It costs a lot of money to buy a home. I don'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.
Because of this it doesn't usually make sense to buy a home unless you are planning on staying there for at least 5 years or so. It'll take that long to effectively break even over just renting.
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.
Housing prices are in a bubble right now. But it's impossible to know when that bubble is going to burst. It could be 10 years from now. It could be next week.
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.
So really it boils down to first deciding were you want to be in 5-7 years. Then doing the math.
Because of this it doesn't usually make sense to buy a home unless you are planning on staying there for at least 5 years or so. It'll take that long to effectively break even over just renting.
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.
Housing prices are in a bubble right now. But it's impossible to know when that bubble is going to burst. It could be 10 years from now. It could be next week.
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.
So really it boils down to first deciding were you want to be in 5-7 years. Then doing the math.