area. There are many factors to consider, and it is important to weigh up the various cons and pros of buying. There are many homes for sale in Santa Cruz County that can be a fantastic investment. Here are some of the key benefits that you should know about buying real estate in this location.
Average Buying Pricing vs. Renting Price
First, let’s have a look at the median housing prices in Santa Cruz for both renting and buying. Currently, the average price of a home in Santa Cruz is $921,700, and the average rent for a home is $3,275. The long and short term trends suggest that these prices will increase in the next few years.
The decision to buy or to rent can be decided by various lifestyle factors. After all, these are the factors that will impact on whether you are likely to remain in Santa Cruz for the long-term or if you plan on leaving within a few years. For those with young families and job security, home ownership offers stability. The children will get settled, and it will be harder to leave. On the other hand, a young professional coming from the plethora of employment opportunities may only stay for a few years before deciding to move on. In this instance, it can be preferable to rent since it is far easier to move.
There are many fantastic Santa Cruz CA waterfront homes for sale that will hold their value and increase in price within the long-term. These homes have limited supply, and the waterfront feature is one that is always highly desirable. This means that home-owners have the benefit of possessing an asset that has a high potential to increase in value. With regards to renting, this highly valuable asset is never owned, and therefore instead of benefitting from the increased costs, the renter will be hit with higher rents.
Another key benefit of buying vs. renting is the tax breaks that you will be entitled to. When looking at Santa Cruz beach homes for sale, it is vital to consider the income-tax deductions. Additionally, there will be a deduction on the gains tax for selling the home. An example to consider is that with tax breaks included; a person in the 31% tax bracket that owns a home with mortgage payments of around $1500 will be around the same as someone renting a home for $1000.
Rising Rent Prices
Some people will rent for a few years before deciding to purchase a home outright. However, the disadvantage of this strategy is that rising rent prices can reduce savings and continually make it more expensive to reside in the area. Additionally, when the time to buy comes, the housing market may also become more expensive. The current market conditions in Santa Cruz favor buying over renting simply because of the low-interest rates, and because of a market in which there is projected growth.
Making the Decision
Ultimately, you will need to research the specific properties you want, and then compare the various costs. Home-buying does come with considerable expenses, including legal costs, real-estate agent costs, appraisal & inspection costs. Whereas, renting usually only requires a deposit and regular monthly payments. The advantage of home-ownership is that you have a valuable asset in a top destination, and you can be protected against rising prices. It also offers more stability, and means you can begin to settle down to life in Santa Cruz. You are free to make renovations and adjustments on your home to truly personalize it, which isn’t possible with renting.
After understanding the key benefits of buying vs. renting, you may start to consider houses for sale in Santa Cruz, CA. If you’re looking to buy a house in Santa Cruz, it is vital to have an experienced real estate agent at your side. You can depend on my local knowledge and years of specialist experience to find your ideal home for the right price. Contact me, Amber Melenudo, on 831.661.5591 or send an email to amber(at)davidlyng(dotted)com.