Also HOA is usually more than $200. I know of very few condo complexes that charge such low HOA. $300-400 is more like it.
Please let me us know what neighborhood you’re talking about. My dad owns a 4-BR, 3BT SFR in a neighorhood that sell for right about $600,000. Rents there are $2100. Sounds like the rents you’re using are high.
A friend is renting a 1600 sf condo at the Grande downtown for $3,000 and the HOA there are $750/month and the facilities are first rate. Seems to owner is upside down on this “investment.” One unit sold earlier this year for $865,000 but I think the owner paid more (incomplete info on Zillow) That building is a ghost town.
If condo owners can rent out their properties for $2500 in complexes that charge only $200 in HOA they are getting great rents! $200 HOA means that property has zero amenities.
Insurance should also be included in your analysis. Renters insurance is much lower than homeowners insurance.
One poster here said that he’s renting a million ++ house in La Jolla for a great deal vs. buy (please tell us again if you’re here). The more expensive the house, the greater the delta between rent and own.
As I’ve said before, I’ve looked (mostly UTC and Carmel Valley) for my elderly auntie and it’s much cheaper to rent.
I’d love to see a specific property / condo complex where it’s better to own. Please let me know so I can tell my auntie to buy there.
Also consider that many such as students and the elderly don’t benefit from the mortgage interest rate deduction.
