Yes, I’m aware that only interest and prop tax can be deducted and some others aren’t…Even then, for a new 30 year loan, the bulk of the new loan payment is interest initially. After about 15 years, it starts to balance out, this is when a homeowner could possibly refinance to a new 15 year to continue getting a large tax write off to sorta reset the clock or refinance to another 30 for cash flow reasons…
The whole MR being debated as tax deductible was debated in another thread and has been a closed case for now according to the FTB following the fed decision that it was deductible.
That said, my numbers above have about a 1k buffer already for nearly anyone who can buy and a 2k buffer for super wealthy people so if you take away the non-financial benefits of owning a home, you still have some buffer depending on income, as well as the general benefits of home ownership.
Again, I’m not a housing bull at all and don’t really care where the market goes since I can’t sell (need a place to live/schools/etc), but I am just giving data proof that the area doesn’t look like to me a bubble (at least not yet).
We’re not in bubble territory NOW with current interest rates and what rents are since these places are still easily being rented out.
The MAIN problem, and I keep saying this is a person/family tends to HAVE to live somewhere. Some people maybe willing to live in a crap hole for 1k/month (me, not the wife though)…but when you have kids, those people sorta now needs/want better schools and are stuck with paying these insane rents.
Some people here have waited to buy and kept saying it would go lower, etc etc etc for years and have “missed out” now. If you need a place to live for your family, buying is such a time saver and a load off your mind to be more settled and not worry really what housing costs, what interest rates does, etc…I even come here less since it doesn’t affect me much at all now and this is true for a lot of the other posters who also bought.
Everyone just needs to run their own numbers, but as Rich mentioned in the front page post, it’s still not crashing at this time/yet…if it does and you still need a place to live, well, no skin off your back since you can’t sell anyways and you aren’t moving neither…It’s just all paper money for those young families.
