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It's basically a hedge against rent and cost of living. In many markets rent is now higher than a mortgage. The goal is you are over a lifetime net-zero in ho
by sjg007 5y ago
It's basically a hedge against rent and cost of living. In many markets rent is now higher than a mortgage. The goal is you are over a lifetime net-zero in housing cost or maybe make something back. Flippers and builders usually make 30% b/c they have cost advantages.
- twox2 5y agoIs rent really higher than a mortgage though or does that fail to take into consideration things like taxes, HOA, etc.? If rent were higher than a mortgage, wouldn't that suggest that most of the tech folks CAN in fact afford property in these markets?
- reducesuffering 5y agoRent is usually simultaneously lower than the extras-included mortgage payment but higher than the net worth hit. A Bay Area $1m home might rent for $4k, have a $6k mortgage new, but only drain your net worth $2k. (because of $ towards principal, housing appreciation/inflation, tax deductions, etc.)
- sjg007 5y agoNo, not if you don't have the downpayment.