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Housing Market - Buy vs. Rent??
- Thread starter Buoy
- Start date
Bella Senorita
Charter Member
well I guess its time to finally say something
well i would think renting, especially since you dont know the area, or you could pick up a foreclosure at a really good price then maybe you would recoop your investment
well i would think renting, especially since you dont know the area, or you could pick up a foreclosure at a really good price then maybe you would recoop your investment
Buoy
Founding Member
Thanks everyone for the replies.
As I said, we're headed out to check it out in 2 weeks.
Seems it's a still a toss up, but most are leaning towards the rent thing.
Anyone care to help address my issue of the two dogs, boat, garage stuff with a rental.
I'm shocked at how cheap I can get a modest place out there - which is why I was thinking maybe buying would be a good option in the current market.
As I said, we're headed out to check it out in 2 weeks.
Seems it's a still a toss up, but most are leaning towards the rent thing.
Anyone care to help address my issue of the two dogs, boat, garage stuff with a rental.
I'm shocked at how cheap I can get a modest place out there - which is why I was thinking maybe buying would be a good option in the current market.
Buoy, I completely understand about the pups, I have two also. They are my kids as well (no other kids). Everybody is in so much trouble with housing that I am sure you can find a very nice place (definately a house) which will allow the pups. If I could do it in Naples several years ago (when times were good), you can do it now in AZ. Do NOT buy! If your stated time frame was longer term, my advice would be different. As always, best of luck buddy.
Ms PatriYacht
Charter Member
Rent, rent, rent I wish we could sell our home, and if we could I would be in a rental in a heartbeat. you should have no trouble finding a house with a garage and is pet friendly. The pickings on rental homes are pretty good right now.
Word to the wise though, you now need to check out the owners of the property even better than they check out you. I have heard of several instances where the tenant has paid first, last, and a months security then after moving in they find out the home is in foreclosure, not only do they have to get out, their deposits are gone. There are lot's of homeowners that are renting out their properties that are only a few paychecks away from loosing their home, so renter beware.
Word to the wise though, you now need to check out the owners of the property even better than they check out you. I have heard of several instances where the tenant has paid first, last, and a months security then after moving in they find out the home is in foreclosure, not only do they have to get out, their deposits are gone. There are lot's of homeowners that are renting out their properties that are only a few paychecks away from loosing their home, so renter beware.
fund razor
Founding Member
I am an accidental slumlord.
I believe that I have a renter for my urban wonderland property.
Whoo hoo.
I believe that I have a renter for my urban wonderland property.
Whoo hoo.
tommymonza
New member
There is a guy I deal with at the lumberyard that just found out the rental he was living in is being foreclosed on.The really chitty part is he paid a year up front because the landlord said he needed the money and would give him a $200 a month discount.
Bobcat
Founding Member
your the kind of guy that actually wants baltic avenue:sifone:
fund razor
Founding Member
I never understood why so many people take craps on Baltic Avenue. It's a perfectly acceptable property. Look, I know -- without houses or a hotel, you can only charge the landing player a pitiful four bucks. So what? You're never going to win the game collecting rent from undeveloped sites, not even the truly esteemed ones like Boardwalk and its faithful lackey, Park Place. You need houses and hotels to win, so Baltic -- cheap, sorry-ass Baltic -- should only be judged on its rent with a hotel.
Wait a second -- it's only 450 bucks. 450 bucks?! I went through all that trouble to make 450 bucks?! You can't even buy 451 generic bottles of hair cholesterol from a dollar store with 450 bucks. So if that's the case, why am I still trying to champion Baltic in such a high position on the list? Simple. If you're able to take down another player with 450 Dollar Baltic Avenue, it's a victory of the sweetest kind. Your opponent will unravel into a hopping mass of disbelief and madness, desperately trying to get a loan from the remaining players while putting all his good cards down for the mortgage. It's like losing a tennis match to a rock when you're thrown out of the system because you couldn't afford Baltic Avenue's rent. That's the kind of thing that sticks on a person forever, a sort of "Baltic Loser" stigma that follows the disgraced around like an always-urinating puppy. If you can cause that kind of stir with a property that only cost you 60 bucks, you've got a just reason to grab a pillow with each of your heads, draw dollar signs on 'em, and cheerfully pretend you're Uncle Moneybags before leading the other players into a chorus of "Nah Nah Naaah Nah." All of that glory, intrigue and success...from Baltic Avenue?
Yes, but...
Devil's advocate here, let's use a 200K house as an example.
200K principle, 30 years, 6.5% fixed (aggressive).
That's 1265 a month. Add an estimated 3000/year taxes and insurance (conservative).
4 years = $72720. At the end, you'd still owe, 189,900.
When it comes time to sell, it'll cost you about 6% commission to a realtor.
After 4 years, you'd have to sell the house for at least 228300 just to break even with what it would cost to rent - and that's with the idealistic numbers above. Heaven forbid getting stuck with a place that you can't sell down the road, not to mention the hassles involved.
It's a gamble in today's market, with today's future outlook.
fund razor
Founding Member
You may owe 189,900.... but in 4 years it will be worth 141,900
Dope!! There's that dam 48k again.
masher44
E Dock
But if you shop properly in this market, the 200K house should be between 20 to 30% less than comparable sales in the immediate area at a minimum (especially in S FL where several areas are 50% of prices 3 years ago).
So say the 200K house appreciates at only 3% over the next 4 years.
It is a gamble but homes sales are horrible now, but have risen over the last 2 months, albeit at a much lower average price. ( which hints at the pricing bottom in some locations.
If you still are stuck with it after 4 years, rent it out (or burn it down) and I will bring over and share my humble pie
My first store to shop at would be a bank in the area I wanted to move to.
The last major real estate scare was New England in the late 80s. It took 5 years to settle at the longest and S FL has already been through 2 years.
masher44
E Dock
invest in 5 gallons of gas at $.89/gal and torch it.......
fund razor
Founding Member
I would stay away from 4 year old pie of any kind. 
PARADOX
Founding Member
Here's a thougth.
You can rent my house for a while. Room for a boat on the side and 2 car garage. Fenced yard. I even pick up my dogs doo-doos before you come. :03:
MarylandMark
Charter Member
Gov't talking about 4.5% fixed 30 year loans
Lot of details still up in the air- including if it will ever materialize.
Only new loans/no refi's (or not)?,
Good credit (or not)?
First time buyers (or not)?
If it happens home prices will most likely stop falling (for a bit at least) and could even appreciate due to buyers having access to more money (what got us in this mess to start with).
Lot of details still up in the air- including if it will ever materialize.
Only new loans/no refi's (or not)?,
Good credit (or not)?
First time buyers (or not)?
If it happens home prices will most likely stop falling (for a bit at least) and could even appreciate due to buyers having access to more money (what got us in this mess to start with).
Last edited:
Davidmnc
Contributor
MarylandMark
Charter Member
TV says no go at 4.5% for refi's; new purchases only. Subject to change I would guess.
Great for my situation but sick of those living within their means getting screwed all the time. Should have bought a $1M house, had it appraised at $550K right now, have the bank forgive the rest and lower my rate to 4.5% Indy Mac style.
Great for my situation but sick of those living within their means getting screwed all the time. Should have bought a $1M house, had it appraised at $550K right now, have the bank forgive the rest and lower my rate to 4.5% Indy Mac style.
