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sdduuuude
ParticipantOr, maybe say you want a gardener included.
ParticipantI definitely think you should spend a half-day shopping. It is the only way to realy know what YOU can get for your money where you want.
ParticipantThe insight-to-insult ratio on your post is awful – in fact, it is 0-to-100. You asked him 8 questions, all of which he took time to answer. People posting on this forum aren’t your personal analysts, there to answer your every question to your liking in a timely fashion. I thought the answers to all 8 questions were excellent. You asked for “actual stuff going on.” Sometimes that just doesn’t come in the form of data.
Just because you see through him doesn’t mean he isn’t trying to help, and it doesn’t give you the right to berate him when he spent time trying to answer.
ParticipantI kind of agree and I kind of don’t. Theoretically, owners cost will influence rental rates if it is a cost common to all the landlords and not just one. i.e. if every landlord had an ARM and the rates went up, each could raise rents without fear of being undercut. Or, if the government issued a new tax on rental income, that would affect rents also.
In a deflating bubble, should more and more landlords be stuck in bad loans, I could see it gently bumping rents up.
In reality I suspect you are correct – there probably aren’t enough landlords basing rents on their costs to affect the market price.
I’m sure we agree the key for our carlsbadliving renter is to know the market.
May 5, 2006 at 4:52 PM in reply to: Quit calling it a real estate bubble! Its a credit bubble. #25022ParticipantWhy are my dollars devaluating quickly with respect to home prices, and not-so-quickly with respect to rental rates?
ParticipantInteresting question. I’ll give you my perspective as a landlord who raised the rent about 10% in March of 2005.
I raised it because the rent wasn’t enough to cover my costs. I was about 300/month short and expected rents to increase and cover me after 2 years. I just assumed a 10% increase each year. This happened about the same time I stumbled upon Piggington. Interesting thing is, the renters complained about it, which surprised me. I put two and two together (OK, Rich put 2 and 2 together for me) and sold. The house closed in August.
If your landlord has owned the property for years and years and years and they haven’t raised the rent in a couple of years, chances are it is fairly justifiable and they are just being dilligent to ensure they get the most out of their property.
If they are new owners, however, they may be raising the rent based on what they need to make to cover their mortgage, without knowing their rental market.
Important for you to know. Knowledge is power in this case. I would suggest spending a day shopping for a new rental, even if you don’t plan on moving, to get an idea of the market. If you are getting a fair deal, just pay the man. If not, show them some comparible places and suggest they are a little off base, but don’t be surprised if they decide to sell once you do.
Seems like there was an article posted long ago on how rents can increase as a housing bubble deflates. This makes sense to me as more and more landlords NEED to charge a little more rent to help cover those ARMs.
If you have to move, look for a landlord who has owned a place for many years. Their payments and property tax will be lower and they won’t be forced to raise rents in the future. They may also value stable renters rather than those paying a premium price.
HA – 324 words, excluding this line.
ParticipantYa – it isn’t the number of words, it is the insight-to-number-of-words ratio. Also important is the insight-to-insult ratio. Ah – more ratios. Can we plot those on a per-user basis?
500 words is a good rule of thumb, though, not necessarily a limit. As the post grows past 500 words, we should ask ourselves – “is this really that insightful.”
ParticipantYeah lots of variables to consider, many of which relate to when you bought.
Loan-to-Value (%Equity)
Are you paying PMI?
Are you itemizing deductions?
What is your total payment?
How much would it cost to rent your place now?
Will you have to move for any reason in the next 3 years?
What is the state of your career
What are your property taxes?
What is the pain/cost of moving?
Can you sell it without realtor fees?I’m sure there’s more.
Be careful of the question you ask – The question isn’t – in 5 years, will they have made money on the house (i.e. sales price vs. purchase price). The question to ask is: In 5 years, will they be more ahead if they sell, rent, then buy or more ahead if they stay put?
It is a difficult, personal analysis and it involves the risk of not knowing how cold the market will get.
ParticipantAlso, don’t forget – depending on when they bought their house, their rent may be quite a bit lower than their payment, thus adding to the cash reserves they have to draw upon when the market is low. It’s a pretty complicated calculation, all told, and individual situations should be carefully analyzed.
ParticipantKeep in mind, a fall of %10 over 5 years, when inflation is 3% puts those renters up %25, assuming they have invested and made 3% on their money.
ParticipantWow. You are a real-life super hero?
http://en.wikipedia.org/wiki/Silver_SurferOK. Really. What is a silver surfer?
ParticipantI agree. Succinct = good
ParticipantI think contacting the buyers directly is also good advice. But I would have a little chat with a lawyer first.
Maybe – escrow first to see if there is ANY hope of the buyer paying, lawyer second to understand your options and prepare a proposition to the buyer, and buyer third with a clear ultimatum.
From your post, I get the the feeling you have been really hung out to dry. Get resolution fast so you can get it back on the market but step carefully so you don’t violate the agreement you already have with the buyer.
Don’t you have a real-estate agent that is handling this for you?
ParticipantA common trick at carpet stores, stereo stores, etc is to say 1) “no payments for 90 days” or 2) “90 days same as cash”
Most people assume when they see #1, they will not pay interest, and when they see #2 they won’t make any payments for 90 days.
In fact, “no payments for 90 days” means after 90 days, you will pay the purchase price plus a boatload of interest.
“90 days same as cash” means – you will make three payments in the next 90 days. It doesn’t mean you can wait 90 days before paying anything.
The ad Doesn’t say “no interest” for 12 months so I would assume you get killed on interest the first year.
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