How much to pay in rent

[SD Realtor]

ctlmdjb –

I would agree that with only a 3 year time horizon, that my strong advice to you would be to rent verses buying. The downside risk is just to great for that small of a time horizon. I think that is by far the greatest factor to consider in the equation. If your time horizon was much farther out then perhaps the conversation goes in a different direction. If you would like to email me you can at [email protected]. Remember there is SD Realtor (me) and there is sdrealtor. We both post on this site.

Again though I would recommend renting if you plan on staying only 3 years.

SD Realtor

[sdrealtor]

If you want more information from me, come back here when you are ready to look and I’ll point you in the right direction. I know lots of long time owners that rent out nice homes as well as all the property management companies. As pleasant as your dog might be, I’m sure you realize it presents a challenge for you.

You can also reach me at [email protected].

[Anonymous]

sdr, what is the meaning of your e-mail address? Is it, “I’m a real estate ‘ho'”? If yes, will you be seeking counsel from Imus on how to minimize the untoward career impact from such a racist/sexist ‘handle’? How will you keep Jackson and Sharpton at bay? Inquiring minds want to know, ho!

[sdrealtor]

Good catch JG! I was wondering if anyone would. Just a little harmless fun.

[Enorah]

I posted this here on another thread.

It gives you comps of other rentals in a specific area

http://www.rentometer.com/

I am also moving to the North County Coastal area. I’ll be there next week to find a place to live

[PerryChase]

isn’t it “I am a real estate home owner”?

[sdrealtor]

yeah that too

[23109VC]

i’ve been through the rent vs. buy scenario a LOT lately.

I have rented the last year and am glad I did. one year ago prices in my area were quite a bit higher than they are now. they seem to have come down a bit. will they come down more…maybe….good chance they will..but how much no one knows.

do your taxes…on sometehing like turbo tax and then look at your net taxes. figure your taxes on this software WiTH the mortgage deductions for the anticpated mortgage interest and the anticipated propety taxes. t hen figure it w/out those writeoffs.

see what your net difference is. i figured for me it was about 700-800 month tax savings to buy a 350-400k house.

so factor whatever you pay in rent…add that amount to it. for me…renting the house i want..or like what I am in now..would be about 1800/month. 2000 max. add that 800 and you can figure that a 1800 rental is like a purchase of 2600.

the principal isn’t something you should realy factor as it’s not a renting cost…you could figure it’s money back in your pocket in that you’re paying down the loan that much… but to compare apples to apples..

i like the idea of comparing interst on the laon vs the rent payment. that way you are comparing renting the money vs. renting the house.

then you have to factor int he non-financial things. do you like moving at the whim of a landlord, do you need to be able to tweak things or mod the house to your lking in a way a landlord would not allow… etc.

renting has some serious upsides.

in temecula you can rent a NICE house for 2000/month. 2500 sq ft, fully upgraded, in a nice area. to buy that house would cost $500-600k. no way you can buy that for a close to th rent evne when you factor in the tax writeoff.

[Anonymous]

Perry, it’s that when Reverends (guffaw) Jackson and Sharpton come a knockin’ at the door.

Fun ‘handle,’ sdr!

[citydweller]

VC,
You forgot to add the $350 per month in property taxes that you have to pay as an owner on $350K purchase.

[23109VC]

here in temecula, it would be amost 600 in many areas b/c taxes hit almost 2% in many neighborhoods!! but yet..you re right.

rent vs. buy.

consider rent cost vs. interest payment + taxes – writeoff

you wind up with rent vs net housing payment.

the only hangup is that if you buy and do a normal loan, you are paying down principal..so the actual payment for the hosue will be more as you are doing principal reduction….so cash flow month to month expect to pay a bit more for ahouse…. but if yo want to consider apples toa pples…look at rent vs net cost of mortage interest + taxes.

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