Forum Replies Created
-
AuthorPosts
-
(former)FormerSanDiegan
ParticipantI’ve always preferred used. I’ve owned four houses in my life. Newest one was 33 years old when I bought it. Some people call these existing homes.
Here’s why:
1. Location: I like to be closer to my job. Older established neighborhoods tend to be closer to the job centers.
2. Location: Older established neighborhoods tend to be closer to entertainment and amenities, like the beach, downtown, Zoo, Bay, etc. Places we would take the kids.
3. I don’t like to pay HOA or mello roos.
4. Character of the house. Older homes typically (not always) tend to have more character than cookie cutter developments.
5. Character of the neighborhood : Older neighborhoods have more variety of population. Newer neighborhoods are built and sold out over a short period you end up with similar price points, resulting in relatively narrow slice of demographics. (Some people like that aspect, I don’t).
6. Lot size to house footprint tends to be higher. I hate the thought of my next door neighbor calling to borrow sugar or butter and having them hand it through our side windows.ParticipantThe obvious point is made in the highlights of the article:
— Despite the increase from March to April, the April sales total was 19% below year-ago levels and reflects the weakest April sales total in 13 years.
So, we are seeing a seasonal increase in Sales in April, but still down about 20% from a year ago.
If there were seasonal adjustments, sales would look pretty flat.
ParticipantThe obvious point is made in the highlights of the article:
— Despite the increase from March to April, the April sales total was 19% below year-ago levels and reflects the weakest April sales total in 13 years.
So, we are seeing a seasonal increase in Sales in April, but still down about 20% from a year ago.
If there were seasonal adjustments, sales would look pretty flat.
ParticipantThe obvious point is made in the highlights of the article:
— Despite the increase from March to April, the April sales total was 19% below year-ago levels and reflects the weakest April sales total in 13 years.
So, we are seeing a seasonal increase in Sales in April, but still down about 20% from a year ago.
If there were seasonal adjustments, sales would look pretty flat.
ParticipantThe obvious point is made in the highlights of the article:
— Despite the increase from March to April, the April sales total was 19% below year-ago levels and reflects the weakest April sales total in 13 years.
So, we are seeing a seasonal increase in Sales in April, but still down about 20% from a year ago.
If there were seasonal adjustments, sales would look pretty flat.
ParticipantThe obvious point is made in the highlights of the article:
— Despite the increase from March to April, the April sales total was 19% below year-ago levels and reflects the weakest April sales total in 13 years.
So, we are seeing a seasonal increase in Sales in April, but still down about 20% from a year ago.
If there were seasonal adjustments, sales would look pretty flat.
ParticipantNoone’s analysis demonstrates that even accounting for opportunity cost buying and renting are fairly evenly balanced. Normally, I would think that this would make a strong case for buying. However, the 200K purchase would not buy the kind of place that rents for 1333 per month (80K over 5 years), so the comparison is not exactly comparing the same kind of unit. That would imply a gross return of 8% on rental property. I am not seeing anything close to that in San Diego.
Anyway, I think it rarely makes sense for a student (even in grad school) to purchase versus rent. There are simply too many variables in your future. Will you complete the program. Will you after 2-3 years and a Master’s degree have made some contacts and decide to pursue PhD somewhere else. Will you come to a self-realization mid-way through the program that what you’d really rather do is to join the Peace Corps ?
Anyway, if it was me, here’s what I would do:
Run the numbers on 3-4 bedroom single-family homes in the North Clairemont or similar area. (Not too far for the commute, not too expensive) See if it’s feasible to purchase with 25% down, lease out a couple of bedrooms to other students and get effectively cheap rent.Example:
350K purchase
25% down
262,500 loan @ 6.25%P&I: 1616 per month
Prop Tax: 330
Insurance: 54Monthly PITI: $2000
Charge 800 each for 2 roommates, so your monthly nut is about $400. Your remaining 110K or so from your 200K should net you about $350 per month and/or could provide a cushion for repairs/vacancies.
