A Rent vs Buy Scenario in Half Moon Bay

Finance, Relocation & Buyers

The rental market is pretty hot in Half Moon Bay and the rest of the Coastside right now.  The economic downturn has brought former homeowners into the rental market.  In addition, some leases are expiring and an influx of peninsula folks are coming over to the Coast to see what we’re all about.   Because of the “small town” nature of Half Moon Bay, many rents are filled by word of mouth, followed by Realtor contacts, and then public sources, such as Craigslist or the HMB Review.  There is no single source for all the available rentals for the Coastside, which can be frustrating for those looking for a rental.  Some rentals are on the Multiple Listing Service (MLS), but only if a Realtor has taken a Lease Listing in order to help the Landlord find a tenant, and not all Realtors advertise for a tenant on the MLS.

Activity in 2012 already has been brisk!  Office walk-in traffic is showing about half of the visitors are looking for rentals and half are asking about a purchase.

Here are some general ballpark costs to RENT here:

Room in a private home – under $1000 per month.

Studio – 1 bedrooms  are getting $1000-1500 per month for rent.

3 bedroom, 2 bath, homes in the 1400-1700 square foot range get $2500-$3000 per month.

4+ bedroom executive-style homes can get $3500-$4500 per month, or more.

To BUY** a home right now on the Coastside looks like this:

  • A $600,000 purchase price – Example at left is a Montara home, 4 bedroom, 2.5 bathroom, about 2400 sq. ft., asking $599,000.***
  • 20% down-payment – $120,000
  • Loan amount – $480,000 (jumbo conforming) at 4.5% for a 30 yr fixed rate (assuming good credit score)
  • Monthly payment – $2,432.09 (principal and interest)
  • Insurance is estimated at $900/annual (or $75/month)
  • Taxes are estimated at 1.25% of purchase price, so in this case about $7,500/year (or $625/month).
  • That means that the Monthly PITI for this purchase would be about $3,132.

**These are general numbers based on some assumptions.  Contact your loan officer to determine your own monthly payment.  PITI means Principal, Interest, Taxes, and Insurance.

***Montara Listing photo courtesy of The Rain Team.

A client just sent me a note saying that his friend in San Mateo is renting a 1250 sqft house for $3500 per month!

Half Moon Bay Homes for Sale.

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