Would you have pulled the trigger?

[an]

[quote=sdcellar]Hey, AN! Now you’re speaking my language. Glad to see we’re making progress.

Sorry for your situation though, weberlin. You probably won’t do all that bad and you never know, you really don’t.[/quote]
sdcellar, glad you finally agree to what I’ve been saying for the last 3-4 years (i.e. rent vs own parity is a decent deal for primary resident). BTW, can you clear something up for me? If 10 years is virtually forever and 5 years is relatively short time horizon, what is just right?

weberlin, I wish you the best. It’s a decent deal if you can rent it out for $2100+. If your place can only rent for $1800 right now, I hope inflation will help you out. If rent increase 3% a year for the next 5 years, then $1800/month rent now would be around $2100/month in 5 years. Which would at least allow you to rent it out for break even.

[sdcellar]

7, dude, don’t you know anything about numbers? Seriously though, there is no right number and I never indicated otherwise.

All I _said_ was that people would do well to understand what their time horizon was and include that in their evaluation process. The longer the time horizon, the easier it is to get the buy numbers to work. Simple stuff.

And please stop with the notion that I’m agreeing with you regarding rent/buy. Among other things, I’ve uttered it myself as far back as 3 years; I wasn’t aware you’re the resident piggington “rent/buy” guy; wasn’t what I was talking about here; and finally, while a good rule of thumb, again, at an individual level, one has be honest with themselves with regard to what their plans are. Finally finally, never forget that life and the world throw wrenches into the works at times. Not a bad idea to run a few of the more likely scenarios. And that brings me to…

Well, weberlin’s got a scenario here that you’ve tried to model a bit. You’ve factored in a potential increase in his rental income, but you’ve neglected to consider the increases in property tax (straight 2% there), HOA (hard to believe it can go up from $330, but probably will in 5 years), loss of tax benefit (admit I’m a little out of my element here, but pretty sure it’s a hit), and any gap in occupancy. And even without that, I’m pretty sure he’d shelling out a few dollars every month (P&I $1,572, property taxe $300, HOA $330 = $2202). Hope the fridge doesn’t break.

weberlin, while I know this isn’t what you want to hear, remember that it could turn out differently and/or I might have something wrong. The big thing I’d recommend to you is that if you seriously have any plans of becoming a landlord, I’d get educated about all that well in advance.

For what it’s worth, I owned a house that was worth less than I paid for it for a good 8 years, but in the end, it all worked out just fine.

[sdcellar]

7, dude, don’t you know anything about numbers? Seriously though, there is no right number and I never indicated otherwise.

All I _said_ was that people would do well to understand what their time horizon was and include that in their evaluation process. The longer the time horizon, the easier it is to get the buy numbers to work. Simple stuff.

And please stop with the notion that I’m agreeing with you regarding rent/buy. Among other things, I’ve uttered it myself as far back as 3 years; I wasn’t aware you’re the resident piggington “rent/buy” guy; wasn’t what I was talking about here; and finally, while a good rule of thumb, again, at an individual level, one has be honest with themselves with regard to what their plans are. Finally finally, never forget that life and the world throw wrenches into the works at times. Not a bad idea to run a few of the more likely scenarios. And that brings me to…

Well, weberlin’s got a scenario here that you’ve tried to model a bit. You’ve factored in a potential increase in his rental income, but you’ve neglected to consider the increases in property tax (straight 2% there), HOA (hard to believe it can go up from $330, but probably will in 5 years), loss of tax benefit (admit I’m a little out of my element here, but pretty sure it’s a hit), and any gap in occupancy. And even without that, I’m pretty sure he’d shelling out a few dollars every month (P&I $1,572, property taxe $300, HOA $330 = $2202). Hope the fridge doesn’t break.

weberlin, while I know this isn’t what you want to hear, remember that it could turn out differently and/or I might have something wrong. The big thing I’d recommend to you is that if you seriously have any plans of becoming a landlord, I’d get educated about all that well in advance.

For what it’s worth, I owned a house that was worth less than I paid for it for a good 8 years, but in the end, it all worked out just fine.

[sdcellar]

7, dude, don’t you know anything about numbers? Seriously though, there is no right number and I never indicated otherwise.

All I _said_ was that people would do well to understand what their time horizon was and include that in their evaluation process. The longer the time horizon, the easier it is to get the buy numbers to work. Simple stuff.

