High rents push some toward home purchases

Despite the recent consensus that it’s still smarter to rent than buy in San Francisco, escalating rents and low value for the price are pushing some renters toward putting in offers on properties for sale.

The logic seems to go something like this: If you’re going to pay an astronomical amount to rent a home, why not pay an astronomical amount to buy a home? That sort of makes sense, of course it also helps if you have a big savings account from which to draw your down payment and a good steady job from which to draw your monthly mortgage payment.

Mortgages, unfortunately, don’t often even out with average rents. They’ve got property taxes, depreciation and the expenses of homeownership – like renovations and unexpected damages –  added in, and those extras can add up fast.

But for the renter who feels like they’re throwing away money each month, buying a home in or around San Francisco could be a viable solution. Here are a few factors to consider if you’re thinking about making the rent vs. buy decision:

–Your commitment to San Francisco. If you think you’re ready to settle down here for keeps, it might be smarter to buy rather than renting.

–The size of your household and your relationship status. Not to get personal, but a marriage, kids or committed relationship may mean you’re ready to stay in one place for your housing needs, too.

–Whether or not you’re handy. If you don’t know how to do anything around the  house and don’t have any desire to invest sweat equity in a project, you might be better off as a lifelong renter.

–Your taxes. Talk to your tax professional about whether purchasing a home could be a valuable write off for you.

What are your thoughts about how the current SF rental market is influencing home ownership?