Is anyone else seeing that homes in Newark have become much more expensive over the past year. I bought my house 5 years ago and it has double in value!
Did you know it is actually cheaper to own in many cases than to rent? I have a friend who is renting a 3 bed 2 bath home for $2500. I would be willing to bet that the owner of that property is getting a healthy margin on that.
Apartments are going for more than $1500 for a 2 bed 1 bath.
Why is rent so outrageous right now? The simple answer is that because it can be. Supply and demand at it's finest. The less there is the more they can charge.
The more complicated answer is that Newark is right in the middle of it all. We are in between the Silicon Valley and San Francisco but still remain a small town. Some people are trying to capitalize on this by buying up all the homes in the area and then renting them out. This is making it extremely tough for first time home buyers that don't have the cash.
Now you have to rent paying quiet possibly more than if you had purchased and were paying a mortgage.
What can be done to stop this? Find out in my next post. Leave a comment if you think I'm right or wrong. I harbor no hard feelings either way.