I just bought a house and it will cost half as much to own vs rent same house
invite response
2012 Oct 12, 8:54am 111,770 views 412 comments
« First « Previous Comments 392 - 412 of 412 Search these comments
the home owner is on the thread, why not ask him what he spent in his 9 months of ownership?
What he has done in 9 months in anticipation of selling after less than a year of ownership is not necessarily reflective of the long term ownership cost. A roof has to be replaced after a couple decades. The gradual deterioration takes place over time, not in the single year prior to replacement.
My girlfriend leaves all home improvement decisions to me, since I'm the expert...
That's why you and I keep girlfriends instead of wives. OTOH, girlfriends have their own problems due to lack of commitment from us. There is no perfect solution in life. Sometimes we can be slaves to what we own.
Roberto,
We are not talking about a million dollar two BR condo in NYC, but in the original poster's words a "huge estate home on acreage, zoned for horses" There are probably substantial on-going landscaping and grounds keeping expenses in addition to maintaining the "huge estate home" house structure itself.
in the original poster's words a "huge estate home on acreage, zoned for horses" There are probably substantial on-going landscaping and grounds keeping expenses in addition to maintaining the "huge estate home" house structure itself
Not even sure where in LA such a house for $875k would exist. This sounds more like a Valley-or-north area, or, worse, Inland Empire. This is like bragging you bought 30 acres in Gainseville, FL. Big whoop.
he just noted a smaller, less improved property selling for something like 1.2 million..
I have no problem with this as a mere business transaction. My problem is with saying this property is in LA, when I know for a fact that 900k-1.3 mill barely buys you a 4/3 2500 sqft house on a 10,000 sqft lot. Unless you want to live in Crenshaw.
The Valley and Inland Empire are not LA. You can buy spacious "estates" out there for $875k no problem. But that's like buying a house in Elizabeth, NJ and saying you bought in NYC.
PockyClipsNow
2013 Mar 26, 8:16am
28% tax rate and you can afford a $1M home and multiple properties?
Sounds fishy!
If your income is that low how the hell did you qualify?
I put down 20%.
Make 100k a year.
Got an IO ARM.
Pretty much maxed out what they would lend me. At first they denied the loan, then saw my major cash position in the bank and approved it. What would be fishy - I'm making shit up? lol
The Valley and Inland Empire are not LA. You can buy spacious "estates" out there for $875k no problem. But that's like buying a house in Elizabeth, NJ and saying you bought in NYC.
The Valley is definitely part of Los Angeles... It may not be Beverly Hills.. but it's not Crenshaw either. LA is made up of a bunch of rich and poor areas.. But it's still all Los Angeles.
PockyClipsNow
2013 Mar 26, 9:56am
it's your marginal rate, i understand.
Do you know how much you could get a loan for in the UK on $100k
a max of $350k
Wouldnt that vary wildly with the variable intrest rates?
I mean with 2.8% IO loan that is a wildly different payment than the same amount financed at 7.25 30 year fixed( i had a loan like that in 2001).
So now I should be able to finance double the loan since rates are half what they were in 2001. This is how they let us have 'affordable housing' - prices are not allowed to go down for long.
nobody gives a rat's tail with what you consider to be LA,
Actually, Redfin and Zillow do. So does the state government. Between zipcodes and real estate maps, nobody considers Thousand Oaks to be Los Angeles. BTW, Thousand Oaks is a good 90 minute commute to most work centers in LA, and is a paradise of '80s stucco box living and chain restaurants. Now I see why you are so fit for Phoenix.
PockyClipsNow
2013 Mar 26, 10:19am
Thousand Oaks is pretty much LA....but way nicer. Half the town is actually in LA county I think.
lostand confused
2013 Mar 26, 10:27am
Thousand Oaks is pretty much LA....but way nicer. Half the town is actually in LA county I think.
I think Thouand Oaks is in Ventura County. I used to live in Westlake Village which straddles both sides of the county. I love that whole area of the Conejo valley-got a very nice feel to it and the beach is a short hop away. Lovely hiking and plenty of activities. But the commute can be a pain if you have to commute to say downtown or Burbank etc. But know a few people who do it and love it. It has a nice feel to it.
Actually, Redfin and Zillow do. So does the state government. Between zipcodes and real estate maps, nobody considers Thousand Oaks to be Los Angeles. BTW, Thousand Oaks is a good 90 minute commute to most work centers in LA, and is a paradise of '80s stucco box living and chain restaurants. Now I see why you are so fit for Phoenix.
