Real Estate in Secular Uptrend

Use the standard 20% downpayment, and current market price of the SFR to compute the monthly mortgage payment.

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…we assume the purchase of a home at 80% of the current median-priced existing home with a 5% down payment and a 30-year, fixed-rate mortgage…

5% downpayment? Is this the norm nowadays? This make cost of ownership higher than for 20% downpayment. Also, increase in mortgage rate would kick out this 5% downpayment buyers.

Rising rent due to rising property tax from rising house prices eat into my cashflow since rent rises less than rise in property tax :-1:

Rising rent due to rising mortgage rate increases my cashflow :+1: since no increase in cost.


Isn’t it better decision to go for 5% down with 3% rate than 20% down with 3% rate?


PITI of 5% is higher than PITI of 20% for same house price and is more sensitive to rate change. So if the norm is to do 5% as down payment, an increase of mortgage rate would bring affordable house price down more than if 20% is the norm.

Also inflate the affordability as listed… too lazy to explain.

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Bidding Wars Overheated the Home-Buyer Market, Now They’re Coming for Renters

Competition among renters means many tenants feel compelled to pay more each month than what the landlord is asking

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Virginia, Atlanta, Chicago and New York. No mention of Bay Area and elsewhere.