[quote=sunny88]Mira Mesa homes rents are between $2,000-2,300.
(http://sandiego.craigslist.org/search/apa?query=mira+mesa&srchType=A&minAsk=&maxAsk=&bedrooms=4&sort=priceasc).

Even if renter/buyer belongs to higher tax bracket savings are substantial when renting. Also, I didn’t consider maintenance which could easily add another $ 3,000 a year.[/quote]
http://sandiego.craigslist.org/csd/apa/2622741143.html
This house would probably sell for mid 300k.
http://sandiego.craigslist.org/csd/apa/2620761636.html
This house would probably sell for low 400k.
http://sandiego.craigslist.org/csd/apa/2595302813.html
This one is a good deal (if you can put up with being backed to Calle Cristobal), probably sell for high $400k.
http://sandiego.craigslist.org/csd/apa/2620531747.html
This one is probably asking $100-200 too high. This probably would sell for low $400k.
http://sandiego.craigslist.org/csd/apa/2616947429.html
This one probably would sell for $420-$440k.
http://sandiego.craigslist.org/csd/apa/2622626512.html
This one probably would sell for $410-$430k.
http://sandiego.craigslist.org/csd/apa/2626054173.html
This one probably would sell for $440-$460k.

I can go on, but you get the point.

Like I said, if you count in the 10% decline and assuming rate doesn’t rise over the next 5 years, then it’s a no-brainer that rent would be a better deal. If you don’t count in the 10% decline, the $3500/month number with 28/31% tax bracket, you’re looking at ~$2800-2900/month. Without the assumption of 10% decline, it’s not so black and white anymore. Also, after 5 years, you would have paid ~$53k in principal. Even if you have $15k in maintenance over 5 years (which I think is kinda high), the numbers is not as conclusive as it used to be in 2005.

BTW, these houses probably would probably sell for $700k or less.
http://sandiego.craigslist.org/nsd/apa/2627055125.html
http://sandiego.craigslist.org/nsd/apa/2612845743.html
http://sandiego.craigslist.org/nsd/apa/2618238518.html
http://sandiego.craigslist.org/csd/apa/2626315275.html
(This similar house: http://www.sdlookup.com/MLS-110028267-11118_Avenida_De_Los_Lobos_Rd_San_Diego_CA_92127 is asking for $460k)
http://sandiego.craigslist.org/csd/apa/2617682765.html
(Similar area but smaller by ~50 sq-ft, asking for $475k: http://www.sdlookup.com/MLS-110048176-10525_Hollingsworth_Way_San_Diego_CA_92127)
http://sandiego.craigslist.org/csd/apa/2607791460.html
(http://www.sdlookup.com/MLS-110037686-9919_Falcon_Bluff_St_San_Diego_CA_92127, 270 sq-ft smaller model)