Thousand Oaks is quite a commute away during rush hour.. Only 30-40 minutes on off peak times to Hollywood.. And yes, i believe it's Ventura County.. a neighbor county of LA.
But it's a pretty UPPER middle class area from when I've visited. I'd actually love to live there if it weren't for the commute on the 101. Homes are still pricey though...
Thousand Oaks is fine if you are not a city person. I just find it ironic all the people that live in LA and hate city living. LA is a sprawling mess, and the least urban of any city I've lived in.
My entire point is not "what is LA", which is a nonstarter. My point is a place like Thousand Oaks (to run with this example) is 20 miles away. We are talking the suburbs. Trying to compare a suburban real estate market with a major city market is apples-to-oranges.
Only 30-40 minutes on off peak times to Hollywood
Yes, maybe to H'wood off peak. I live in Mid-Wilshire, which is more central, and it takes 90 minutes to get to Topanga on a Saturday afternoon. It's the traffic, not the distance (26 miles).
Again, you miss the point. All real estate is local. I know you like to be insulting, but really you should be more interested in advancing the conversation.
what the hell is he supposed to do, every time anyone asks where he lives, give out precise latitude and longitude?
Nope. I merely asked Pocky where in LA he bought (a long while back in this thread). LA is a pretty spread out area, and where you buy here makes a pretty huge difference in price/quality/amenities.
It's still valid: Thousand Oaks is 40 miles from LA. So is Malibu. Two completely different kinds of markets. You have my permission to call them both "LA" if you like.
Eman
2013 Mar 26, 6:40pm
Well 20% price appreciation is pretty sweet. I will let you all know what my best offer is - plan to sell in June.
Already? You just barely moved in. Imagine after you cashed out and we get hit with hyperinflation. Isn't that going to wipe you out? :)
Why sell now and pay capital gain? Wait until you hit the 2 year ownership mark and get $250k capital gain exclusion. $500k if you're married or your significant other is also on the title.
bdrasin
2013 Mar 26, 9:18pm
Price: 875k
$ Financed: 700kLoan: 5/1 Interest Only ARM at 2.875 with .25 points (union bank)
What is the fully indexed rate? Like 8.874%?
PockyClipsNow
2013 Mar 27, 4:33am
Yes I have contemplated waiting until the 2 year mark for taxes.
BUT I am still going to get the remodeling done and put it on market in June to see what its worth. This will motivate me to gitter done (mostly all painting/tile I'm doing myself).
Then if I get a 1.2m offer I will take it, anything less I would think about and probably wait a year.
One issue is I closed escrow in late november. SO if i want to hit the 2 year mark for tax selling that means closing in december 2014 - have to basically list it in September..... 6 months after the spring rush when you normally get top dollar. This market is far from normal now though.
So in theory probably best to wait until spring 2015 to sell if prices keep rising and in regards to minimize taxes/maximize sales price. Thats pretty far off.
PockyClipsNow
2013 Mar 27, 4:59am
All good points.
Well if i dont get a fat offer then my choice is made for me.
Also probably a good idea to list your house every spring to 'see what its worth'.
The only reason i bought this damn thing was to make money/keep up with inflation in housing. I was actually happier in a 1 bedroom apt bubble sitting. Now my weekends are home depot and lowes...used to be at the beach and travelling or finding cool bars.
Well 20% price appreciation is pretty sweet. I will let you all know what my best offer is - plan to sell in June.
How'd you make out?
« First « Previous Comments 392 - 412 of 412 Search these comments
I hope this is a real world math lesson for some of the 'should I buy now' crowd. Its a tough decision.
Price: 875k
$ Financed: 700k
Loan: 5/1 Interest Only ARM at 2.875 with .25 points (union bank)
Payment: 1677
Prop tax: 912
total: 2588
(im in 28% effective tax bracket so 2588 * .72 = 1863 'after tax write off payment')
Add fire ins of 129 per month and total pmt after tax write off = $1992
This is a custom built, recently remodeled huge estate home on acreage and zoned for horses - would rent for 3800 to 4200 based on craigslist comps.
If I change jobs I can make 1k per month easy in profit when renting it out. Its not a great rental though, but an awsome to live in property.
I sold four homes off in 05/06 and the plan was wait for 50% drop then buy back in. Well prices only came down to 70% of peak fraud prices - close enough with the low intrest rates (which I am betting are permanent, as in the rest of your life. If rates spike in 5 years I will simply pay off the loan, refi, or get a loan mod - no worries here.)