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Easy 1% Valuation

By REpro   Follow   Sun, 5 Feb 2012, 9:51pm   683 views   6 comments
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Many house buying calculator, less or more complicated, look for a point where buying a house have financial sense.
There is other easy way: Consider typical house/condo, typical in size, age, and condition for any given neighborhood in US.( It’s not working only for areas were people run away/flock in big number or places where money are not an object.) Tenants by choosing place and accepting price made most of research work for you.
The simplest, oldest, no-brain, minimum risk, highest return, blind shot, healthiest, regardless on current inflation, regardless of current loan rate, state of politics, unemployment, supply/demand, media brain wash, f* me twice Sunday, is: Buy when Monthly Rent of the place you going to buy, represents about 1% or more of Purchase Price.
Examples for random places in US:
http://www.zillow.com/homedetails/13879-44th-Pl-N-West-Palm-Beach-FL-33411/46495821_zpid/
http://www.zillow.com/homedetails/3445-Stratford-Rd-NE-APT-1807-Atlanta-GA-30326/82618873_zpid/
http://www.zillow.com/homedetails/1827-E-Ellis-St-Phoenix-AZ-85042/60314239_zpid/
http://www.zillow.com/homedetails/2-W-Main-St-206-Boston-MA-02126/2133565495_zpid/
http://www.zillow.com/homedetails/121-Myer-St-UNIT-102-Hackensack-NJ-07601/2130385271_zpid/
http://www.zillow.com/homedetails/3862-S-Lake-Park-Ave-UNIT-3N-Chicago-IL-60653/89968645_zpid/
http://www.zillow.com/homedetails/3562-Marlborough-Ave-UNIT-14-San-Diego-CA-92105/72149573_zpid/
http://www.zillow.com/homedetails/2824-NW-Kennedy-Ct-Portland-OR-97229/2146636392_zpid/
http://www.zillow.com/homedetails/935-Spring-Valley-Plz-Richardson-TX-75080/67959642_zpid/

Most Liked Comments

1. Bigsby Follow Befriend 2,826 comments Monterey, CA

   1   9:59pm Sun 5 Feb 2012   Share   Quote   Permalink   Like   Dislike   So current $500-550k houses that rent in Monterey for $2200-2500 are only ripe for purchase when their valuation drops to $220-250k? I don't think so.

2. REpro Follow Befriend (1) 22 threads 469 comments San Jose, CA

   2   10:28pm Sun 5 Feb 2012   Share   Quote   Permalink   Like   Dislike   REpro says It’s not working only for areas were people run away/flock in big number or places where money are not an object Bigsby says So current $500-550k houses that rent in Monterey for $2200-2500 are only ripe for purchase when their valuation drops to $220-250k? Pretty close to your area: http://www.zillow.com/homedetails/451-Dela-Vina-Ave-APT-205-Monterey-CA-93940/19343256_zpid/

3. TPB Follow Befriend (1) 65 threads 1,209 comments

   3   10:51pm Sun 5 Feb 2012   Share   Quote   Permalink   Like   Dislike   That first house is a hell of a deal, for 1.15 acres of land. Though it is way the hell out there in the middle of nowhere.

4. Bigsby Follow Befriend 2,826 comments Monterey, CA

   4   11:23pm Sun 5 Feb 2012   Share   Quote   Permalink   Like   Dislike   REpro says REpro says It’s not working only for areas were people run away/flock in big number or places where money are not an object Bigsby says So current $500-550k houses that rent in Monterey for $2200-2500 are only ripe for purchase when their valuation drops to $220-250k? Pretty close to your area: http://www.zillow.com/homedetails/451-Dela-Vina-Ave-APT-205-Monterey-CA-93940/19343256_zpid/ The idea that buying should only be done when rent is 1%+ of price is complete drivel and isn't demonstrated because you find a crappy apt that fulfills your criteria and where the rent is too high relative to price. And anybody who rents that for $1600+ is a complete moron by the way.

5. REpro Follow Befriend (1) 22 threads 469 comments San Jose, CA

   5   12:01am Mon 6 Feb 2012   Share   Quote   Permalink   Like   Dislike   Bigsby says And anybody who rents that for $1600+ is a complete moron by the way Buy for an investment and rent to morons then.

6. Bigsby Follow Befriend 2,826 comments Monterey, CA

   6   12:19am Mon 6 Feb 2012   Share   Quote   Permalink   Like   Dislike   It's obviously a very good buy if it actually rented for the Zillow estimate. That's a very big if right there. Monterey is expensive, but not that expensive. All of which is irrelevant to your 1% idea.