Rent vs Buy comparison between 2020 and 2023. It’s now cheaper to rent now in most of the country.
For SF currently is renting better than buying? I saw a calculation someone did where 1.4M which is rented for 5K and buying at 6% rate is better than renting for 3 yr time frame.
If it’s your primary and you can afford it with ease, I think just buy and don’t worry too much about detailed costs. Very few people will sell after only 3 years. Experience tells me the amount you get from a sale is always less than what you’d expect.
This guy also missed some:
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If you work from home you can get home office deduction. Talk to your CPA.
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He totally neglects maintenance costs.
Also I believe interests rate is about as high as it would get. Buy now and refi later is not a bad strategy.
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Cost of sale should be 10%, author uses 5%.
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Is this Wolf Street guy crazy. He is still spouting housing bubble and price crash.
And he deletes comments like these:
Kunal
Your comment is awaiting moderation.
[Feb 21, 2024 at 2:07 pm]
It’s not a buyers strike, it’s a sellers strike. There are plenty of buyers but there is no supply that they can afford. In this environment, prices will go sideways / rise.
Asking and sale prices are at record highs for this time of the year. Go check Redfin yourself. This is hard data, rest is propaganda.
CA Median Sale Price: $739,200
+6.6% year-over-year
CA # of Homes for Sale: 65,628
-7.0% year-over-year
CA Homes Sold Above List Price: 35.9%
+9.7 pt year-over-year
US Median Sale Price: $402,343
+5.2% year-over-year
US # of Homes for Sale: 1,326,005
-3.7% year-over-year
US Homes Sold Above List Price: 23.9%
+2.7 pt year-over-year
Kunal
Your comment is awaiting moderation.
[Feb 21, 2024 at 2:11 pm]
And keep in mind that the prices are still rising after almost 50% rise compared to pre-pandemic. So all these folks who were spouting RE bubble even before pandemic are lunatics and whoever listened to them are the biggest fools.
Lol, weren’t you predicting doom and gloom for a long time?
Yeah but my stock portfolio is doing so well now that I have taken a permanent pause on buying more RE. And I feel that I was wrong on RE doom and gloom all along. It’s going to rise and rise as USD loses value.
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Gloom and doom for commercial buildings only.
Buy vs Rent in San Francisco.
16k mortgage payment or 8k rent. I am usually pro owning but 2x delta is pretty hard to swallow.
Also doesn’t it make more sense to do ARM now so payment will come down automatically when rates adjust?
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This is an interesting story:
Singh and Dudani decided to take the leap and buy a home in the Bay Area. “We thought, since interest rates were high, there wouldn’t be a lot of buyers,” Singh said.
Don’t be so sure, their agent, Jeet Dholakia, advised them. Even with interest rates around 7%, the Bay Area market was still flush with buyers, and there would be fierce competition for homes in their price range, between $1.3 and $1.5 million, just below the median home price in Santa Clara County of $1.8 million.
Their agent was right:
They quickly realized that in Cambrian Park, homes would be listed at $1.5 million and then end up selling for closer to $1.7 million, which was outside of their budget. Such was the case for the split-level they looked at there, which they bid on but lost.
Interesting tidbit:
The couple had initially been quoted at a 6.37% rate for a 30-year fixed-rate mortgage, but they found a bank willing to offer 5.75% — a difference of $1,200 a month.
Which bank offers 5.75% rate?
Maybe Fremont Bank? Back in the day, my Big Bro loved Fremont Bank. (Until my killer mortgage broker came along…)