How Much Longer Must We Rent?

[EconProf]

Enorah: the 1% figure is the monthly decline in value of the house if you buy now.

[urbanrealtor]

[quote=EconProf]Go house-hunting and find a house.
Take 1% of its value.
Add that to the planned monthly cost of ownership.

PS: 1% is conservative. 1 1/2 percent more likely, 2% within the realm of possibility.[/quote]

Econ prof you say this on multiple threads.
I don’t think that it is truly applicable.

The difference in depreciation varies wildly from one micromarket to the next.

Again, you will see a stronger depreciation in certain areas (eg: Chula Vista) which in many cases means you could get a place now (or later) that would carry with little down.

This headline (the 1%) would work if we were dealing with a perfect market (interchangeable goods and complete information) but we are not.

We are dealing with a market that has dissimilar commodities, multiple non- or semi- comparable market sites, and wildly inconsistant levels of information. I don’t mean to get all John Nash on you but mapping this in Game Theory would look like a spiderweb.

I stand by what I said before. Market and econ fundamentals really are what needs to guide personal action. When or if you buy, make sure the payment is reasonable and that you are not spending wildly more than what market rent would be (in case you have to rent it). And make sure you are buying something you think you will enjoy for a few years.

Again, as prices drop further, a greater portion of them will be in less desirable areas. I would question the expertise of anyone saying to pass up a good deal in OB now for a great deal in Mira Mesa in a year.

Timing the downturn is about as advisable as timing the boom. That effort did not work out so well.

[urbanrealtor]

[quote=EconProf]Go house-hunting and find a house.
Take 1% of its value.
Add that to the planned monthly cost of ownership.

PS: 1% is conservative. 1 1/2 percent more likely, 2% within the realm of possibility.[/quote]

Econ prof you say this on multiple threads.
I don’t think that it is truly applicable.

The difference in depreciation varies wildly from one micromarket to the next.

Again, you will see a stronger depreciation in certain areas (eg: Chula Vista) which in many cases means you could get a place now (or later) that would carry with little down.

This headline (the 1%) would work if we were dealing with a perfect market (interchangeable goods and complete information) but we are not.

We are dealing with a market that has dissimilar commodities, multiple non- or semi- comparable market sites, and wildly inconsistant levels of information. I don’t mean to get all John Nash on you but mapping this in Game Theory would look like a spiderweb.

I stand by what I said before. Market and econ fundamentals really are what needs to guide personal action. When or if you buy, make sure the payment is reasonable and that you are not spending wildly more than what market rent would be (in case you have to rent it). And make sure you are buying something you think you will enjoy for a few years.

Again, as prices drop further, a greater portion of them will be in less desirable areas. I would question the expertise of anyone saying to pass up a good deal in OB now for a great deal in Mira Mesa in a year.

Timing the downturn is about as advisable as timing the boom. That effort did not work out so well.

[urbanrealtor]

[quote=EconProf]Go house-hunting and find a house.
Take 1% of its value.
Add that to the planned monthly cost of ownership.

PS: 1% is conservative. 1 1/2 percent more likely, 2% within the realm of possibility.[/quote]

Econ prof you say this on multiple threads.
I don’t think that it is truly applicable.

The difference in depreciation varies wildly from one micromarket to the next.

Again, you will see a stronger depreciation in certain areas (eg: Chula Vista) which in many cases means you could get a place now (or later) that would carry with little down.

This headline (the 1%) would work if we were dealing with a perfect market (interchangeable goods and complete information) but we are not.

We are dealing with a market that has dissimilar commodities, multiple non- or semi- comparable market sites, and wildly inconsistant levels of information. I don’t mean to get all John Nash on you but mapping this in Game Theory would look like a spiderweb.

I stand by what I said before. Market and econ fundamentals really are what needs to guide personal action. When or if you buy, make sure the payment is reasonable and that you are not spending wildly more than what market rent would be (in case you have to rent it). And make sure you are buying something you think you will enjoy for a few years.

Again, as prices drop further, a greater portion of them will be in less desirable areas. I would question the expertise of anyone saying to pass up a good deal in OB now for a great deal in Mira Mesa in a year.

Timing the downturn is about as advisable as timing the boom. That effort did not work out so well.

[urbanrealtor]

[quote=EconProf]Go house-hunting and find a house.
Take 1% of its value.
Add that to the planned monthly cost of ownership.

PS: 1% is conservative. 1 1/2 percent more likely, 2% within the realm of possibility.[/quote]

Econ prof you say this on multiple threads.
I don’t think that it is truly applicable.

The difference in depreciation varies wildly from one micromarket to the next.

Again, you will see a stronger depreciation in certain areas (eg: Chula Vista) which in many cases means you could get a place now (or later) that would carry with little down.

