- This topic has 220 replies, 27 voices, and was last updated 15 years, 9 months ago by
Sandi Egan.
-
AuthorPosts
-
August 12, 2008 at 11:02 PM #256639August 12, 2008 at 11:19 PM #256354
CoronitaParticipantwhy is this troll post, versus say all the other political postings. Just curious. Don’t think LJ-P tread was initially meant to be trolling.
August 12, 2008 at 11:19 PM #256534CoronitaParticipantwhy is this troll post, versus say all the other political postings. Just curious. Don’t think LJ-P tread was initially meant to be trolling.
August 12, 2008 at 11:19 PM #256541CoronitaParticipantwhy is this troll post, versus say all the other political postings. Just curious. Don’t think LJ-P tread was initially meant to be trolling.
August 12, 2008 at 11:19 PM #256598CoronitaParticipantwhy is this troll post, versus say all the other political postings. Just curious. Don’t think LJ-P tread was initially meant to be trolling.
August 12, 2008 at 11:19 PM #256644CoronitaParticipantwhy is this troll post, versus say all the other political postings. Just curious. Don’t think LJ-P tread was initially meant to be trolling.
August 13, 2008 at 9:31 AM #256429Critter
ParticipantWhat about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly.
August 13, 2008 at 9:31 AM #256609ParticipantWhat about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly.
August 13, 2008 at 9:31 AM #256616ParticipantWhat about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly.
August 13, 2008 at 9:31 AM #256673ParticipantWhat about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly.
August 13, 2008 at 9:31 AM #256719ParticipantWhat about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly.
August 13, 2008 at 9:53 AM #256439(former)FormerSanDiegan
Participant[quote=Critter]What about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly. [/quote]
I am sure he means annually. Nothing wrong with using annual numbers (I prefer that actually, since you can compare to alternative investments and interest rates more easily).
And in actuality it is more like 6% + for single family homes in central San Diego (e.g. Clairemont or Mira Mesa). That’s today with fixed mortgage rates in the 6-6.5% range. Coastal areas are more like 4-5%
For perspective, in 1996 SFRs in central San Diego (e.g. Clairemont) rented at an equivalent of about 7-7.5% of their value (about $900-$1000 per month on a 150-160K house) At that time fixed mortgage rates were around 8%.
I would expect long-term rates to reach the 7-7.5% range in the current down cycle, so I would expect some more downside in prices resulting in gross rents in the 7% range in central SD. That’s another 10-15% price correction.
August 13, 2008 at 9:53 AM #256619Participant[quote=Critter]What about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly. [/quote]
I am sure he means annually. Nothing wrong with using annual numbers (I prefer that actually, since you can compare to alternative investments and interest rates more easily).
And in actuality it is more like 6% + for single family homes in central San Diego (e.g. Clairemont or Mira Mesa). That’s today with fixed mortgage rates in the 6-6.5% range. Coastal areas are more like 4-5%
For perspective, in 1996 SFRs in central San Diego (e.g. Clairemont) rented at an equivalent of about 7-7.5% of their value (about $900-$1000 per month on a 150-160K house) At that time fixed mortgage rates were around 8%.
I would expect long-term rates to reach the 7-7.5% range in the current down cycle, so I would expect some more downside in prices resulting in gross rents in the 7% range in central SD. That’s another 10-15% price correction.
August 13, 2008 at 9:53 AM #256627Participant[quote=Critter]What about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly. [/quote]
I am sure he means annually. Nothing wrong with using annual numbers (I prefer that actually, since you can compare to alternative investments and interest rates more easily).
And in actuality it is more like 6% + for single family homes in central San Diego (e.g. Clairemont or Mira Mesa). That’s today with fixed mortgage rates in the 6-6.5% range. Coastal areas are more like 4-5%
For perspective, in 1996 SFRs in central San Diego (e.g. Clairemont) rented at an equivalent of about 7-7.5% of their value (about $900-$1000 per month on a 150-160K house) At that time fixed mortgage rates were around 8%.
I would expect long-term rates to reach the 7-7.5% range in the current down cycle, so I would expect some more downside in prices resulting in gross rents in the 7% range in central SD. That’s another 10-15% price correction.
August 13, 2008 at 9:53 AM #256683Participant[quote=Critter]What about the OP’s math? He states he can buy properties where the rent “easily” covers 5% of the purchase price. So, a $500K home would rent for $25K.
What am I missing? Is he talking yearly or monthly… I always thought rent calcs should be figured monthly. [/quote]
I am sure he means annually. Nothing wrong with using annual numbers (I prefer that actually, since you can compare to alternative investments and interest rates more easily).
And in actuality it is more like 6% + for single family homes in central San Diego (e.g. Clairemont or Mira Mesa). That’s today with fixed mortgage rates in the 6-6.5% range. Coastal areas are more like 4-5%
For perspective, in 1996 SFRs in central San Diego (e.g. Clairemont) rented at an equivalent of about 7-7.5% of their value (about $900-$1000 per month on a 150-160K house) At that time fixed mortgage rates were around 8%.
I would expect long-term rates to reach the 7-7.5% range in the current down cycle, so I would expect some more downside in prices resulting in gross rents in the 7% range in central SD. That’s another 10-15% price correction.
-
AuthorPosts
- You must be logged in to reply to this topic.