Who are the buyers in this market and economy?

[jpinpb]

Thanks, davelj. I am paying less than 1900. I’m paying 1800 including water. Another unit is now renting for 1650, but less of an ocean view. I did do the math w/only putting the FHA 3.5%. Your calculations are close w/the interest rate of 5%. However you didn’t calculate the PMI, and I’m not sure how to do that, but that needs to be added, which will make the monthly cost of owning a little higher. And probably should include somewhere maintenance/upgrading, particularly if staying 10 years.

That said, if it were close, I’d consider it, but this market seems so volitile and w/NODs and distress going on in the complex, I figure we’re not going to skyrocket to 2006 prices any time soon. I’ll just enjoy renting for now.

Although we’re in San Diego, apparently rents are decreasing in NYC and the anecdotal data on the link on that site says rents are falling in other parts of the country.

[SDEngineer]

[quote=jpinpb]Thanks, davelj. I am paying less than 1900. I’m paying 1800 including water. Another unit is now renting for 1650, but less of an ocean view. I did do the math w/only putting the FHA 3.5%. Your calculations are close w/the interest rate of 5%. However you didn’t calculate the PMI, and I’m not sure how to do that, but that needs to be added, which will make the monthly cost of owning a little higher. And probably should include somewhere maintenance/upgrading, particularly if staying 10 years.

That said, if it were close, I’d consider it, but this market seems so volitile and w/NODs and distress going on in the complex, I figure we’re not going to skyrocket to 2006 prices any time soon. I’ll just enjoy renting for now.

Although we’re in San Diego, apparently rents are decreasing in NYC and the anecdotal data on the link on that site says rents are falling in other parts of the country.
[/quote]

PMI on a FHA loan (which I’m assuming since you mentioned 3.5% down) is 0.55% of the loan balance yearly. At 375K it’d be right around $170/mo.

There’s also a 1.75% upfront premium on FHA loans, which is normally rolled into the loan balance.

[SDEngineer]

[quote=jpinpb]Thanks, davelj. I am paying less than 1900. I’m paying 1800 including water. Another unit is now renting for 1650, but less of an ocean view. I did do the math w/only putting the FHA 3.5%. Your calculations are close w/the interest rate of 5%. However you didn’t calculate the PMI, and I’m not sure how to do that, but that needs to be added, which will make the monthly cost of owning a little higher. And probably should include somewhere maintenance/upgrading, particularly if staying 10 years.

That said, if it were close, I’d consider it, but this market seems so volitile and w/NODs and distress going on in the complex, I figure we’re not going to skyrocket to 2006 prices any time soon. I’ll just enjoy renting for now.

Although we’re in San Diego, apparently rents are decreasing in NYC and the anecdotal data on the link on that site says rents are falling in other parts of the country.
[/quote]

PMI on a FHA loan (which I’m assuming since you mentioned 3.5% down) is 0.55% of the loan balance yearly. At 375K it’d be right around $170/mo.

There’s also a 1.75% upfront premium on FHA loans, which is normally rolled into the loan balance.

[SDEngineer]

[quote=jpinpb]Thanks, davelj. I am paying less than 1900. I’m paying 1800 including water. Another unit is now renting for 1650, but less of an ocean view. I did do the math w/only putting the FHA 3.5%. Your calculations are close w/the interest rate of 5%. However you didn’t calculate the PMI, and I’m not sure how to do that, but that needs to be added, which will make the monthly cost of owning a little higher. And probably should include somewhere maintenance/upgrading, particularly if staying 10 years.

That said, if it were close, I’d consider it, but this market seems so volitile and w/NODs and distress going on in the complex, I figure we’re not going to skyrocket to 2006 prices any time soon. I’ll just enjoy renting for now.

Although we’re in San Diego, apparently rents are decreasing in NYC and the anecdotal data on the link on that site says rents are falling in other parts of the country.
[/quote]

PMI on a FHA loan (which I’m assuming since you mentioned 3.5% down) is 0.55% of the loan balance yearly. At 375K it’d be right around $170/mo.

