Buying vs Renting in Butte County

Buying vs Renting in Butte County

It's a long-running debate that affects everyone at some point in their life: is it wiser to rent or to buy a home? In this article, we take a quick look at the arguments for and against homeownership along with what's going on in our own Butte County, where market data suggests buying a home may be cheaper in the long run.

RENTING: PROS AND CONS

Pros of Renting: Flexibility,  Lower Costs, Free Maintenance

  • Tenants are generally only committed to their home for a one year lease period, which means you have the flexibility to move when you need to.
  • Renters don't have to pay a large downpayment or for things like property taxes or homeowners insurance, so renting is often (at least initially) cheaper than buying. Your landlord may also agree to pay some of your utilities, which is a big deal during summer when PG&E bills soar.
  • When the AC goes out in the middle of summer, or the hot water heater breaks during winter, it's the landlord's job to pay to get it fixed. 

Cons of Renting: Relocation, Rising Rents, Rules

  • The flexibility of renting comes with the downside of insecurity - you may be asked to leave at relatively short notice.
  • This insecurity also applies to your rent. Once your lease is up, there's nothing to prevent your landlord from asking for more money when you re-sign.
  • Unlike homeowners, who have a great deal of freedom, tenants often have to agree to a list of rules that may prevent, for example, having a pet or redecorating.

BUYING: PROS AND CONS

Pros of Buying: Investment, Security, Remodeling

  • If house prices increase, as they often (but not always) do, then your home becomes an investment that will pay out over the long term. Even if prices don't increase substantially, the mortgage payments you make are a kind of 'forced savings' that slowly increase the amount of equity you own over time until you eventually own the home outright. You may also be eligible for tax breaks to cover your interest payments and property taxes.
  • Homeowners have the security of remaining in one place and paying a mortgage that cannot be inflated unexpectedly at the whim of a landlord.
  • When you own a home, you get to remodel it to suit your family's changing tastes! The opportunities for DIY are seemingly endless.

Cons of Buying: Responsibility, Costs, Inflexibility

  • A homeowner is responsible for the upkeep and maintenance of the property, which can add up to a significant amount of time and money.
  • Besides the periodic cost of a new roof or replacing the fridge, when you own a home you have to pay monthly insurance and yearly property taxes. You also have to pay more at the outset in downpayment and closing costs, though these days a 20% downpayment is no longer standard.
  • Moving house is expensive! If you are likely to have to move in the next five years, it may not be the right time to buy. 

WHAT'S THE HOUSING MARKET LIKE IN BUTTE COUNTY?

House prices generally rise year by year, and for the past several years the Butte County housing market has been a strong seller's market - especially after the tragic destruction of Paradise in the Camp Fire of 2018. However, a global financial event, such as the crash of 2008, can change things. It's too early to tell exactly what impact the current COVID-19 crisis will have long-term, however, in the short term, we may see a temporary decrease in house prices, signifying a good time to buy. 

Median house prices in Butte County have risen steadily since 2011 from a low of $154,000 to a recent high of $338,000. Rents, on the other hand, have risen from an average of $1,000/month to $1,700/month. A two-bedroom home in Butte County will currently sell for an average of $228,000, or rent for about $1,400/month. If you plug those numbers into a buy vs rent calculator, the math suggests it's going work out cheaper to buy after three years, and you'll end up saving an average of $156/month by owning your home. 

WHAT IF I CAN'T AFFORD TO BUY?

Interested in buying a house but worried about the downpayment and unsure of what you're able to afford? You need to talk to a local realtor. There are all kinds of programs available to help first-time homebuyers in Butte County, and the downpayment your need may be lower than you think. An experienced real estate agent can get you pre-approved for a mortgage so you go into the home search knowing exactly what to look for. 

If you would appreciate the help of an experienced guide through the home buying process, please give us a call today!

P.s. You may not be aware that the help of your buyer's agent actually comes free - our commission is paid by the seller. So make sure to take advantage of that help as soon as possible!

You can call or email us at the address below, or fill out our contact form to let us know what you're looking for.

