Tuesday, June 26, 2018

Why it's good to own your home sweet home now. (やっぱり、買えるものなら、今買った方が良い。)

It's been over 10 years since we bought our current house.  Previously we lived in Los Angeles, where we spent a little over seven years. 

The house in LA was our first house to buy.  It was in 2011. I remembered we were looking around properties just after the 911 attack in NYC happened.  We bought a modest but lovely mid-century house in Hollywood Hills.  I still love the house.  We bought it for $525,000 and sold for $1.16M, if I remember right.  We probably spent over $250K for renovation. But at the end, we profited $385K in 7 years. Not a bad investment!

We moved back to Bay Area and bought a house in Montclair for $630K in summer of 2008.  At that time,  the mortgage interest rate was a little over 6% and our monthly mortgage was about $2700 after 20% down payment. 

2008 was not a bad year to buy a house but not a best time either. The price of the house went south for a few more years and eventually started climbing up again. 

It's hard to time when to buy a house.  We bought the house because we needed to with two small children. We wanted to move to the area where the public school was decent and the house had a yard.

We couldn't refinance the house for a while, since the value of the house declined. But eventually the value came back and the interest rate were moving down still.

In 2016, we did refinance the house with 3.675% interest rate and now our mortgage payment is under $2K!  The house has been appreciated well and I would estimate that we could sell this little house for around $1M after we do some updates.

What I am trying to tell you is that to me, it is always good to buy a house than rent. There is no way you can rent our house for $2K (okay, if we are going to add homeowner insurance and property tax, it will be around $3k - you still won't be able to rent this for that amount.) 


If we are going to purchase this house now, our mortgage is $800K after 20% down payment. For $800K, our monthly payment will be $3820 with 4% interest rate.

Yes, the Bay Area real estate market is crazy and very discouraging.  But if you are able to purchase now and plan on staying area for a long term, ( I say over 10 years), it is always now is the good time to buy.

Please contact me if you want to make your dream come true!





その後、不動産市場、最悪の時期を迎え、どんどん、価値が下がり、がっかりの年が何年か続きましたが、  2012年頃からでしょうか? 価格が上がり始めました。





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