Need Professional Advisor ?
Bradbury, CA offers luxury living with strong long-term real estate value. But with high home prices, many ask: “Should I buy or rent?” This blog explores the financial impact of purchasing a $2,150,000 home versus renting a comparable property.
📍 Bradbury Market Insight
Bradbury stands out for privacy, exclusivity, and high property values. With a forecasted annual appreciation of 5.36%, homes in this city are projected to increase in value significantly over the next decade — giving buyers a powerful opportunity to build wealth through real estate.
🏠 Buying Scenario
📌 Assumptions:
- Purchase Price: $2,150,000
- Down Payment: 5% ($107,500)
- Loan Amount: $2,042,500
- Interest Rate: 6.25% (APR 6.397%)
- Loan Type: 30-year fixed conventional
- Property Tax: 1.25% ($26,875/year)
- Home Insurance: $2,500/year
- PMI: ~$900/month (until ~20% equity reached)
💰 Estimated Monthly Payment:
| Category | Amount |
|---|---|
| Principal & Interest | $12,574 |
| Property Taxes | $2,240 |
| Home Insurance | $208 |
| PMI | $900 |
| Total Monthly | $15,922 |
📈 9-Year Home Equity Forecast
| Factor | Estimate |
|---|---|
| Projected Home Value (in 9 yrs) | ~$3,468,746 |
| Home Appreciation Gain | ~$1,318,746 |
| Loan Principal Paid Down | ~$324,208 |
| Total Estimated Equity | ~$1,642,954 |
🏘️ Renting Scenario
📌 Assumptions:
- Monthly Rent: ~$8,500 (for comparable high-end home)
- Annual Rent Increases: 4%
📉 9-Year Cumulative Rent Paid:
≈ $1,072,000, with no equity or asset ownership at the end of the term.
📊 Visual Snapshot
🧾 Summary: Buy vs Rent in Bradbury
| Metric | Buying | Renting |
|---|---|---|
| Monthly Payment (Year 1) | ~$15,922 | ~$8,500 |
| Total Equity After 9 Years | ~$1.64M | $0 |
| Total Cost (No Return) | Higher monthly outlay | Lower short-term costs |
| Net Worth Growth | ✅ Strong | ❌ None |
✅ Final Thoughts
Buying a $2.15M home in Bradbury is a long-term wealth-building strategy. While the upfront and monthly costs are significant, the equity built through appreciation and loan paydown can exceed $1.6 million in just 9 years. For high-income earners looking to invest in stability, privacy, and value, buying makes financial sense — especially in a city like Bradbury with strong appreciation forecasts.