After a few years of this you will probably be sick of college students as roommates, but you would have figured out how to market and lease the property to college students and actually making a monthly profit on the place, when you are ready to move into nicer digs. This is even better if you have some decent income while going to school (e.g. if you have a TA or RA and can make enough to actually have taxes to pay.
Anyway, I would at least run the numbers.
ParticipantNoone’s analysis demonstrates that even accounting for opportunity cost buying and renting are fairly evenly balanced. Normally, I would think that this would make a strong case for buying. However, the 200K purchase would not buy the kind of place that rents for 1333 per month (80K over 5 years), so the comparison is not exactly comparing the same kind of unit. That would imply a gross return of 8% on rental property. I am not seeing anything close to that in San Diego.
Anyway, I think it rarely makes sense for a student (even in grad school) to purchase versus rent. There are simply too many variables in your future. Will you complete the program. Will you after 2-3 years and a Master’s degree have made some contacts and decide to pursue PhD somewhere else. Will you come to a self-realization mid-way through the program that what you’d really rather do is to join the Peace Corps ?
Anyway, if it was me, here’s what I would do:
Run the numbers on 3-4 bedroom single-family homes in the North Clairemont or similar area. (Not too far for the commute, not too expensive) See if it’s feasible to purchase with 25% down, lease out a couple of bedrooms to other students and get effectively cheap rent.Example:
350K purchase
25% down
262,500 loan @ 6.25%P&I: 1616 per month
Prop Tax: 330
Insurance: 54Monthly PITI: $2000
Charge 800 each for 2 roommates, so your monthly nut is about $400. Your remaining 110K or so from your 200K should net you about $350 per month and/or could provide a cushion for repairs/vacancies.
After a few years of this you will probably be sick of college students as roommates, but you would have figured out how to market and lease the property to college students and actually making a monthly profit on the place, when you are ready to move into nicer digs. This is even better if you have some decent income while going to school (e.g. if you have a TA or RA and can make enough to actually have taxes to pay.
Anyway, I would at least run the numbers.
ParticipantNoone’s analysis demonstrates that even accounting for opportunity cost buying and renting are fairly evenly balanced. Normally, I would think that this would make a strong case for buying. However, the 200K purchase would not buy the kind of place that rents for 1333 per month (80K over 5 years), so the comparison is not exactly comparing the same kind of unit. That would imply a gross return of 8% on rental property. I am not seeing anything close to that in San Diego.
Anyway, I think it rarely makes sense for a student (even in grad school) to purchase versus rent. There are simply too many variables in your future. Will you complete the program. Will you after 2-3 years and a Master’s degree have made some contacts and decide to pursue PhD somewhere else. Will you come to a self-realization mid-way through the program that what you’d really rather do is to join the Peace Corps ?
Anyway, if it was me, here’s what I would do:
Run the numbers on 3-4 bedroom single-family homes in the North Clairemont or similar area. (Not too far for the commute, not too expensive) See if it’s feasible to purchase with 25% down, lease out a couple of bedrooms to other students and get effectively cheap rent.Example:
350K purchase
25% down
262,500 loan @ 6.25%P&I: 1616 per month
Prop Tax: 330
Insurance: 54Monthly PITI: $2000
Charge 800 each for 2 roommates, so your monthly nut is about $400. Your remaining 110K or so from your 200K should net you about $350 per month and/or could provide a cushion for repairs/vacancies.
After a few years of this you will probably be sick of college students as roommates, but you would have figured out how to market and lease the property to college students and actually making a monthly profit on the place, when you are ready to move into nicer digs. This is even better if you have some decent income while going to school (e.g. if you have a TA or RA and can make enough to actually have taxes to pay.
Anyway, I would at least run the numbers.
ParticipantNoone’s analysis demonstrates that even accounting for opportunity cost buying and renting are fairly evenly balanced. Normally, I would think that this would make a strong case for buying. However, the 200K purchase would not buy the kind of place that rents for 1333 per month (80K over 5 years), so the comparison is not exactly comparing the same kind of unit. That would imply a gross return of 8% on rental property. I am not seeing anything close to that in San Diego.
