Renting Vs Buying: Absolutely No Contest

[h82rent]

PadreBrian, I too live at Archstone for 4 years or so, and have dealt with big rental increases in some years, not so much in other years. They now have their rates published (at http://www.archstone.com). Here’s what I’ve been advised by the staff. Look at the prices and wait until the end of the week and end of the month. That’s when prices are lowest. Also, an 11-month term might be far cheaper than a year-lease.

That said, I think I overpay for my SMALL (621 square foot place). If they increase it much more, it will be too ridiculous to justify. But I currently pay less than what I’d pay to rent a condo or home in this area. The size is starting to drive me crazy, but oddly enough, I just did a rent-versus-own calculation – online and on my own – on a home I could afford, but would be happy with it too. And it wasn’t even comparable right now.

But I’m sacrificing some happiness now, for bigger happiness later. Kind of like a happiness investment. Don’t ask me for the ROI of this investment type, as I’m not too sure what the formula is. I’m sure the Piggs could figure it out, though, and post a big spreadsheet showing breakeven points, various trends, and other nerdy data that I find absolutely ridiculous… and personally spend hours at a time staring at.

[PadreBrian]

Yeah, prices will probably be their lowest this winter, then pick back up this next spring.

Archstone, after they merged with Smith was the worst in rent increases. JP Morgan then bought the combined company in 2006 I think…right after they painted everything. haha

[PadreBrian]

Yeah, prices will probably be their lowest this winter, then pick back up this next spring.

Archstone, after they merged with Smith was the worst in rent increases. JP Morgan then bought the combined company in 2006 I think…right after they painted everything. haha

[PadreBrian]

Yeah, prices will probably be their lowest this winter, then pick back up this next spring.

Archstone, after they merged with Smith was the worst in rent increases. JP Morgan then bought the combined company in 2006 I think…right after they painted everything. haha

[PadreBrian]

Yeah, prices will probably be their lowest this winter, then pick back up this next spring.

Archstone, after they merged with Smith was the worst in rent increases. JP Morgan then bought the combined company in 2006 I think…right after they painted everything. haha

[PadreBrian]

Yeah, prices will probably be their lowest this winter, then pick back up this next spring.

Archstone, after they merged with Smith was the worst in rent increases. JP Morgan then bought the combined company in 2006 I think…right after they painted everything. haha

[beanmaestro]

A lot of the renting specifics are too darn landlord-specific. He stays out of our hair, only fixes the necessities, and could care less if we paint. Our rent (half-duplex, 900 sqft + decent yard) has only gone from $1580 to $1650 in six years. We’ll cheerfully stay until we know the housing market is bottomed.

However, we have plenty of friends who are seeing regular rent increases (although these have been lower since the housing peak), annoying landlords who pretend to be the handyman, etc. Were we in one of those, I’m sure money wouldn’t be the only factor.

Also, second the recommendation of the NYTimes calculator above.

[beanmaestro]

A lot of the renting specifics are too darn landlord-specific. He stays out of our hair, only fixes the necessities, and could care less if we paint. Our rent (half-duplex, 900 sqft + decent yard) has only gone from $1580 to $1650 in six years. We’ll cheerfully stay until we know the housing market is bottomed.

However, we have plenty of friends who are seeing regular rent increases (although these have been lower since the housing peak), annoying landlords who pretend to be the handyman, etc. Were we in one of those, I’m sure money wouldn’t be the only factor.

Also, second the recommendation of the NYTimes calculator above.

[beanmaestro]

A lot of the renting specifics are too darn landlord-specific. He stays out of our hair, only fixes the necessities, and could care less if we paint. Our rent (half-duplex, 900 sqft + decent yard) has only gone from $1580 to $1650 in six years. We’ll cheerfully stay until we know the housing market is bottomed.

However, we have plenty of friends who are seeing regular rent increases (although these have been lower since the housing peak), annoying landlords who pretend to be the handyman, etc. Were we in one of those, I’m sure money wouldn’t be the only factor.

Also, second the recommendation of the NYTimes calculator above.

[beanmaestro]

A lot of the renting specifics are too darn landlord-specific. He stays out of our hair, only fixes the necessities, and could care less if we paint. Our rent (half-duplex, 900 sqft + decent yard) has only gone from $1580 to $1650 in six years. We’ll cheerfully stay until we know the housing market is bottomed.

However, we have plenty of friends who are seeing regular rent increases (although these have been lower since the housing peak), annoying landlords who pretend to be the handyman, etc. Were we in one of those, I’m sure money wouldn’t be the only factor.

