Three years renting, yearly update

[stockstradr]

We’ve rented since we dumped our San Diego condo in late 2004, and it certainly has NOT sucked.

We sold that condo to an investor, who then rented that same condo back to us. We never moved. It was such an odd story that the WSJ actually wrote a front-page article that included that story about us and our condo. COST ANALYSIS: that investor lost on average $6,000 in equity per month, for every month we paid him $1,500 in rent. (That condo declined in value from $405K down to $280K.)

Then we moved to Silicon Valley where we rented a 2,200 sq ft home for $2,600/month. We rented from the most successful (by sales volume) husband-wife Realtor team in Silicon Valley, yet they didn’t anticipate the housing crash. COST ANALYSIS: this landlord has thus far lost $12,000 (no joking) in equity PER MONTH, for every month we’ve so far rented this home from them. (Their rental property declined in value during that period from $850K down to less than $700K.)

It can really pay to rent!

[CA renter]

We sold our house in mid-2004 for ~$400K, and rented a much larger house in a much nicer neighborhood for $2,000/mo. the first year, and $2,100/mo. thereafter — a grand total of $112,200 (just marked 4.5 years).

There is a model-match of the house we sold now listed for $190K, so we saved over $200K there. We also used some of that money to short homebuilders, banks, lenders, retailers, etc. and made a fair amount there (would have been **much** more if my timing were more precise, but that’s life).

We’ve not had to pay property tax, insurance, or interest payments on an overpriced house. We haven’t had to worry about the big maintenance bills, though we help with some of the maintenance. The big bills have added up to about $15,000+ for our LL.

The house we’re living in (and comparable to what we’d like to buy) is in one of the “resistant” areas, but it has still lost about $100K-$150K since the peak.

Now, with the economy the way it is, we like the idea that we can pick up and move any time we need/want to do so.

It’s all relative…

[CA renter]

We sold our house in mid-2004 for ~$400K, and rented a much larger house in a much nicer neighborhood for $2,000/mo. the first year, and $2,100/mo. thereafter — a grand total of $112,200 (just marked 4.5 years).

There is a model-match of the house we sold now listed for $190K, so we saved over $200K there. We also used some of that money to short homebuilders, banks, lenders, retailers, etc. and made a fair amount there (would have been **much** more if my timing were more precise, but that’s life).

We’ve not had to pay property tax, insurance, or interest payments on an overpriced house. We haven’t had to worry about the big maintenance bills, though we help with some of the maintenance. The big bills have added up to about $15,000+ for our LL.

The house we’re living in (and comparable to what we’d like to buy) is in one of the “resistant” areas, but it has still lost about $100K-$150K since the peak.

Now, with the economy the way it is, we like the idea that we can pick up and move any time we need/want to do so.

It’s all relative…

[CA renter]

We sold our house in mid-2004 for ~$400K, and rented a much larger house in a much nicer neighborhood for $2,000/mo. the first year, and $2,100/mo. thereafter — a grand total of $112,200 (just marked 4.5 years).

There is a model-match of the house we sold now listed for $190K, so we saved over $200K there. We also used some of that money to short homebuilders, banks, lenders, retailers, etc. and made a fair amount there (would have been **much** more if my timing were more precise, but that’s life).

We’ve not had to pay property tax, insurance, or interest payments on an overpriced house. We haven’t had to worry about the big maintenance bills, though we help with some of the maintenance. The big bills have added up to about $15,000+ for our LL.

The house we’re living in (and comparable to what we’d like to buy) is in one of the “resistant” areas, but it has still lost about $100K-$150K since the peak.

Now, with the economy the way it is, we like the idea that we can pick up and move any time we need/want to do so.

It’s all relative…

[CA renter]

We sold our house in mid-2004 for ~$400K, and rented a much larger house in a much nicer neighborhood for $2,000/mo. the first year, and $2,100/mo. thereafter — a grand total of $112,200 (just marked 4.5 years).

