You Don’t Need a Prince to Have a Castle!

You Don’t Need a Prince to Have a Castle!

SF Bay Area Realtor Deborah Lopez 299x300 You Don’t Need a Prince to Have a Castle!

Deborah Lopez

 Buy Versus Rent…
A Woman’s Point of View!

I was 20 years old when I arrived in California as a transfer from the Univ. of MI to U.C. Berkeley.  Married right out of college, we had our first child while renting an apartment in the Valencia corridor between the Mission and Noe Valley.

by Deborah Lopez, San Francisco Realtor

Right away I realized that paying rent instead of buying a home was not the wisest thing we could do.

After months of going over every argument I could think of with my husband, I finally managed to persuade him that I was right…we should buy a house!

That was in 1973…long before the prices of houses started skyrocketing.  Regardless of what’s going on with the appreciation of homes, the arguments that I used then still ring TRUE today!

6 Reasons Why Owning is Better than Renting

Whether you have a partner to convince or you’re on your own and just have to convince yourself, here are the reasons I used back in 1973:

1.   If you own a house, no one can ever evict you so your family will have stability. (This was before there was rent control in San Francisco, but it’s still the only true security.)

2.  If there is inflation, your house will be the best hedge – its value will keep even with the level of inflation and the money you invest won’t lose its value.

3.   Instead of paying down your landlord’s mortgage, you’ll be paying down your own and building up savings in the equity of your home…even if prices stay the same.

4.   You have a leveraged investment.  In 1973 we put down $7,000 to buy a home for $35,000 and that was a stretch for us!  But we knew that even the modest amount of appreciation we were getting was based on the full value of the house, not just our down payment.  And it compounded every year!

5.  Your monthly interest and property tax payments are tax deductible. You will get 30% or more buying power because of tax savings.

 6.  If you live in the house for 30 years, you’ll own it free and clear! The only expense is property taxes. Want to move, you’ll have equity to take with you! 

Of course, I could not foresee that I would be single again, but since the house was MY idea, I held onto it. It appreciated over the 23 years I owned it,  allowing me to refinance.  And guess what… that appreciation let me send my children to college and do an extensive remodel that added even more value to the home!

When I sold the house in 1996, I had money to travel and to create a new home with my NEW husband.  It was worth all the arguments!

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