3 ms·

I really don't think the bay area is a good choice to make an argument for the average person against buying.... $3000 a month seems too small for a house in th

• pmorici 13y ago
  I don't have any knowledge of the home market in the valley, but I will say that the numbers he uses for interest rates are very off from current real world rates. The method is instructive but the numbers used are so off they don't offer proof one way or the other.
  • fps 13y ago
    This video was made in 2008, when mortgage rates were 6% and money market accounts were paying close to 4%. Now, mortgages go for 4.5% and money market accounts pay less than 0.5%. In 2008, rent prices were low while home prices were high, too. Today, a $1M house would cost closer to $10K/month in rent. It certainly doesn't pay to rent today, but it's harder to get a loan today, too.
    • ninguem2 13y ago
      If this video was made in 2008 and all the numbers are off, leaving this video up without any caveats in a site where kids go to learn is beyond irresponsible.
• tansey 13y ago
  Well it's also unrealistic to buy a house for $750K in Mountain View. I think his point was that IF the house went for $750K, you could reasonably expect rent to be around $3K. That seems right to me-- a 1BR in SF sells and rents for about those prices. As for having 250K in the bank-- if the house costs $1M, you have to make a down payment. In the mid-2000s, that may have been a smaller percentage, but these days I think 15-20% down is not unheard of.