max225 wrote:Quick
750k Place I am in now vs 750k 1 bedroom apartment in SF.
Cash out 600k, invest at 2.55% CD ~15,300 a year/$1275 a month
Rent 1bed/studio @2500 a month.
~1125 net rent cost
Buy same place.
Let's just say I put the same 600k down, and only "borrow" 150k. I miss out on the $1275 invested so ($1275)
Property taxes on 750k out here is around 2% a year in SF. ($1250) a month
$500 a month in association fees are unavoidable, about average as they range from $300-1500 in the high end places
$3025 in the hole for taxes and fees+
Interest @4.5% for 150K $6750~$562 a month
$3025+$562
$3.6k a month for interest+fees+taxes
Now presumably the place will appreciate... however I am not sure by how much anymore as the prices seem to have leveled off in sf.
Presumably, appreciation will remain at 5% a year which may or may not be sustainable....
That's
$3125 a month so If i am banking on that...
the
"net" cost is ~$475 a month which is actually a bit cheaper than renting.
Now there are a few wrenches in this equation, such as lack of appreciation (which is likely), it will simply unhinge that entire equation, I also don't plan on living in SF for more than 12-24 months so I'd have to spend 3-6% in realtor fees which will completely negate any gains for the year. 22,000~45,000 in that year, which is around ~1800 a month.
a few first gen immigrant on DFD, resident turk, and ex nazi egg lover now driving a middle class mom mobile.
her and all congratulations! If you are just following a natural progression of things, I would argue that in fact, you do not have to do something at any point.
