buying SHOULD BE cheaper than renting

[davelj]

[quote=UCGal]

I have friends who live back east in big cities. (Philly and NYC). They do car shares because the cost of owning the car is too high – parking being a big factor. For the 2-3 times a week they need a car, they use the carshare. They all take public transit to work or work from home.
[/quote]

I lived in DC and Chicago for a total of about five years and didn’t have a car. I just rented one when I needed one and otherwise used cabs, the El and the Metro. It was great. Can’t do that here, however.

[oxfordrick]

3. Rents generally increase….

Now we’re talking.

I used to project rental increases in proformas when I was buying…now I’d have to project rent decreases, just destroys feasibility.

What is a fair risk premium to invest in a depreciating rent market?

I agree with Scaredycat: I would need a risk premium (= 10 CAP at least) before I would buy an investment rental, market now offers maybe 5-6 CAP.

As for personal residence, yes it’s nice not to have my landlord threaten to list my rental home for sale, I’ll probably bottom fish something sooner or later.

Future real estate markets may bear little relation to what we have grown accustomed to so watch out and good luck to all!

[oxfordrick]

3. Rents generally increase….

Now we’re talking.

I used to project rental increases in proformas when I was buying…now I’d have to project rent decreases, just destroys feasibility.

What is a fair risk premium to invest in a depreciating rent market?

I agree with Scaredycat: I would need a risk premium (= 10 CAP at least) before I would buy an investment rental, market now offers maybe 5-6 CAP.

As for personal residence, yes it’s nice not to have my landlord threaten to list my rental home for sale, I’ll probably bottom fish something sooner or later.

Future real estate markets may bear little relation to what we have grown accustomed to so watch out and good luck to all!

[oxfordrick]

3. Rents generally increase….

Now we’re talking.

I used to project rental increases in proformas when I was buying…now I’d have to project rent decreases, just destroys feasibility.

What is a fair risk premium to invest in a depreciating rent market?

I agree with Scaredycat: I would need a risk premium (= 10 CAP at least) before I would buy an investment rental, market now offers maybe 5-6 CAP.

As for personal residence, yes it’s nice not to have my landlord threaten to list my rental home for sale, I’ll probably bottom fish something sooner or later.

Future real estate markets may bear little relation to what we have grown accustomed to so watch out and good luck to all!

[oxfordrick]

3. Rents generally increase….

Now we’re talking.

I used to project rental increases in proformas when I was buying…now I’d have to project rent decreases, just destroys feasibility.

What is a fair risk premium to invest in a depreciating rent market?

I agree with Scaredycat: I would need a risk premium (= 10 CAP at least) before I would buy an investment rental, market now offers maybe 5-6 CAP.

As for personal residence, yes it’s nice not to have my landlord threaten to list my rental home for sale, I’ll probably bottom fish something sooner or later.

Future real estate markets may bear little relation to what we have grown accustomed to so watch out and good luck to all!

[oxfordrick]

3. Rents generally increase….

Now we’re talking.

I used to project rental increases in proformas when I was buying…now I’d have to project rent decreases, just destroys feasibility.

What is a fair risk premium to invest in a depreciating rent market?

I agree with Scaredycat: I would need a risk premium (= 10 CAP at least) before I would buy an investment rental, market now offers maybe 5-6 CAP.

As for personal residence, yes it’s nice not to have my landlord threaten to list my rental home for sale, I’ll probably bottom fish something sooner or later.

Future real estate markets may bear little relation to what we have grown accustomed to so watch out and good luck to all!

[UCGal]

[quote=davelj]I lived in DC and Chicago for a total of about five years and didn’t have a car. I just rented one when I needed one and otherwise used cabs, the El and the Metro. It was great. Can’t do that here, however.[/quote]

Depends on where you live. If you live and work in Downtown you could probably get by with a carshare set up. Same if you live in UTC and work at UCSD – you could take the shuttle bus for the daily commute. I have a friend who lives in Encinitas and commuted to Sorrento valley by coaster, daily.

http://www.zipcar.com/sandiego/find-cars

I will agree that the infrastructure of public transit is much better back east. I lived outside of Philly but was on the R-1/3/5 lines. It was great, I could take the train to downtown or even the airport. (No long term parking on vacations!) I had neighbors that had big families with one car. The parents commuted by train to work. (And location near the train line added value to my resale.)

But, San Diego public transit stinks for the most part.

[UCGal]

[quote=davelj]I lived in DC and Chicago for a total of about five years and didn’t have a car. I just rented one when I needed one and otherwise used cabs, the El and the Metro. It was great. Can’t do that here, however.[/quote]

Depends on where you live. If you live and work in Downtown you could probably get by with a carshare set up. Same if you live in UTC and work at UCSD – you could take the shuttle bus for the daily commute. I have a friend who lives in Encinitas and commuted to Sorrento valley by coaster, daily.

http://www.zipcar.com/sandiego/find-cars

I will agree that the infrastructure of public transit is much better back east. I lived outside of Philly but was on the R-1/3/5 lines. It was great, I could take the train to downtown or even the airport. (No long term parking on vacations!) I had neighbors that had big families with one car. The parents commuted by train to work. (And location near the train line added value to my resale.)