And please stop with the notion that I’m agreeing with you regarding rent/buy. Among other things, I’ve uttered it myself as far back as 3 years; I wasn’t aware you’re the resident piggington “rent/buy” guy; wasn’t what I was talking about here; and finally, while a good rule of thumb, again, at an individual level, one has be honest with themselves with regard to what their plans are. Finally finally, never forget that life and the world throw wrenches into the works at times. Not a bad idea to run a few of the more likely scenarios. And that brings me to…

Well, weberlin’s got a scenario here that you’ve tried to model a bit. You’ve factored in a potential increase in his rental income, but you’ve neglected to consider the increases in property tax (straight 2% there), HOA (hard to believe it can go up from $330, but probably will in 5 years), loss of tax benefit (admit I’m a little out of my element here, but pretty sure it’s a hit), and any gap in occupancy. And even without that, I’m pretty sure he’d shelling out a few dollars every month (P&I $1,572, property taxe $300, HOA $330 = $2202). Hope the fridge doesn’t break.

weberlin, while I know this isn’t what you want to hear, remember that it could turn out differently and/or I might have something wrong. The big thing I’d recommend to you is that if you seriously have any plans of becoming a landlord, I’d get educated about all that well in advance.

For what it’s worth, I owned a house that was worth less than I paid for it for a good 8 years, but in the end, it all worked out just fine.

[sdcellar]

7, dude, don’t you know anything about numbers? Seriously though, there is no right number and I never indicated otherwise.

All I _said_ was that people would do well to understand what their time horizon was and include that in their evaluation process. The longer the time horizon, the easier it is to get the buy numbers to work. Simple stuff.

And please stop with the notion that I’m agreeing with you regarding rent/buy. Among other things, I’ve uttered it myself as far back as 3 years; I wasn’t aware you’re the resident piggington “rent/buy” guy; wasn’t what I was talking about here; and finally, while a good rule of thumb, again, at an individual level, one has be honest with themselves with regard to what their plans are. Finally finally, never forget that life and the world throw wrenches into the works at times. Not a bad idea to run a few of the more likely scenarios. And that brings me to…

Well, weberlin’s got a scenario here that you’ve tried to model a bit. You’ve factored in a potential increase in his rental income, but you’ve neglected to consider the increases in property tax (straight 2% there), HOA (hard to believe it can go up from $330, but probably will in 5 years), loss of tax benefit (admit I’m a little out of my element here, but pretty sure it’s a hit), and any gap in occupancy. And even without that, I’m pretty sure he’d shelling out a few dollars every month (P&I $1,572, property taxe $300, HOA $330 = $2202). Hope the fridge doesn’t break.

weberlin, while I know this isn’t what you want to hear, remember that it could turn out differently and/or I might have something wrong. The big thing I’d recommend to you is that if you seriously have any plans of becoming a landlord, I’d get educated about all that well in advance.

For what it’s worth, I owned a house that was worth less than I paid for it for a good 8 years, but in the end, it all worked out just fine.

[sdcellar]

7, dude, don’t you know anything about numbers? Seriously though, there is no right number and I never indicated otherwise.

All I _said_ was that people would do well to understand what their time horizon was and include that in their evaluation process. The longer the time horizon, the easier it is to get the buy numbers to work. Simple stuff.

And please stop with the notion that I’m agreeing with you regarding rent/buy. Among other things, I’ve uttered it myself as far back as 3 years; I wasn’t aware you’re the resident piggington “rent/buy” guy; wasn’t what I was talking about here; and finally, while a good rule of thumb, again, at an individual level, one has be honest with themselves with regard to what their plans are. Finally finally, never forget that life and the world throw wrenches into the works at times. Not a bad idea to run a few of the more likely scenarios. And that brings me to…

Well, weberlin’s got a scenario here that you’ve tried to model a bit. You’ve factored in a potential increase in his rental income, but you’ve neglected to consider the increases in property tax (straight 2% there), HOA (hard to believe it can go up from $330, but probably will in 5 years), loss of tax benefit (admit I’m a little out of my element here, but pretty sure it’s a hit), and any gap in occupancy. And even without that, I’m pretty sure he’d shelling out a few dollars every month (P&I $1,572, property taxe $300, HOA $330 = $2202). Hope the fridge doesn’t break.

weberlin, while I know this isn’t what you want to hear, remember that it could turn out differently and/or I might have something wrong. The big thing I’d recommend to you is that if you seriously have any plans of becoming a landlord, I’d get educated about all that well in advance.

For what it’s worth, I owned a house that was worth less than I paid for it for a good 8 years, but in the end, it all worked out just fine.

[an]

You must be uttering it to yourself 3 years ago, since your account said you’ve only been here 2 years 49 months. Never in a million years would I ever thing you and I can speak the same language. But you said it, not me. You’re the one proclaiming we’re making progress. I know exactly what you’re saying but I think everything I type seems to be Martian to you. No, I never said I was Piggington resident “rent/buy” guy. However, I did say and will say again, I’m all about rent/buy for a primary resident. Here’s one post over 3 years ago: http://piggington.com/rent_vs_buy_where_did_i_go_wrong where I chimed in about rent vs buy. I wasn’t the only one who compare rent vs buy but rent vs buy was my main criteria back then as well. That’s why I didn’t buy 4-5 years ago. Do you see the difference or am I speaking Martian again?

