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It is an interesting option if you have the foresight. If you are in your twenties, someone in their 40s can teach you a thing or two. If you plan on living t
by jmspring 12y ago
It is an interesting option if you have the foresight. If you are in your twenties, someone in their 40s can teach you a thing or two.
If you plan on living the life of a hermit workaholic, certainly reasonable with your life circumstances.
If you have a family, want to travel, or want to buy instead of rent, assuming the Bay Area, very idealistic.
- phamilton 12y agoOr buy now and sell in 15 years or so. Move to Boise Idaho. 15 years of equity (ignoring appreciation) means you can buy a house twice the size outright.
- jmspring 12y agoBay Area real estate has picked up, but timing 15 years to sell? Doesn't always work out as well as it could if things have cratered. There have been about three significant real estate collapses in the Bay Area in the last 20-30 years. Some areas hold up better than others, but, say mountain view, a 20-something at his/her first/second job, unless has other means, isn't going to pick up property easily to hold for 15 years. Affordable areas in a boom? Those most likely to take a serious crap in a downturn.
- phamilton 12y ago15 years isn't exact. Boom bust cycle is 5 years or so. If the market is down in 15 years, then just wait it out. I'm not even including appreciation in the calculations.
- jmspring 12y agoTrue, and not everyone will want to dig up and move to Idaho. Established roots, friends, etc. There is more to "home" than just the walls in which you sleep.
- brianwawok 12y agoWell that is why those of us who sit down and do the math DON'T live in the bay area. The 10% salary bump is not worth the 400% housing price bump.