There’s also a 1.75% upfront premium on FHA loans, which is normally rolled into the loan balance.

[SDEngineer]

[quote=jpinpb]Thanks, davelj. I am paying less than 1900. I’m paying 1800 including water. Another unit is now renting for 1650, but less of an ocean view. I did do the math w/only putting the FHA 3.5%. Your calculations are close w/the interest rate of 5%. However you didn’t calculate the PMI, and I’m not sure how to do that, but that needs to be added, which will make the monthly cost of owning a little higher. And probably should include somewhere maintenance/upgrading, particularly if staying 10 years.

That said, if it were close, I’d consider it, but this market seems so volitile and w/NODs and distress going on in the complex, I figure we’re not going to skyrocket to 2006 prices any time soon. I’ll just enjoy renting for now.

Although we’re in San Diego, apparently rents are decreasing in NYC and the anecdotal data on the link on that site says rents are falling in other parts of the country.
[/quote]

PMI on a FHA loan (which I’m assuming since you mentioned 3.5% down) is 0.55% of the loan balance yearly. At 375K it’d be right around $170/mo.

There’s also a 1.75% upfront premium on FHA loans, which is normally rolled into the loan balance.

[SDEngineer]

[quote=jpinpb]Thanks, davelj. I am paying less than 1900. I’m paying 1800 including water. Another unit is now renting for 1650, but less of an ocean view. I did do the math w/only putting the FHA 3.5%. Your calculations are close w/the interest rate of 5%. However you didn’t calculate the PMI, and I’m not sure how to do that, but that needs to be added, which will make the monthly cost of owning a little higher. And probably should include somewhere maintenance/upgrading, particularly if staying 10 years.

That said, if it were close, I’d consider it, but this market seems so volitile and w/NODs and distress going on in the complex, I figure we’re not going to skyrocket to 2006 prices any time soon. I’ll just enjoy renting for now.

Although we’re in San Diego, apparently rents are decreasing in NYC and the anecdotal data on the link on that site says rents are falling in other parts of the country.
[/quote]

PMI on a FHA loan (which I’m assuming since you mentioned 3.5% down) is 0.55% of the loan balance yearly. At 375K it’d be right around $170/mo.

There’s also a 1.75% upfront premium on FHA loans, which is normally rolled into the loan balance.

[no_such_reality]

[quote=davelj]…I assumed a $375K price and a 5% mortgage, financing the entire balance (to avoid having to think about the opportunity cost of the down payment). I get an interest component of the mortgage payment at $1563 (tax effected at 20% down to $1250), property taxes of $313 (tax effected at 20% down to $250), and a $375 HOA. So, that gets us to $1900 after tax. …

Anyhow… just a few numbers to toss around, although I’m sure you’ve already done this analysis.

[/quote]

You’re just missing that piddly little $450/month Principal payment. And the PMI on the loan, which will be another $200 a month.

So after tax, out of pocket for housing, not including repairs, etc, runs about $2500.

Eventually you’ll get the principal back, maybe. But you’ll need to make payments for about four years before the principal payments cover the future commission…

[no_such_reality]

[quote=davelj]…I assumed a $375K price and a 5% mortgage, financing the entire balance (to avoid having to think about the opportunity cost of the down payment). I get an interest component of the mortgage payment at $1563 (tax effected at 20% down to $1250), property taxes of $313 (tax effected at 20% down to $250), and a $375 HOA. So, that gets us to $1900 after tax. …

Anyhow… just a few numbers to toss around, although I’m sure you’ve already done this analysis.

[/quote]

You’re just missing that piddly little $450/month Principal payment. And the PMI on the loan, which will be another $200 a month.

So after tax, out of pocket for housing, not including repairs, etc, runs about $2500.

