This is the reality of real estate in Sacramento right now: Own the home for $6500+ a month, or rent something equivalent down the street for $3350. Are we betting appreciation outpaces that difference? Seems like a lofty bet to make...
Supply and demand for rentals in this area surely seem to be favoring the tenant as well. Most of these have been listed multiple weeks:
@realmatt_re Okay, so I ran the math with your figures One year lease, the delta saved between renting + owning is 37,800 Last year national Case Schiller home price appreciation was a bit over 4% 4% of 945,000 is…37,800 The market might be…spot on 😳
@realmatt_re @texasrunnerDFW I wish San Diego was that cheap. Rent for a 2 bedroom in good school district is $4k
@realmatt_re It’s like this in Los Angeles area too. I have been trying to buy a house for years and eventually gave up. I can rent a 2br townhouse here for $3500ish that would cost me $7000+ mortgage (including prop tax/ins) even with 20% down. Not worth it to buy.
@realmatt_re Based on your numbers, this is how it would break down. So, you'll have to make it to year 3 before it's a net positive but still good to own...
@realmatt_re Curious if you know the profile of buyers in this neighborhood? Transferees or local. Employment profile. We build north of there a mile or so.