$2800 per month rent translates into what purchase price

[MostlyLurk]

I’ve spent some time tinkering with all of the variables on the NYT rent vs. buy calculator, and noticed that changing one’s assumptions a percentage point here or there regarding overall inflation, housing inflation, rent increases, your expected rate of return on investments, makes a big difference…

I wonder what Rich and others would come up with as a pull the trigger to buy number considering one is spending $2800 per month on rent.

In neighborhoods like Mission Hills and Del Cerro, it seems like one can rent a pretty big, nice house for $2800 per month, but in order to buy the same house it would cost more than $700,000.

I know I could buy something in these neighborhoods for this price, the problem is that it will be a lot smaller, 50% to 75% of the size that I am renting, and need remodeling on top of that…whereas our rental is big and remodeled.

We are going to be in San Diego for the long haul and have been looking in Mt. Helix, Del Cerro and Mission Hills. (We like the views and cheaper prices in Mt. Helix but the walkability/bikeability is an issue…lots of roads with no sidewalk, no shoulder and a steep drop to get out of the way of a car).

We have been lucky to find rentals that we have been very happy in with great landlords, but at what price do Piggs think it would be in our financial interest to go ahead with a purchase?

[matt-waiting]

I remember reading somewhere that Mission Hills has the highest disparity between renting and purchasing in San Diego. Meaning it has low rent compared to purchase price. I love Mission Hills and rent there, but I would not consider buying at these prices. There is no way you could rent out your $700,000 MH home for over $3,500.

Del Cerro and Mt. Helix may be different.

[matt-waiting]

I remember reading somewhere that Mission Hills has the highest disparity between renting and purchasing in San Diego. Meaning it has low rent compared to purchase price. I love Mission Hills and rent there, but I would not consider buying at these prices. There is no way you could rent out your $700,000 MH home for over $3,500.

Del Cerro and Mt. Helix may be different.

[matt-waiting]

I remember reading somewhere that Mission Hills has the highest disparity between renting and purchasing in San Diego. Meaning it has low rent compared to purchase price. I love Mission Hills and rent there, but I would not consider buying at these prices. There is no way you could rent out your $700,000 MH home for over $3,500.

Del Cerro and Mt. Helix may be different.

[matt-waiting]

I remember reading somewhere that Mission Hills has the highest disparity between renting and purchasing in San Diego. Meaning it has low rent compared to purchase price. I love Mission Hills and rent there, but I would not consider buying at these prices. There is no way you could rent out your $700,000 MH home for over $3,500.

Del Cerro and Mt. Helix may be different.

[matt-waiting]

I remember reading somewhere that Mission Hills has the highest disparity between renting and purchasing in San Diego. Meaning it has low rent compared to purchase price. I love Mission Hills and rent there, but I would not consider buying at these prices. There is no way you could rent out your $700,000 MH home for over $3,500.

Del Cerro and Mt. Helix may be different.

[MostlyLurk]

That’s how I see it too matt-waiting. I am happy with our rental situation, but I keep an eye on new listings, go to look at and have made some offers on fixers that have architecture I like.

There are a lot of variables in the rent/buy equation and a lot of assumptions about the future.

I was just curious what price others would think it was worth buying the same (or substantially similar size/quality) house they rent for $2800.

[MostlyLurk]

That’s how I see it too matt-waiting. I am happy with our rental situation, but I keep an eye on new listings, go to look at and have made some offers on fixers that have architecture I like.

There are a lot of variables in the rent/buy equation and a lot of assumptions about the future.

I was just curious what price others would think it was worth buying the same (or substantially similar size/quality) house they rent for $2800.

[MostlyLurk]

That’s how I see it too matt-waiting. I am happy with our rental situation, but I keep an eye on new listings, go to look at and have made some offers on fixers that have architecture I like.

There are a lot of variables in the rent/buy equation and a lot of assumptions about the future.

I was just curious what price others would think it was worth buying the same (or substantially similar size/quality) house they rent for $2800.

[MostlyLurk]

That’s how I see it too matt-waiting. I am happy with our rental situation, but I keep an eye on new listings, go to look at and have made some offers on fixers that have architecture I like.

There are a lot of variables in the rent/buy equation and a lot of assumptions about the future.

I was just curious what price others would think it was worth buying the same (or substantially similar size/quality) house they rent for $2800.

[MostlyLurk]

That’s how I see it too matt-waiting. I am happy with our rental situation, but I keep an eye on new listings, go to look at and have made some offers on fixers that have architecture I like.

There are a lot of variables in the rent/buy equation and a lot of assumptions about the future.

I was just curious what price others would think it was worth buying the same (or substantially similar size/quality) house they rent for $2800.

[Author]

Posts