Hey all looking for advice as I’m trying to purchase a 4b 2b house in the Pleasanton/dublin/San Ramon bay area. My wife and I wanted to upgrade from our 2b 2b condo. The loan amount for it would be 670k (rest is downpayment which is over 20%). Monthly payment would come out to 4300 with property tax et all. We currently own our condo and have ~300k in equity in it as it’s valued at ~650k. Many many people have told me not to sell our condo and just rent it out. I have tenants that would rent it from us for +$150 Cash flow / month (mortgage, hoa, prop tax, insurance). Wondering if I can afford to buy AND keep it: I make 130k base salary a year. + About 80k in RSUs (that vest) a year (So this last year for example my w-2 has 210k despite the 130k salary) 180k cash in the bank 200k in vested stock to sell More stock that is yet-unvested I have a 401k but don’t want to state amount as I really don’t want to ever withdraw from it until I’m 59. My wife will actually be in school for the next year so her part time salary will be enough to cover her daily necessities (food, gas etc) when she finished school she will be expecting to make ~80k a year to help with anything.
Open redfin.com, choose a home, tour it, buy it. What's else?
Ah guess I should mention after the downpayment I would be left with ~30k in bank, ~80k In vested stock (401k untouched)
property market is too hot now in my opinion you should sell and go on rent and buy the house in another 3-4 years with a steep discount...
Don't buy now as the market is due for correction
Is there a correlation with stocks during a real estate correction?
Id like to know this too as all this money in stock has just as much of a chance at depreciating as the housing market over the next 3 years.
If you can, I would rent ur current property and buy another, it can be a good long term investment
It's not worth it to keep a condo, as it appreciates much slower than a sfh and will also be hit the hardest in the downturn. Also, in Bay Area it's not cost effective to rent. So, I would suggest that you sell your condo.
I think OP should do the math and see how much his condo can rent for.
Never sell real estate but also never buy a condo, I'm so conflcited!
Buy SFH and keep the condo for 6 months. Should not be difficult to rent it out. May be sell it after 6 months (if you need money) when people are looking for houses before school starts.
Agree with the others. $150/month cash flow positive coupled with slower appreciation and probably faster depreciation of a condo makes it seem not worth it when compared to having the money available, especially if your THC (hah!) is going to be ~$300k.
Where is your condo that it’s worth so little? No offense, he since around MV, SNV, SC it’s so expensive
East bay, same area