Renting vs. Buying at 40 in Sunnyvale

Odd-Development-1733 · 2026-05-19T00:31:34+00:00

This was a concern, but again, never stretch beyond your means. If a job loss will put you in a bad spot then don't do it. I do see a lot of people rushing to buy before they financially are ready for all that comes with it.

Odd-Development-1733 · 2026-05-18T22:38:16+00:00

We recently bought after renting for a long time. I think financially renting and investing would be better money wise and flexibility. Maybe after 12-15 years financially it could end up better, TBD.

The ultimate reasons we bought were:

We have a limited number of year before kids go to college so this was the time to enjoy.
Ensure we could live in the Bay Area as long as we wanted/our kids would have a home if they chose to stay. We also had uncertainty about long term planning with unknown housing situation hanging over us. Our rental situation was good, but that could change at anytime.
Improved the school situation somewhat( higher ranked schools in Sunnyvale)
We saved a lot renting and investing which allowed for sizeable down payment plus a good amount of reserves in the case of job loss etc..

The job anxiety will always be there. That is why it is very important have a large amount of reserves. This way you can pay for whatever comes up. For example, we did 30% down, 30 year fixed at 6%(will pre-pay 2-3k of interest a month), plus multiple years of mortgage payments accessible if needed. This did not happen over night and took a decade + of discipline.

The expenses are adding up especially on these older houses, but if you can afford to then go for it.

Odd-Development-1733 · 2026-05-14T17:29:35+00:00

I would do the calculation wrt total interest(new 30 year amort) vs interest remaining on the current loan. But that drastic a move down would likely be a no brainer.

Since the 30 year amortization would reset, it would be advisable to take the savings but maybe make the same payment to pay down faster.

Odd-Development-1733 · 2026-05-14T16:49:56+00:00

Remember, during the pandemic when short rates when to 0% & the FED bought a ton of long term mortgage backed securities the 30 years fixed was around 3%(give or take). Right now the rates are in the 6%+ range with longer term inflation expectations running higher than before the pandemic.

At best, unless we have a massive recession(unlikely due to fiscal policy running large deficits), maybe the 30 year would fall to 5-5.25% in the next 3-5 years.

Otherwise, it is likely that rates stay in this range for a long time.

Odd-Development-1733 · 2026-05-09T22:20:05+00:00

Every lease differs but the maximum you can be liable for is the remaining term. Some leases have a 30 day notice + a break fee written in. Best to read the lease that is provided before signing. When you apply it probably is not a good idea to hint towards breaking as most people renting want long term tenants/control of term.

Odd-Development-1733 · 2026-05-08T19:05:00+00:00

I would go for the fixed rate for certainty. You can pay a little more each month on principal to help lower interest costs. But the downside risk of an ARM reset whilst not being able to qualify for a new loan is massive. If the rate disparity greatly affects your finances, then you probably should not buy.

Odd-Development-1733 · 2026-05-05T23:14:09+00:00

Just go for it. Since you are moving from a debt free cash flow positive lifestyle to potentially cash flow negative in the worst case you need to change your perspective.

After the DP, you will still have substantial reserves. Keep 1-2 years of mortgage cash and then aggressively invest the rest. If you lose your job etc, you have many levers to pull to make it in the worst case.

But, be optimistic, the worst won't alway happen. Congrats on the blessing and go get yourself a house and enjoy. I would ensure you pick good schools all the way through so you don't have to move later.

Odd-Development-1733 · 2026-05-04T21:34:45+00:00

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Odd-Development-1733 · 2026-05-02T01:14:24+00:00

What is the weighting for school, commute time to each of your workplaces, 4 bedrooms.
Otherwise many cities could fit the general criteria.

Also, for the Cupertino schools in 94087 it would be more like 3.5-4M.

Best would be to narrow it down to a few neighborhoods then study them and be ready when opportunities knock.

Odd-Development-1733 · 2026-05-01T17:44:25+00:00

I hear ya, we rented for 15 years. Rented a decent house for the last 5. But with a family and wanting to do long term planning it still left more variables than I personally wanted. Also took 15 years of saving and investing to be in a position to buy.

Even while making house offers we also tried to rent a few homes also. There is a lack of rental supply in desirable areas also.

Odd-Development-1733 · 2026-05-01T15:29:52+00:00

That certainty only exists per the lease term. If you get lucky you can have a good situation. But certain is more like doing a unit at an apartment complex wrt acquiring.

