please convince me not to buy a house

Here’s my situation:

Late 30s. Moved to CA from OR 4 years ago for a good job. Sold my house before moving because I wanted to avoid the hassle of being a remote landlord. Big mistake in hindsight, of course.

Currently employed by the government and live in a heavily subsidized rental unit very close to the job site. It’s a great job that I plan on staying at for at least 5-10 more years. The rental house is nice enough, but my quality of life is not what it was a few years ago and I suspect part of that has to do with living alone in “the boonies”.

Have been shopping for homes on and off for the past few years but never fully pulled the trigger due to various, less-than-ideal life circumstances. Local market has appreciated throughout this time period on the order of at least 30-40% by my crude estimation, if not more.

Now I’m at the point where I’ve sort of convinced myself that it’s “buy now, or be forever priced out” and that locking in a ~3% loan is a great prospect in the face of ongoing/looming inflation. But inventory is at an all-time low and I’m worried I’m just FOMO-ing in right at the top of a sellers’ market of ungodly proportions.

Some numbers:

income: 150k

debt: 0

rent + utilities: 650/mo

savings + non-retirement investments: ~150k*

Some easy napkin math shows that had I just bought a $250-350k place right when I moved here, the appreciation equity would’ve outweighed the cost savings from renting. But hell, who could’ve predicted what has happened? Now, things seem a lot more uncertain. I’d honestly love to see a major home price correction, but I just can’t wrap my head around how that happens.

Would love to hear your thoughts – what would you do in this situation?

*due to the fact that I’ve been ’shopping’ for the past few years I’ve been fairly conservative in my investment strategies throughout the paralleling bull stock market. Opportunity costs up the a$$. Oh well…

submitted by /u/rdw0680
[link] [comments]

Here’s my situation: Late 30s. Moved to CA from OR 4 years ago for a good job. Sold my house before moving because I wanted to avoid the hassle of being a remote landlord. Big mistake in hindsight, of course. Currently employed by the government and live in a heavily subsidized rental unit very close to the job site. It’s a great job that I plan on staying at for at least 5-10 more years. The rental house is nice enough, but my quality of life is not what it was a few years ago and I suspect part of that has to do with living alone in “the boonies”. Have been shopping for homes on and off for the past few years but never fully pulled the trigger due to various, less-than-ideal life circumstances. Local market has appreciated throughout this time period on the order of at least 30-40% by my crude estimation, if not more. Now I’m at the point where I’ve sort of convinced myself that it’s “buy now, or be forever priced out” and that locking in a ~3% loan is a great prospect in the face of ongoing/looming inflation. But inventory is at an all-time low and I’m worried I’m just FOMO-ing in right at the top of a sellers’ market of ungodly proportions. Some numbers: income: 150k debt: 0 rent + utilities: 650/mo savings + non-retirement investments: ~150k* Some easy napkin math shows that had I just bought a $250-350k place right when I moved here, the appreciation equity would’ve outweighed the cost savings from renting. But hell, who could’ve predicted what has happened? Now, things seem a lot more uncertain. I’d honestly love to see a major home price correction, but I just can’t wrap my head around how that happens. Would love to hear your thoughts – what would you do in this situation? *due to the fact that I’ve been ’shopping’ for the past few years I’ve been fairly conservative in my investment strategies throughout the paralleling bull stock market. Opportunity costs up the a$$. Oh well… submitted by /u/rdw0680 [link] [comments]

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