One of the most stressful things for UC Santa Cruz students in trying to find a place to stay during their studies. As if tuition isn’t enough, it doesn’t help that rents are still incredibly high compared to what they used to be. In June, the average rent in Santa Cruz was around 2,600 per month, an increase of 4.3 percent over last year. While this might not seem like much, it means that renters are paying about an extra $100 a month more than they were in 2015.
So with August right around the corner, students are starting to look for places to stay for the start of their semester. If you’re one of those who are feeling pressured by the housing squeeze, then listen up! Buying a home in Santa Cruz just might be a better option, especially if you’re planning on spending a few years here.
Benefits To Buying A Home While In School
Buying a home while you’re in college is something that many former students often regret that they didn’t do. While there are endless reasons why investing in Santa Cruz real estate is a great idea, one of the biggest reasons is that because it’s a college town, you can generally count on there always being a substantial number of renters in the area. Here’s are a few ways how buying a home could be a better financial option for you this summer.
Pay Less Money Each Month
It might sound too good to be true, but if you buy a home with two or more bedrooms, you can rent out the other room and cut your mortgage in half. If you opt for a mortgage based only on what you’ll likely be paying in rent each month, you can find a great home in Scotts Valley and split the monthly mortgage dues each month by however many bedrooms the home has. What’s even better is that the more times you split the cost, the more affordable it will be and the easier it will be to find a renter. That being said, just be sure you’re up to the task of living with other people before taking the plunge.
Invest In Your Future & Finish School With Some Equity
If you buy a home while in college, you’ll likely have spent around four years building equity with that property. You could choose to keep the home as a rental property, or sell it to buy your next home somewhere else. Another benefit is that you’ll also be building your credit, as long as the loan is in your name. Assuming you always make your monthly mortgage payment, you’ll have great credit when it comes time for other big purchases or another home loan.
Drawbacks To Owning Versus Renting
Being A Landlord Can Be Stressful
One of the hardest things about renting out rooms in your home is that you’re the landlord and it’s up to you to make sure everyone pays their bills on time and respects the residence. This can be a cakewalk if you have a great group of renters, or stressful if you have to confront your friends about issues if they arrive.
On top of being a landlord, it’s up to you to ensure the bills are paid on time – even if one of your renters leaves without notice or neglects to pay rent. If you own a townhome or condo, there’s very little maintenance you’ll be responsible for, but if you own a house, then you might have to dedicate some time each month to maintaining the home, like mowing the lawn or cleaning the gutters. Of course, if anything ever breaks in the home, it’ll also be your responsibility to fix or replace it.
Is Buying A Home Right For You?
Buying a home likely isn’t for every student, but if the situation could work for you, it’s definitely worth considering. If you ever want to learn more about buying homes in Santa Cruz, Lauren would love to work with you – regardless of if you're looking to buy tomorrow or six months from now. or give her a call at 800.226.4717.
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