Rent or buy in San Ramon? (sale, real estate, foreclosure)

[Westbound2014]

this forum has been very helpful and thank you in advance for any advice. I'm moving to San Ramon vicinity from the east coast and might be there for only two years. I'll be on a corporate relocation so they'll pick up realtor fees etc if I was to move. I'll be there for a minimum of two years, but possibly longer if I like the area and there are more opportunities. Given income of 240k per year, do you think buying or renting is better in this situation?

Elementary aged kids so highly ranked public schools are a requirement.

[04kL4nD]

Rent. It's a crappy time to buy right now.

[Westbound2014]

Crappy because it's an overheated market or lack of options? Thanks for elaborating.

[ccm123]

Both, real estate is in high demand in the Bay Area, so there are a lack of options and multiple offers on homes right now.

[Ceece]

You'll probably want to rent for awhile anyway so you can decide once you get here where to buy. That's how to do it.

[NoMoreSnowForMe]

I think you should buy. Even if you lose a bit on the sale if/when you sell. Think of it like a savings account where you are putting your rent money. If you rent, you get none of it back. If you buy, you get a bunch of write-offs, and you should get back a bunch of your rent money, too - at minimum.

My experience in my fairly long life, is that another crash won't come anytime soon. Like I said, even if you lose a bit on a future appraisal, you will still likely come out ahead. AND your housing cost won't go up, like a rental would. AND you know you won't have to move until you want to. AND you can have pets and paint, etc., etc.

Also, what some people don't know about CA, is that your property taxes won't go up (other than some minimal amount like 1%) as long as you own your home. No matter how much it ends up being worth down the road, if it ends up worth millions, your property taxes will be based on your original purchase price. This is due to Prop 13, which we voted in back in the 70's. So, your housing expenses will be stable.

And, especially since your company will help you buy it.

I vote: Buy.

[clongirl]

I have no idea why you'd even consider purchasing a house if you're not even sure that you'll be here longer than two years. Prices are at the peak right now with multiple bidders on most houses (I actually know a family that was outbid by 13 other offers on a house in my town!). It makes zero sense to buy unless you absolutely love it here, plan on staying more than 5 yrs, and/or have family, community, friends here. I think you should rent.

BTW..I've lived in the Bay Area most of my life---we've had wild swings in the housing market and the economy. This region is all about booms and busts. Gotta look at these things from a historical perspective and use common sense---buy low, sell high.

[comingbacktocali]

if you bought you would not incur any realtor's fees since the seller is the one who pays them. although, it's a great benefits if you are also selling the home you currently live in.

if you will be here for 2 years i say don't buy.

[Ultrarunner]

Generally, two years is not enough time to go through finding a home, completing the purchase and then unwinding it when selling.

Some like a retired couple timed it just right... outbid more than a dozen others and paid 800k for a foreclosure... lived there shy of two years and sold for $1,240.000 and didn't even have to paint!

Thing is prices have rebounded in just about all of the Bay Area.

Prop 13 sets the Statewide rate at 1% of value at the time of transfer... depending on where the property is located... add anywhere from another 10 to 60% on top of that for voter approved measures...

A good thing is the State rate can only go up a max of 2% per year.

[Westbound2014]

Originally Posted by comingbacktocali

if you bought you would not incur any realtor's fees since the seller is the one who pays them. although, it's a great benefits if you are also selling the home you currently live in.

if you will be here for 2 years i say don't buy.

Thanks for the feedback. My point on the realtor fees is my relocation package would pick up the seller realtor fees if my company moved me in a couple of years. Sounds like most say it's too short of a time horizon to buy.