Saturday, August 4, 2007
Duplex vs Condo in Sunnyvale or Mountain View
It may take a little more guts and a bit more downpayment to buy a duplex over your first "standard" purchase in Silicon Valley (ie: the condo). A decent 2 bedroom condo in Mountain View will run you $500,000 while a duplex in the same area could be $900,000. For the extra $400,000 you will receive approximately $1800 in rent which wil almost cover your additional debt. The benefits? How about not having to pay monthly homeowners dues, having a private garage, having a backyard, collecting rent, getting tax sheltering from the rental unit, paying less in income taxes, benefiting from a larger appreciation base or getting rent increases? There are many benefits to doing this. I also know that five years from now, you will have a vastly better financial picture than if you had bought a condo.