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Also houseing values did appreaciate in 2004 and the first half of 2005. In So Cal the March 2006 prices were higher then the March 2005 prices. Though March 2006 was 0.2% lower then February 2006. It's hard to predict the top and bottom of the market. If you get it wrong then that analysis is way off.
For example a $400,000 house bought in early 2004 in So Cal is probably worth $460-480K now. So now that $75,000 loss from renting is much lower or even a gain.
Plus I feel safe with my fixed mortgage. My mortgage won't go up. Rents will go up. They have dramatically gone up in the last 7 years, and continue to rise now even when property values are starting to drop.
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