Yes, sdcellar. If you have 20% to put down AND still have LOTS left over set aside for emergency and you really LOVE where you’re buying and plan on being there a LONG while, then sure, go for it.
I know when I bought my place in CV back in the day, I planned on being there forever. That was my intention. Life happens. Anyone that can predict the future that much in advance, please contact me w/the 6 special numbers.
I am just not comfortable putting 20% down. This market looks much more dire than in the ’90’s. I barely came through it last time around. Not fun at all. Turns my stomach thinking about it.
If I’m looking at 180 a month for PMI, then I’ll go that route. I mean you can be a bull and say that things will turn around and you’ll have 20% equity in a few years and then you are done w/PMI, right?
I’m not tweaking any numbers in my scenario. I was up to 2700 for mortgage and if you add PMI, then close to 2900 – and I’m paying 1800 for rent. So when factoring if the tax write-off, I’m looking at what, 2500, 2600 for the privilege of “owernership.” Plus maintenance, upgrading, any special assessments.
I can’t and won’t do it. And I certainly can find a cheaper place elsewhere in many areas that have shown greater depreciation. What’s the point of that? This time I want to buy for me. I don’t want to live in an area I don’t particularly like just to say “I own.” I already have 5 investment properties all paid off. Why tie up my cash and credit on more.
Are there some good deals out there for investment properties? Yes. But the desireable areas still have a ways to go. Now the question: Will the nicer areas see further decline? I say yes. Will it go to Temecula levels? Probably not. But I know the NODs that are out there in the areas I monitor. The quanitity AND dollar amounts are just astonishing.
