How much cheaper should the own vs. rent be, in order to buy?

[peterb]

Perhaps you could try running an ad on Craigslist saying what you’re looking for and how much you’re willing to spend? See what kind of responses you get. No reason to be passive here when the data is so important to your analysis. Search for other ways as well, like property management companies, etc….
I think you may discover an interesting trend as well as pick-up some data that’s not easily attainable. I’ve often wanted to see a correlation of rental prices for a given unemployment level. Or occupancy rates of residential units and homes correlated to rental price trends. A study well worth making these days since so many are utilizing the “rent vs. buy” calculation as their logic for purchasing right now.

[Scarlett]

[quote=peterb]Do your home work and find out what rents are going for so that you can decide what to do. If it’s your key component for decision-making, you need to get a good handle on it. Then decide if rents may be going down….[/quote]

Thanks, peterb. Rent vs mortgage cost is one of the components for the decision-making. The other is, for me, that the mortgage+HOA+MR+insurance should not be more than 1/3 of the NET household income (we have to save for college and retirement, afterall).

I did look at some rents on a couple websites. For larger 3 bdr apt/townhomes, and 4 bd houses for rent, that would be ~2200-2500. So now my target is something like this: a 4 BR SFH, >2000 sf, in CMR or PQ for purchase at 500-550K, 10% down… at 4% rate 500K loan is about $2500 P&I… And with little or no MeloRoos & HOAs…I believe I will be able to get that within a year or two… keeping my fingers crossed. $2500 is currently my rent in UTC, so I’d like that the P&I to not be more than that…

Scarlett

[Scarlett]

[quote=peterb]Do your home work and find out what rents are going for so that you can decide what to do. If it’s your key component for decision-making, you need to get a good handle on it. Then decide if rents may be going down….[/quote]

Thanks, peterb. Rent vs mortgage cost is one of the components for the decision-making. The other is, for me, that the mortgage+HOA+MR+insurance should not be more than 1/3 of the NET household income (we have to save for college and retirement, afterall).

I did look at some rents on a couple websites. For larger 3 bdr apt/townhomes, and 4 bd houses for rent, that would be ~2200-2500. So now my target is something like this: a 4 BR SFH, >2000 sf, in CMR or PQ for purchase at 500-550K, 10% down… at 4% rate 500K loan is about $2500 P&I… And with little or no MeloRoos & HOAs…I believe I will be able to get that within a year or two… keeping my fingers crossed. $2500 is currently my rent in UTC, so I’d like that the P&I to not be more than that…

Scarlett

[Scarlett]

[quote=peterb]Do your home work and find out what rents are going for so that you can decide what to do. If it’s your key component for decision-making, you need to get a good handle on it. Then decide if rents may be going down….[/quote]

Thanks, peterb. Rent vs mortgage cost is one of the components for the decision-making. The other is, for me, that the mortgage+HOA+MR+insurance should not be more than 1/3 of the NET household income (we have to save for college and retirement, afterall).

I did look at some rents on a couple websites. For larger 3 bdr apt/townhomes, and 4 bd houses for rent, that would be ~2200-2500. So now my target is something like this: a 4 BR SFH, >2000 sf, in CMR or PQ for purchase at 500-550K, 10% down… at 4% rate 500K loan is about $2500 P&I… And with little or no MeloRoos & HOAs…I believe I will be able to get that within a year or two… keeping my fingers crossed. $2500 is currently my rent in UTC, so I’d like that the P&I to not be more than that…

Scarlett

[Scarlett]

[quote=peterb]Do your home work and find out what rents are going for so that you can decide what to do. If it’s your key component for decision-making, you need to get a good handle on it. Then decide if rents may be going down….[/quote]

Thanks, peterb. Rent vs mortgage cost is one of the components for the decision-making. The other is, for me, that the mortgage+HOA+MR+insurance should not be more than 1/3 of the NET household income (we have to save for college and retirement, afterall).

I did look at some rents on a couple websites. For larger 3 bdr apt/townhomes, and 4 bd houses for rent, that would be ~2200-2500. So now my target is something like this: a 4 BR SFH, >2000 sf, in CMR or PQ for purchase at 500-550K, 10% down… at 4% rate 500K loan is about $2500 P&I… And with little or no MeloRoos & HOAs…I believe I will be able to get that within a year or two… keeping my fingers crossed. $2500 is currently my rent in UTC, so I’d like that the P&I to not be more than that…

Scarlett

[Scarlett]

[quote=peterb]Do your home work and find out what rents are going for so that you can decide what to do. If it’s your key component for decision-making, you need to get a good handle on it. Then decide if rents may be going down….[/quote]

Thanks, peterb. Rent vs mortgage cost is one of the components for the decision-making. The other is, for me, that the mortgage+HOA+MR+insurance should not be more than 1/3 of the NET household income (we have to save for college and retirement, afterall).

I did look at some rents on a couple websites. For larger 3 bdr apt/townhomes, and 4 bd houses for rent, that would be ~2200-2500. So now my target is something like this: a 4 BR SFH, >2000 sf, in CMR or PQ for purchase at 500-550K, 10% down… at 4% rate 500K loan is about $2500 P&I… And with little or no MeloRoos & HOAs…I believe I will be able to get that within a year or two… keeping my fingers crossed. $2500 is currently my rent in UTC, so I’d like that the P&I to not be more than that…

Scarlett

[Scarlett]

[quote=peterb]Perhaps you could try running an ad on Craigslist saying what you’re looking for and how much you’re willing to spend? See what kind of responses you get. No reason to be passive here when the data is so important to your analysis. Search for other ways as well, like property management companies, etc….
I think you may discover an interesting trend as well as pick-up some data that’s not easily attainable. I’ve often wanted to see a correlation of rental prices for a given unemployment level. Or occupancy rates of residential units and homes correlated to rental price trends. A study well worth making these days since so many are utilizing the “rent vs. buy” calculation as their logic for purchasing right now.[/quote]

Those seem like good ways to find out more data about the rental prices for homes; I will look into those. Especially property management companies; I just won’t trust much the replies I’ll get with an ad – but it can’t hurt either!

