About Buying a Home in California
CB Action Realty is your trusted partner in finding your dream home. Our team of real estate professionals is committed to helping you make informed decisions about buying a home in California. Here are some things to consider when buying your home.
Adding on or Buying New: Pros & Cons
Before making a choice between adding on to an existing home or buying a larger one, consider these questions:
- How much money is available, either from cash reserves or through a home improvement loan, to remodel your current house?
- How much additional space is required? Would the foundation support a second floor, or does the lot have room to expand on the ground level?
- What do local zoning and building ordinances permit?
- How much equity already exists in the property?
- Are there affordable properties for sale that would satisfy your changing housing needs?
Should You Buy Your Dream Home or Settle for a Starter Home?
When it comes to buying a home, there are many options to consider. Do you want a smaller house in an affluent neighborhood, a larger home in a working-class community, or a brand-new property? It's a difficult choice, but one that can be made easier by examining your priorities. To help you get started, ask yourself the following questions:
- Is the surrounding neighborhood or the home itself the most important consideration?
- Is each of the neighborhoods safe?
- Is the quality of the schools an issue?
- Do any of the areas seem to attract more families with children or adult residents? And where do you fit in?
Home-price appreciation can be unpredictable, but it's worth noting that in the late 1980s and again 10 years later, more expensive move-up housing appreciated significantly. However, during the recession that followed, smaller homes held their value better than more expensive ones. As you consider your investment in real estate, it's important to keep these trends in mind.
Buying vs. Renting
Choosing between buying and renting can be a tough decision. Owning a home offers tax benefits and the freedom to make decisions about your property. On the other hand, renting provides flexibility and freedom from maintenance and other financial obligations.
Buying or renting both require a regular income. However, homeowners with a fixed-rate loan can lock in their monthly housing costs and make prudent investment plans knowing these expenses will not increase substantially. Homeownership is a smart investment that can yield substantial profit on a nominal front-end investment. However, such returns depend on home-price appreciation.
Buying or renting both require a regular income. However, homeowners with a fixed-rate loan can lock in their monthly housing costs and make prudent investment plans knowing these expenses will not increase substantially. Homeownership is a smart investment that can yield substantial profit on a nominal front-end investment. However, such returns depend on home-price appreciation.