first off, we are not at the bottom, not even close.
second, assuming $250,000. that means tax rate of 33% or $82,500 to taxes.
now $750,000 Pienza, at 20% down, will run you $3500/month, plus $1000/month property tax/mello roos, or $4500/month. $4500 x 33% = $1500/month in tax reduction.
that house will run you about $3000/month to rent. adding $1500/month lost to uncle sam, your cost to rent vs. cost to own is roughly the same.
now the question is which way is the price heading? read this. the median and the average prices are going up now, and some people may mistake it for us reaching the bottom and prices are now heading up, but read bob casagrande’s analysis and you’ll see the climbing numbers are completely artificial.
if price to rent vs. price to own is the same, what’s the harm of waiting one more year to see which way to go. you may actually be able to get into the Crosby, and not stuck in Pienza.
