PRIDE OF OWNERSHIP. The challenge of renting is that any inprovements or betterments go right back to the landlord. I look around my own place and I see it as being incomplete. The walls could use a coat of paint, recessed lighting, dishwasher in the kitchen, drywall and finishing in the garage. It would cost about 4 to 5K to get the house to where I am completely satisfied. now figure that if I stay ther for 24 months that raises my rental cost from 1600 to voer 1800.
To end up with a net of 1800 when you factor in mortgage interest deduction, MCC credit, loan paydown etc it means that I could probably look at a monthly payment of around 2500. While tht moves me away from the beach area it certainly puts me in an ownership situation in Mission or fashion valley which could be used as a long term rental unit after I move.
Again, there wer plenty of people who bought during the 1980’s who have done extremely well with the purchase. There are going to be plenty of people 20 years from now who bought in 2005 who will have done very well. It just requires sustaining power.
With respect to other asset classes at the moment they are taking an equal hit in depreciation. (Global, small cap, large cap, bonds, reits)