There is a model-match of the house we sold now listed for $190K, so we saved over $200K there. We also used some of that money to short homebuilders, banks, lenders, retailers, etc. and made a fair amount there (would have been **much** more if my timing were more precise, but that’s life).

We’ve not had to pay property tax, insurance, or interest payments on an overpriced house. We haven’t had to worry about the big maintenance bills, though we help with some of the maintenance. The big bills have added up to about $15,000+ for our LL.

The house we’re living in (and comparable to what we’d like to buy) is in one of the “resistant” areas, but it has still lost about $100K-$150K since the peak.

Now, with the economy the way it is, we like the idea that we can pick up and move any time we need/want to do so.

It’s all relative…

[CA renter]

We sold our house in mid-2004 for ~$400K, and rented a much larger house in a much nicer neighborhood for $2,000/mo. the first year, and $2,100/mo. thereafter — a grand total of $112,200 (just marked 4.5 years).

There is a model-match of the house we sold now listed for $190K, so we saved over $200K there. We also used some of that money to short homebuilders, banks, lenders, retailers, etc. and made a fair amount there (would have been **much** more if my timing were more precise, but that’s life).

We’ve not had to pay property tax, insurance, or interest payments on an overpriced house. We haven’t had to worry about the big maintenance bills, though we help with some of the maintenance. The big bills have added up to about $15,000+ for our LL.

The house we’re living in (and comparable to what we’d like to buy) is in one of the “resistant” areas, but it has still lost about $100K-$150K since the peak.

Now, with the economy the way it is, we like the idea that we can pick up and move any time we need/want to do so.

It’s all relative…

[poorsaver]

EconProf, the numbers do add up. The area I’m talking about is Diamond Bar. I live in an exclusive community called “The Country”. Perhaps you saw it on TV news with the recent fires. It was one of the evacuated neighborhoods. I sold my house for $2.0M in Nov.’05. True, San Diego peaked at that time, buy my particular area didn’t peak until mid to late ’07. Here’s the zillow link: http://www.zillow.com/homedetails/1813-Diamond-Knoll-Ln-Diamond-Bar-CA-91765/21661162_zpid

Per zillow, which I know has it’s inconsistencies, it’s currently valued at $2.4M. Checking with my realtor, it does seem to be accurate. So my originally posted math is correct. It does concern me that for each year I rent, over $30K is going bye bye for a house that is not mine. At some point I’m sure that the rent spent will exceed the savings from any decline. I am hoping that this (2009) will finally be the year that my area will get hit, and hit hard to make it all worthwhile.

[poorsaver]

EconProf, the numbers do add up. The area I’m talking about is Diamond Bar. I live in an exclusive community called “The Country”. Perhaps you saw it on TV news with the recent fires. It was one of the evacuated neighborhoods. I sold my house for $2.0M in Nov.’05. True, San Diego peaked at that time, buy my particular area didn’t peak until mid to late ’07. Here’s the zillow link: http://www.zillow.com/homedetails/1813-Diamond-Knoll-Ln-Diamond-Bar-CA-91765/21661162_zpid

Per zillow, which I know has it’s inconsistencies, it’s currently valued at $2.4M. Checking with my realtor, it does seem to be accurate. So my originally posted math is correct. It does concern me that for each year I rent, over $30K is going bye bye for a house that is not mine. At some point I’m sure that the rent spent will exceed the savings from any decline. I am hoping that this (2009) will finally be the year that my area will get hit, and hit hard to make it all worthwhile.

