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. My savings rate is almost double by being a renter of the same house for comparisons
I wish I could say the same, LOL.
A 30 year fixed FHA loan at the FHA limit in my county has the following costs:
Fully amortized, all cash outlays less interest deduction: $2300/mo
Above less principal repayment: $1700/mo
Average TCO expense over 30 year paydown: $1150/mo.
I plan on being around for the next 30 years so the $1150/mo expense is the one I look at for rent vs. buy.
Yeah, rents are a little higher than $575, more like $1500.
I expect the nationwide fall & winter buying to be extremely bullish with new listings pending within minutes of hitting the market.
Buy now & avoid the rush! ROFL
If you buy in the BA instead of renting you are either betting that appreciation is going to happen, or you are okay with taking it on the chin financially.
Or maybe you just need a place to live (wow, really, housing as shelter, not as investment vehicle?, what a novel idea!) and the rents are crazy high.
If buying (PITI) and renting are on par in terms of monthly costs AND you need a place to live...
Buying a house is not all about investing. For some of us, it is about finding a stable place to raise our families.
If all goes well (in escrow now), we'll have a 3/2 SFH in SF for $2150 month PITI with a 30 year fixed.
I haven't seen rents at that price for 14 years.
Yeah, I guess housing AND rents could crater in the city. But I'd be surprised if the future holds the ability to rent a 3 br house for under 2K a month.
At my age, with kids and dogs and cats, chasing down cheaper rentals and uprooting an entire household for the next 10 years is extremely unappealing.
Your tenants are not in the BA. They are in Concord, the armpit of the 680 corridor. I wouldn't buy if I was your tenant either. I rent a 1.2million dollar home in the BA for $3200. Run then numbers into the calculator without appreciation smarty.
I am assuming your landlord has his mortgage paid off and is only paying property tax which would be $15K a year or $1250 a month. So he wins by still generating a nice profit and you win if you are cool with paying that much in rent. Personally, I have never been in a place where total rent for everyone involved was over $1600 a month so paying $3200 in rent seems high to me.
Personally, I have never been in a place where total rent for everyone involved was over $1600 a month so paying $3200 in rent seems high to me.
Correct about the landlord. $3200 is high and I would like to pay lower, but on the flip side I have run the numbers and the monthly cost if I purchase would be over $6000 a month out of pocket. That includes the mortgage deduction. Each month I save an international flight for the family. Now is doesn't seem so high.
That then just highlights my original point (that some duck said I was dead wrong about). If you buy into these prices in the BA you are counting on appreciation or it doesn't make any sense financially.
Just so you know, it's 99 Ranch.
Tina,
Interesting. We live only a couple of blocks from here, and we've always called it Ranch 99. Not sure which is the right name. :)
Well, the sign out front does sort of imply "99 Ranch" but that just doesn't have a smooth ring to it. So, Ranch 99 it is as far as I am concerned.
If all goes well (in escrow now), we'll have a 3/2 SFH in SF for $2150 month PITI with a 30 year fixed.
Congrats! Finally the house hunting is over. Enjoy your new pad. ;)
How about we wait 6-12 months and see what actually happens? As of right now, there are all sorts of arguments for bulls and bears. The market is anything but free, and with the economy about as under control as a Champagne colored Lexus RX300 in a Ranch 99 parking lot, it is anyone's guess what will actually happen.
How about we start a P.net betting pool? You get to put some money behind your positions on where the local RE market will go in 6 or 12 months.
Dude,
That Lexus quote is so spot on and funny it hurts.
You sir, are a Poet and a Scholar.
and with the economy about as under control as a Champagne colored Lexus RX300 in a Ranch 99 parking lot
Very un-PC, but good for a laugh.
I love my 3bd, 1850 ft, double parlor, top floor, rent controlled flat, overlooking Dolores Park in San Francisco, at $1,500 a month! I will never buy in this town, ever. Why should I? I will never ever give 1 peso to a blood sucking, neighborhood smashing realturd. EVER! Repeal prop 13! Vacancy control now!
In the last thread, I was arguing against you, Roberto, and Randy H, 3 people who have vested interest in pretending that the real estate market isn't in any trouble, I wouldn't call that a dog pile, more like a troll pile.
Also you're the one who immediately gets 2 to 3 dislikes on almost every comment you post. I think it's obvious what people think of your "analysis" on the forum. It's very trollish.
For instance, WhyPee pointed out that you misinterpreted the graph (both sale and list prices were falling), and you totally blew him off because he sunk your point about a Bay Area "boom". You tactic is to basically disregard data that doesn't support your agenda, and only consider data that supports your point, even if weakly so. Fortunately the majority of the forum has caught on.
