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Renting to own is something that's either a great idea or an awful idea. Great idea if you literally have no other choice, because your finances or credit are completely blown. If you don't need it, DONT rent to own. It's really a last-ditch try at home ownership if everything else has been exhausted. This is a good read about it http://www.homestarsearch.com/when-to-rent-to-own
And, for the record, had you bought pretty much anywhere in 2003, you'd be ahead.
I'm not convinced. Today's Case-Shiller report states that national prices are now back to mid2003 levels.
So you might say that San Francisco is a special market, to which I agree. I was looking at the time at these places, though and this one looks a lot like one of the units I actually took the time to walk through with an agent. I even had gone through part of the process with a bank to understand how much I'd be loaned. I considered these places out of reach, but was being told I qualified to buy them. At the time, they were listed somewhere between $429k and $479k. I remember both numbers from the visit. Who knows how good my memory serves. In hindsight, if I'd sold the place in a year or so, I'd have made money. If I was still living in one of these shittily constructed lofts though, I think I'd be pissed and broke!
http://www.zillow.com/homedetails/221-Clara-St-APT-4-San-Francisco-CA-94107/80741045_zpid/
This will be debated until the end of time. In my experience, purchasing an owner occupied home has been a great investment for me, so far. I got lucky and purchased at the exact right time and have gained about $200k in appreciation on a $229k purchase. My monthly payments (including HOA, taxes, insurance) are about $800-900 less than what I could rent the property for. Had I been renting over this same time period my rent would most likely have been increasing every year or two.
Yes, you can get screwed financially with an owner occupied property purchase if you have to sell unexpectedly and can't ride out the current real estate cycle.
Damn, resurrecting a thread from four years ago? There should be a PatNet classic tab.
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http://ochousingnews.com/news/shiller-explains-why-owner-occupied-housing-is-a-poor-investment?source=Patrick.net
#housing