Of course everything deal is different. Thanks for pointing out the obvious Sherlock. Thanks for also pointing out that life can throw a wrench in your plans. Ever heard of the phrase, plan for the worse and hope for the best? I live by it everyday.

I was just trying to be optimistic for weberlin (hoping for the best). He/she already bought the place. There’s no take back now.

[an]

You must be uttering it to yourself 3 years ago, since your account said you’ve only been here 2 years 49 months. Never in a million years would I ever thing you and I can speak the same language. But you said it, not me. You’re the one proclaiming we’re making progress. I know exactly what you’re saying but I think everything I type seems to be Martian to you. No, I never said I was Piggington resident “rent/buy” guy. However, I did say and will say again, I’m all about rent/buy for a primary resident. Here’s one post over 3 years ago: http://piggington.com/rent_vs_buy_where_did_i_go_wrong where I chimed in about rent vs buy. I wasn’t the only one who compare rent vs buy but rent vs buy was my main criteria back then as well. That’s why I didn’t buy 4-5 years ago. Do you see the difference or am I speaking Martian again?

Of course everything deal is different. Thanks for pointing out the obvious Sherlock. Thanks for also pointing out that life can throw a wrench in your plans. Ever heard of the phrase, plan for the worse and hope for the best? I live by it everyday.

I was just trying to be optimistic for weberlin (hoping for the best). He/she already bought the place. There’s no take back now.

[an]

You must be uttering it to yourself 3 years ago, since your account said you’ve only been here 2 years 49 months. Never in a million years would I ever thing you and I can speak the same language. But you said it, not me. You’re the one proclaiming we’re making progress. I know exactly what you’re saying but I think everything I type seems to be Martian to you. No, I never said I was Piggington resident “rent/buy” guy. However, I did say and will say again, I’m all about rent/buy for a primary resident. Here’s one post over 3 years ago: http://piggington.com/rent_vs_buy_where_did_i_go_wrong where I chimed in about rent vs buy. I wasn’t the only one who compare rent vs buy but rent vs buy was my main criteria back then as well. That’s why I didn’t buy 4-5 years ago. Do you see the difference or am I speaking Martian again?

Of course everything deal is different. Thanks for pointing out the obvious Sherlock. Thanks for also pointing out that life can throw a wrench in your plans. Ever heard of the phrase, plan for the worse and hope for the best? I live by it everyday.

I was just trying to be optimistic for weberlin (hoping for the best). He/she already bought the place. There’s no take back now.

[an]

You must be uttering it to yourself 3 years ago, since your account said you’ve only been here 2 years 49 months. Never in a million years would I ever thing you and I can speak the same language. But you said it, not me. You’re the one proclaiming we’re making progress. I know exactly what you’re saying but I think everything I type seems to be Martian to you. No, I never said I was Piggington resident “rent/buy” guy. However, I did say and will say again, I’m all about rent/buy for a primary resident. Here’s one post over 3 years ago: http://piggington.com/rent_vs_buy_where_did_i_go_wrong where I chimed in about rent vs buy. I wasn’t the only one who compare rent vs buy but rent vs buy was my main criteria back then as well. That’s why I didn’t buy 4-5 years ago. Do you see the difference or am I speaking Martian again?

Of course everything deal is different. Thanks for pointing out the obvious Sherlock. Thanks for also pointing out that life can throw a wrench in your plans. Ever heard of the phrase, plan for the worse and hope for the best? I live by it everyday.

I was just trying to be optimistic for weberlin (hoping for the best). He/she already bought the place. There’s no take back now.

[an]

You must be uttering it to yourself 3 years ago, since your account said you’ve only been here 2 years 49 months. Never in a million years would I ever thing you and I can speak the same language. But you said it, not me. You’re the one proclaiming we’re making progress. I know exactly what you’re saying but I think everything I type seems to be Martian to you. No, I never said I was Piggington resident “rent/buy” guy. However, I did say and will say again, I’m all about rent/buy for a primary resident. Here’s one post over 3 years ago: http://piggington.com/rent_vs_buy_where_did_i_go_wrong where I chimed in about rent vs buy. I wasn’t the only one who compare rent vs buy but rent vs buy was my main criteria back then as well. That’s why I didn’t buy 4-5 years ago. Do you see the difference or am I speaking Martian again?

Of course everything deal is different. Thanks for pointing out the obvious Sherlock. Thanks for also pointing out that life can throw a wrench in your plans. Ever heard of the phrase, plan for the worse and hope for the best? I live by it everyday.

