How Much Longer Must We Rent?

[Coronita]

bumping this top to get all the politics OT threads at the bottom.

[ironman]

Enorah,

It helps me if I decouple the amount of money that I spent on a possible house purchase like that (in terms of loss or cost to own):

Money lost (interest , HOA, mello roos , maintenance ) – money saved (principal payment) + house depreciation

House appreciation / depreciation is unknown (just kidding – 10% is pretty much in the bag, negative of course)
Everything else is deterministic, so make appreciation flat (just for fun) and see for 1 year what you would have spent/saved. Then try with depreciation at 10 %.
You get a number which is your yearly cost to own. Compare it with yearly cost to rent for similar house in similar neighborhood.
Then you can judge how delaying your buying for 1 year would affect you financially.

My advice is to pick a neighborhood that you would like to buy in and find a house to rent. In 1 year you re-evaluate your buying desire again (financially). You can even buy the house that you rented much cheaper plus you would have some money saved.

Ironman

[ironman]

Enorah,

It helps me if I decouple the amount of money that I spent on a possible house purchase like that (in terms of loss or cost to own):

Money lost (interest , HOA, mello roos , maintenance ) – money saved (principal payment) + house depreciation

House appreciation / depreciation is unknown (just kidding – 10% is pretty much in the bag, negative of course)
Everything else is deterministic, so make appreciation flat (just for fun) and see for 1 year what you would have spent/saved. Then try with depreciation at 10 %.
You get a number which is your yearly cost to own. Compare it with yearly cost to rent for similar house in similar neighborhood.
Then you can judge how delaying your buying for 1 year would affect you financially.

My advice is to pick a neighborhood that you would like to buy in and find a house to rent. In 1 year you re-evaluate your buying desire again (financially). You can even buy the house that you rented much cheaper plus you would have some money saved.

Ironman

[ironman]

Enorah,

It helps me if I decouple the amount of money that I spent on a possible house purchase like that (in terms of loss or cost to own):

Money lost (interest , HOA, mello roos , maintenance ) – money saved (principal payment) + house depreciation

House appreciation / depreciation is unknown (just kidding – 10% is pretty much in the bag, negative of course)
Everything else is deterministic, so make appreciation flat (just for fun) and see for 1 year what you would have spent/saved. Then try with depreciation at 10 %.
You get a number which is your yearly cost to own. Compare it with yearly cost to rent for similar house in similar neighborhood.
Then you can judge how delaying your buying for 1 year would affect you financially.

My advice is to pick a neighborhood that you would like to buy in and find a house to rent. In 1 year you re-evaluate your buying desire again (financially). You can even buy the house that you rented much cheaper plus you would have some money saved.

Ironman

[ironman]

Enorah,

It helps me if I decouple the amount of money that I spent on a possible house purchase like that (in terms of loss or cost to own):

Money lost (interest , HOA, mello roos , maintenance ) – money saved (principal payment) + house depreciation

House appreciation / depreciation is unknown (just kidding – 10% is pretty much in the bag, negative of course)
Everything else is deterministic, so make appreciation flat (just for fun) and see for 1 year what you would have spent/saved. Then try with depreciation at 10 %.
You get a number which is your yearly cost to own. Compare it with yearly cost to rent for similar house in similar neighborhood.
Then you can judge how delaying your buying for 1 year would affect you financially.

My advice is to pick a neighborhood that you would like to buy in and find a house to rent. In 1 year you re-evaluate your buying desire again (financially). You can even buy the house that you rented much cheaper plus you would have some money saved.

Ironman

[ironman]

Enorah,

It helps me if I decouple the amount of money that I spent on a possible house purchase like that (in terms of loss or cost to own):

Money lost (interest , HOA, mello roos , maintenance ) – money saved (principal payment) + house depreciation

House appreciation / depreciation is unknown (just kidding – 10% is pretty much in the bag, negative of course)
Everything else is deterministic, so make appreciation flat (just for fun) and see for 1 year what you would have spent/saved. Then try with depreciation at 10 %.
You get a number which is your yearly cost to own. Compare it with yearly cost to rent for similar house in similar neighborhood.
Then you can judge how delaying your buying for 1 year would affect you financially.

My advice is to pick a neighborhood that you would like to buy in and find a house to rent. In 1 year you re-evaluate your buying desire again (financially). You can even buy the house that you rented much cheaper plus you would have some money saved.

Ironman

[PadreBrian]

I too recommend renting (if you can find one longer than 2 months due to it being foreclosed on) and jump on a house that you love…and don’t mind that it goes down in value in the next year by 10%. BUT, also factor in the interest rate. 3 years from now the interest rate will go up to it’s normal historic levels to support the US dollar…8-10% average. In the 80’s Regan had it at 14%+.

[PadreBrian]

I too recommend renting (if you can find one longer than 2 months due to it being foreclosed on) and jump on a house that you love…and don’t mind that it goes down in value in the next year by 10%. BUT, also factor in the interest rate. 3 years from now the interest rate will go up to it’s normal historic levels to support the US dollar…8-10% average. In the 80’s Regan had it at 14%+.

[PadreBrian]

I too recommend renting (if you can find one longer than 2 months due to it being foreclosed on) and jump on a house that you love…and don’t mind that it goes down in value in the next year by 10%. BUT, also factor in the interest rate. 3 years from now the interest rate will go up to it’s normal historic levels to support the US dollar…8-10% average. In the 80’s Regan had it at 14%+.

[PadreBrian]

I too recommend renting (if you can find one longer than 2 months due to it being foreclosed on) and jump on a house that you love…and don’t mind that it goes down in value in the next year by 10%. BUT, also factor in the interest rate. 3 years from now the interest rate will go up to it’s normal historic levels to support the US dollar…8-10% average. In the 80’s Regan had it at 14%+.

[PadreBrian]

I too recommend renting (if you can find one longer than 2 months due to it being foreclosed on) and jump on a house that you love…and don’t mind that it goes down in value in the next year by 10%. BUT, also factor in the interest rate. 3 years from now the interest rate will go up to it’s normal historic levels to support the US dollar…8-10% average. In the 80’s Regan had it at 14%+.

[TheBreeze]

I’m predicting a housing bottom in 2016, so you shouldn’t have to rent much longer. Hang in there.

[TheBreeze]

I’m predicting a housing bottom in 2016, so you shouldn’t have to rent much longer. Hang in there.

[TheBreeze]

I’m predicting a housing bottom in 2016, so you shouldn’t have to rent much longer. Hang in there.

[TheBreeze]

I’m predicting a housing bottom in 2016, so you shouldn’t have to rent much longer. Hang in there.

[Author]

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