According to this article in SF Gate, San Francisco rents shot up 14.4 percent from a year ago!
So here’s my hypothetical question to the renters that can afford to buy – (and I’d love to hear from some of you readers if you feel like answering):
If you can afford to buy and aren’t planning on moving outside of SF in the next five years, why are you still renting?
Now – don’t get me wrong – I get it.Â Buying a home is expensive.Â Lenders aren’t exactly giving money away.Â In fact, there’s all sorts of stuff they want you to do to get pre-approved.Â They want money in reserves in addition to your down payment.Â They want good documented income.Â They want your first born child.Â (Just checking to make sure you’re still following along :-))
But the reasons I hear for not buying real estate just don’t make sense to me.Â Shoot,Â they don’tÂ even make sense to Donald Trump.Â
In fact, the Don’s blog says:
Are you the type of investor that waits for a stock price to escalate before you buy?Â Do you wait for that sale to end before going into the store and purchasing the item you have been dreaming of?Â Of course not!Â â€œBuy low, sell highâ€Â is capitalism at its finest.Â The best times to make money in real estate as well as the stock market, is when you have volatility.Â
The emphasis at the end was added by me.Â But it’s a damn good point!Â
NowÂ – we’re not exactly seeing what I’d call “bargains” right now in the San Francisco real estate market, but we ARE seeing relatively good deals that you can buy without a lot of competition from other buyers.Â In fact, the people that have the most at stake to lose if the real estate market collapses (that would be REALTORS) are the people that are out there and buying real estate right now!Â They are “buying low!” or as low as this market will let them buy, thatÂ is.Â
So, if you’re renting but have good income and a ton of money for a down payment AND aren’t planning on moving out of San Francisco in the next few years, get off your behind and buy something.Â And then you can call me in five years and thank me for telling you to do it!