Price/Rent Ratios

[sd_t2]

OK, I’m having some trouble with something. Namely, price/rent ratios.

I guess in the condo market, at least, say a $325,000 condo at 6% 30yr fixed. Even assuming no money down for the sake of argument, this pencils out to:

$1950 monthly mortgage payment
$300 monthly property tax (1.1%)
$250 montly HOA (assuming)

= $2500 total per month.

The total tax deduction (interest and property) is 23100, which is 17,750 above the standard deduction.

At the 25% tax bracket, that additional tax savings puts back $370/month, making the net:

$2130

Not cheap, but rents at the types of apartments that I’d actually live in (I’m sure there are some ‘deals’ out there) range from $1800 to $2100.

So… I guess I’m not seeing this huge discrepancy in price/rent ratio that everyone keeps claiming.

Either rents are poised for freefall, or things are pretty much in equilibrium at the condo vs. apartment level.

Educate me.

[sd_t2]

I forgot state tax savings, let’s call it $100/month blended.

[sd_t2]

I forgot state tax savings, let’s call it $100/month blended.

[sd_t2]

I forgot state tax savings, let’s call it $100/month blended.

[sd_t2]

I forgot state tax savings, let’s call it $100/month blended.

[sd_t2]

I forgot state tax savings, let’s call it $100/month blended.

[lendingbubblecontinues]

I think I’d need to see an example of a $325,000 condo that would rent for $2,100.

We currently live in a nice 4/2 bath house in one of the fire-affected communities of RB and our rent for the past five years has been approximately $2,200-$2,300 the whole time. I assure you the house we’re in has been bubbling around the 550-750K range the entire time we’ve been here too.

Rest assured…price/rent ratio is still whack for condos and single family.

[lendingbubblecontinues]

I think I’d need to see an example of a $325,000 condo that would rent for $2,100.

We currently live in a nice 4/2 bath house in one of the fire-affected communities of RB and our rent for the past five years has been approximately $2,200-$2,300 the whole time. I assure you the house we’re in has been bubbling around the 550-750K range the entire time we’ve been here too.

Rest assured…price/rent ratio is still whack for condos and single family.

[lendingbubblecontinues]

I think I’d need to see an example of a $325,000 condo that would rent for $2,100.

We currently live in a nice 4/2 bath house in one of the fire-affected communities of RB and our rent for the past five years has been approximately $2,200-$2,300 the whole time. I assure you the house we’re in has been bubbling around the 550-750K range the entire time we’ve been here too.

Rest assured…price/rent ratio is still whack for condos and single family.

[lendingbubblecontinues]

I think I’d need to see an example of a $325,000 condo that would rent for $2,100.

We currently live in a nice 4/2 bath house in one of the fire-affected communities of RB and our rent for the past five years has been approximately $2,200-$2,300 the whole time. I assure you the house we’re in has been bubbling around the 550-750K range the entire time we’ve been here too.

Rest assured…price/rent ratio is still whack for condos and single family.

[lendingbubblecontinues]

I think I’d need to see an example of a $325,000 condo that would rent for $2,100.

We currently live in a nice 4/2 bath house in one of the fire-affected communities of RB and our rent for the past five years has been approximately $2,200-$2,300 the whole time. I assure you the house we’re in has been bubbling around the 550-750K range the entire time we’ve been here too.

Rest assured…price/rent ratio is still whack for condos and single family.

[sd_t2]

>>
>> I think I’d need to see an example of a $325,000 condo that >> would rent for $2,100.

I’m thinking more apartments. Here’s a sampling, there are plenty of others.

http://www.equityapartments.com/market/brochure.aspx?page=overview&PropID=522

http://www.portofinoapthomes.com/

“You’ll find one bedroom apartments for rent from $1499, two bedroom apartments for rent from $1899 and three bedroom apartments for rent from $2599.”

http://www.eveningcreek.info/

“You’ll find two bedroom apartments for rent from $2040.”

[sd_t2]

>>
>> I think I’d need to see an example of a $325,000 condo that >> would rent for $2,100.

I’m thinking more apartments. Here’s a sampling, there are plenty of others.

http://www.equityapartments.com/market/brochure.aspx?page=overview&PropID=522

http://www.portofinoapthomes.com/

“You’ll find one bedroom apartments for rent from $1499, two bedroom apartments for rent from $1899 and three bedroom apartments for rent from $2599.”

http://www.eveningcreek.info/

“You’ll find two bedroom apartments for rent from $2040.”

[sd_t2]

>>
>> I think I’d need to see an example of a $325,000 condo that >> would rent for $2,100.

I’m thinking more apartments. Here’s a sampling, there are plenty of others.

http://www.equityapartments.com/market/brochure.aspx?page=overview&PropID=522

http://www.portofinoapthomes.com/

“You’ll find one bedroom apartments for rent from $1499, two bedroom apartments for rent from $1899 and three bedroom apartments for rent from $2599.”

http://www.eveningcreek.info/

“You’ll find two bedroom apartments for rent from $2040.”

[sd_t2]

>>
>> I think I’d need to see an example of a $325,000 condo that >> would rent for $2,100.

I’m thinking more apartments. Here’s a sampling, there are plenty of others.

http://www.equityapartments.com/market/brochure.aspx?page=overview&PropID=522

http://www.portofinoapthomes.com/

“You’ll find one bedroom apartments for rent from $1499, two bedroom apartments for rent from $1899 and three bedroom apartments for rent from $2599.”

http://www.eveningcreek.info/

“You’ll find two bedroom apartments for rent from $2040.”

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