If rent can cover more than everything, I think house price will keep going up till the point it would not.
Lol
It depends on your horizon. Keep in mind that your costs for the mortgage are in current dollars, so they're effectively decreasing year over year. The interest and insurance are also tax deductible for a rental. Proposition 13 also caps your property tax increases.
Have you ever played monopoly? Never sell.
😂
The rent does cover all the costs and then some. Selling property means paying taxes. Never selling means never paying taxes, ever. Supply is fixed until we get to Mars. The goal is to collect it all.
Probably. I think OP isn't considering the fact that the principal part of the mortgage payment isn't an expense, it's savings.
You have 3 years to sell before being obligated to pay taxes on capital gain
Asset diversification.
What percentage in down and what percentage in stock?
What's the rent vs mortgage+tax on the current house?
Rent estimate is $3700 and mortgage+ tax is $5800 where $1700 goes to principal
If you really like owning the house then keep it, once you sell you probably won't be able to afford something like that again.
I’ve bought and sold too many houses at this point to finally learn the lesson. Buy your forever home and keep it forever. By the time you’re a senior citizen, you can give it to your children or cash out incredible gains. While you can’t rent out a house and be cash positive with 20% Down in the bay area, you can rent it out cash positive eventually when you no longer want to live there and can amass another down payment for another home.
I could be imagining it wrong but my reason is I want to keep a place in SF (but imagining I’ll end up in a suburb when I get older and choose a quieter lifestyle), and that rent will > mortgage by then and generate passive income, or I’ll leave it for my children so that they don’t have to pay insane rent.
Thanks, nice username 😆😆
For 99% of the people, house is the best investment in their entire life. If you think you can do better, show me your investment accounts. There are plenty of people in US who have made 10x from their houses, how many are their have made 10x from stocks or other investment? Not mention that a big proportion of money you made from house is tax free.
10x in how long?
In someone’s life time if you just buy and hold. In less than 10 years if you trade with leverage (with bigger risk of course)