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Navydoc
Participant“Also another common myth, especially on this forum, is that when it costs “as much to own as it does to rent” prices have bottomed.”
I see what you’re saying here Hippmatt, but I think you are misunderstanding what is meant when we talk about “as much to own as rent”. When the rent vs own calculation favors owning, it doesn’t necessarily mean the bottom, it just means that real estate isn’t the financial suicide “investment” it has been the past few years. Buying when owning costs the same as renting is not a bad idea, even if you end up with some downside depreciation, as long as your financing is stable. You may lose a bit in the first couple of years, but will likely more than make up for it eventually not having to deal with rent increases, and (someday, no idea when) appreciation.
If rent vs own is favorable next spring I plan to buy. We’re just not quite there yet.
Participant“Also another common myth, especially on this forum, is that when it costs “as much to own as it does to rent” prices have bottomed.”
I see what you’re saying here Hippmatt, but I think you are misunderstanding what is meant when we talk about “as much to own as rent”. When the rent vs own calculation favors owning, it doesn’t necessarily mean the bottom, it just means that real estate isn’t the financial suicide “investment” it has been the past few years. Buying when owning costs the same as renting is not a bad idea, even if you end up with some downside depreciation, as long as your financing is stable. You may lose a bit in the first couple of years, but will likely more than make up for it eventually not having to deal with rent increases, and (someday, no idea when) appreciation.
If rent vs own is favorable next spring I plan to buy. We’re just not quite there yet.
Participant“Also another common myth, especially on this forum, is that when it costs “as much to own as it does to rent” prices have bottomed.”
I see what you’re saying here Hippmatt, but I think you are misunderstanding what is meant when we talk about “as much to own as rent”. When the rent vs own calculation favors owning, it doesn’t necessarily mean the bottom, it just means that real estate isn’t the financial suicide “investment” it has been the past few years. Buying when owning costs the same as renting is not a bad idea, even if you end up with some downside depreciation, as long as your financing is stable. You may lose a bit in the first couple of years, but will likely more than make up for it eventually not having to deal with rent increases, and (someday, no idea when) appreciation.
If rent vs own is favorable next spring I plan to buy. We’re just not quite there yet.
ParticipantI rent in Carson, which is probably one of the areas you’re considering. Your scenario is something I worried about when I rented my current place. They bought it for $700,000 just before we moved in. Homes in the community 1 year later are now selling in mid to high 500’s. I know they are still current on the mortgage as the bill comes to us (owner occupied financing anyone?). We would probably know the insant a NOD was filed. I’m at the point now where I don’t care, as we’ll be moving next spring, and a foreclosure would take at least that long from NOD to NOT. I figure they must have a teaser on the place, since the mortgage is $570K, and no way my rent covers that.
I wish you the best of luck, I think this area has a lot of specuvestor amatuer Donald Trump wannabe’s, and caution is probably a good idea.
ParticipantI rent in Carson, which is probably one of the areas you’re considering. Your scenario is something I worried about when I rented my current place. They bought it for $700,000 just before we moved in. Homes in the community 1 year later are now selling in mid to high 500’s. I know they are still current on the mortgage as the bill comes to us (owner occupied financing anyone?). We would probably know the insant a NOD was filed. I’m at the point now where I don’t care, as we’ll be moving next spring, and a foreclosure would take at least that long from NOD to NOT. I figure they must have a teaser on the place, since the mortgage is $570K, and no way my rent covers that.
I wish you the best of luck, I think this area has a lot of specuvestor amatuer Donald Trump wannabe’s, and caution is probably a good idea.
ParticipantI rent in Carson, which is probably one of the areas you’re considering. Your scenario is something I worried about when I rented my current place. They bought it for $700,000 just before we moved in. Homes in the community 1 year later are now selling in mid to high 500’s. I know they are still current on the mortgage as the bill comes to us (owner occupied financing anyone?). We would probably know the insant a NOD was filed. I’m at the point now where I don’t care, as we’ll be moving next spring, and a foreclosure would take at least that long from NOD to NOT. I figure they must have a teaser on the place, since the mortgage is $570K, and no way my rent covers that.
I wish you the best of luck, I think this area has a lot of specuvestor amatuer Donald Trump wannabe’s, and caution is probably a good idea.
