Freshly Squeezed Tenants!

Tenants Pressured to Buy – Rent Increases

Prop 10 notwithstanding, tenants have two clear options when faced with increasing rents – move to a lower cost area or buy.  Rents in all areas including Sacramento have hit an all-time high.  The median rent in Sacramento is $1,940 – 6.5% higher than a year ago. 

Although lower than the median rent in San Francisco ($3,460), a payment of around $2,000 can buy quite a nice home in the Sacramento area.  The deterrent for most buyers is saving up for the down payment.  But many already have the resources to buy and just don’t know it yet.

There are 1^st time homebuyer options that will allow buyer to purchase with close to $0 down.  There are also attractive conventional loans with down payments of only 3% plus closing costs. 

Another huge benefit to first timers is MCC. This program allows a 20% tax credit (not a deduction) of the interest that is paid on the loan to boost their return at the end of the year.  They will love you every January when they apply for a refund.

There’s nothing wrong with renting and not everyone should be a homeowner.  One compelling fact, however, is that, according to the Federal Reserve, the typical home owner will have five times the wealth in their lifetime than the typical renter. 

On the Easterbrook Team, we confidently believe that with our Realtor partners, we are performing a valuable community service by helping people achieve home ownership.