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kcal09
Participant[quote=sdrealtor]Sorry but your reasoning is flawed. In 30 years you’ll be dead[/quote]
Interesting statement-perhaps I’ll send you a message in 30 years, if you’re still alive that is….
Participant[quote=sdrealtor]Sorry but your reasoning is flawed. In 30 years you’ll be dead[/quote]
Interesting statement-perhaps I’ll send you a message in 30 years, if you’re still alive that is….
Participant[quote=AN][quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.[/quote]That is absolutely correct. That’s why I bought my house in cash…
Participant[quote=AN][quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.[/quote]That is absolutely correct. That’s why I bought my house in cash…
Participant[quote=AN][quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.[/quote]That is absolutely correct. That’s why I bought my house in cash…
Participant[quote=AN][quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.[/quote]That is absolutely correct. That’s why I bought my house in cash…
Participant[quote=AN][quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.[/quote]That is absolutely correct. That’s why I bought my house in cash…
Participant[quote=ocrenter][quote=kcal09]
MR is a 30 year bond which would add 30 x $5,000=$150,000 total.[/quote]that’s like saying a house with a $500k 30 year mortgage really cost $911k.
the way I look at it is how much the mello roos burden reduce purchase power.
a $5000 per year mello roos is $416 per month. $82k at interest rate of 4.5% yields $416 per month. Therefore, by purchasing a house with $416 per month of mello roos, you lose $82k in purchase power.
Therefore, a similar sized home on a similar sized lot in neighboring Poway with a purchase price that is higher in price by less than $82k is actually a better bargain.
I ended up rounding up the $82k to $100k. But I personally can’t seem to find a comparable Poway home that fits that criteria.
That is ultimately why localguy continue to see demand in Stonebridge, because comparatively, it is a better deal despite the MR.[/quote]
You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years!
Participant[quote=ocrenter][quote=kcal09]
MR is a 30 year bond which would add 30 x $5,000=$150,000 total.[/quote]that’s like saying a house with a $500k 30 year mortgage really cost $911k.
the way I look at it is how much the mello roos burden reduce purchase power.
a $5000 per year mello roos is $416 per month. $82k at interest rate of 4.5% yields $416 per month. Therefore, by purchasing a house with $416 per month of mello roos, you lose $82k in purchase power.
Therefore, a similar sized home on a similar sized lot in neighboring Poway with a purchase price that is higher in price by less than $82k is actually a better bargain.
I ended up rounding up the $82k to $100k. But I personally can’t seem to find a comparable Poway home that fits that criteria.
That is ultimately why localguy continue to see demand in Stonebridge, because comparatively, it is a better deal despite the MR.[/quote]
You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years!
Participant[quote=ocrenter][quote=kcal09]
MR is a 30 year bond which would add 30 x $5,000=$150,000 total.[/quote]that’s like saying a house with a $500k 30 year mortgage really cost $911k.
the way I look at it is how much the mello roos burden reduce purchase power.
a $5000 per year mello roos is $416 per month. $82k at interest rate of 4.5% yields $416 per month. Therefore, by purchasing a house with $416 per month of mello roos, you lose $82k in purchase power.
Therefore, a similar sized home on a similar sized lot in neighboring Poway with a purchase price that is higher in price by less than $82k is actually a better bargain.
I ended up rounding up the $82k to $100k. But I personally can’t seem to find a comparable Poway home that fits that criteria.
That is ultimately why localguy continue to see demand in Stonebridge, because comparatively, it is a better deal despite the MR.[/quote]
You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years!
Participant[quote=ocrenter][quote=kcal09]
MR is a 30 year bond which would add 30 x $5,000=$150,000 total.[/quote]that’s like saying a house with a $500k 30 year mortgage really cost $911k.
the way I look at it is how much the mello roos burden reduce purchase power.
a $5000 per year mello roos is $416 per month. $82k at interest rate of 4.5% yields $416 per month. Therefore, by purchasing a house with $416 per month of mello roos, you lose $82k in purchase power.
Therefore, a similar sized home on a similar sized lot in neighboring Poway with a purchase price that is higher in price by less than $82k is actually a better bargain.
I ended up rounding up the $82k to $100k. But I personally can’t seem to find a comparable Poway home that fits that criteria.
That is ultimately why localguy continue to see demand in Stonebridge, because comparatively, it is a better deal despite the MR.[/quote]
You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years!
Participant[quote=ocrenter][quote=kcal09]
MR is a 30 year bond which would add 30 x $5,000=$150,000 total.[/quote]that’s like saying a house with a $500k 30 year mortgage really cost $911k.
the way I look at it is how much the mello roos burden reduce purchase power.
a $5000 per year mello roos is $416 per month. $82k at interest rate of 4.5% yields $416 per month. Therefore, by purchasing a house with $416 per month of mello roos, you lose $82k in purchase power.
Therefore, a similar sized home on a similar sized lot in neighboring Poway with a purchase price that is higher in price by less than $82k is actually a better bargain.
I ended up rounding up the $82k to $100k. But I personally can’t seem to find a comparable Poway home that fits that criteria.
That is ultimately why localguy continue to see demand in Stonebridge, because comparatively, it is a better deal despite the MR.[/quote]
You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years!
ParticipantAlthough the real estate market is very depressed there will be interest in these homes as there are almost no new homes of this size available in SD county and many buyers (upper middle class families) are willing to pay these prices plus a heft MR just to get a new home.
ParticipantAlthough the real estate market is very depressed there will be interest in these homes as there are almost no new homes of this size available in SD county and many buyers (upper middle class families) are willing to pay these prices plus a heft MR just to get a new home.
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