Buy or Rent?
Let’s say you’re working for FAANG and you are looking for housing. Buy or rent? I mean your mortgage monthly is about the same as rent..
When I looked in the bay, monthly mortgage with prop taxes and everything was like $2-3k more than renting. Not sure where you get the numbers for the "same"
Plus you need 25% down payment that people always conveniently forget when stating "mortgage is same as rent"
Los Angeles
Definitely renting.
If it's really the same but obviously but likely not the same early on.
More seriously. Google "nyt rent vs buy". It's the best calculator out there
Ok I’ll check it out thank you
Problem is these calculators completely hinge on what you expect the housing "appreciation" to be
Mortgage same as rent ? Where exactly ? You can rent a SFH in Cupertino for $5-5.5K. Mortgage would be easily $10k.
Buy is not same as rent. If you buy house in a down market and it appreciates over the years then buy would make sense. If you buy now and am pretty sure there will be a recession at least in the next 5yrs then the depreciation might make you think that u made a stupid decision to buy
Anticipating recession is stupidity too. There are no signals of recession for now, also once that joker trump is out of the office it would be even better
Actually it’s stupid to think that the real estate will never see correction
Buy only makes sense if you believe houses will appreciate significantly..otherwise it might be a financial disaster and destroy your flexibility at the same time..I’m personally all in for flexibility and I believe it’s more likely to see depreciation than appreciation at this point so...RENT
How
By making it much more bearable to sit for 3 hours a day in a self driving car. No need to pay a huge premium to live that close to work.
What are you currently paying for rent? The median home value in San Jose is around 1,082,600. (According to Zillow) So let’s say you’re looking at buy something at 1 mil. If you only require a $800k mortgage on a 30 year mortgage your monthly payments will likely be $3,959 a month (4.3 interest rate — which is good) Your property tax will likely be around $7,940 annually (Santa Clara avg tax rate is .794%) most people usually estimate 15k a year for property tax in the bay. So to be safe it’s an extra 1k per month on top of your mortgage. Depending on the spot you may end up with HOA which can range from 200 - 500 extra a month. So by time you get to paying for garbage, water, electricity, etc you’re already coughing out close to 5-6k a month. So as much as I tell myself a mortgage is basically the same as rent it would really only be the same if I bought a 600k house and there aren’t too many of those worth buying at the moment. Oh and if you don’t have that 200k down for that million dollar home you’re looking 6-7k a month — yikes I’ll take my 3k rent.
But that 3k Rent is essentially wasted money in a sense. No long term return. Just literally handing it over. Vs mortgage where theoretically most of the payment is YOURS. So idk..
Nope. Search "opportunity cost". What is the best thing you could do with your money? If you don't buy then you need to invest your down payment and the extra money that you are not paying in mortgage. The bet is that this opportunity is way bigger than the value of the house in 30 years. That's what people don't get when they say you are throwing money out of the window when you rent.
Depends on a lot of other factors, try exact numbers in an online buy vs rent calculator.
Can you help me find the exact stock market and housing market future performance ? My crystal ball is broken.
There is no prediction here. Just exact numbers. Read my post again.