Have buyers' remorse?
Original post made by Carol Blitzer on Aug 15, 2007
This is for a story in Fall Real Estate special section. Please e-mail: firstname.lastname@example.org.
on Aug 15, 2007 at 4:32 pm
I've lived in the Bay Area a long time and seen several up and down cycles. If you're here for the long-term, you're way better off owning a home. The most important benefit is just not having to move during boom cycles when rentals are scarce and prices are outrageous, and not having to move because the landlord decides to sell the house or whatever. The financial and personal unpredictability that comes with NOT owning a home here can be brutal, especially if you have kids.
Also, because of Prop 13 especially, over time, the only way to get ahead financially is to buy. Even if you buy during an up cycle and paid too much, if you are here long-term, you just have to get into the market when you can. Once you do, your expenses (mortgage and property taxes) essentially stand still, rather than shooting up unexpectedly the way renters' housing costs can. (Provided of course you have the foresight to get a fixed mortgage.)
If you've been in the Bay Area very long, you know that the usual considerations don't apply. If you have to move in a few years, don't buy. Other than that, I can't imagine why anyone would waste the energy over the kinds of usual homebuyers angst. If you buy in this area, you already know you're going to be paying too much and living small. Live here long enough, and there's a good chance you'll be retiring on the next wave of people paying too much for your Palo Alto hovel.
on Aug 17, 2007 at 11:54 am
I wish I had bought 5 years earlier.