Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).
Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.
Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.
Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.
Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.
