Renting versus Buying a Home in Santa Cruz

Posted by Lauren Spencer on Sunday, April 22nd, 2012 at 10:43am.

Just because you can buy a home in Santa Cruz does not always mean that you should.  It’s important for you to consider if it is better for you to own or rent a home.

Here are five reasons you might want to rent:

1. You may be moving within five years. It usually takes five years to break even on your home purchase or investment. 
2. You don’t want the responsibilities associated with being a homeowner.  It can be expensive and time consuming to maintain a home.
3. You have a bad credit report.  If your score is below 620, you will not get a good interest rate.
4. You have a high debt ratio.  A high debt ratio means you may not qualify for a loan. 
5. You have job instability.  If your job is not secure, it’s not a good idea to buy.

Here are four reasons you might want to buy:

1. You want to build equity.  The longer you own your home the more equity it will build. When you pay rent, that money goes down the drain.
2. You get a tax break when you deduct mortgage interest.
3. You want the emotional satisfaction of owning your own home in Santa Cruz.
4. It’s an investment. With low interest rates and home prices, buying investment property is a wise decision.

If you are ready to buy a home in Santa Cruz or purchase investment property, call me today at 831.662.6522 or email me at

For additional information please visit my home page at


Own or rent a home

Debt ratio

Deduct mortgage interest


About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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