I have $230k in savings and around $130k in stocks. I live in SF bay area. My apartment lease is running out in a couple months. I have been here for over 4 years. Should I buy or Rent? My budget is 1-1.2 million but the falling median prices, price drops, piling up of inventory, etc news articles are spoiling my "let's buy a house right now" mood. I have waited for two months now and I only see prices falling more and more. Should I rent/wait? Have a Green card. Will apply for citizenship next year. So, no visa issues. Would like to know your thoughts. TC: 250k
Falling median prices, price drops and piling up of inventory should actually increase your “let’s buy a house mood” because you’ll get a better deal. Buy low and sell high :)
U shd but I don’t see issues ... no visa issues and good time to invest the money in real estate ... even if it goes down and you plan to keep it for the next 5 years or so you should be in profit
Sure enough. That's why I thought of buying. But if median prices are falling a 100k per month. That's 20k (assuming 20% down) saved as cash in my hand. That's the tempting part that makes me wait. :(
What about interest rate though? Are they going up? Sorry I haven't researched.
Rent. If everyone starts buying, who will pay me rent?
Buy...owning in nearly always better than renting, as its investing rather than paying someone else
Buying home is not investing. You should read some good investment books.
This is a myth. Primary homes should not be treated as investments. Longer term you may break even and even lose $$ value for owning vs renting because of property tax/house maintenance costs and commissions/fees wrt selling..if the house appreciates like crazy for ex. Bay area in last 4-5 yrs, then yes it will turn out to be a good investment..
How much rent you pay monthly? Find a “good” deal and buy
Roughly $2100 per month. We live in a modest 1B1B in the south bay. That's how I was able to save so much.. By keeping expenses low.
Unless you need the additional space or new location, renting is your best option for now. A home purchase will cost you an additional $3-4k a month. That money could be spent on travel, entertainment and savings. Let the market work itself out over the next 6-12 months.
Hodl
I would wait, the market is still going down
Think about how many new grads all over the world join companies in Bay Area every year. Now these folks will start family and would have to rent/buy houses ( people with family prefer houses rather than condos ). This cycle is every year, so buying houses in bay year should be a no brainer. Also think of all the automation happening around you (driving, robots, voice recognition) this is going to take away jobs from 3rd world countries and put more money in hands of tech companies. If you have money then buy and hold and repeat 😊. Also time in market is better than timing the market
Agreed. But. All of this was true during 2001 and 2009. But prices still fell considerably.
Are the prices still at what they were in 2009? Or do you want to buy only for 1 year? Buying a house is a 7-30 year commitment. Don’t buy if you want to sell in 2-3 years because that doesn’t happen. Ever.
I would not recommend it. You will be stripped of savings and stuck with a large mortgage bill, house maintenance bill, tax bill, etc. Unless you can increase your take home monthly cash, you will be stuck to living paycheck to paycheck. Yes, your house might appreciate, but you will be under stress and it will be difficult to perform at work as good as you would without stress. Consider opportunity loss.
Stress ? He works for amazon he can handle stress 😊. Also no pain no gain and on other side just because he has more responsibilities he will work harder and make sure his TC is high 😉
Yeah crimemaste is right. And moreover think about this- your mortgage and property tax will remain the same for the next 30 years. Rent will probably be 10x. And more over, you can sell ur house for profit. But if u rent, u can’t.
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Are you on a visa? Would be careful buying with recession
No visa issues. Updated the post too.
We are NOT in a recession! We past the correction territory, yes. Not recession.