The value is still there for you to extract later. You paying rent is just making your landlord rich. A landlord who sits around all day collecting your hard labor money, no less.
Looks like you don’t own in SF Bay Area. Rent is lower that PITI (principal, interest, insurance, taxes) unless you bought 15+ years ago. The landlord is taking a loss every month. He is just counting on a pay out in future due to appreciation.
And paying a mortgage is making the bank rich, not you.
@workday assuming no appreciation, skip the principal in this comparison; rent vs ( interest + insurance + taxes - tax savings). That is breakeven at 40% price for me..
So you mean rent is good?
No, I mean if u can pay 35-40% as downpayment or within 2 years buying is good. Otherwise, you r net negative till that point.. if u are buying with 20% down and will reach that point in 8 years, be comfortable with the idea that you will be tied to the house for next 8 years at least. Numbers will change based on interest rate.. thus is based on 4%
How many times will people ask the same dumb question...
How do you know the people voting actually own a 3.5M home?
There’s a reason it’s $800k elsewhere.
people buying 3.5M homes don't have this doubt.
Location, location, location.
Was just going to write this. 😏
I don’t understand the hate towards bay area! I mean either its someone who feels they missed out on this area or someone who cannot afford it, I mean why else would anyone care! If you are happy in your 800k and the person in 3.5M is happy in theirs, this should not be a question at all! Please stop the hate!
Sour grapes. Folks who can't make it in the bay area are making posts like these.
People can also have different preferences. I personally do not like the Bay Area. I can easily afford to live there, but choose not to. Personally I just prefer more rural/private locations where I can hike mountains from my doorstep, enjoy beautiful views, have acreage, etc.
If I want to stay somewhere for 7+ years we then it makes better financial sense to buy.
Is that 7 year rule based on 7% rates or 3% rates? Buying the house I'm renting now for $3500 would cost me $7000. That is way more than 7 years for it to make sense.
3 factors to consider 1) property appreciation 2) rent will keep rising every years, mortgage is fixed 3) tax deductions available to mortgage interest and property taxes Another non-tangible benefit is to do whatever you want to your home. As a tenant you are bound by the conditions in lease such as no pets, no smoking, no parties etc