sd reator, aren’t prices getting close to that level, when you consider the tax deduction and principal reduction, as i said in a recent post, as follows..
“scaredycat, the fundamentals suggest there is still some downside in the san diego market, but if you are sure you want to live there for 10-20 years, and you find a home you really love, go ahead and buy it if your monthly payment on the purchase would be close to what you could rent it for, for example: purchase price 400k, loan amount 400k @ 7%, payment is 2646 plus 480 tax and insur for a total of 3126. say you can write off 30% for a net payment of 2188; if this home would rent for that much, i would say it will be a good investment.”
sd realtor don’t forget on a loan of 400k fully amortized 30/30 you have a principal reduction of about 320 on your first payment also, wouldn’t a 400k house usually rent for 2000 p/mo?