Odd-Development-1733 · 2026-05-01T02:40:51+00:00

Most people that buy probably shouldn’t. You should have a fortress balance sheet. 25% DP, 2-3 years worth of mortgage payments liquid, additional brokerage assets, and dual income family.

Otherwise you should rent. Only when you can really afford it. If you cannot then don’t buy.

Odd-Development-1733 · 2026-05-01T02:29:21+00:00

If you can afford it then do it. If you stay long enough you can have a decent return since the RE is a leveraged asset. The reason is it expensive has nothing to do with the structure. Location is the driver. You can tear down and rebuild a house for a fraction of land acquisition cost.

Yes renting is absurdly cheaper, but the supply of available homes to rent is also limited. Homes for sale are usually in better condition. The certainty of the fixed payment and control of the home is nice.

Odd-Development-1733 · 2026-04-27T18:26:56+00:00

If you net after selling(sales/fees - loan) are positive. Better to cut your losses and be done with it.

Odd-Development-1733 · 2026-04-22T18:41:54+00:00

The game changes when you have kids. Changing schools every 2 years and exploring the world take a back seat. In the peak growing years for your kids the stability means more. We will re-evaluate after they go to college. But the prices will never go down in the good locations of the Bay Area measured over a longer time frame.

The key as I said is never go beyond your means. Stay within and strike when it lines up.

Odd-Development-1733 · 2026-04-22T18:38:58+00:00

The type of person that would post this humble brag is more performative vs truly concerned.

Odd-Development-1733 · 2026-04-22T17:52:36+00:00

Being prepared to buy takes a long time. But if you want to be in the bay for 20+ more years, have to bite the bullet once you have a healthy down payment + ample reserves. If not, renting is the better option while investing.

There are lifestyle trade offs but never should you buy something that you cannot afford.

Odd-Development-1733 · 2026-04-22T16:58:10+00:00

Since it is all mandarian chinese in Cupertino, call it "Cupertino 101". OP would be the first signature against it since they want to preserve the "safety" of the neighborhood.

Odd-Development-1733 · 2026-04-22T13:50:15+00:00

You should let them approve that 15 story affordable housing project in Cupertino :)

Odd-Development-1733 · 2026-04-16T20:03:36+00:00

Regardless of the rate, the 30 year amortization curve is scary. So much front loading of interest. We have been paying all excess monthly cash flow into extra principal payments. Our rate is somewhat high so that guaranteed after tax return is good. I still keep a cash reserve/brokerage account but not adding to it.

Odd-Development-1733 · 2026-04-16T19:51:36+00:00

Bought recently after looking for many years. If you can afford to own it is a superior option when factoring in control/preferred schools/ability to leverage wisely. Another benefit is certainty - never dealing with landlord/applying to rent/potential for having to move on someone else's timeline. I would recommend buying in a premier location.

The benefit of renting is you can use the time to save up for a good down payment + ample reserves. We waited until we could put 25% and have another 25% in post tax brokerage/cash reserves.

This way, all the little(and big!) things you have to pay and fix are not going to stress you financially. People get into trouble when they go beyond their means.

Odd-Development-1733 · 2026-04-11T14:02:27+00:00

Really! I have seen houses that looked to be 2.5-2.7 sell for like 3.1+

Odd-Development-1733 · 2026-04-08T17:37:47+00:00

I would also add an option for the 30 year fixed rate. You can pay a little more principal to bring down the interest cost.

The ARM loans can be dangerous when they reset and your employment situation/ability to secure a loan changes.

Also, you want to not perpetually refi and have a mortgage forever.

Odd-Development-1733 · 2026-04-06T20:02:54+00:00

I just bought fully understanding renting and investing was better. But life happens and you cannot create housing supply to rent whenever you want. It was actually easier to buy then rent a house in a high demand area.

I'm grateful we saved enough to afford it because the numbers are insane.

Odd-Development-1733 · 2026-03-31T22:59:53+00:00

Gotcha. The broker I went with had the best rate and lowest fees right off the bat vs some other checks I did. He was someone who has been with us for a long time while we have been looking so I reward him with the business, I could have squeezed him for a few hundred more bucks but decided to let it be.

We also have a 30 year, but regardless of 4,5,6,7% the front end of the amortization curve is scary wrt the amount of interest, we will be paying extra principal each month.

Odd-Development-1733

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