[quote=carlsbadworker]Assume if you are buying 4B house, the formula that I uses is the local decent-shape 3B apartment rent (maybe with one garage rental as well). There should be plenty of data from the apartment ads. I figure that’s the bottom of the housing rental price.
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Then you calculate mortgage, HOA, MeloRoos, property tax and insurance. If those two prices are close, then I think it is time to buy. Sure, you will be out the downpayment, but you also get some tax benefits on the interest. I call it a wash.
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In the end, however, I think it is OK to overpay a little as long as you like the house. The difference in investment return is going to be small as long as you are paying attention to the buy/rent tradeoff.
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Thanks, Carlsbadworker! 3 BR apt rent – that’s a very good idea! Sure, the apartments rents are more reliable as a market indicator…. I am sure there are some 3 bdr in PQ area. Congrats for you, btw!
Owning a house has its benefits for your lifestyle – extra room/storage/garage, yard/patio, freedom of decorating/customizing, etc. For us it means also longer commute, but it’s not very bad.
