seems pretty good. it provides for quite a few different pieces of data and will tell you how long it would take for your purchase to break even.
or course you have to estimate the housing market appreciation rate…and many of us see it DE-preciating… but it does give you a rough idea of what you rent payment will be vs the “net” housep ayment by considering mortgage interest deductions..and also showing you how much equity you would pay down if you have a 30 yr fixed.
i’m one of those people who is concerned with the “monthly payment”… but not because I am getting an ARM and only see 6 months in the future… I am very cognizant of HOW Much I’ll be paying… for the next 30 years…per month…if I could find that perfect house, and afford the payment… and knew I was gonna stay the long haul..i’d be inclined to buy..but I keep thinking that if I wait..i’ll be able to get a better house next year..because prices will have come down…
I honestly think rents have kind of gone up a bit here in temecula though. i currently rent a 1900 sq foot home for $1400… which i think the owner honestly underpriced..it should have rented for 1600-1800…but now…that me lease is ending..and the landlord want sme out so they can sell…i am seeing most of the comparable homes out there are 1800-2000/month.
so I ‘m faced with renting at 2000 month..when I was paying 1400. that sucks. back when I owned a house..my payment stayed teh same..and the longer i stayed th eeasier it got to pay. now i get used to a pyament and now it goes up…for the same thing.. i guess that’s the downside to renting…although i saved a PILE of money by NOT buying and just renting.
i could probably buy the house I am in for $375-400k. if it was listed on today’s market..i bet it would list at $440-450k. so i might be able to get it under current market value..but in 2 years..it could be worth 300k..and i’d be upside down..and my “good deal” wouldn’t look so good…
i am thinking that rents may continue to go up…and prices will continue to come down..and when those two get closer to fundamentals..it will make sense to buy again…
i have read that the ratio of rent / purchase price is that the house should sell for roughly 200x the monthly rent?? is that still the standard or is that number not really right? i mean, prices people WANT now do NOT reflect that ratio… AT ALL… but the real estate sites I”ve read seem to imply that that is what Prices SHOULD be at… to be in line with what history says rents to price should be.
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