Loan is good, job is good & wife’s job is decent. Essentially, there is zero issue with the monthly cost and if needed I could pay off the entire mortgage tomorrow.
By next Spring, I think I’ll only owe ~$210,000 on the mortgage. (When investement rates are low, I usually pay some down). So I don’t think I’ll be anywhere near underwater.
Someone posted an excellent graph of rental rates in the UTC area (props to whoever that was). Assuming a low end rent of $1,300 a month – that alone is $15,600/yr. I’d most likely rent something in the $1,800 range if I sold so that would be $21,600/yr in rent.
I guess that’s the part that’s making me think. $21,600 a year in rent adds up quickly, and if the condo price falls anywhere less then that it’s still mostly a wash.
And if prices don’t drop that much a year, and instead we are in for a LONG slow slide down mostly eaten up by inflation… that $21,600/yr rent starts to look pretty ugly. The big unknown is how this is going to correct, and how/if the government tries to bail it out.
Thanks for the input. This whole “bubble” is a royal pain for people who would just like to own a nice place to live in. I’m ready for those nice new $800-900K houses built in this general area to drop a good 40-50% already. 🙂
