There’s so much to love about living in San Francisco. Famous as a Pacific Rim Financial hub, proximity to Silicon Valley, “air conditioned climate”, ocean sunsets, elegant Victorian homes, great food, boutique retail, excellent transportation and amicable people who love living here. California has much more to offer; Pacific Coast, surrounding Bay Area, Sierra Mountains, and welcomed diversity that come together to make California both a dream, and a place anyone can call home.
The truth is that California continues to be the “Land of Opportunity”. Yet, it’s always important to weigh your options. Read on to learn the pros and cons of purchasing property in San Francisco and Greater Bay Area.
Pros of Living in a Home in San Francisco
Because San Francisco and California have so much to offer our real estate market is one of the most expensive to buy in the country, which is exactly why you really need to be prepared. Here are 4 noteworthy advantages of purchasing a home in San Francisco.
1. Residential property in San Francisco can be perfect for growing families.
San Francisco is one of those extraordinary cities in America. And don’t get me wrong, it’s actually not just me. In 2019, San Francisco was named one of the top 10 most beautiful cities in the world. Solid public education, parks and open space, museums, art, easy transportation, neighborhood services make it a great place to live.
With approximately 875,000 people calling the city home, it’s very easy to see why living in San Francisco simply feels fun!
2. There is always something to do in San Francisco
San Francisco is one of the most culturally rich and diverse cities in the country. Check out the San Francisco Chronicle weekly “pink section” for free and fun events. Theatre, ballet, concerts and open space, The City supports a lot of infracture so you never really have to leave.
For a family summer outing, take public transportation to The Bay or to Golden Gate Park, a museum and the beach.
3. Great City to Build Equity
San Francisco is only 7 square miles and property here is a solid investment. Located on the tip of the penninsula surrounded on 3 sides by water, San Francisco enjoys remarkable weather and steady appreciation year over year. In addition to location we have a strong employment base, solid economy and great climate. We are a serious destination in the international market of employment, real estate and finance.
Living in your home (investment) while building equity is a game changer. The “roots” you put down while developing personal and financial relationships through home ownership are enduring. These relationships open doors to credit as you learn how to build wealth through real.
4. Room to Grow
What really entices people to purchase property is that they actually get to call it their home. As you build equity you have more options including expanding your home or selling and buying as your needs change. Your home is place to enjoy and add value, a space to control and to call the shots.
Cons of Living in a Single Family Home in San Francisco
As with any major city, San Francisco has issues all its own to take into account. Of course, no city is perfect, so it’s now on your hands to determine whether the positives outweigh the negatives. Would it be a wise decision to turn your California dreams into reality? Let’s examine 3 disadvantages of daily life in San Francisco.
1. Living in San Francisco is relatively expensive.
Yes, there is no denying that San Francisco is a very beautiful and breathtaking city on its own, we have previously established that idea. Therefore, there is no doubt that living in San Francisco won’t come cheap. San Francisco ranks first in Bungalow’s 2022 report of the 10 most expensive cities in the United States.
A disadvantage to purchasing in San Francisco was that it is more expensive. Since Covid, the communities close by have almost caught up to San Francisco prices. Detached properties often cost more than other types of properties, especially if you are choosing a larger home with useable flat yard.
Housing prices continue to rise due to several factors such as low inventory, lack of buildable land, and inflation effecting building materials costs drive the entry purchase price higher than a year ago.
You may find a fixer upper with an opportunity to improve the property and create value. You may buy a move-in ready house or condominium or something in between. Either way you are responsible for property taxes paid annually (in 2 parts) equaling approximately 1.2% of purchase price and you’ll want to protect your investment with reasonable maintenance.
2. More expenses…
According to the 2017 INRIX Global Traffic Scorecard, The San Francisco Bay Area had the fifth worst traffic in the world and the third worst in the United States.
3. More responsibility as a homeowner
Wealth building, quiet enjoyment and pride of ownership that comes through home ownership has a price. Real estate is not liquid. Our market moves slower than most other financial markets and transactions take longer because of lenders, mortgage pay offs and proper disclosure. I suggest to my clients and they understand property ownership is a minimum 18 month commitment. Mortgage, taxes, maintenance, fees, commissions and more make it unlikely they can break even in less than a year and a half.
The real question…
And so finally, it all boils down to the real question: is it worth purchasing a home in San Francisco? The answer for me is a resounding “YES”! San Francisco is a great place to live and work.
But, as the decision maker, you need to decide whether this is the right decision for your family and lifestyle.
That is why at Redmond Realty we recommend and perform an initial consultation. It’s important (up front) to have meaningful conversation about “what is important to you?” When we understand you and connect on values on the front end, the decisions on the back end as we approach closing become easy.
We want you to make real estate decisions today that you will be thrilled with in 18 months and beyond.