How do you rich people afford buying a home. Forget mortgage, even the property tax on a 1.8M Sunnyvale SFH (average sfh price these days) comes out to approx 2300 and that doesn’t even include the home insurance and other random home maintainance expenses.
I spend approx 2250 on my 1B1B rent. I don’t need more rooms now but when I do in the future renting still seems like a cheaper option.
Seems like people paying rent on their own homes, it’s so absurd. If you have to constantly keep paying that much you can maybe never retire unless you store shitload and keep it well invested.
- LinkedIn AmazoniaYour primary residence should not be seen as an investment! Sure, the appreciation is a nice to have, but it should not be the main factor. There are other benefits to home ownership, like freedom to modify, variety of spaces (garage, backyard, front yards), isolation and the satisfaction of calling it your own. If you value these over the taxes and misc expenses, buy a house. Otherwise renting is perfectly fine for you.
- Google Mondrian$@dumps
I take it you are single male, unable to see other peoples point of view when they don't match yours?
Being in control of where you sleep, eat and shit has value for some. I get it that you don't care and that value is close to zero for you. Not everyone is like that. At some point in life a lot of people may actually decide that they can get extra peice of mind for a check, which they gladly cut.
Do you ever spend money on a date? If yes, why? What roi does that money get you?
- If you have kids and send them to public school, the property tax doesn’t hurt as much.
- Sure but then you’re not a home owner and always helping someone pay off their mortgage, I’d rather be a homeowner than a renter; it’s just me! You may differ and that’s your personal choice. I can definitely put it as an achievement to own a SFH with a fairly large lot in the most expensive metropolitan area in the US! Properties tend to be very good with inflation..
- PayPal MainI know people on H1B visas are buying homes on mortgages ! I am amazed at the costs but visas add too much uncertainty to an already expensive home ownership.
- Not really; H1-b s have been buying houses all the while. Some see it just as another form of investment. Esp those who are in i-140 and are committed to living in the USA and not going back to their home country.
The phenomena of more h1-Bs buying homes increased recently because the number of h1-Bs who are waiting for GC has just exploded. Not all of them can wait 30 years to get a GC and then decide to invest in a home.
- SAP yfdbjfcvIf you just look at 1 year out, your current rent will always be cheaper than buying. This is because rent will continue rise while your mortgage is constant. At 10% rise in rent, in 10 years, your rent will have tripled, while if you bought, your housing cost will remain the same. This is why it’s always better to buy if you plan to stay.
- "How do rich people buy houses?" They are rich. Poor people also buy houses though and use them to become rich. Prop 13 helps ensure that property tax growth never exceeds 2% so a buyer in ca is locking in their rent for 30 years. In 30 years your rent will likely be a lot higher whereas the homeowner will be paying about the same every month.
- New luvrYou will get tax rebate on property tax , plus certain part of mortgage is towards principal ( which will increase as year grows)... You have to look at the whole picture.
- Oracle now@googleProperty taxes in CA are messed up because of prop 13. If you bought your house years ago, you pay next to nothing in prop taxes. This is a major disincentive against selling this house. The consequence is reduced supply and higher prices and prop taxes for those looking to buy.