At least for me it is. Jim from Blueprint for Financial Prosperity lays down his results in this interesting article. Looks like he’s going for it! He also introduced me to Dinkytown.net, home of tons of neat financial calculators.
I remember running these numbers over and over about a year ago. As Jim also concludes, the most important variable is the expected appreciation of the house. It can change your break-even point from 10 years to just three or less. Another friend of mine just got an interest-only loan with 5% down on his townhouse, and it’s starting to wear on me. Am I missing out? Every time I write my rent check, I wonder…
But then I think of how high interest rates might be in three years… and how difficult it was for people like my parents to sell their houses in previous markets. For such a short time frame. if we have to move, paying two mortgages can make a big difference. Finally, I think my current area is more “Bubble-icious” than others. Not sure if there will be a rash of foreclosures in the coming years, but I guess we’ll see.
By Jonathan Ping | Real Estate | 4/23/05, 4:17pm