… property taxes (which are going up) and homeowners insurance?
There are too many ways to compare … we can include property taxes and HOA/MR, but then we should also include the tax deduction, $200-300/month. $300/month goes towards principal. Should be subtract that from total cost to own? Or should we just compare PITI with rent?
Also, Eastlake is not even the most deflated area. You can buy a 4-bedroom house for 150K in central Escondido. (Not that it’s a very good place to live, but you can!) The lowest rent for a 4-br in Escondido on Craigslist is $1,495.
Should I buy?
380K and 350/month HOA for a house that you can rent for $1800? … I’d say you’re close to break-even but the area may go a bit lower. The closer you are to the coast, the more stubborn prices are. You’re only half a mile east of 5, that’s practically PB. PB has more to go.
Do try to put 20% down.
With 20% down, assuming 5% rate and 900/year homeowner insurance:
Principal 366
Interest 1267
Home insurance 75
HOA 350
Property tax 348
Downpayment opportunity loss 166 (optimistically assuming 4% possible return on downpayment)
Tax deduction 511 (assuming a single person with 80K income and no dependents, your situation may vary)
Towards principal 365
