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SDEngineer.
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May 18, 2009 at 12:04 PM #15712May 18, 2009 at 12:34 PM #401318
barnaby33ParticipantThe number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh
May 18, 2009 at 12:34 PM #401568barnaby33ParticipantThe number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh
May 18, 2009 at 12:34 PM #401800barnaby33ParticipantThe number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh
May 18, 2009 at 12:34 PM #401859barnaby33ParticipantThe number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh
May 18, 2009 at 12:34 PM #402007barnaby33ParticipantThe number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh
May 18, 2009 at 1:59 PM #401358davelj
Participant[quote=barnaby33]The number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh[/quote]
Are you talking about Net Operating Income or Household Income?
In any area that’s not shrinking (think, Detroit), finding something at 8x annualized rent is pretty good (assuming stable rents). Assuming that 30% of rent gets eaten up by costs (maintenance, vacancy, etc), that’s 11.5x NOI and an 8.7% cap rate.
Can you find 7x rent in a market like SD? Probably, but it’s very hard. Historically, it’s been unusual, but not impossible. But who knows what the future shall bring?
May 18, 2009 at 1:59 PM #401608Participant[quote=barnaby33]The number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh[/quote]
Are you talking about Net Operating Income or Household Income?
In any area that’s not shrinking (think, Detroit), finding something at 8x annualized rent is pretty good (assuming stable rents). Assuming that 30% of rent gets eaten up by costs (maintenance, vacancy, etc), that’s 11.5x NOI and an 8.7% cap rate.
Can you find 7x rent in a market like SD? Probably, but it’s very hard. Historically, it’s been unusual, but not impossible. But who knows what the future shall bring?
May 18, 2009 at 1:59 PM #401840Participant[quote=barnaby33]The number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh[/quote]
Are you talking about Net Operating Income or Household Income?
In any area that’s not shrinking (think, Detroit), finding something at 8x annualized rent is pretty good (assuming stable rents). Assuming that 30% of rent gets eaten up by costs (maintenance, vacancy, etc), that’s 11.5x NOI and an 8.7% cap rate.
Can you find 7x rent in a market like SD? Probably, but it’s very hard. Historically, it’s been unusual, but not impossible. But who knows what the future shall bring?
May 18, 2009 at 1:59 PM #401899Participant[quote=barnaby33]The number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh[/quote]
Are you talking about Net Operating Income or Household Income?
In any area that’s not shrinking (think, Detroit), finding something at 8x annualized rent is pretty good (assuming stable rents). Assuming that 30% of rent gets eaten up by costs (maintenance, vacancy, etc), that’s 11.5x NOI and an 8.7% cap rate.
Can you find 7x rent in a market like SD? Probably, but it’s very hard. Historically, it’s been unusual, but not impossible. But who knows what the future shall bring?
May 18, 2009 at 1:59 PM #402048Participant[quote=barnaby33]The number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh[/quote]
Are you talking about Net Operating Income or Household Income?
In any area that’s not shrinking (think, Detroit), finding something at 8x annualized rent is pretty good (assuming stable rents). Assuming that 30% of rent gets eaten up by costs (maintenance, vacancy, etc), that’s 11.5x NOI and an 8.7% cap rate.
Can you find 7x rent in a market like SD? Probably, but it’s very hard. Historically, it’s been unusual, but not impossible. But who knows what the future shall bring?
May 18, 2009 at 2:18 PM #401373peterb
ParticipantIt may make a strong shift here pretty soon if these measures dont pass tomorrow. If Arnold keeps his word and lots of people are laid-off. Also, cities wont be getting any financial help from the state either. This may actually put CA in the highest unemployment level since the 1930’s. Wonder what it’ll do to RE prices come this Fall?
May 18, 2009 at 2:18 PM #401623ParticipantIt may make a strong shift here pretty soon if these measures dont pass tomorrow. If Arnold keeps his word and lots of people are laid-off. Also, cities wont be getting any financial help from the state either. This may actually put CA in the highest unemployment level since the 1930’s. Wonder what it’ll do to RE prices come this Fall?
May 18, 2009 at 2:18 PM #401855ParticipantIt may make a strong shift here pretty soon if these measures dont pass tomorrow. If Arnold keeps his word and lots of people are laid-off. Also, cities wont be getting any financial help from the state either. This may actually put CA in the highest unemployment level since the 1930’s. Wonder what it’ll do to RE prices come this Fall?
May 18, 2009 at 2:18 PM #401914ParticipantIt may make a strong shift here pretty soon if these measures dont pass tomorrow. If Arnold keeps his word and lots of people are laid-off. Also, cities wont be getting any financial help from the state either. This may actually put CA in the highest unemployment level since the 1930’s. Wonder what it’ll do to RE prices come this Fall?
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