This headline (the 1%) would work if we were dealing with a perfect market (interchangeable goods and complete information) but we are not.

We are dealing with a market that has dissimilar commodities, multiple non- or semi- comparable market sites, and wildly inconsistant levels of information. I don’t mean to get all John Nash on you but mapping this in Game Theory would look like a spiderweb.

I stand by what I said before. Market and econ fundamentals really are what needs to guide personal action. When or if you buy, make sure the payment is reasonable and that you are not spending wildly more than what market rent would be (in case you have to rent it). And make sure you are buying something you think you will enjoy for a few years.

Again, as prices drop further, a greater portion of them will be in less desirable areas. I would question the expertise of anyone saying to pass up a good deal in OB now for a great deal in Mira Mesa in a year.

Timing the downturn is about as advisable as timing the boom. That effort did not work out so well.

[urbanrealtor]

[quote=EconProf]Go house-hunting and find a house.
Take 1% of its value.
Add that to the planned monthly cost of ownership.

PS: 1% is conservative. 1 1/2 percent more likely, 2% within the realm of possibility.[/quote]

Econ prof you say this on multiple threads.
I don’t think that it is truly applicable.

The difference in depreciation varies wildly from one micromarket to the next.

Again, you will see a stronger depreciation in certain areas (eg: Chula Vista) which in many cases means you could get a place now (or later) that would carry with little down.

This headline (the 1%) would work if we were dealing with a perfect market (interchangeable goods and complete information) but we are not.

We are dealing with a market that has dissimilar commodities, multiple non- or semi- comparable market sites, and wildly inconsistant levels of information. I don’t mean to get all John Nash on you but mapping this in Game Theory would look like a spiderweb.

I stand by what I said before. Market and econ fundamentals really are what needs to guide personal action. When or if you buy, make sure the payment is reasonable and that you are not spending wildly more than what market rent would be (in case you have to rent it). And make sure you are buying something you think you will enjoy for a few years.

Again, as prices drop further, a greater portion of them will be in less desirable areas. I would question the expertise of anyone saying to pass up a good deal in OB now for a great deal in Mira Mesa in a year.

Timing the downturn is about as advisable as timing the boom. That effort did not work out so well.

[Enorah]

[quote=EconProf]Enorah: the 1% figure is the monthly decline in value of the house if you buy now.[/quote]

Oh!

Got it

LOL

Thanks

[Enorah]

[quote=EconProf]Enorah: the 1% figure is the monthly decline in value of the house if you buy now.[/quote]

Oh!

Got it

LOL

Thanks

[Enorah]

[quote=EconProf]Enorah: the 1% figure is the monthly decline in value of the house if you buy now.[/quote]

Oh!

Got it

LOL

Thanks

[Enorah]

[quote=EconProf]Enorah: the 1% figure is the monthly decline in value of the house if you buy now.[/quote]

Oh!

Got it

LOL

Thanks

[Enorah]

[quote=EconProf]Enorah: the 1% figure is the monthly decline in value of the house if you buy now.[/quote]

Oh!

Got it

LOL

Thanks

[Cosmo31]

Enorah,

Very simple: find an area you would love to live in. I mean the ideal area (but within reason) for you and your spouse. Once your dream home comes on the market for a price you can comfortably pay, buy it. It’s your dream home so you can live in it for 15+ years.
Stop trying to time the market. You didn’t buy with all the other lemmings back at the height so you are golden. Stop stressing. Unless you want to make a total killing with an investment property; that I can’t help you with.

[Cosmo31]

Enorah,

Very simple: find an area you would love to live in. I mean the ideal area (but within reason) for you and your spouse. Once your dream home comes on the market for a price you can comfortably pay, buy it. It’s your dream home so you can live in it for 15+ years.
Stop trying to time the market. You didn’t buy with all the other lemmings back at the height so you are golden. Stop stressing. Unless you want to make a total killing with an investment property; that I can’t help you with.

[Cosmo31]

Enorah,

Very simple: find an area you would love to live in. I mean the ideal area (but within reason) for you and your spouse. Once your dream home comes on the market for a price you can comfortably pay, buy it. It’s your dream home so you can live in it for 15+ years.
Stop trying to time the market. You didn’t buy with all the other lemmings back at the height so you are golden. Stop stressing. Unless you want to make a total killing with an investment property; that I can’t help you with.

[Cosmo31]

Enorah,

Very simple: find an area you would love to live in. I mean the ideal area (but within reason) for you and your spouse. Once your dream home comes on the market for a price you can comfortably pay, buy it. It’s your dream home so you can live in it for 15+ years.
Stop trying to time the market. You didn’t buy with all the other lemmings back at the height so you are golden. Stop stressing. Unless you want to make a total killing with an investment property; that I can’t help you with.

[Author]

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