I don’t know if it’s “right,” but the way I calculate it is if rent will pay the mortgage w/the very minimum down, which nowadays is not zero. As in the complex I’m in, which I’ve given examples in other threads, if I put the minimum 3.5% down, I’m looking w/P&I, taxes, insurance, HOAS and PMI, about 2900. My rent is 1800. Makes no sense to me to buy.
So the answer I’ve heard is put more money down, like 20%. But why? Why tie up cash in a declining market w/economy in turmoil and unemployment rising. Just to break even, if that? Not like I’m getting money every month on 20% down. Who knows when you’ll see real estate go up, up and away again. Maybe I’m wrong for looking at it that way.
I mean, heck, I can put the money into gold or even some CD w/a paltry 2% return. I don’t know. I’m no expert on this. Trying to figure it out.