[poorsaver]

EconProf, the numbers do add up. The area I’m talking about is Diamond Bar. I live in an exclusive community called “The Country”. Perhaps you saw it on TV news with the recent fires. It was one of the evacuated neighborhoods. I sold my house for $2.0M in Nov.’05. True, San Diego peaked at that time, buy my particular area didn’t peak until mid to late ’07. Here’s the zillow link: http://www.zillow.com/homedetails/1813-Diamond-Knoll-Ln-Diamond-Bar-CA-91765/21661162_zpid

Per zillow, which I know has it’s inconsistencies, it’s currently valued at $2.4M. Checking with my realtor, it does seem to be accurate. So my originally posted math is correct. It does concern me that for each year I rent, over $30K is going bye bye for a house that is not mine. At some point I’m sure that the rent spent will exceed the savings from any decline. I am hoping that this (2009) will finally be the year that my area will get hit, and hit hard to make it all worthwhile.

[poorsaver]

EconProf, the numbers do add up. The area I’m talking about is Diamond Bar. I live in an exclusive community called “The Country”. Perhaps you saw it on TV news with the recent fires. It was one of the evacuated neighborhoods. I sold my house for $2.0M in Nov.’05. True, San Diego peaked at that time, buy my particular area didn’t peak until mid to late ’07. Here’s the zillow link: http://www.zillow.com/homedetails/1813-Diamond-Knoll-Ln-Diamond-Bar-CA-91765/21661162_zpid

Per zillow, which I know has it’s inconsistencies, it’s currently valued at $2.4M. Checking with my realtor, it does seem to be accurate. So my originally posted math is correct. It does concern me that for each year I rent, over $30K is going bye bye for a house that is not mine. At some point I’m sure that the rent spent will exceed the savings from any decline. I am hoping that this (2009) will finally be the year that my area will get hit, and hit hard to make it all worthwhile.

[poorsaver]

EconProf, the numbers do add up. The area I’m talking about is Diamond Bar. I live in an exclusive community called “The Country”. Perhaps you saw it on TV news with the recent fires. It was one of the evacuated neighborhoods. I sold my house for $2.0M in Nov.’05. True, San Diego peaked at that time, buy my particular area didn’t peak until mid to late ’07. Here’s the zillow link: http://www.zillow.com/homedetails/1813-Diamond-Knoll-Ln-Diamond-Bar-CA-91765/21661162_zpid

Per zillow, which I know has it’s inconsistencies, it’s currently valued at $2.4M. Checking with my realtor, it does seem to be accurate. So my originally posted math is correct. It does concern me that for each year I rent, over $30K is going bye bye for a house that is not mine. At some point I’m sure that the rent spent will exceed the savings from any decline. I am hoping that this (2009) will finally be the year that my area will get hit, and hit hard to make it all worthwhile.

[patientlywaiting]

[quote=poorsaver]So let’s do the math. 36 months of rent X $2800 per month = $100,800. Have I saved that amount over just staying put? No. [/quote]

This sounds like a post by a Realtor. Either that or you’re a woman looking for a nest.

What about the interest + property taxes + HOA you would have paid if you had purchased?

Don’t you have to rent the money from the bank to buy?

[patientlywaiting]

[quote=poorsaver]So let’s do the math. 36 months of rent X $2800 per month = $100,800. Have I saved that amount over just staying put? No. [/quote]

This sounds like a post by a Realtor. Either that or you’re a woman looking for a nest.

What about the interest + property taxes + HOA you would have paid if you had purchased?

Don’t you have to rent the money from the bank to buy?

[patientlywaiting]

[quote=poorsaver]So let’s do the math. 36 months of rent X $2800 per month = $100,800. Have I saved that amount over just staying put? No. [/quote]

This sounds like a post by a Realtor. Either that or you’re a woman looking for a nest.

What about the interest + property taxes + HOA you would have paid if you had purchased?

Don’t you have to rent the money from the bank to buy?

[patientlywaiting]

[quote=poorsaver]So let’s do the math. 36 months of rent X $2800 per month = $100,800. Have I saved that amount over just staying put? No. [/quote]

This sounds like a post by a Realtor. Either that or you’re a woman looking for a nest.

What about the interest + property taxes + HOA you would have paid if you had purchased?

Don’t you have to rent the money from the bank to buy?

[Author]

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