Buying vs renting .. come on gusa gusa

[mettastar]

Buying:

Austin lo oka 3200-3500 sft home manchi school district(8+ rating) lo theeskovalante $750k avuthundi 

With 20% down =150k and current interest rates monthly payments close to $5.5k avuthundi. Ninna ammortization chusthe next 5yrs lo equity $40k build avuthundi

Renting:

3k sft home in cedar park with good school districts, close to shopping and all amenities .. I can get them for $3k-3.5k

 

Lets say next 5yrs rent chesthe 

$150k - invest in a mutual fund $VOO or similar

And recurring monthly deposit $2k (diff $5.5k -$3.5k) 

After 5yrs this will be close to $350k (assuming avg 7% returns) ~ $200k savings

 

Two scenarios: home price may go up to $1M .. or home prices may drop or stay flat 

$1M aithe $250k + 40k equity =$300k +

Rent chesthe $200k savings (little risk)

 

Am I missing something? Rent chesthe market kindhaki velthe buy chese opportunity untundi .. not missing on anything .. considering current scenario (home prices doubled or went up by 70% compared to pre covid)

Next 3-5yrs lo malli crazy movement untundi antara? 

@Spartan

@psycopk

@Android_Halwa

[Vaaaampire]

U can never time the market in housing industry. Neeku illu nachi, okka 10 yrs akkada untam anukuntey koneseyyi. The memories u build with own house >>>>>>> memories in rented home

[JaiBalayyaaa]

13 minutes ago, mettastar said:

Buying:

Austin lo oka 3200-3500 sft home manchi school district(8+ rating) lo theeskovalante $750k avuthundi 

With 20% down =150k and current interest rates monthly payments close to $5.5k avuthundi. Ninna ammortization chusthe next 5yrs lo equity $40k build avuthundi

Renting:

3k sft home in cedar park with good school districts, close to shopping and all amenities .. I can get them for $3k-3.5k

 

Lets say next 5yrs rent chesthe 

$150k - invest in a mutual fund $VOO or similar

And recurring monthly deposit $2k (diff $5.5k -$3.5k) 

After 5yrs this will be close to $350k (assuming avg 7% returns) ~ $200k savings

 

Two scenarios: home price may go up to $1M .. or home prices may drop or stay flat 

$1M aithe $250k + 40k equity =$300k +

Rent chesthe $200k savings (little risk)

 

Am I missing something? Rent chesthe market kindhaki velthe buy chese opportunity untundi .. not missing on anything .. considering current scenario (home prices doubled or went up by 70% compared to pre covid)

Next 3-5yrs lo malli crazy movement untundi antara? 

@Spartan

@psycopk

@Android_Halwa

https://www.nerdwallet.com/mortgages/rent-vs-buy-calculator

[Bulls_Rose]

why do you want to do 20% down? pay pmi and invest rest. end of the day you get more than you paid pmi and you get house. market up/down play is tough call. 

[phatposts]

Considering current market conditions - mainly housing costs, interest rates, stock market conditions etc. - short term lo rent better anipistundi. 

In your math you are forecasting 5 years which is very very low when it comes to home buying. 

Rent cheste - you need to factor in rent increase, landlord deciding not to rent after a certain time, moving costs etc. 

Also when you own, you get a small tax advantage - which could be washed with the extra expenses. But appreciation meeda cap gains tax undadu which allows you to "upscale" in the future. If you are below 40 - chances are this is not your forever home. Upscaling with primary home money is a great way to build wealth. 

If your rental budget is under $3500 you should buy a home in the $500K range to compare well. 

I always believe Time in market > Timing the market

Good luck!

[niladisify]

rent cheste 3k sft home enduku man...do you really need that big of a home to live in?

[futureofandhra]

21 minutes ago, Bulls_Rose said:

why do you want to do 20% down? pay pmi and invest rest. end of the day you get more than you paid pmi and you get house. market up/down play is tough call. 

interest rate is so high it will offset more payment

[newtoselenium]

commercial konukko Anna..than single family homes kanna

[perugu_vada]

dont overthink too much uncle on this .. if u can afford it .. just go and buy it .. investment thokka tholu ani ah angle lo think chesaav ante .. cant do anything .. 

entah save chesina manishi ki aasa chaavadhu

[Paamu]

very good area lo 20 years old townhomes better e kada ? easy to sell ?

[Aquaman]

2 minutes ago, Paamu said:

very good area lo 20 years old townhomes better e kada ? easy to sell ?

good schools unte old ayina  resale untadi.. dont expect huge appraisal 

[mettastar]

11 minutes ago, phatposts said:

Considering current market conditions - mainly housing costs, interest rates, stock market conditions etc. - short term lo rent better anipistundi. 

In your math you are forecasting 5 years which is very very low when it comes to home buying. 

Rent cheste - you need to factor in rent increase, landlord deciding not to rent after a certain time, moving costs etc. 

Also when you own, you get a small tax advantage - which could be washed with the extra expenses. But appreciation meeda cap gains tax undadu which allows you to "upscale" in the future. If you are below 40 - chances are this is not your forever home. Upscaling with primary home money is a great way to build wealth. 

If your rental budget is under $3500 you should buy a home in the $500K range to compare well. 

I always believe Time in market > Timing the market

Good luck!

Ultimately I want to buy a home but .. I would like to wait and see .. thats the reason of forecasting for 5yrs .. 

I feel a lot of homes are over priced now ..

By Renting .. i dont have to rush in and buy something (FOMO) ani naa feeling .. 

[Aquaman]

Just now, mettastar said:

Ultimately I want to buy a home but .. I would like to wait and see .. thats the reason of forecasting for 5yrs .. 

I feel a lot of homes are over priced now ..

By Renting .. i dont have to rush in and buy something (FOMO) ani naa feeling .. 

is it second home a?

i agree very overpriced market with high rates.... if you dont mind renting, just wait and seee till end of the year

[mettastar]

10 minutes ago, niladisify said:

rent cheste 3k sft home enduku man...do you really need that big of a home to live in?

Hmm 3ksft is already a downgrade for me bro .. I know we may not use entire space but got used to a bigger place .. now I cant move into a smaller one .. 4bd minimum and office room 

[mettastar]

Just now, Aquaman said:

is it second home a?

i agree very overpriced market with high rates.... if you dont mind renting, just wait and seee till end of the year

Thinking of moving to Austin .. yes .. but ipudu unna city lodi rent ki ichesi vastha .. and would eventually need a primary home in austin