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My family and I lived in Mountain view for 2 years. We knew we'd only be there for a year or two, and decided to rent, not buy. After two years, we'd sunk $12
by drewg123 11y ago
My family and I lived in Mountain view for 2 years. We knew we'd only be there for a year or two, and decided to rent, not buy.
After two years, we'd sunk $120K into our rental. Meanwhile, a friend bought a house at the same time for $1.3M and sold it just before we left for $1.6M. Even after real estate commissions, taxes, mortgage interest (which is tax deductible) and upkeep, I'm sure he came out well ahead of us.
- mlpinit 11y agoThe market doesn't always move in that direction. Your friend could have been in a much different position if he invested at a different point in time. If you take into account the real estate commission + recordation fees, your friend probably payed about 120k-130k. Also take into account the mortgage interest and the opportunity cost of the money he could have otherwise invested in this crazy bull market and your friend probably just barely broke even. This is in a great market, imagine what would have happened in a bad market to him...
- abalashov 11y agoYour friend just got lucky. I bought in May of 2007 and ended up $50k underwater with a 6.5%/8.25% mortgage.