I was just trying to be optimistic for weberlin (hoping for the best). He/she already bought the place. There’s no take back now.

[sdcellar]

You hardly know exactly what I’m saying. It’s kind of like someone learning a foreign language and having a bit of the vocabulary, but they don’t understand the language. If you understood, you would respond to what’s put forth rather than changing the subject ad naseum.

With this response, you’ve actually done a bit better, but you pick the words (vocabulary) that suit you. Different, life, plans. But you ignore the message: “Start with being honest to yourself about your goals as you understand them today.”

And *before* you buy a house just because it fits rent/buy at this moment. What, violate the rent/buy credo? Well, I could get a super awesome crapshack somewhere that meets your (our?) rent/buy criteria, but if I hate it, can’t wait to move where I’d really like to live, it probably ain’t going to work out to well for me — happiness-wise or financially. Extreme example, but I don’t know what to do until you really can understand what I’m trying to communicate to you

As far as trying to be optimistic for weberlin is concerned, you have to at least get the numbers right. I’ll stick with my advice that he learn about landlordship since that sounds like a road he’s considering.

And again, I feel for him, but it’s not horrible anyway (heck he could come out way ahead and I might be an idiot). But if I’m not, there may be just one or two lurkers who haven’t pulled the trigger yet.

[sdcellar]

You hardly know exactly what I’m saying. It’s kind of like someone learning a foreign language and having a bit of the vocabulary, but they don’t understand the language. If you understood, you would respond to what’s put forth rather than changing the subject ad naseum.

With this response, you’ve actually done a bit better, but you pick the words (vocabulary) that suit you. Different, life, plans. But you ignore the message: “Start with being honest to yourself about your goals as you understand them today.”

And *before* you buy a house just because it fits rent/buy at this moment. What, violate the rent/buy credo? Well, I could get a super awesome crapshack somewhere that meets your (our?) rent/buy criteria, but if I hate it, can’t wait to move where I’d really like to live, it probably ain’t going to work out to well for me — happiness-wise or financially. Extreme example, but I don’t know what to do until you really can understand what I’m trying to communicate to you

As far as trying to be optimistic for weberlin is concerned, you have to at least get the numbers right. I’ll stick with my advice that he learn about landlordship since that sounds like a road he’s considering.

And again, I feel for him, but it’s not horrible anyway (heck he could come out way ahead and I might be an idiot). But if I’m not, there may be just one or two lurkers who haven’t pulled the trigger yet.

[sdcellar]

You hardly know exactly what I’m saying. It’s kind of like someone learning a foreign language and having a bit of the vocabulary, but they don’t understand the language. If you understood, you would respond to what’s put forth rather than changing the subject ad naseum.

With this response, you’ve actually done a bit better, but you pick the words (vocabulary) that suit you. Different, life, plans. But you ignore the message: “Start with being honest to yourself about your goals as you understand them today.”

And *before* you buy a house just because it fits rent/buy at this moment. What, violate the rent/buy credo? Well, I could get a super awesome crapshack somewhere that meets your (our?) rent/buy criteria, but if I hate it, can’t wait to move where I’d really like to live, it probably ain’t going to work out to well for me — happiness-wise or financially. Extreme example, but I don’t know what to do until you really can understand what I’m trying to communicate to you

As far as trying to be optimistic for weberlin is concerned, you have to at least get the numbers right. I’ll stick with my advice that he learn about landlordship since that sounds like a road he’s considering.

And again, I feel for him, but it’s not horrible anyway (heck he could come out way ahead and I might be an idiot). But if I’m not, there may be just one or two lurkers who haven’t pulled the trigger yet.

[sdcellar]

You hardly know exactly what I’m saying. It’s kind of like someone learning a foreign language and having a bit of the vocabulary, but they don’t understand the language. If you understood, you would respond to what’s put forth rather than changing the subject ad naseum.

With this response, you’ve actually done a bit better, but you pick the words (vocabulary) that suit you. Different, life, plans. But you ignore the message: “Start with being honest to yourself about your goals as you understand them today.”

And *before* you buy a house just because it fits rent/buy at this moment. What, violate the rent/buy credo? Well, I could get a super awesome crapshack somewhere that meets your (our?) rent/buy criteria, but if I hate it, can’t wait to move where I’d really like to live, it probably ain’t going to work out to well for me — happiness-wise or financially. Extreme example, but I don’t know what to do until you really can understand what I’m trying to communicate to you

As far as trying to be optimistic for weberlin is concerned, you have to at least get the numbers right. I’ll stick with my advice that he learn about landlordship since that sounds like a road he’s considering.

And again, I feel for him, but it’s not horrible anyway (heck he could come out way ahead and I might be an idiot). But if I’m not, there may be just one or two lurkers who haven’t pulled the trigger yet.

[Author]

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