Quote:
Originally Posted by jyl
Back of envelope own vs rent math in Portland:
Own: median house price $400,000, at 5% 30 year, mortgage + property tax is roughtly $2,500/month.
Rent: median rent for a 3 bdrm house is - well, just eyeballing several dozen listing, looks like a bit higher than $2,500/mo.
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One comment: the challenge of the down payment. It's not easy to save $80K for that 20% down payment on a $400K house. (Ok, Ok, I know there are ways to put less down--but just let me use traditional house buying criteria for this example.) In LA or the Bay Area, a house in a nice neighborhood will be 2-3x that $400K value. It's hard to save $160-240K for a down payment! It's not the mortgage note that is difficult to pay. It's the down payment that's impossible for many to come by.