ParticipantI rent in Carson, which is probably one of the areas you’re considering. Your scenario is something I worried about when I rented my current place. They bought it for $700,000 just before we moved in. Homes in the community 1 year later are now selling in mid to high 500’s. I know they are still current on the mortgage as the bill comes to us (owner occupied financing anyone?). We would probably know the insant a NOD was filed. I’m at the point now where I don’t care, as we’ll be moving next spring, and a foreclosure would take at least that long from NOD to NOT. I figure they must have a teaser on the place, since the mortgage is $570K, and no way my rent covers that.
I wish you the best of luck, I think this area has a lot of specuvestor amatuer Donald Trump wannabe’s, and caution is probably a good idea.
ParticipantI rent in Carson, which is probably one of the areas you’re considering. Your scenario is something I worried about when I rented my current place. They bought it for $700,000 just before we moved in. Homes in the community 1 year later are now selling in mid to high 500’s. I know they are still current on the mortgage as the bill comes to us (owner occupied financing anyone?). We would probably know the insant a NOD was filed. I’m at the point now where I don’t care, as we’ll be moving next spring, and a foreclosure would take at least that long from NOD to NOT. I figure they must have a teaser on the place, since the mortgage is $570K, and no way my rent covers that.
I wish you the best of luck, I think this area has a lot of specuvestor amatuer Donald Trump wannabe’s, and caution is probably a good idea.
ParticipantI think what we did to Japanese Americans during WWII was one of the darkest, most embarrassing things the American government has ever done, and we all should be ashamed of what happened, and make sure nothing like this ever happens again.
As for the payout, I would wholeheratedly agree with what was done if it occurred in 1945-46 instead of 1988. The government in place that committed the atrocity should have accepted the responsibility, not the generation afterward. I think the gesture was much too late, as many taxpayers footed the bill who had nothing to do with it.
Maybe I’m being too simplistic and naive, but I feel we advance ourselves by looking forward and not repeating the mistakes of the past, rather than trying to atone for all of them.
ParticipantI think what we did to Japanese Americans during WWII was one of the darkest, most embarrassing things the American government has ever done, and we all should be ashamed of what happened, and make sure nothing like this ever happens again.
As for the payout, I would wholeheratedly agree with what was done if it occurred in 1945-46 instead of 1988. The government in place that committed the atrocity should have accepted the responsibility, not the generation afterward. I think the gesture was much too late, as many taxpayers footed the bill who had nothing to do with it.
Maybe I’m being too simplistic and naive, but I feel we advance ourselves by looking forward and not repeating the mistakes of the past, rather than trying to atone for all of them.
ParticipantI think what we did to Japanese Americans during WWII was one of the darkest, most embarrassing things the American government has ever done, and we all should be ashamed of what happened, and make sure nothing like this ever happens again.
As for the payout, I would wholeheratedly agree with what was done if it occurred in 1945-46 instead of 1988. The government in place that committed the atrocity should have accepted the responsibility, not the generation afterward. I think the gesture was much too late, as many taxpayers footed the bill who had nothing to do with it.
Maybe I’m being too simplistic and naive, but I feel we advance ourselves by looking forward and not repeating the mistakes of the past, rather than trying to atone for all of them.
ParticipantI think what we did to Japanese Americans during WWII was one of the darkest, most embarrassing things the American government has ever done, and we all should be ashamed of what happened, and make sure nothing like this ever happens again.
As for the payout, I would wholeheratedly agree with what was done if it occurred in 1945-46 instead of 1988. The government in place that committed the atrocity should have accepted the responsibility, not the generation afterward. I think the gesture was much too late, as many taxpayers footed the bill who had nothing to do with it.
Maybe I’m being too simplistic and naive, but I feel we advance ourselves by looking forward and not repeating the mistakes of the past, rather than trying to atone for all of them.
ParticipantI think what we did to Japanese Americans during WWII was one of the darkest, most embarrassing things the American government has ever done, and we all should be ashamed of what happened, and make sure nothing like this ever happens again.
As for the payout, I would wholeheratedly agree with what was done if it occurred in 1945-46 instead of 1988. The government in place that committed the atrocity should have accepted the responsibility, not the generation afterward. I think the gesture was much too late, as many taxpayers footed the bill who had nothing to do with it.
Maybe I’m being too simplistic and naive, but I feel we advance ourselves by looking forward and not repeating the mistakes of the past, rather than trying to atone for all of them.
ParticipantI’m just being overly cautious, as it seems any time this subject of compensation is challenged the challenger is accused of being racist. Thank you for seeing my logic.
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