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...
@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 😳
@texasrunnerDFW Ha, that math makes me sad. In reality though for this specific neighborhood, prices are down YOY. And of course those renting could have their $200k down payment in high yield savings if they rent.
@realmatt_re @texasrunnerDFW Does this include if you have a large downpayment, and invested it instead? Like 50% index fund and 50% t bills? Because to me, if you're putting a sizeable chunk down, the math is even less favorable to purchasing.
@realmatt_re @texasrunnerDFW And not expose themselves to the opportunity cost of buying lower in the future.
@realmatt_re @texasrunnerDFW Cut the difference, down payment of 5%, and invest the 150,000 to offset the PMI as well as enjoy future growth?