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Rent vs Buy with Variable Rate Mortgage

Am I crazy?

28, engaged, getting married 2026. Total income $350k a year, maxing 401ks and low 6 figures in taxable investment account.

Our rent right now is $4,500 a month for a 1 bedroom. We signed in 2024. Lease ends May 2026. Expecting our rent to jump to $5,200 for a 1 bedroom in NJ.

Plan is to live in NJ/NYC city life for another 3 to 5 years. Then move to the suburbs.

Right now, I think we can get a 2 bedroom 2 bathroom for $800k to $850k in our area.

With multiple factors, increased SALT deduction with the big beautiful bill, Powell’s term ending in January, our executive branch repeatedly saying rates need to go down, higher supply of homes on the market. I think the next 9 months might be a great time to buy.

Is a variable rate mortgage (3years fixed then adjusted every 6months) crazy? People around me keep saying it’s risky. The variable rate I see is 5.75% vs 6.5% for a 30 year fixed.

Is buying to only live in a 800k apartment in NJ for 3 to 5 years crazy? I would expect to rent out the unit after we move.

TLDR, is a variable rate mortgage risky for a 800k 2 bedroom apartment in NJ?

submitted by /u/Cpachampion
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source https://www.reddit.com/r/RealEstate/comments/1m3u9co/rent_vs_buy_with_variable_rate_mortgage/
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