3 ms·
Real estate prices in places like SF or LA have plateaued a bit for a few years now, so yes while you're increasing your equity in your home it's not clear anym
by tempsy 7y ago
Real estate prices in places like SF or LA have plateaued a bit for a few years now, so yes while you're increasing your equity in your home it's not clear anymore where housing prices are headed at this point.
- pb7 7y agoEven if your home value doesn't increase whatsoever, you are still progressing dumping a higher and higher percentage of your monthly housing-related payments into the equity (payments are interest-heavy early on, shifting to principal-heavy later on). In 15-30 years, you have a paid off house that's worth what you bought it for which can be millions. Or you can leave in a handful of years and take the 100,000s of equity with you that will buy you house in cash in most of the country. Either way, you're hardly worse off.
- tempsy 7y agoIn the first few years you're converting a small percentage of that $8K payment into equity...most of it goes to interest, insurance, HOA, property taxes, etc. With the SALT restrictions you can't write off more than $10K in state taxes now either, which means basically $0 off your property taxes since that your income tax alone in CA will be more than that.