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      05-29-2020, 12:50 AM   #77
NorCalAthlete
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Drives: '23 M4CX - Tanzanite / Tartufo
Join Date: Aug 2014
Location: Bay Area, CA

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Quote:
Originally Posted by dreamingat30fps View Post
But if the owner of the home paid $500k or whatever crazy prices the homes are going for there... wouldn't the rent be equally as crazy as mortgage payments? I mean if I'm the landlord I would want to recoup my cost and still make a profit. If I were to look at rent for a similar house to mine in my area the rent is more than my mortgage payment, even when I account for insurance, tax etc.
Depends; a lot of people go with roommates here even into their 40s.

You can rent a luxury apartment with all the amenities and whatnot for ~$3,500 / month for a 2 bed / 2 bath. An equivalent condo would be in an older, crappier building with older, crappier amenities, and still cost $900,000. To get your mortgage down to an equivalent rent, you'd need to save up ~$200,000 or so at least for the down payment. If you're making $150k a year, a huge chunk of that goes straight to taxes and rent, so it can still take a few years to save up the down payment, during which time...might as well enjoy all the twisty roads and get a nice car.

Median home price is around $1,400,000 though so some people rent for several years trying to save for a house instead of settling for a starter condo or townhouse with HOAs. HOA fees can hit $700 just by themselves, on top of the property tax and mortgage.

Example : $925k price, $831 / mo HOA fees.

I haven't reviewed the latest here, but I'd be willing to bet that most of you are paying less than $831 / month for your BMWs. I'd imagine the logic holds true : "well....it's less than my HOA payment. Fuck it, I'm buying the car."

Last edited by NorCalAthlete; 05-29-2020 at 02:52 AM..
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