Phone(530) 693-0387

Email[email protected]

Address Cindy Peebles
02012905
3014 Olive Hwy
Oroville, CA 95966


This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
19 Properties
Page 1 of 2
2
Beds
1
Baths
912
Sq.Ft.
1979
Year Built
6
Days on Site
OR21209329
MLS
Fresh and clean with new carpet, paint on the inside, laminate flooring in the kitchen area. Bathroom has new tile in the tub/shower area, new vanity. Part of the garage was converted into a room...
2
Beds
1
Baths
1,816
Sq.Ft.
1953
Year Built
11
Days on Site
OR21204230
MLS
Don't miss this classic starter home with Great bones and a substantial amount of outdoor space. Located in a desirable neighborhood, this two bedroom, (plus a large office), one bath is ready for...
3
Beds
2F11/2
Baths
2,927
Sq.Ft.
1997
Year Built
12
Days on Site
OR21204521
MLS
WANT IT ALL? This is the whole package! Large upscale, gorgeous, private, lovingly cared for home, comes with inground pool (fenced), and A HUGE metal detached #garage #shop. Private paved road...
Pending
2865 Forbestown Rd Oroville, CA 95966
3
Beds
2
Baths
1,696
Sq.Ft.
2004
Year Built
19
Days on Site
OR20154839
MLS
Your get away retreat! Back on the market at no fault to seller! This 3 bedroom, 2 bathroom is snuggled away in the mountains. Some snow in the winter and cooler summer nights. The entry opens to the...
23,087
Sq.Ft. Lot
21
Days on Site
OR21186379
MLS
High Visibility Commercial Lot - Great Opportunity! New construction nearby. Just over half acre lot in Thermalito, kitty corner from Mini Mart / Gas Station at Oro Dam & 14th Street. Across 14th...
85,813
Sq.Ft. Lot
21
Days on Site
OR21147969
MLS
Large parcel in City Limits. Zoned Agricultural Residential. City Sewer and highly sought South Feather Water.
3
Beds
1F13/4
Baths
986
Sq.Ft.
1920
Year Built
27
Days on Site
OR21193598
MLS
This cute 3 bedroom, 2 bathroom is downtown close to Feather River and Hwy 70. The entire home has been updated recently with plank flooring throughout, kitchen, bathrooms and new sod and sprinklers...
Pending
6993 Lincoln Blvd Oroville, CA 95966
4
Beds
2
Baths
1,760
Sq.Ft.
1998
Year Built
33
Days on Site
OR21133984
MLS
BACK ON THE MARKET with some fresh paint and some new flooring. This home offers 4 bedrooms and 2 bathrooms on a large lot (.40 acres). The master bedroom boasts a walk-in closet and a master...
222,156
Sq.Ft. Lot
38
Days on Site
OR21185558
MLS
Beautiful 5 acre parcel in private location of East Foothills available with purchase of 5.5 acres and residence at 155 Pioneer Trail. Brush mostly cleared, slightly sloped. Well has been drilled...
Pending
2783 Pentz Rd Butte Valley, CA 95965
3
Beds
3
Baths
1,803
Sq.Ft.
1935
Year Built
82
Days on Site
OR21146394
MLS
Looking for a get away with a short drive to all the surrounding towns, Chico, Oroville and Paradise. This property has 160 acres of beautiful natural rolling landscape with lot's of beautiful oak...
4
Beds
2
Baths
1,898
Sq.Ft.
1996
Year Built
93
Days on Site
OR21138490
MLS
GINORMOUS PRICE REDUCTION! PRIVATE RANCHETTE ON 5.59 Acres. Purchase the adjacent 5 acre parcel separately and have 10! Have your own farm or vineyard. Room to entertain indoors and out. Inground...
213,444
Sq.Ft. Lot
97
Days on Site
OR21134691
MLS
Rural Oroville property, yet not too Rural. Close to town. Easy access, Less than a 1/2 mile of gravel road, just enough to secure your privacy. Gently sloped lot with a nice home site. Views of the...
Based on information from California Regional Multiple Listing Service, Inc. as of September 27, 2021. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent. IDX provided by Sierra Interactive.

Post a Comment