Spring Buying Season

[gn]

Asianautica, thanks for posting the house on 8470 Pallux Way.

With a 20% down payment, the total cost of ownership (mortgage + property tax + insurance – tax deduction) of this house is about the same as renting.

With that said, I think the following is going to occur:

1. Prices will go down a bit more & become attractive for investors to scoop them up.
2. The increase in the rental supply (b/c investors rent these houses out) will result lower rents.

#1 & #2 will repeat in a vicious cycle. I think the early investors will lose money because lower rents effectively create a new “floor” for prices.

The bottom for houses like the one on Pallux Way: $200k – $250k

[Eugene]

http://www.bankrate.com/usergraph/chart_img.aspx?tf=180&ct=Line&prods=1&gs=275,250&st=zz&c3d=False&bgcolor=&topgap=&bottomgap=&rightgap=&leftgap=&seriescolor=

[Eugene]

http://www.bankrate.com/usergraph/chart_img.aspx?tf=180&ct=Line&prods=1&gs=275,250&st=zz&c3d=False&bgcolor=&topgap=&bottomgap=&rightgap=&leftgap=&seriescolor=

[Eugene]

http://www.bankrate.com/usergraph/chart_img.aspx?tf=180&ct=Line&prods=1&gs=275,250&st=zz&c3d=False&bgcolor=&topgap=&bottomgap=&rightgap=&leftgap=&seriescolor=

[Eugene]

http://www.bankrate.com/usergraph/chart_img.aspx?tf=180&ct=Line&prods=1&gs=275,250&st=zz&c3d=False&bgcolor=&topgap=&bottomgap=&rightgap=&leftgap=&seriescolor=

[Eugene]

http://www.bankrate.com/usergraph/chart_img.aspx?tf=180&ct=Line&prods=1&gs=275,250&st=zz&c3d=False&bgcolor=&topgap=&bottomgap=&rightgap=&leftgap=&seriescolor=

[an]

Thanks for the graph esmith. I guess 30 yr. fixed doesn’t follow 10 yr T-Bill to a T huh? Now you’re argument makes much more sense.

[an]

Thanks for the graph esmith. I guess 30 yr. fixed doesn’t follow 10 yr T-Bill to a T huh? Now you’re argument makes much more sense.

[an]

Thanks for the graph esmith. I guess 30 yr. fixed doesn’t follow 10 yr T-Bill to a T huh? Now you’re argument makes much more sense.

[an]

Thanks for the graph esmith. I guess 30 yr. fixed doesn’t follow 10 yr T-Bill to a T huh? Now you’re argument makes much more sense.

[an]

Thanks for the graph esmith. I guess 30 yr. fixed doesn’t follow 10 yr T-Bill to a T huh? Now you’re argument makes much more sense.

[an]

gn, both of those condition are speculation. All I know is that rent for these house last year were on average about $100/month cheaper and these rental are getting snapped up pretty quickly. So I don’t see the rental demand vs supply reversing. I never meant to say that it pencil out as a rental, but it does pencil out as a principal resident for someone who want to buy now. Base on your 20% down, PITI – Tax deduction, I get, about $1300/month (assuming you’re in the 37% tax bracket and 1.1% property tax rate). So, where can you rent a 3bed/2bath house in MM for $1300/month? I’d love to know, cuz I’m looking for a 3bed/2bath house to rent in MM right now.

Also, I’d love to know how you come up w/ the $200-250k # as the bottom and which interest rate you use. Since at today’s rate, you’re talking about P+I = $960-1200/month.

[an]

gn, both of those condition are speculation. All I know is that rent for these house last year were on average about $100/month cheaper and these rental are getting snapped up pretty quickly. So I don’t see the rental demand vs supply reversing. I never meant to say that it pencil out as a rental, but it does pencil out as a principal resident for someone who want to buy now. Base on your 20% down, PITI – Tax deduction, I get, about $1300/month (assuming you’re in the 37% tax bracket and 1.1% property tax rate). So, where can you rent a 3bed/2bath house in MM for $1300/month? I’d love to know, cuz I’m looking for a 3bed/2bath house to rent in MM right now.

Also, I’d love to know how you come up w/ the $200-250k # as the bottom and which interest rate you use. Since at today’s rate, you’re talking about P+I = $960-1200/month.

[an]

gn, both of those condition are speculation. All I know is that rent for these house last year were on average about $100/month cheaper and these rental are getting snapped up pretty quickly. So I don’t see the rental demand vs supply reversing. I never meant to say that it pencil out as a rental, but it does pencil out as a principal resident for someone who want to buy now. Base on your 20% down, PITI – Tax deduction, I get, about $1300/month (assuming you’re in the 37% tax bracket and 1.1% property tax rate). So, where can you rent a 3bed/2bath house in MM for $1300/month? I’d love to know, cuz I’m looking for a 3bed/2bath house to rent in MM right now.

Also, I’d love to know how you come up w/ the $200-250k # as the bottom and which interest rate you use. Since at today’s rate, you’re talking about P+I = $960-1200/month.

[an]

gn, both of those condition are speculation. All I know is that rent for these house last year were on average about $100/month cheaper and these rental are getting snapped up pretty quickly. So I don’t see the rental demand vs supply reversing. I never meant to say that it pencil out as a rental, but it does pencil out as a principal resident for someone who want to buy now. Base on your 20% down, PITI – Tax deduction, I get, about $1300/month (assuming you’re in the 37% tax bracket and 1.1% property tax rate). So, where can you rent a 3bed/2bath house in MM for $1300/month? I’d love to know, cuz I’m looking for a 3bed/2bath house to rent in MM right now.

Also, I’d love to know how you come up w/ the $200-250k # as the bottom and which interest rate you use. Since at today’s rate, you’re talking about P+I = $960-1200/month.

[Author]

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