Eventually you’ll get the principal back, maybe. But you’ll need to make payments for about four years before the principal payments cover the future commission…

[no_such_reality]

[quote=davelj]…I assumed a $375K price and a 5% mortgage, financing the entire balance (to avoid having to think about the opportunity cost of the down payment). I get an interest component of the mortgage payment at $1563 (tax effected at 20% down to $1250), property taxes of $313 (tax effected at 20% down to $250), and a $375 HOA. So, that gets us to $1900 after tax. …

Anyhow… just a few numbers to toss around, although I’m sure you’ve already done this analysis.

[/quote]

You’re just missing that piddly little $450/month Principal payment. And the PMI on the loan, which will be another $200 a month.

So after tax, out of pocket for housing, not including repairs, etc, runs about $2500.

Eventually you’ll get the principal back, maybe. But you’ll need to make payments for about four years before the principal payments cover the future commission…

[no_such_reality]

[quote=davelj]…I assumed a $375K price and a 5% mortgage, financing the entire balance (to avoid having to think about the opportunity cost of the down payment). I get an interest component of the mortgage payment at $1563 (tax effected at 20% down to $1250), property taxes of $313 (tax effected at 20% down to $250), and a $375 HOA. So, that gets us to $1900 after tax. …

Anyhow… just a few numbers to toss around, although I’m sure you’ve already done this analysis.

[/quote]

You’re just missing that piddly little $450/month Principal payment. And the PMI on the loan, which will be another $200 a month.

So after tax, out of pocket for housing, not including repairs, etc, runs about $2500.

Eventually you’ll get the principal back, maybe. But you’ll need to make payments for about four years before the principal payments cover the future commission…

[no_such_reality]

[quote=davelj]…I assumed a $375K price and a 5% mortgage, financing the entire balance (to avoid having to think about the opportunity cost of the down payment). I get an interest component of the mortgage payment at $1563 (tax effected at 20% down to $1250), property taxes of $313 (tax effected at 20% down to $250), and a $375 HOA. So, that gets us to $1900 after tax. …

Anyhow… just a few numbers to toss around, although I’m sure you’ve already done this analysis.

[/quote]

You’re just missing that piddly little $450/month Principal payment. And the PMI on the loan, which will be another $200 a month.

So after tax, out of pocket for housing, not including repairs, etc, runs about $2500.

Eventually you’ll get the principal back, maybe. But you’ll need to make payments for about four years before the principal payments cover the future commission…

[jpinpb]

Thanks, dave, nsr and SDE. I think when I calculated a while ago I was pushing 2900 a month or so for the privilege of owning, minus tax write off, I’d still be out of pocket enough to not entice me w/the distress in the complex and economic uncertainty.

I agree w/TG that some areas have seen enough distress and rents are very close to mortgage. But more desirable areas still have a ways to go IMO.

[jpinpb]

Thanks, dave, nsr and SDE. I think when I calculated a while ago I was pushing 2900 a month or so for the privilege of owning, minus tax write off, I’d still be out of pocket enough to not entice me w/the distress in the complex and economic uncertainty.

I agree w/TG that some areas have seen enough distress and rents are very close to mortgage. But more desirable areas still have a ways to go IMO.

[jpinpb]

Thanks, dave, nsr and SDE. I think when I calculated a while ago I was pushing 2900 a month or so for the privilege of owning, minus tax write off, I’d still be out of pocket enough to not entice me w/the distress in the complex and economic uncertainty.

I agree w/TG that some areas have seen enough distress and rents are very close to mortgage. But more desirable areas still have a ways to go IMO.

[jpinpb]

Thanks, dave, nsr and SDE. I think when I calculated a while ago I was pushing 2900 a month or so for the privilege of owning, minus tax write off, I’d still be out of pocket enough to not entice me w/the distress in the complex and economic uncertainty.

I agree w/TG that some areas have seen enough distress and rents are very close to mortgage. But more desirable areas still have a ways to go IMO.

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