I appreciate what you are saying Records Clerk even though I am the one who wrote the thesis on the inefficiency of home equity and the dangers of owning with 0-40% equity , in times like these. Like so many other people in San Diego, I could never afford the house I live in on the income of my wife and I have. However if I sold it,750k the interest I could make on the dough at 5% would provide $3,125 for rent I would get rid of $500 month in taxes and insurance and about $583 month in maintenance & services. That’s $4208 I could use to rent. I would actually rent around $2500 so I could improve cash flow $1708 per month. Not doing that is a questionable investment choice IMHO. Especially since I am not a big earner and I anticipate a better opportunity for buying in a few short years. I know I didn’t include taxes but 5% is a very low return on 750k too. I think plenty of people have done this.I know most my friends and family would never consider it.I am not selling but have thought about it enough to come up with the explanation I have given you.In fact you might say I am still hashing it out. My wife is ready to go for it or stay by the way.
Best wishes.
