Living in Bayarea, total household income - 300K On I140 Total savings of about 400K How much do you all think we can afford and also, is it smart to buy a home in this economy with layoffs happening? #mortgage #housing #bayarea
We’re in the buying vs renting zone. Buying makes no financial sense in today’s Bay Area market. Renting seems to be a better bet for the short term and then we plan to revisit buying in a year or two. We might push it out for longer.
The biggest pro is that his housing expense will be almost the same for 30 years I.e he will be paying the a bit more in 2055 as he is paying now. Don’t want to even think about what his rent would be 30 years from now. Sure he will pay more than rent for the initial 4-6 years but after that his PITI would be cheaper than rent and he will be above to invest the savings for next 25 or so years.
I understand the argument for predictable housing costs over 30 years but who really retires in the bay area.
We have HHTC of 600k and wouldn't touch bay area housing market right now with a ten foot pole. Risk too high. Market is behaving very irrationally on hopes of interest rate cuts. Any real person can see inflation is not going anywhere and if the feds cut get ready to see the economy go into frenzy and tank itself.
The concern is buying at the top, not that in a crash you’ll have better purchasing power? In a crash I assume market also is not doing well therefore people have less money to liquidate?
Umm kinda... it depends on what OP wants... if he is looking at buying the home as investment then its not a good decision as bay area prices are super high and future growth looks more stagnant once the dust settles after the FOMO buyers thin out in the market, but if he is looking at it as forever home then question is why bay area, when you can get cheaper and arguable better quality of life is LCOL areas. He can take his 400k and buy all cash newly buily mansion in Texas and move to remote job when the job market picks up. Cause even if he spends 2mil today he wont get anywhere close to a good school district in bay area, so why buy a permanent home where you know your future kids education is compromised.
Can you still afford something with those numbers? Even townhomes with the current interest rates are a lot
You forgot the earthquakes and the rats/snakes.
Here's an easy answer..... Buy when renting doesn't meet your needs anymore. Up to you to define your needs and evaluate if buying makes more sense. If you chase numbers, buying probably not going to make sense. If you're ok paying a premium to own, it'll become more compelling if you're income can support it.
Yes it will only go up