But, San Diego public transit stinks for the most part.

[UCGal]

[quote=davelj]I lived in DC and Chicago for a total of about five years and didn’t have a car. I just rented one when I needed one and otherwise used cabs, the El and the Metro. It was great. Can’t do that here, however.[/quote]

Depends on where you live. If you live and work in Downtown you could probably get by with a carshare set up. Same if you live in UTC and work at UCSD – you could take the shuttle bus for the daily commute. I have a friend who lives in Encinitas and commuted to Sorrento valley by coaster, daily.

http://www.zipcar.com/sandiego/find-cars

I will agree that the infrastructure of public transit is much better back east. I lived outside of Philly but was on the R-1/3/5 lines. It was great, I could take the train to downtown or even the airport. (No long term parking on vacations!) I had neighbors that had big families with one car. The parents commuted by train to work. (And location near the train line added value to my resale.)

But, San Diego public transit stinks for the most part.

[UCGal]

[quote=davelj]I lived in DC and Chicago for a total of about five years and didn’t have a car. I just rented one when I needed one and otherwise used cabs, the El and the Metro. It was great. Can’t do that here, however.[/quote]

Depends on where you live. If you live and work in Downtown you could probably get by with a carshare set up. Same if you live in UTC and work at UCSD – you could take the shuttle bus for the daily commute. I have a friend who lives in Encinitas and commuted to Sorrento valley by coaster, daily.

http://www.zipcar.com/sandiego/find-cars

I will agree that the infrastructure of public transit is much better back east. I lived outside of Philly but was on the R-1/3/5 lines. It was great, I could take the train to downtown or even the airport. (No long term parking on vacations!) I had neighbors that had big families with one car. The parents commuted by train to work. (And location near the train line added value to my resale.)

But, San Diego public transit stinks for the most part.

[UCGal]

[quote=davelj]I lived in DC and Chicago for a total of about five years and didn’t have a car. I just rented one when I needed one and otherwise used cabs, the El and the Metro. It was great. Can’t do that here, however.[/quote]

Depends on where you live. If you live and work in Downtown you could probably get by with a carshare set up. Same if you live in UTC and work at UCSD – you could take the shuttle bus for the daily commute. I have a friend who lives in Encinitas and commuted to Sorrento valley by coaster, daily.

http://www.zipcar.com/sandiego/find-cars

I will agree that the infrastructure of public transit is much better back east. I lived outside of Philly but was on the R-1/3/5 lines. It was great, I could take the train to downtown or even the airport. (No long term parking on vacations!) I had neighbors that had big families with one car. The parents commuted by train to work. (And location near the train line added value to my resale.)

But, San Diego public transit stinks for the most part.

[(former)FormerSanDiegan]

Hey, you asked for examples. I gave examples.
Some folks are applying extra conditions (such as normalizing by time or use) or trying to make examples that are analogous to a house.

The problem is that there are probably no other analogues. Food, shelter and clothing are very basic essentials. Food and clothing are typically consumed over much shorter time frames than shelter. These facts and the presence of inflation make finding an analogue to rent/purchase of housing very difficult, if not impossible.

[(former)FormerSanDiegan]

Hey, you asked for examples. I gave examples.
Some folks are applying extra conditions (such as normalizing by time or use) or trying to make examples that are analogous to a house.

The problem is that there are probably no other analogues. Food, shelter and clothing are very basic essentials. Food and clothing are typically consumed over much shorter time frames than shelter. These facts and the presence of inflation make finding an analogue to rent/purchase of housing very difficult, if not impossible.

[(former)FormerSanDiegan]

Hey, you asked for examples. I gave examples.
Some folks are applying extra conditions (such as normalizing by time or use) or trying to make examples that are analogous to a house.

The problem is that there are probably no other analogues. Food, shelter and clothing are very basic essentials. Food and clothing are typically consumed over much shorter time frames than shelter. These facts and the presence of inflation make finding an analogue to rent/purchase of housing very difficult, if not impossible.

[(former)FormerSanDiegan]

Hey, you asked for examples. I gave examples.
Some folks are applying extra conditions (such as normalizing by time or use) or trying to make examples that are analogous to a house.

The problem is that there are probably no other analogues. Food, shelter and clothing are very basic essentials. Food and clothing are typically consumed over much shorter time frames than shelter. These facts and the presence of inflation make finding an analogue to rent/purchase of housing very difficult, if not impossible.

[Author]

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