Before tax cost: ~$3000/month
After tax cost: ~$2400/month
Rent cost: ~$2500/month
Bear in mind, if you spend $2500/month on rent in MM, you’ll probably get a better house than the house on 11902 Thomas Hayes Lane. Where as, if you spend $500k on a house, you’ll get a worse house than 11902 Thomas Hayes Lane.
On top of that, you’ll own a depreciating asset.
In an earlier post, someone said:
“back then I said I had only 50k and now it’s well over 100k.. I had been gaining while the market has been dropping. It definitely was a win win for me.”
Right on! I’m in a similar situation (renting & waiting). Definitely win win !
Jimmy, try not to keep up with the Jones’ for a while and rent a house for at least three years. We shouldn’t see the bottom of this correction for at least 3 years. I know, all your other “married” buddies have a house and feel like they’re big players, but you will the baller in a few years if you rent. Besides for that price, you can rent a really nice house, WAY nicer than some 1500sqft home.
Congrats on saving your 70k. This is great and gives my some hope that at least a few people out there can still save.
Hopefully we can wait for the market to bottom out in 2008. Thanks, Jimmy
Did a crystal ball tell you this? If we "bottom" sometime near 2008 then this will be the absolute shortest correction ever to the worlds largest and longest RE bubble.
This chart was Richs creation, but you see it will take more than 2 years to correct for a 10 year bubble.
