Buying or Renting a House in El Dorado Hills, California: Which is Best?

Whether investing in El Dorado Hills, California by purchasing a new home or moving for a change in lifestyle or career, depending on what you are pursuing, El Dorado Hills may be the optimal hub with the right balance to meet your needs. At the heart of California, this suburb that forms a beautiful part of the Greater Sacramento area fulfills all expectations for all types of people.

Ultimately, if the lifestyle of this historic town and its surroundings attract you and you have the financial ability, nothing should stop you from buying a home in El Dorado Hills.

What does El Dorado Hills have to offer?

The quiet and calm suburban life characteristics and the exhilarating qualities of city life form the ideal equilibrium when living in El Dorado Hills.

With a wide range of options of public and private schools for kids, and with a crime rate that is currently at half of the California average, El Dorado Hills is a prime spot for families and nesting couples.

While the town holds an obvious undertone of the classic, suburban-style American Dream, you are only about a 25 to 30-minute car ride West towards the city of Sacramento, and approximately a 20-minute car ride East towards being one with nature in the rural, yet beautiful and historic areas of El Dorado and Placer County.

Some of the notable highlights of this county include, but are not limited to the following high points:

• El Dorado National Forest
• Historic Folsom and El Dorado Hills Town Center
• Lake Tahoe
• Vineyards and Dry Diggings Distillery
• The El Dorado Rail Road

El Dorado Hills serves as a center for those looking for a taste of everything within reach.

Why is it better to buy a home versus renting in El Dorado Hills?

Like buying or renting in any area, the decision comes down to your financial circumstances as well as what you are searching for in a home and general area.

Renting a home in El Dorado Hills:

While renting short-term may seem like a more cost-effective option with less financial risk, and possibly more disposable income, in an area like El Dorado Hills it may not be as rewarding or economical long-term as investing in a home.

Ultimately, if the area is right for you but finances do not permit you to buy a home just yet, it may be worth it to begin to invest your time and energy into the area by renting, but also saving for a long-term financial investment. With high living costs, rent in El Dorado Hills long-term may not be the best for some, especially when rent along with added fees do not add equity to your financial portfolio.

If you are looking for a temporary solution in an area you truly see yourself enjoying, then renting may be a great option, though should you opt to rent long-term, the cost/benefit analysis would indicate otherwise.

Financing a home in El Dorado Hills:

In addition to scouring the surrounding area to decide if this area suits your personality when potentially investing in a home in El Dorado Hills, you must consider the following financial metrics to decide if the town is the right fit for you:

Currently, the population of El Dorado Hills is approximately 45,600.

The median property value in El Dorado Hills is at $741,935, with a homeownership rate of 87.5% and an average market rent of $2,638 per month.

El Dorado Hills serves as a home for many military veterans, who make up 29.8% of the population.

Over 90% of homes in the area are single-family homes, and townhouses only make up 1.6% of the total housing in El Dorado Hills.

Should you buy a townhouse in El Dorado Hills?

When it comes to a potential investment in a townhouse, finances play a large role.

With housing expenses in El Dorado Hills being 138% higher than the national average, it’s important to ask yourself if paying the additional fees such as monthly HOA dues is worth it for you long-term.

If you are looking for the full experience of living in the area with the prospects of keeping your costs as low as possible, purchasing a townhouse in this area may not be the most economical choice. Likewise for renters who hope to keep their overall costs low, and maintain more disposable income.

The benefits of working towards homeownership in El Dorado Hills outweigh renting, the reason being that the long-term pros are more rewarding than the short-term cons.

Before you invest:

Before taking the major step of buying a new home, it is important to know as much as you can about the home buying process, and learn where to find the best resources to be there to serve you on your journey.

Assess your needs (and wants) in your dream home:

Buying a home is no small investment, so making sure you are getting as much as possible out of what may very well be your forever home is critical. Every buyer prioritizes elements differently, from pools to the size of each bedroom. No two sets of requirements for the perfect home are the same, but they should both be met. With such a large investment, you should be knowledgeable and not hesitate or compromise when it pertains to your specific needs.

Cost-effectiveness is an important element in the home buying process. It is beneficial to have a home that will appreciate with time, but also be one that provides enough bang for your buck right off the bat.

Know what home loans and benefits are best for you:

Being familiar with the multiple home loans available is an important first step in deciding how you intend to finance your home.

From VA loans to FHA and USDA loans, there are many loan options available to you.

USDA loans in particular are commonly used in El Dorado Hills because of the rich amount of agricultural acres, which attracts those who are deeply invested in being a part of providing for their communities. Not only is this loan very common because of the type of areas El Dorado Hills consists of, but it is a great benefit for income-qualified buyers who want a low or zero down payment.

Taking advantage of CalHFA can also be an option for first-time buyers who want to take advantage of living in El Dorado Hills while also saving more in an area that is higher in value.

If you have not owned and occupied your own home in the past three years, you are considered a first-time home buyer in California and may want to choose one of these CalFHA programs as a more affordable path to homeownership in El Dorado Hills.

Regardless of where you stand in terms of buyer status, El Dorado Hills certainly can be the option for you, with many benefits.

Consult a seasoned agent and financial advisor:

Utilizing agents in your area serves as a great and reliable tool to find the best, most beneficial deals.

Through using such experts, you will have the resources you need when making this critical life decision and depending on who you go with, you may also qualify for a buyer rebate that puts money back into your pocket at the time of closing.

With the help of available resources, in the long run the goal should be to explore all elements that are most valuable to you when choosing a home in this breathtaking area.

FAQs about El Dorado Hills:

What are the most popular housing types in El Dorado Hills?

El Dorado Hills is predominantly comprised of single detached homes and row houses. Homeowners occupy around 90% of the homes in El Dorado Hills while the remainder is rented. Over 30% of these homes were constructed following the year 2000, while the majority of the remaining buildings were built before the 1980s.

What is El Dorado Hills historically known for?

A major 1848 California Gold Rush site in Coloma is less than 20 miles from modern-day El Dorado Hills. Gold was washed down the American River, into areas now in El Dorado Hills. El Dorado Hills also includes a part of the first U.S. transcontinental highway, the Lincoln Highway, also known as the US 50 Route. Pony Express routes from the 1860s also remain as roads in El Dorado Hills. Another major historical aspect of this area is its agriculture, which came after people who settled in El Dorado Hills due to the gold rush then utilized the rich land for farmlands until today.

What does the nightlife in the area include?

Nightlife is both safe and enjoyable in El Dorado Hills. With the highlight of the town being the El Dorado Hills Town Center, from restaurants and bars to a Regal Cinema location and boutiques, there is a variety of things to take part in. Events are also held at the center both day and night, from festivals to a weekly outdoor farmer’s market.

How diversified is the area?

El Dorado Hills and the surrounding area are continuing to evolve and are becoming more diversified over time. Current demographics show an increase in minority groups, predominantly Asian and Hispanic.

What is life in El Dorado Hills like overall?

El Dorado Hills is very safe and quiet, as noise from the streets and other parts of the city is not an issue. The town is clean, relaxed, and the perfect place to experience all four seasons. There is much to do, and enough for everyone regardless of preference for city or rural life. At length, investing in this area is well worth the time, money, and energy.