patrick.net

Good video, except it makes little sense for a number of reasons:

1) Renting a $1M house in the Bay Area for $3,000/month? More like $4000.
2) He says he is getting 4% off a CD with $250K in the bank. Good luck...more like 2%. And he isn't paying taxes on the interest, which doesn't happen in the real world.
3) He is doing an interest only loan at 6%. 30 year loans are at 4.5%. Why not do a 30 yr, and each month the principal payment is about $1K? That's $12K/yr in savings, even if the house doesnt appreciate.
4) He doesnt mention insurance and maintenance in the equation, which is in favor of renting. Make this amount $400/month.
5) No mention of the house going up in value by a small amount, say 1% annually, which is $10,000/yr.

All these things add up in the equation, and buying in this scenario is much better. $44K per yr renting, vs $30K buying.

In reference to item 2 above, I'm earning 6-7% a year on an account that is near a deposit account. And this will be going up, as interest rates rise.

bullshitmagnet says

In reference to item 2 above, I'm earning 6-7% a year on an account that is near a deposit account. And this will be going up, as interest rates rise.

Give us the scoop. I got money to drop there.

bullshitmagnet says

In reference to item 2 above, I'm earning 6-7% a year on an account that is near a deposit account. And this will be going up, as interest rates rise.

Our of curiosity, what type of account is that? Unless you are talking about fixed interest instrument bought in 2006-7, it's very hard to find that kind of return on any guaranteed accounts.

Complete and UTTER Bullshit. Or it's an account with a small limit, like 25,000. No way they're paying that much on an account with no limit.

http://www.nerdwallet.com/blog/banking/nerdwallets-top-high-yield-online-savings-accounts/

bullshitmagnet says

In reference to item 2 above, I'm earning 6-7% a year on an account that is near a deposit account. And this will be going up, as interest rates rise.

Whoa, where? I have shit load of cash....let me know.

Waitingtobuy says

1) Renting a $1M house in the Bay Area for $3,000/month? More like $4000.

I've seen numbers everywhere between. Of course, it's imprecise to define a $1M house unless it just sold, but I agree the numbers for the last ten years would lean toward $3500 and higher as an average. Not $3000, a number available below $4000, but many closer to $4000.