Unforuntately no. Housing is extremely leveraged in SoCal.
If you buy a target home at $900K any depreciation accelerates your loss over renting at $2700/month.
If over the next 3 years, housing loses 10% total ( a slow 3.5% loss per year), rent appreciates at 5%, you’ll save $105,000 by renting. That’s if you put 20% down and are in the 40% tax bracket.
If you put nothing down, you save $85,000 by renting.
Neither are shabby over three years.
If housing is completely flat, at 20% down, you save $10,000 by renting. At nothing down, it appears to cost $9,600 more to rent. That’s total over three years.
I’d post my little spreadsheet, but I’m not sure where to put it on the board.
