[quote=bewildering]I like the second graph in the “shambling towards affordability” because it takes in to account rental payments.
We recently bought a house in Clairemont, and that decision was easy. We looked at the cost of a 3/2 rental in our area of Clairemont and found the asking price was around $2400. Obviously less for the worse areas/crappy houses, more for better areas/better houses. And the chances of actually getting a place were low because of the number of applicants, and our dog. Our previous rental in Clairemont, a 2/1 for $1800, had 17 applicants within an hour of going on Craigslist.
You can get a 3/2 house with 10% down for around 500,000. Even if interest rates go to 5% or 6% the financial decision is easy. Just use the New York Times rent/buy calculator. Even if house prices and rents stay flat you are ahead after 3* years
As long as there is demand for rentals I do not see a big fall in prices. Rents just keep climbing higher, and San Diego rent is cheaper than LA, OC or SF.[/quote]
Thanks for your post, bewildering. Unlike the majority of renters, you guys seem very astute … and realistic. I’ve always been a homeowner but I, too, have pets and could not imagine myself trying to find a rental house where I would not be hugely gouged for pet deposits, which the LL would keep even if I left the place spotless when I moved out and my pets did no damage. In addition, my house that I am living in now would rent for $700 month more than my monthly PITI. Congratulations on choosing such an excellent location! I think you will be happy for years to come.
