patrick.net

BoomAndBustCycle says

So, maybe it was cheaper to rent when you raised your kids.. But that's not true anymore...

True, but still depends. Just checked the place we were renting, it is still cheaper renting the similar place ($2,350) vs. buying ($3,350), condos stars from $530,000, houses from $930,000.

BoomAndBustCycle says

And the ironic thing is.. If home prices continue to drop and more people are foreclosed on and shadow inventory continues to build... All this is going to do is put more pressure on rents to go higher. Less credit-worthy homebuyers means more renters.. means less vacancies.. means higher rents.

Agree, but while home prices continue to drop it is still better to rent vs. buy at least in SV if you're not planning to "downgrade" (choose different neighborhood, smaller place...)

zhanka says

True, but still depends. Just checked the place we were renting, it is still cheaper renting the similar place ($2,350) vs. buying ($3,350), condos stars from $530,000, houses from $930,000.

Fair enough... What's your price point where it be worth paying more to own a place than rent?

I don't think I'd ever want to OWN a condo though.. Eternal HOAs and assessment fees scare me too much. (You already have to pay property taxes for life... add HOA fees to that and it feels too much like renting for life to me).

If condos are that expensive .. $530K... and homes are $930K and you can be happy renting for $2350.. then that makes perfect sense!

I'm just finding where I live we are at rental parity.. give or take a few hundred bucks a month on SFHs.

Our rent was like $1,450, so we didn't want to spent more than $350,000, but we couldn't find a place at that price range that we would like as much as we did the one we rented. Although, we almost bought a 2bed/2ba townhouse in 2003 (offered $410,000 and they accepted), however we changed our minds within 3 days and walked away. That property was sold later on for $405,000 and resold in 2005 for $690,000.

This time is different, we have cash to buy a house, but we don't want to spent more than $850,000. We are looking for a house with a big lot and/or city lights, well still looking... :)

zhanka says

we have cash to buy a house, but we don't want to spent more than $850,000. We are looking for a house with a big lot and/or city lights, well still looking... :)

http://www.redfin.com/CA/San-Jose/707-N-Henry-Ave-95117/home/1280728

http://www.redfin.com/CA/Santa-Clara/2820-Butte-St-95051/home/1416511

http://www.redfin.com/CA/Santa-Clara/3191-Orthello-Way-95051/home/733117

Thank you for the links, but those houses are not quiet what we're looking for.

These ones are close enough :
http://www.redfin.com/CA/San-Jose/6412-Montego-Ct-95120/home/1267702
Beautiful house and and views of downtown San Jose. We went to the open house back in March, and when we asked realtor if the owner would consider $925,000 she told us that there will be a bidding war and they are looking for more than asking price, so we just didn't bother with this one.

http://www.redfin.com/CA/Los-Gatos/284-Las-Miradas-Dr-95032/home/734881
Those houses are little bit over the price we would like to spent on house, and thats the only reason we're not buying right now, maybe after reelection is over there will be more houses on the market to choose from and sellers/realtors would be me more "friendly".