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A comment on Asking rents in San Francisco continue to slip, but…. Parent comment

Re:Asking rents in San Francisco continue to slip, but… by neffy on Monday April 26, 2021 @08:25PM (#26950120)
You forgot that the rent is increasing with inflation, but the mortgage is not.
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Re:Asking rents in San Francisco continue to slip, but… by ska on Monday April 26, 2021 @09:24PM (#26950647)
Yes but wages are too , so you keep the delta. And the mortgage payment goes up with interest rates. Which aren’t exactly independent events.

It’s not perfect but it’s reasonable. It may free up some other money in the house case , which you could use to make up some of the difference. Or that might get eaten by rates.

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Re:Asking rents in San Francisco continue to slip, but… by midasuni on Tuesday April 27, 2021 @01:18AM (#26952306)
US mortgages tend to be fixed. Wages for up, payments on the house stay the same. At 3%, a $1m mortgage would be 2500 interest a month now, and in 2040.

US home maintenance seems high though - roof repairs are a known thing for some reason. In he U.K. I live near an estate of thousands of houses all 50 years old, I can’t ever remember seeing one being repaired.

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Re:Asking rents in San Francisco continue to slip, but… by neffy on Tuesday April 27, 2021 @12:14PM (#26957931)
I think it's because they are mostly wood framed, vs brick in the UK.

But yes, the mortgage rate is fixed in the US, your mortgage payment doesn't change, your wages increase at least with inflation, and relatively speaking the mortgage gets cheaper every year. Rents on the other hand, tend to adjust with inflation. The breakeven point is about 3-5 years as it happens.

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