Anyway, I think it rarely makes sense for a student (even in grad school) to purchase versus rent. There are simply too many variables in your future. Will you complete the program. Will you after 2-3 years and a Master’s degree have made some contacts and decide to pursue PhD somewhere else. Will you come to a self-realization mid-way through the program that what you’d really rather do is to join the Peace Corps ?
Anyway, if it was me, here’s what I would do:
Run the numbers on 3-4 bedroom single-family homes in the North Clairemont or similar area. (Not too far for the commute, not too expensive) See if it’s feasible to purchase with 25% down, lease out a couple of bedrooms to other students and get effectively cheap rent.Example:
350K purchase
25% down
262,500 loan @ 6.25%P&I: 1616 per month
Prop Tax: 330
Insurance: 54Monthly PITI: $2000
Charge 800 each for 2 roommates, so your monthly nut is about $400. Your remaining 110K or so from your 200K should net you about $350 per month and/or could provide a cushion for repairs/vacancies.
After a few years of this you will probably be sick of college students as roommates, but you would have figured out how to market and lease the property to college students and actually making a monthly profit on the place, when you are ready to move into nicer digs. This is even better if you have some decent income while going to school (e.g. if you have a TA or RA and can make enough to actually have taxes to pay.
Anyway, I would at least run the numbers.
ParticipantNoone’s analysis demonstrates that even accounting for opportunity cost buying and renting are fairly evenly balanced. Normally, I would think that this would make a strong case for buying. However, the 200K purchase would not buy the kind of place that rents for 1333 per month (80K over 5 years), so the comparison is not exactly comparing the same kind of unit. That would imply a gross return of 8% on rental property. I am not seeing anything close to that in San Diego.
Anyway, I think it rarely makes sense for a student (even in grad school) to purchase versus rent. There are simply too many variables in your future. Will you complete the program. Will you after 2-3 years and a Master’s degree have made some contacts and decide to pursue PhD somewhere else. Will you come to a self-realization mid-way through the program that what you’d really rather do is to join the Peace Corps ?
Anyway, if it was me, here’s what I would do:
Run the numbers on 3-4 bedroom single-family homes in the North Clairemont or similar area. (Not too far for the commute, not too expensive) See if it’s feasible to purchase with 25% down, lease out a couple of bedrooms to other students and get effectively cheap rent.Example:
350K purchase
25% down
262,500 loan @ 6.25%P&I: 1616 per month
Prop Tax: 330
Insurance: 54Monthly PITI: $2000
Charge 800 each for 2 roommates, so your monthly nut is about $400. Your remaining 110K or so from your 200K should net you about $350 per month and/or could provide a cushion for repairs/vacancies.
After a few years of this you will probably be sick of college students as roommates, but you would have figured out how to market and lease the property to college students and actually making a monthly profit on the place, when you are ready to move into nicer digs. This is even better if you have some decent income while going to school (e.g. if you have a TA or RA and can make enough to actually have taxes to pay.
Anyway, I would at least run the numbers.
ParticipantWhat are incentive monies ?
Is this money from the builder ? Sorry, I’ve only bought 4 houses in my life and the newest one I ever bought was 33 years old, so I don;t know much about buying newly built homes.How much are you putting down ?
Sometimes loan program have limits to the amount of funds that can be paid by the seller for closing costs. In the old days (mid-1990s) this was typically limited to 3% and could only be applied to closing costs.ParticipantWhat are incentive monies ?
Is this money from the builder ? Sorry, I’ve only bought 4 houses in my life and the newest one I ever bought was 33 years old, so I don;t know much about buying newly built homes.How much are you putting down ?
Sometimes loan program have limits to the amount of funds that can be paid by the seller for closing costs. In the old days (mid-1990s) this was typically limited to 3% and could only be applied to closing costs.ParticipantWhat are incentive monies ?
Is this money from the builder ? Sorry, I’ve only bought 4 houses in my life and the newest one I ever bought was 33 years old, so I don;t know much about buying newly built homes.How much are you putting down ?
Sometimes loan program have limits to the amount of funds that can be paid by the seller for closing costs. In the old days (mid-1990s) this was typically limited to 3% and could only be applied to closing costs. -
AuthorPosts