I love my 3bd, 1850 ft, double parlor, top floor, rent controlled flat, overlooking Dolores Park in San Francisco, at $1,500 a month!
So jealous. If I had a nice rent-controlled place I wouldn't even consider buying. But with rent at $2800 month and no rent control (single family home) and kids and dogs, forget about it.
We're either buying in the Excelsior or bust.
No pretending going on on my part, Phoenix prices are rising and rising fast... you ignore all data that doesn't fit your narrative, that's all.
According to Redfin data, inventory is rising (as can be expected in a state with as much underwater owners as Arizona), and month-over-month prices are down. As I pointed out before, I think Phoenix has a lot in common with Vegas. Crash -> Speculation -> Trend downward towards bottom.
I think we may be exiting the speculation stage at the moment with prices flattening. But hey, when you're raking in $6,000 a month and thinking of retiring to an island in the Pacific, why stop the gravy train of positivity, right?
In the last thread, I was arguing against you, Roberto, and Randy H, 3 people who have vested interest in pretending that the real estate market isn't in any trouble, I wouldn't call that a dog pile, more like a troll pile.
Also you're the one who immediately gets 2 to 3 dislikes on almost every comment you post. I think it's obvious what people think of your "analysis" on the forum. It's very trollish.
For instance, WhyPee pointed out that you misinterpreted the graph (both sale and list prices were falling), and you totally blew him off because he sunk your point about a Bay Area "boom". You tactic is to basically disregard data that doesn't support your agenda, and only consider data that supports your point, even if weakly so. Fortunately the majority of the forum has caught on.
You were just wrong in that thread. It was as simple as that, but you just couldn't admit it.
redfin and zillow data are all crap..
Redfin is just a time delayed mirror for the MLS. You do know that right?
redfin and zillow data are all crap.
Is that the same crap you used last month, when you were foaming at your mouth trying to prove to us that prices were going up in phoenix? Or is this the kind of crap which doesn't stink in your and our neck of the woods?
redfin and zillow data are all crap.
Is that the same crap you used last month, when you were foaming at your mouth trying to prove to us that prices were going up in phoenix? Or is this the kind of crap which doesn't stink in your and our neck of the woods?
And all the while, price/square foot is falling in Phoenix.... like everywhere else in the country.
Why buy now when you can buy for 95% less... presumably. Or something.
dips**t
another stupid person
Sounds real professional all right, Doctor Professor!
Why buy now when you can buy for 95% less... presumably. Or something.
Personally, I'm waiting till prices fall 150% more!
You can in fact lose 150% of your initial investment. I know people who have. Real estate can bite hard when it turns on you. Not saying it has or will for you, but it has for many in the BA.
Without fundamental recovery all this marketing by RE is just gimmicks.
I expect long slow further declines...money isn't there simply. Pretend can only last so long before ultimate liquidation.
the real BA, not Concord
You can BART to SF, so it's real.
real shitty, sure. ;)
robertoaribas,
How is the weather? 110 degrees 9 days in a row.
I wonder if people buy house during that time.
Without fundamental recovery all this marketing by RE is just gimmicks.
I expect long slow further declines...money isn't there simply. Pretend can only last so long before ultimate liquidation.
Freedom 1789-2012
Unless of course we end up like Zimbabwe or early last century Germany. The every shack will be worth trillions of dollars.
Unless of course we end up like Zimbabwe or early last century Germany. The every shack will be worth trillions of dollars.
We will definitely not wind up like Zimbabwe any time soon. We will most likely wind up like Japan of the last 20 years. Fed has only printed 2.5T so far. They need to print another 10T, at least, just to get all the banks out of hock. Only then, we can talk about any kind of inflation. Basically, the private debt needs to go back to 0, and it's nowhere even close, now. So, all you housing bulls out there - you can dream and salivate all you want at the prospect of housing market improving, but it ain't gonna happen.
the only way you break even or make money is appreciation of the aging wood and nails. Good luck with that.
The wood and nails don't appreciate. It's the land underneath them...
Considering "land" can be picked up in all 48 contiguous states for under $800/acre, you're still deluded.
Sure--just not the land I'd want to live on.
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Intrigued by a comment made by dunnross yesterday:
Goran_K says
That tells me that the Phoenix bull trap is starting to fade, but I suppose we'll see what happens to prices more concretely this winter.
dunnross says
The fact that this was a bull trap and it is now over is more than obvious in places like Palo Alto, where asking prices are already down more than 20% since this summer.