Also, second the recommendation of the NYTimes calculator above.

[beanmaestro]

A lot of the renting specifics are too darn landlord-specific. He stays out of our hair, only fixes the necessities, and could care less if we paint. Our rent (half-duplex, 900 sqft + decent yard) has only gone from $1580 to $1650 in six years. We’ll cheerfully stay until we know the housing market is bottomed.

However, we have plenty of friends who are seeing regular rent increases (although these have been lower since the housing peak), annoying landlords who pretend to be the handyman, etc. Were we in one of those, I’m sure money wouldn’t be the only factor.

Also, second the recommendation of the NYTimes calculator above.

[NotCranky]

[quote=cooprider]This is the best rent vs. buy calculator I’ve come across

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=1&ex=1185336000&en=92a35496df194374&ei=5070&oref=slogin#

True with renting you don’t own the place, but typically there is a savings in renting, and after 30 years of accumulating that savings you can end up with more cash depending on your rate or return.

Since the claim is the market typically returns 10%/yr you’d likely end up better than a house that returns 2-4%/yr. And you’d still have to sell the house.[/quote]

I think you must be leaving equity and the beneficial proportionate cash flow shift of later years of owning out of the picture. The person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.

Rent impedes one’s ability to invest the same as a mortgage does. Rent impedes it in perpetuity and gets worse with time as compared to a fixed mortgage. People are bothered by risk and poor returns now but they could be cutting into future costs of shelter with those poorly performing investment dollars instead.

I am assuming we are considering reasonable timing in the purchase of a house or condo and rent at or near their initital mortgage payment threshold.

[NotCranky]

[quote=cooprider]This is the best rent vs. buy calculator I’ve come across

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=1&ex=1185336000&en=92a35496df194374&ei=5070&oref=slogin#

True with renting you don’t own the place, but typically there is a savings in renting, and after 30 years of accumulating that savings you can end up with more cash depending on your rate or return.

Since the claim is the market typically returns 10%/yr you’d likely end up better than a house that returns 2-4%/yr. And you’d still have to sell the house.[/quote]

I think you must be leaving equity and the beneficial proportionate cash flow shift of later years of owning out of the picture. The person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.

Rent impedes one’s ability to invest the same as a mortgage does. Rent impedes it in perpetuity and gets worse with time as compared to a fixed mortgage. People are bothered by risk and poor returns now but they could be cutting into future costs of shelter with those poorly performing investment dollars instead.

I am assuming we are considering reasonable timing in the purchase of a house or condo and rent at or near their initital mortgage payment threshold.

[NotCranky]

[quote=cooprider]This is the best rent vs. buy calculator I’ve come across

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=1&ex=1185336000&en=92a35496df194374&ei=5070&oref=slogin#

True with renting you don’t own the place, but typically there is a savings in renting, and after 30 years of accumulating that savings you can end up with more cash depending on your rate or return.

Since the claim is the market typically returns 10%/yr you’d likely end up better than a house that returns 2-4%/yr. And you’d still have to sell the house.[/quote]

I think you must be leaving equity and the beneficial proportionate cash flow shift of later years of owning out of the picture. The person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.

Rent impedes one’s ability to invest the same as a mortgage does. Rent impedes it in perpetuity and gets worse with time as compared to a fixed mortgage. People are bothered by risk and poor returns now but they could be cutting into future costs of shelter with those poorly performing investment dollars instead.

I am assuming we are considering reasonable timing in the purchase of a house or condo and rent at or near their initital mortgage payment threshold.

[NotCranky]

[quote=cooprider]This is the best rent vs. buy calculator I’ve come across

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=1&ex=1185336000&en=92a35496df194374&ei=5070&oref=slogin#

True with renting you don’t own the place, but typically there is a savings in renting, and after 30 years of accumulating that savings you can end up with more cash depending on your rate or return.

Since the claim is the market typically returns 10%/yr you’d likely end up better than a house that returns 2-4%/yr. And you’d still have to sell the house.[/quote]

I think you must be leaving equity and the beneficial proportionate cash flow shift of later years of owning out of the picture. The person who has not accomplished home ownership often uses up or uses a good portion, of their assets or retirement benefits or to provide shelter(to taste) in their later years.

Rent impedes one’s ability to invest the same as a mortgage does. Rent impedes it in perpetuity and gets worse with time as compared to a fixed mortgage. People are bothered by risk and poor returns now but they could be cutting into future costs of shelter with those poorly performing investment dollars instead.

I am assuming we are considering reasonable timing in the purchase of a house or condo and rent at or near their initital mortgage payment threshold.

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