Why Buying Santa Cruz Real Estate is a Smart Financial Move

Posted by Lauren Spencer on Monday, February 4th, 2013 at 1:01am.

Buying Santa Cruz real estate doesn’t just give you a place to live; it can also be a very smart financial move. This is because owning a home is like having a forced savings account, which you are committed to for the long term.

Sometimes saving money is difficult; many people don’t have the discipline needed to contribute to savings every month. However, paying your mortgage every month means that you are paying down the principal and working toward eventually owning the property. In the early years of the mortgage, the payments will go primarily to the interest on the loan; but over time, you will accelerate to paying off the entire mortgage.

Make yourself wealthy, instead of your landlord
In the long term, this can be a much better financial arrangement than renting a home. No matter how long you pay monthly rent, you will never own anything. On the other hand, paying a mortgage on Santa Cruz real estate means that every month you get closer to owning the home.

When you are renting your home, your landlord can increase your rent every year. However, when you take out a mortgage, you can try to get a loan with a fixed interest rate. This gives you a sense of control over how much you are paying every month, year to year.

Over the years, your home can appreciate in value. The average home increases in value by approximately 5% each year, although this will vary according to the area you live in, the current economy and other factors. Your home’s value will fluctuate throughout the years, but history has shown that over the long term buying a home is one of the very best financial investments.

Every mortgage payment builds equity in your property and increases your net worth. By the time it comes to actually selling the property, you will have money in your pocket as a result.

To find out more about the financial advantages of buying Santa Cruz real estate, call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com.

For additional real estate information, please visit my home page at www.MySantaCruzRealEstate.com.

Forced Savings

Buying a Home

Financial Advantages


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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