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Mountain View, CA
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In United States
Registered Apr 17, 2012
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myob's most recent comments:
- On 14 Jun 2013
in
In housebuying, cash is king again,
myob said:
JFP says
It is a lot rarer with real estate than stocks, though.
On the flip side, you're usually very diversified into stocks, so a 100% loss in one or two is hopefully no big deal, where owning a house could be a huge portion of your net worth, and something happening to it could amount to an enormous loss. - On 14 Jun 2013
in
In a Shift, Interest Rates Are Rising,
myob said:
Rates are less relevant when so many houses go for cash. The bay area is wealthy, one of the wealthiest areas in the world, in fact, so I'd imagine our correlation is weaker in this area. - On 13 Jun 2013
in
In housebuying, cash is king again,
myob said:
robertoaribas says
YOU said you didn't buy, because your money grew faster at 60% than housing prices did... Pointing out holes in your argument is not any kind of strawman.
Actually, no. I was just making an example that housing isn't necessarily the best investment and that not-buying is not a waste of money, as you implied. If I put my money into a house and reaped leveraged gains, I would have had equivalent gains, that's all. That's not my reason for not buying a house yet. My main reason is fear of debt due to the price. I grew up poor and in debt, I despise it. It's indentured servitude to your job and lots of job related stress since life becomes all about bringing home the paycheck.
As for the whole "Europe" thing, my point was that europeans live in much smaller places, in general, than Americans. What's that have to do with it? Would it help you to know I was from what was once known as Czechosolovakia? That my grandparents and parents and siblings (6 people) lived in a 2-bedroom cottage. It's not comfy, but it's doable if you have to, so having 2 people + 1 baby in a bigger 2-bedroom place is no problem.
Regarding buying closer to work - I simply could not afford it. Let's work some numbers. Due to the wonders of prop 13, my landlord pays next to no property tax and charges me ~$1400/month for a house with market value of ~$1.2 million. My property taxes alone would be ~$1300/month if I bought the place I live in, not to mention having to pony up $240k down payment and then my mortgage would be $5900 on a 30-yr fixed @ 3.75% which is a good rate for a jumbo loan today. Income tax deduction on that loan is about $1650/mo for me initially. ($5900 + 1300 - 1650) = $5550. That's $4150 more per month in outlay, almost $67,000 in post-tax dollars to live in a 2/1 that I own in addition to almost a million dollars of debt. No thank you!
I realize my rent is super cheap, and the market rate rent for this place is ~$3000/month having does some craigslist searching, so I'd still paying $2550 less per month. Now, it's worth some money to me to have the flexibility of owning my own place, since I could live by my own rules, but it's not worth $2550.
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