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Ask HN: Should I buy a home?

3 点作者 metabro大约 3 年前
Please Excuse the title. I need some perspective.<p>Early Last year I was planning to buy a house in Southern California but ended up taking a job in the Bay Area and moving instead.<p>Kind of kicking myself for not pulling the trigger on a sub 1m house at &lt;3%. I could have just rented it out.<p>Instead I’m in the Bay Area paying in rent what my entire mortgage + taxes would have been while my downpayment money (&gt;200k) just erodes due to inflation- which is accentuated in housing.<p>Now I feel like I’ve missed an opportunity of a lifetime. Housing is much higher across the board and the Bay Area is just nuts.<p>If I was to buy here With a reasonable commute then I’m looking at 1.5m on the lower end for a 3 bedroom (I have a family). Which I can’t (reasonably) pull off at these rates.<p>I make more money than I did but a good portion of that is equity which hasn’t done well. My base income excluding equity is 190k and I’m priced out.<p>I made over $300k last year (it will likely be less than 300k this year due to equity drop) but I’m just as worried about our future as ever.<p>Part of me wonders if I should just buy further away as I just go into work a couple times a week or even go perm remote and buy something for cheaper a lot further away (or even move back).<p>One (of several) downside to living further away is access to career opportunities that are concentrated here. Maybe that’s over valued at this point with the shift to remote work.<p>Or I just put off home ownership for at least the next 5 years. Invest the cash in an index and focus on my career.<p>But I’m only getting older and have a family to support and want to provide stability and security. Housing is a hedge against ever increasing rents so despite the downsides should I just buy what I can and just move.<p>I’m so confused and think about this constantly. Would appreciate perspective.<p>Hope I don’t get flamed. I do feel like I have trouble with perspective and seeing a therapist.

3 条评论

lazyier大约 3 年前
It costs a lot of money to buy a home. I don&#x27;t know what it costs in a place like San Fransisco, but it could be something like 5-10 thousand dollars in just closing costs.<p>Because of this it doesn&#x27;t usually make sense to buy a home unless you are planning on staying there for at least 5 years or so. It&#x27;ll take that long to effectively break even over just renting.<p>Keep in mind that instead of feeling bad about losing possible equity in a house you could invest that money instead of spending it on closing costs. So in a short term situation you can potentially earn more money by NOT buying a house, even if the monthly payments are the same.<p>Housing prices are in a bubble right now. But it&#x27;s impossible to know when that bubble is going to burst. It could be 10 years from now. It could be next week.<p>Also keep in mind that 1 million dollar house in Bay area gets you a reasonably nice place. While a 1 million dollar house in the country in the mid-west gets you a small mansion, acres of land, and horses if that is your thing.<p>So really it boils down to first deciding were you want to be in 5-7 years. Then doing the math.
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SeniorSenior大约 3 年前
The only reason to buy a home is because you want it. It should be a joint decision; what does the wife think?<p>A home is not an investment, it is a liability. The &quot;American dream&quot; makes money for speculators, realtors, advertisers, builders, decorators, landscapers, lenders, insurance companies, and taxing entities. Homeowners may breakeven if they keep it for thirty years. They can actually make money if they were really lucky in their choice of &quot;location, location, location.&quot; But that&#x27;s gambling, not investing.<p>Read &quot;Your Engineered House&quot; by Rex Roberts. Avoid the updated version; get the original, 1964 version. Then read Ken Kern&#x27;s &quot;The Owner Built Home.&quot; Roberts deals with houses as machines; What do they do for us that make us need or want them? Both books deal with buying a house with sweat equity. Roberts points out that half the cost of a house is labor. (If you build it yourself you can have twice the house for the same money.) But half the materials cost comes from fixtures: doors, windows, cabinets, etc; things that other people make for retail. We buy them ready-made because ... builders get a kickback (discount); because they are advertised in &quot;Better&quot; Homes and Gardens; because we don&#x27;t know that we can DIY-build better for a quarter the cost.<p>A rental house is an investment. Keep it until the loan is retired and you have an income-stream.<p>Building your own home is the same as buying it for twenty-five cents on the dollar ... and that IS an investment.<p>Always remember the Rule of 72 - &quot;Seventy-two divided by the interest rate yields the years required for your investment to double.&quot; Don&#x27;t forget to subtract the inflation rate from the interest rate. The point is that if you can live on half your income and invest the other half at 10% interest (after inflation), then you can retire on half your income after seven-point-two years. When you are thinking about a major expenditure, think about it in terms of the Rule of 72 and your eventual retirement.<p>...Do you see a therapist because you have difficulty distinguishing between what YOU want and what self-interested others tell you that you SHOULD want?<p>Well what do you want?
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teg4n_大约 3 年前
If you can “just” buy a home, sure why not?
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