patrick.net

PockyClipsNow says

Trulia says

I'm tired of listening to that cat.

http://www.youtube.com/embed/dIR3XFuY4Qs

OK according to patricks mortgage payment calculator:

COST of house in AZ: 100k (zero down, seller pays 3.5% FHA dp)
Mortgage payment :$417 at 3.2%
Rent for same home: $800 a month.

The article is accurate.

You might have to put a DP down. Hey at worst case its 20% which is 20k. Charge that on a credit card if you want.

Now in coastal cali rental parity is about the same as buying/renting so i guess it makes sense to buy if you are staying there at least a year (need a year to get a 20% increase in house prices! haha! )

Darrell In Phoenix says

"Trulia says"...... lmao

Two for two. Two of you today read my mind before I could post it myself.

robertoaribas says

darrell, people rent rooms in homes for over $400 a month. You are a waste to be on this site, you know nothing.

And if someone is willing to live in someone else's house in a room for $400. a month tells me all I need to know about the idiot.

robertoaribas says

You are a waste to be on this site, you know nothing.

Your posts would seem more credible if you stopped attacking people and just let the comments stand on the quality of the ideas in them. Anytime someone disagrees with you, you attack them. If you stick to disputing their ideas, it reflects well on your credibility.

Since when Trulia became reliable source on housing news?

Yeah, Darrel has a point.

Isn't this like "Walmart says it's a great time to buy a George Foreman grill! Prices down 10%!"

Reader says

And if someone is willing to live in someone else's house in a room for $400. a month tells me all I need to know about the idiot.

Perhaps they are idiots. However, that just means that there are a LOT of idiots out there, and more than enough to blow the cost of renting and buying up well past what us "smart" people like. So who's the idiot NOW?

Darrell In Phoenix says

Not really when$100k houses here are renting for $400/ month.
Don't believe me? See for yourself.

I didnt' see any houses renting for $400 on that link. Could you point one out?

Clearly you cannot rent a decent home in AZ for $400 a month. Maybe a mobile home.

This is a list from a link on darrels CL serach

rents are 700 to 1500

http://www.rentmint.com/index.php?route=listing/search&keyword=Cave%20Creek,%20AZ&id=3&trk=ll

Patrick would agree (that in NV,AZ,FL) its CLEARLY cheaper to buy than rent (which makes sense only if you will keep the property for a number of years due to high transaction costs) you can live in it or rent it out - either way renting costs MORE than owning in most of what is known as 'flyover'.

PockyClipsNow says

either way renting costs MORE than owning in most of what is known as 'flyover'.

How about dying costs less than either renting or owning in the fly-over areas. That is a much better headline.

Pockyclips, have you actually ran the numbers on the benefits of lowering interest rates from this point? I was right along with you beating that drum for awhile, until i did an FHA re-fi, and took into consideration that most everyone uses FHA to lever their way into a piece of RE, and that FHA uses it's PMI fees to fund itself, so as risk piles up, so do their fees,,,,,,i can't imagine that rates any lower then 3.25% of today are going to make that big of a difference to anyone

I know for me, one thing that it did magnify was just how expensive Taxes and Insurance portion of my mortgage have become. And while we can argue forever about where prices and rates are going, i think we'd all agree that Taxes only have room to move in one direction,,,,,,,,,

Good point

one of the costs of buying now, is that you are betting on house prices going up at a pace that makes the cost to borrowing money for it pan out over time. I think this is part of the reason why rents have gotten expensive, because renting is risk free, while buying comes with plenty of risk.

@errc- you have a good point. BUT remember the higher the amount financed, the more dramatic a difference a lower rate makes.

(this is from patricks mortgage calc)

729k financed at 3.25% = $1,974.38 a month intrest only loan

729k at 2.25% = $1,366.88 a month int only loan

729k at 1.25 = $759.38

729k at .75= $455.63

Im only using int only loans, since they are back (but not with fha just yet but they will be soon)

So i predict they will keep lowering int rates to .75 - causing RE to triple in price over a long term (20 years?) then the USD somehow is 'broken' and maybe each state has its own fiat currency and the whole mess will be even more messy. impossible to know of course

PockyClipsNow says

COST of house in AZ: 100k (zero down, seller pays 3.5% FHA dp)
Mortgage payment :$417 at 3.2%
Rent for same home: $800 a month.

You have obviously never owned a home. Mortgage is just the starting point. You won't be buying for half the cost of renting anywhere. Buying in some markets is getting close to rental. When that happens people will buy.

I owned 4 homes at the same time, cashed em all in at peak bubble.

People overestimate repair costs.

Sure they are high if you are a little old lady 80 years old and you let the plumber, landscaper, pool guy, HVAC guy, flooring guy, and maid all rip you off.

I did almost everything myself - you can maintain a house incredibly cheap if you are smart enough to read directions and put in some work. I even re roofed 2 homes myself.

Renting also costs first/last and sec deposit (which you might not get back).

The article from trulia is pretty close to reality.

Way to go roberto! I did the same for 5 years, rented to other IT people who had homes far away from work and they were only at thier home on weekends (best situation evar! the m-th roomate!)

Is there a price mentioned in a single one of those?

Darrell In Phoenix says

Here's the link I posted. Hundreds of monthly rental rates well under $500/month.

http://phoenix.craigslist.org/search/apa?query=&srchType=A&minAsk=&maxAsk=&bedrooms=2&sort=priceasc

Why buy when you can rent for half the cost?

This is a joke right? It's all apartments and rent to own scams. I looked at realtor.com and rental homes plus. There aren't any houses for rent less than $600 in phoenix that I saw and at $600 you are looking at 1-2 bedroom 1 bath. Going local (newspaper/bulliten boards) there must be some in the $500 range, maybe. I don't know how legit they are but there are non short sale 1b1b houses listed in realtor.com for 30k.

Show 2 houses same size same area wihere renting would be half of owning.

Darrell In Phoenix says

Here's the link I posted. Hundreds of monthly rental rates well under $500/month

OK--could you post a link to one of them?

robertoaribas says

good point, but only partially true. I have had lots of pleasant disagreements with real people on here, but darrell is a freaking troll who follows me around biting at my ankles.

Darrell is a bit much sometimes and he is persistent in his disagreement with you. Can you set him for "ignore"?