Cheapest 3 bedroom/1750sqft condo I could find in Mission Viejo (that doesn’t look like it was in a tornado) was $450k + $340 HOA + $150 maintainence
PITI+HOA+maintainence on that (with zero down if that is even possible) would be $3,558. I could rent that same unit for under $2000/mo. so we’re looking at a 40% decline 😉
And this is for the CHEAPEST Condo. If I were to rent I could find nicer units and have A LOT of choice for my money.
Plus what about the fact that if I buy I will be locking myself into a commitment and lose my flexibility to just get up and go? That is worth a lot as well.
So buying now may seem to equalize but when you factor in everything it just doesn’t pan out!!
Note about the tax savings…that doesn’t work in all cases since you have to itemize to deduct mortgage interest. If you’re a couple and get $11,000 for a standard deduction and if you’re deducting $11,000 in mortgage interest your effective “tax savings” from purchasing a home is ZERO! Now if you deduct State taxes while itemizing you may hit AMT. So have to check with tax advisor to truly determine how much savings you will have.
kev374 – Orange County for the most part is a bit behind the cycle compared to SD.
Regarding tax savings. Most people will hit the standard deduction based on things other than mortgage if they are in a position to buy property in the 450K range. Therefore most of the benefit is above standard deduction. But, I agree it is wise to make the calculations for your particular case (esp. wrt the dreaded AMT).
kev374 – Orange County for the most part is a bit behind the cycle compared to SD.
Regarding tax savings. Most people will hit the standard deduction based on things other than mortgage if they are in a position to buy property in the 450K range. Therefore most of the benefit is above standard deduction. But, I agree it is wise to make the calculations for your particular case (esp. wrt the dreaded AMT).
kev374 – Orange County for the most part is a bit behind the cycle compared to SD.
Regarding tax savings. Most people will hit the standard deduction based on things other than mortgage if they are in a position to buy property in the 450K range. Therefore most of the benefit is above standard deduction. But, I agree it is wise to make the calculations for your particular case (esp. wrt the dreaded AMT).
kev374 – Orange County for the most part is a bit behind the cycle compared to SD.
Regarding tax savings. Most people will hit the standard deduction based on things other than mortgage if they are in a position to buy property in the 450K range. Therefore most of the benefit is above standard deduction. But, I agree it is wise to make the calculations for your particular case (esp. wrt the dreaded AMT).
kev374 – Orange County for the most part is a bit behind the cycle compared to SD.
Regarding tax savings. Most people will hit the standard deduction based on things other than mortgage if they are in a position to buy property in the 450K range. Therefore most of the benefit is above standard deduction. But, I agree it is wise to make the calculations for your particular case (esp. wrt the dreaded AMT).