Thanks, peterb!

Scarlett

[Scarlett]

[quote=peterb]Perhaps you could try running an ad on Craigslist saying what you’re looking for and how much you’re willing to spend? See what kind of responses you get. No reason to be passive here when the data is so important to your analysis. Search for other ways as well, like property management companies, etc….
I think you may discover an interesting trend as well as pick-up some data that’s not easily attainable. I’ve often wanted to see a correlation of rental prices for a given unemployment level. Or occupancy rates of residential units and homes correlated to rental price trends. A study well worth making these days since so many are utilizing the “rent vs. buy” calculation as their logic for purchasing right now.[/quote]

Those seem like good ways to find out more data about the rental prices for homes; I will look into those. Especially property management companies; I just won’t trust much the replies I’ll get with an ad – but it can’t hurt either!

Thanks, peterb!

Scarlett

[Scarlett]

[quote=peterb]Perhaps you could try running an ad on Craigslist saying what you’re looking for and how much you’re willing to spend? See what kind of responses you get. No reason to be passive here when the data is so important to your analysis. Search for other ways as well, like property management companies, etc….
I think you may discover an interesting trend as well as pick-up some data that’s not easily attainable. I’ve often wanted to see a correlation of rental prices for a given unemployment level. Or occupancy rates of residential units and homes correlated to rental price trends. A study well worth making these days since so many are utilizing the “rent vs. buy” calculation as their logic for purchasing right now.[/quote]

Those seem like good ways to find out more data about the rental prices for homes; I will look into those. Especially property management companies; I just won’t trust much the replies I’ll get with an ad – but it can’t hurt either!

Thanks, peterb!

Scarlett

[Scarlett]

[quote=peterb]Perhaps you could try running an ad on Craigslist saying what you’re looking for and how much you’re willing to spend? See what kind of responses you get. No reason to be passive here when the data is so important to your analysis. Search for other ways as well, like property management companies, etc….
I think you may discover an interesting trend as well as pick-up some data that’s not easily attainable. I’ve often wanted to see a correlation of rental prices for a given unemployment level. Or occupancy rates of residential units and homes correlated to rental price trends. A study well worth making these days since so many are utilizing the “rent vs. buy” calculation as their logic for purchasing right now.[/quote]

Those seem like good ways to find out more data about the rental prices for homes; I will look into those. Especially property management companies; I just won’t trust much the replies I’ll get with an ad – but it can’t hurt either!

Thanks, peterb!

Scarlett

[Scarlett]

[quote=peterb]Perhaps you could try running an ad on Craigslist saying what you’re looking for and how much you’re willing to spend? See what kind of responses you get. No reason to be passive here when the data is so important to your analysis. Search for other ways as well, like property management companies, etc….
I think you may discover an interesting trend as well as pick-up some data that’s not easily attainable. I’ve often wanted to see a correlation of rental prices for a given unemployment level. Or occupancy rates of residential units and homes correlated to rental price trends. A study well worth making these days since so many are utilizing the “rent vs. buy” calculation as their logic for purchasing right now.[/quote]

Those seem like good ways to find out more data about the rental prices for homes; I will look into those. Especially property management companies; I just won’t trust much the replies I’ll get with an ad – but it can’t hurt either!

Thanks, peterb!

Scarlett

[peterb]

Might try the local fish wrapper as well. I cant think of other ways rentals are advertised off the top of my head. But it cant be too hard to cover most of the bases. Tell us what you discover.

PS: I’ve run ads on Craigslist posting what I want and what I am willing to pay for it, with great success. But put it in the section that’s trying to rent the houses, not the “wanted” section. For some reason, it works a lot better to put it where the ads are posted for rentals available.

[peterb]

Might try the local fish wrapper as well. I cant think of other ways rentals are advertised off the top of my head. But it cant be too hard to cover most of the bases. Tell us what you discover.

PS: I’ve run ads on Craigslist posting what I want and what I am willing to pay for it, with great success. But put it in the section that’s trying to rent the houses, not the “wanted” section. For some reason, it works a lot better to put it where the ads are posted for rentals available.

[peterb]

Might try the local fish wrapper as well. I cant think of other ways rentals are advertised off the top of my head. But it cant be too hard to cover most of the bases. Tell us what you discover.

PS: I’ve run ads on Craigslist posting what I want and what I am willing to pay for it, with great success. But put it in the section that’s trying to rent the houses, not the “wanted” section. For some reason, it works a lot better to put it where the ads are posted for rentals available.

[peterb]

Might try the local fish wrapper as well. I cant think of other ways rentals are advertised off the top of my head. But it cant be too hard to cover most of the bases. Tell us what you discover.

PS: I’ve run ads on Craigslist posting what I want and what I am willing to pay for it, with great success. But put it in the section that’s trying to rent the houses, not the “wanted” section. For some reason, it works a lot better to put it where the ads are posted for rentals available.

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