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Yes, I put an offer in on at at $464k and we are negotiating - although I'm liking the Valley options better. 900 sq is tiny. I can get double the size near Ventura Blvd.
Oh well. I was too late with my words of wisdom hahaha.
So basically you made an offer 24 hours after not being sure you wanted to even buy anything. I missed your OP that you were putting in offers, sorry.
Gotta love California. Must be the sun, like Florida
So your offer is in, even at $2900 you'll probably net close to what you were renting for at the end of the year. If you KNOW you'd only be there 5 years, then you should do 5 or 7 year ARM, but you don't know, so you are going to pay about $2000-3000 more per year to future proof your mortgage payment. You don't want to be a landlord, so are you consider an ARM?
I don't know your exact numbers, you'll probably have $500 a month going towards principal per year, even if you sold your home for $5000 less or $25,000 less in 5 years, it'd be just like you were renting.
Sure it can go down in value but does it matter if you are in an ARM or a Fixed when you sell in a few years?
IF your net at the end of the year using a fixed rate loan is close to renting , then I think it is a good investment.
So your offer is in, even at $2900 you'll probably net close to what you were renting for at the end of the year. If you KNOW you'd only be there 5 years, then you should do 5 or 7 year ARM, but you don't know, so you are going to pay about $2000-3000 more per year to future proof your mortgage payment. You don't want to be a landlord, so are you consider an ARM?
I don't know your exact numbers, you'll probably have $500 a month going towards principal per year, even if you sold your home for $5000 less or $25,000 less in 5 years, it'd be just like you were renting.
Sure it can go down in value but does it matter if you are in an ARM or a Fixed when you sell in a few years?
IF your net at the end of the year using a fixed rate loan is close to renting , then I think it is a good investment.
Not interested in an ARM. 30-year fixed is for me.
Does the 2900 include insurance, taxes, and HOA? If not, then renting sounds like the better deal, assuming your rental is as nice as the condos you're looking at. I was surprised when I bought my house that after factoring in everything -- what I was paying in taxes, insurance, and mortgage minus what I was getting back in tax breaks and paying off in principle, that my $2500/month house payment was really only costing me $1100 a month. And my house was much better than what I could rent for $1100/month.
Don't forget that you'll have to pay maintenance, and transaction fees when you sell are going to take a significant bite out of your selling price -- about 5-6% of the total sale price, which could end up being 20-25% of your equity.
Does the 2900 include insurance, taxes, and HOA? If not, then renting sounds like the better deal, assuming your rental is as nice as the condos you're looking at. I was surprised when I bought my house that after factoring in everything -- what I was paying in taxes, insurance, and mortgage minus what I was getting back in tax breaks and paying off in principle, that my $2500/month house payment was really only costing me $1100 a month. And my house was much better than what I could rent for $1100/month.
Don't forget that you'll have to pay maintenance, and transaction fees when you sell are going to take a significant bite out of your selling price -- about 5-6% of the total sale price, which could end up being 20-25% of your equity.
Yes, those figures count everything, HOA, taxes and insurance. P&I alone are less expensive than my rent by $200ish. I didn't even think of the tax benefits, that's good to hear.
I missed out on the place I really liked. I'm going to look at an auction/short sale condo today, which might save me a lot if money and build instant equity. Starting bid is $310k and similar properties sell around the area for $420k-$450k.
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