Housing

Bay area: rent or buy for long-term housing?

Indeed / MgmtClassico
Nov 25

Does it make more sense currently to rent or buy a SFH in the Bay area, assuming a 10+ year time frame? Specifically the area between SF and Mountain View.

Edit: assume a 20% down payment is doable.

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  • SAP kbron
    If you have a family and owning is for long-term buy. Otherwise rent
    Nov 255
    • Facebook public2
      What does family have to do with the decision? Never heard that before as a rationale?
      Nov 25
    • Apple / Opscrumbersum
      Maybe for the second mortgage to pay for their college?
      Nov 25
    • SAP kbron
      Renting a bigger house is more expensive than renting an studio or even a room. Besides if you have wife/children, moving is more of a problem compared to when you are single. Finally if you are single and buy 2br home or more, lots of real state wasted (unless you rent). If you are single you better pay only for what you use. My 2cents.
      Nov 25
    • Microsoft HappyThank
      Frequent moving is not good for kids (eg lose friends, hard to build friendship, unseen anxiety due to instability). Owning gives you the option to stay for a long time vs rent. If house rent, rent fee is high and you will need to be careful to not damage anything which is hard with kids. You cannot decorate like others do either (eg Christmas). For condo, kids won’t have safe spaces outside to play at as there are hardly pedestrian ways. Same for apartments.
      Nov 25
    • Facebook public2
      Thanks happy thank, that makes sense. Did not think of the moving impact on kids
      Nov 25
  • Facebook public2
    If you can afford 20% down and will hold for ten years now is a great time to buy a sfh. Sellers can be easily spooked and interest rates are still low.
    Nov 254
    • HPE Bvth
      Prices could easily fall another 10%
      Nov 26
    • Facebook public2
      They could fall by 30% it doesn't make a difference over 30 years. Rates may never be this low again.
      Nov 26
    • Amazon Heheheueh
      How often throughout the decades are rates this low?
      Nov 27
    • Facebook public2
      Never, my first house had a 8.5% interest rate. People forget what is normal. The decade of cheap money is likely ending.
      Nov 27
  • Altera Felxn
    Rent unless your parents can make a huge down payment. Unless you have kids, don’t buy and rent - for 80% cases, rent is cheaper and leaves you with liquid asset/cash.

    Property prices are crazy and our generation is fucked
    Nov 250
  • Facebook Instagrаm
    Buy in Seattle, rent in Bay area
    Nov 250
  • Amazon 1234#
    Financially, it is always better to rent (assuming one invests the money in equities long term). But there are emotional factors that impact the process - such as ownership, kids.
    Nov 265
    • LinkedIn / Eng
      Gill Bates

      LinkedInEng

      BIO
      [Insert epic sax here]
      Gill Batesmore
      There are a lot of intangibles in owning a house though.

      Not having to worry about rent increases, having control about when repairs get done instead of waiting on a landlord to do so, having control on interior decoration as opposed to wondering if the landlord will charge you a cleanup fee for removing a poster, etc.

      Also, housing is a 5x leveraged investment (assuming 20% down). Say you put a 200k down payment on a million dollar house. If the house increases in value by 20% (to 1.2 million), your return is 100% (200k equity to 400k equity).
      Nov 26
    • Amazon 1234#
      Agreed. But do you expect home prices to increase by 20% if OP buys today and holds for 10 years? Not sure
      Nov 26
    • LinkedIn / Eng
      Gill Bates

      LinkedInEng

      BIO
      [Insert epic sax here]
      Gill Batesmore
      20% in ten years? That's less than inflation over a decade.
      Nov 26
    • New / Product
      ʕ•ٹ•ʔ

      NewProduct

      PRE
      Amazon
      ʕ•ٹ•ʔmore
      Only if you can pick right stocks. Index/funds might give you less return compared to real estate.
      Nov 27
    • Google QmTN21
      This is wrong. Unless you think Bay Area real estate will crater this century, Bay Area should outperform stock market easily with leverage.
      Nov 27

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