Quote:
Originally Posted by Hawkeye
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Yea - being a teacher in SF/Oakland seems like an unwise thing to do unless you have family money or a partner who can help increase household income. That rent is ridiculous!
Quote:
Originally Posted by KenB925
Indeed, and your mortgage locks in you monthly payment.
I bought a fixer (not something I want to do again) in 2003, I have not pulled out much money (a little bit to help with a down payment on another house). You couldn't rent a 1 bedroom apartment in my town for what my mortgage is.
Unfortunately my wife is hellbent on moving, and this house is now way too high maintenance to keep as a rental (hardwood floors, pool, outdoor kitchen etc).  |
Bad thing about moving up is the increased cost of property taxes. Even if you carry equity from one home to another, you are still faced with a large increase in property taxes.
A friend I know just had a house in his neighborhood close escrow that increased his networth by a couple hundred thousand practically overnight. If my friend sold his house to "cash out" took that equity and applied it to a new house, he'd basically be paying 1% of that $200k per year in taxes. So he just added nearly $200/mo to his debt for...the....rest...of...his....life (or until he sold)
Yes- the $200k nicer house may appreciate more but there are always many variables to look at