Paying More than $1,600 in Rent? You Could Own in 2009!

By Rebecca Williamson · April 6th, 2009

San Mateo first time home buyer

In today’s market, more and more San Mateo renters are becoming homeowners because of the increasing number of affordable San Mateo County homes on the market. Did you know there are 28 properties for sale in San Mateo County and 341 properties for sale in Santa Clara County for less than $200,000 today?

To buy a home priced at $200,000 or less, a borrower would:

Have a minimum annual gross income of $35,021.67.
Be able to afford a monthly mortgage payment of $1,604.16.
Plan on paying around $300/month in Home Owner’s Association dues if you purchase a condominium. (Some Santa Clara County and San Mateo County condo complexes charge less, some complexes slightly higher.) The mortgage payment quoted above includes the $300 HOA estimate.
Have at least 3.5% of the purchase price ($7,000 if the purchase price is $200,000) to use as your down payment.

Basically, if you are paying $1,600 or more for rent in San Mateo County, you could very well own your own San Mateo County home and start building equity for your future.

Do I Really Get $8,000 from the Federal Government for Buying a Home in 2009?

Yes that is correct! If you buy a home in 2009, you will get an $8,000 dollar for dollar reduction in the taxes you pay. For example, if you owed $10,000 in taxes to the federal government, you will only have to pay $2,000. The rest, you put in your pocket!

What Type of Properties Are Available under $200k in San Mateo and Santa Clara County?

In San Mateo County, most of the properties priced under $200,000 are condominiums and townhomes. However, in Santa Clara County, about 20% of the properties priced under $200,000 are single family homes. Condominiums are perfect for a young person buying their first home, busy professionals who don’t have a desire to do any exterior maintenance and homeowners looking to downsize. They can also be a great way to get into the San Mateo housing market and start building the equity you need to move into a San Mateo home.

View an updated list of San Mateo County homes for sale priced under $200,000.
View a list of Santa Clara County homes for sale priced under $200,000.

Why is Buying a San Mateo Condo Different than Buying a San Mateo Home?

Buying a condo in San Mateo is much different than buying a single family home. You are basically buying an interest in a business, called the Home Owner’s Association (HOA). The HOA collects dues to pay for things like fire insurance, exterior maintenance (including roof, community areas, landscaping, exterior painting) and maintenance of common areas (clubhouses, elevators, pool, etc.). They can also enforce rules and regulations on how you conduct yourself while living there. A common example is a limit on the type, size and number of pets a homeowner can have.

How Can I Learn More about Buying a Condo in San Mateo?

Because you are also buying an interest in a business, buying a San Mateo condo is a bit more complex than buying a San Mateo home. To make San Mateo home buyers aware of the differences, we have put together a 90 minute presentation that will help you understand what you need to know before buying a condo, whom should consider a condo, how to finance your purchase and what is available in San Mateo County.

Join us Saturday April 18th at 2pm in San Mateo

…to learn the pros and cons of buying a condo. Admission is free, but space is limited so reservations are required. To reserve your seat, please fill out the form below or call (650) 655-2500.

Miss this Class? See Our Updated Class Schedule

Visit our Class Schedule page to check out an updated list of our upcoming classes or call (650) 655-2500 for more information.