There are homes in San Francisco right now where they are offering to Lease or Sell. Lease rate is $6000/mo, or if you buy the all in costs would be $12,000/mo.

If I remember correctly, OP lives in California. This is typical in many places there. The market needs to correct.

This doesn't explain anything to negate my point

All you did was explain landlord's make different profits depending on how long they owned it , how much is owed $


Why do u think renting is so expensive now ? Most landlords aren't renting at a loss ...regaledless of when they bought the property

Option 3: Buy someplace less expensive.

You are literally retarded.

I don't feel sorry for people. You could easily move to a vast majority of cities and buy a $400k house, which is still a nice house, but you want to keep up with the Joneses.

And to top it off, it's a townhouse, so you'll be sharing a wall.

Reap what you sow

How ? Explain you fking rentcel larper

Keep spamming the board with your hand picked run down condos in San Francisco with 1k+ hoa fees to fuel your rentcel cope

If someone owes 3k per month expenses on a place they own they aren't exactly going to turn around and rent the place to you for 1k are they ?

Sounds like you're the retard who has completely over stated his financial knowledge

https://www.zillow.com/homedetails/1...15168903_zpid/

I just found this listing after about 2 min of searching on Zillow. They are saying a buyer could rent the two units for $6500/mo(which is likely higher than they actually can). However, if someone buys that house the cost is about $11,000/mo including taxes and insurance.

There are plenty of owners who would rather have a good reliable tenant who pays on time and treats the place well. Not everybody is pushing rents on their properties to 105% market, except those people who buy in the current environment and need to pay their artificially high costs.

700k for a townhouse, sounds like it's time to move

Again, not applicable to all situations so you really have no business calling me a retard. I make a valid point and sticking by it


Have fun with your annual rent increases

You can thank me for providing you education about how housing works. Although you're retarded, there's always room for impeovement.

Without looking let me guess..with MINIMUM down payment

Keep drugging yourself with Ozempic you annoying know it all late 30s phgt who never grew up

I'm retarded right?

Well my multiple 6 figure net worth at 30 years old mainly thru home ownership begs to differ

If you were smart, you'd sell now and bank any housing gains. In general, Investment returns will be depressed during the few years though. I toured a property on Friday that was very nice on the inside and they just cut the price by $50,000 a day later after being on market only 2 weeks. The housing market is showing some horrible signs of weakness right now.

As somebody who is a landlord and somebody who has rented before, my advice is to always choose the rent option. And be nice to your landlord, always make sure you pay your rent on time and leave the place you rent in good condition for the next tenant.

Owning instead of renting is stupid. Youll always end up in the red when you have a mortgage.

i would keep renting. lets say you could squeeze by even if you paid 4k/mo. well drop that $1,900 difference in to an IRA instead.

not to mention that deferred maintenance & cost of owning is a lot that never gets talked about so add 5% of 4k on to it, or another $200/mo. now ur at 4200/mo minimum.

plus what happens if we see another 2008 (unlikely) but that risk is there as well.

i would either stay there & keep renting or move to LCOL & buy.

You can't apply your current situation buying a few years ago to somebody who is entering the market now. It's a completely different situation. Plus, no offense but you own a small condo that your parents helped you buy.

Apply the numbers as if you were looking to buy a townhouse NOW rather than having built five years of equity with a gifted down payment and you can easily see it isn't a smart financial decision.

Maybe with interest rates now as they are and paying today's prices. Certainly not always

It doesn't really matter what the Down Payment is. That's just money that could be earning money in some other place.

I will always put the minimum down payment into a home possible, because it's silly to have that cash stored into equity on a primary residence rather than basically anywhere else.

Thanks for a reasonable explanation. I understand my situation is niche

I'm in an under 400k market , with 170k down at the time...with buying close to 2 years ago...so I'm not that effected by the rates compared those with like 500k + mortgages

Just don't understand how the point I'm making makes me " retarded "

The reason you are retarded is because you are pretending to know how all of this works, but I can easily tell you have no idea how this all fits togther.

If you bought a house and it increased in value, congrats. But that doesn't make you an expert in Real Estate.

No hard feelings bro

Don't claim to be an expert

I'll just sum it up...in my very specific situation it made sense to buy then go out and rent a similar place for 2k ~ monthly.

I had help from parents. Yes, that makes a difference .

Actually not always true

In my city they re-did property valuations because they were lagging behind. Most people’s mortgage payments went up a few hundy per month due to escrow shortage with the new tax

But rents actually went down compared to a year ago ever so slightly

Rents in my city, at least for larger properties have remained basically the same for the past two years and there is a ton of volume, which gives bargaining power as well. Apartments and places on the smaller end have gone up by a fair bit but are levelling off now.

If I had purchased the place I rent now - even three years ago - the carrying costs would be more than double monthly what I pay in rent. It hasn't made sense to buy in my city for about 5 years now but people keep on doing it.

Only the 17th of the month, and rentards are in full cope mode already.

Brutal.

Your credit must be shot. That's like a $5500 mortgage.

This question has gone in and out of my brain for a couple years now OP. Answer is rent IMO, at least until interest rates are around 4%.

There's a formula for calculating "unrecoverable losses". When you rent, that (plus fees like pet fees, valet trash, renter's insurance, etc.) is pretty much all that you lose unrecoverably. When you get a mortgage, you have to consider a lot more... this includes HOA, property taxes, home insurance, mortgage, interest rates, maintenance, opportunity cost of money sitting in the house as equity doing nothing, and on the flip side the potential profits you'll make as the house goes up in value.

There's online calculators which give a way more complex and customizable way to approach comparing the two (sample:https://www.nerdwallet.com/mortgages...buy-calculator).

But there's a quick dummy version called the 5% rule. Though it's actually the 9% rule today, because the 5% rule depended on 3% interest rates... add 4% and it becomes the 9% rule. So what you do is you take a house price ($400k as example), multiply by .09 (you get $36k), then divided that by 12 (final answer is $3000). So if that resulting number is similar to or cheaper than the rent in your area, then the house is worth it. IDK about you, but the good houses in my area are $400k+, meanwhile rent is still in the $2k range. AKA I'd be throwing away $1k/mo extra for the first few or so years of a 30 years mortgage, assuming I can't later refinance to a lower interest rate. Rent will still "eventually" go up and exceed that $3k, since rent pretty much always goes up, but it's a good easy formula to compare for the next 3-7 years.

I'd rather rent, delay home purchase, and use the excess savings to invest. The stock market out performs the real estate market. I'd bet by the time interest rates and house prices return to earth, you'd have enough for a freaking 35-50% down payment on a house anyways.