I think you are going to burn all your tax savings (from your wise financial choice of purchasing insted of renting a depreiciating asset) on PMI (which is a complete waste of money if you have a 20% down payment) and depreciation.
Assuming a purchase price of 800K and a loan of 720K at 6%, the payment is $4,316. Assuming ALL of that is interest and a 50% tax bracket, your tax savings is $2158 per month, or $25,900 per year. 25,9000 is 3.24% of the purchase price of 800K.
So, if the house depreciates by 3.25% or more, buying is not a wise financial decision. Add in the non-depreciable cost of PMI, adjust for the actual interest rate and tax bracket and you are barely there. Also, consider that you can put an extra $1K per month or so in the bank if you rent at $3300/month instead of make a mortgage payment of $4300 per month.
The point is not “never buy a house.”
The point is rent, don’t buy, a depreciating asset.
