I’ve been saving more than $1k/month for retirement since I was 21. Now that we got that out of the way.

You’re correct, I’m not in the 37% brack. I’m on the border between the 25% and 28% bracket. Where do you mean by around here? Obviously, you’re not talking about San Diego wide. Maybe in Rancho Santa Fe? Oh, and btw, there’s no such thing as 37% tax brack, the highest is 35%. In order to be in the 35% bracket, you have to make well over $300k/year after all the write off. So tell me again, where exactly are you talking about that most homeowners make well over $300k/year? Tell, if you make $300k/yr, would you buy a $500k house? I highly doubt it.

Let assume your variables, rent = $2500/month. In order for then to be that high in San Diego, the house has to be around 2300-2500sq-ft and be around Scripps Ranch, Carmel Mt, Rancho Bernardo area. Houses that size in these area are in the 800-900k range right now. So lets assume the lower end, around $800k. W/ 0% down, and today’s rate of 6.5%, the monthly payment would be $5k. If it drop 20%, the house would cost $640k, the monthly payment would be $4k/month. If you’re in a 35% tax bracket, after tax write off, that’s about $2600/month. Lets assume tax+HOA+MR+Insurance = 2%, that’s about $1100/month. That would bring th total back up to $3700/month. So, tax save is about = to tax+HOA+MR+Insurance. Tell me again, is $1200/month worth it for you to know you don’t have to move again?