|
Re: Housing prices
|
Re: Housing prices
Originally Posted by Biscuits
(Post 4284489)
I have done further research to give you the exact picture.
http://www.zillow.com/HomeDetails.htm?zprop=29389145 The home is renting for $1,700 or is also for sale for $525,000. It is not in the central part of Old Enfield where the $800,000 homes mingle with the $3,000,000 mansions but it is in a very good area, nevertheless. The asking price is fair and many would pay nearly that amount to teardown the home for the .25 acres. Home Price = $525,000 Down Payment = $105,000 Monthly Note = $2,451 Appraised Value = $371,000 Monthly Tax = $772 (paid annually) Monthly Insurance = $150 Monthly cost to OWN = $3,373 (with $105,000 down) Monthly cost to RENT = $1,700 For the same monthly expenditure, is it better to rent a house in a desirable area (i.e. good schools, safe, location to work, etc.) or to own one in a marginal neighborhood? If it were me, and I were going to live in the home in question, I would take the quality of life over the appriciation gained by living in a lesser area. Answer this question honestly and you will see why people rent (myself NOT included ;) ). Of course you have no chance of capital appreciation and as others have said no tax breaks. But certainly from a short term point of view, a no brainer. |
Re: Housing prices
Originally Posted by TruBrit
(Post 4283943)
we own two properties inside the loop and have just paid the annual property taxes which are due the end of this month (nicely timed just after christmas)and combined it mounted close to a six figure sum :eek:
|
Re: Housing prices
Originally Posted by Boiler
(Post 4284551)
Rough rule of thumb in my market is that the rental price is $500 per $100k. But it screws up as you get higher.
Of course you have no chance of capital appreciation and as others have said no tax breaks. The only way to look at this financially is to look at the after tax carrying costs of owning (interest, taxes, insurance and hoa/maintenance) versus the cost of renting. Around me (admittedly, an insanely expensive area) the after-tax cost of owning is typically almost double that of renting an equivalent property. In other words, continued appreciation is needed just to break even with the cost of renting. Given the complete disconnect with the historical norms for wages to house prices and rent to house prices, there's certainly a good argument that even the "break even" appreciation won't happen over the next few years. Edit: and unless AMT is reformed, more and more people around me are going to see that rent/buy equation become even more pronounced towards renting. |
Re: Housing prices
Originally Posted by Boiler
(Post 4283877)
Why would somebody rent their house out for $100 more than the property tax?
Add the other costs and they are not even covering their direct costs never mind making a return on the capital invested. Something does not add up. (ii) expectation of capital gains on the part of the owner. |
Re: Housing prices
Originally Posted by MikeK
(Post 4280327)
Does anyone have any insights on the falling housing prices in the US?
I am planning to move to Houston, and I wonder if it is better to buy (cash) or to rent for a while and then buy... To me, things look amazingly cheap already, but if they are likely to get cheaper, then I would prefer to wait.. Any comments appreciated.. Cheers Mike NC Penguin |
Re: Housing prices
Originally Posted by NC Penguin
(Post 4287772)
If you don't have a US credit history, i.e. credit score, you may want to consider purchasing a home after you've established a good score. Otherwise, you're more than likely going to be offered a mortgage with a higher interest rate and be penalized in other ways due to lack of a US credit history.
NC Penguin Now you've done it!! :mad: (sorry) before it gets going.... here: http://britishexpats.com/forum/searc...earchid=912995 There have been far too many ramblings about credit and the kitchen sink of relevant financial purchases..... |
Re: Housing prices
Originally Posted by Tarkak9
(Post 4287870)
Now you've done it!! :mad: (sorry) before it gets going.... here:
http://britishexpats.com/forum/searc...earchid=912995 There have been far too many ramblings about credit and the kitchen sink of relevant financial purchases..... NC Penguin |
Re: Housing prices
Originally Posted by TruBrit
(Post 4284011)
hmm not so sure about that ....we pay quite a lot more in commission here in the usa and there are quite a few monkeys about when it comes to realtors coz i've dealt with some of them ;)
|
Re: Housing prices
Just a quick bit of info. I spent $400 on AIG membership and honestly don't know how I'd cope without it.
Still live in England and got a 5.85% 30 year mortgage deal which is a very good rate (as good as or better then the general punter could get at the time). Also got very reasonable home insurance. Paid $550k for a 3500sq ft house near a lake. Owners paid $650 for it 3 years ago and have done a ton of improvements. The whole rent vs buy thing is a very individual choice and often isn't purely an economic decision. I've done both, but this time, after a LOT of research, buying in Michigan seemed like the right thing to do. In a rush...off to see a man about wedding photography... |
Re: Housing prices
Perhaps I should have mentioned, that if I buy a place, then I can purchase the property in full.
No mortgage. I figure that I might even be able to get a better deal as well, since the closing time will be reduced considerably. I am not rich, but I have equity in my current house, and some savings, so there is easily enough to get a two bedroom condo in clear lake, for example. So, if you take out of the equation the interest on a mortgage as you own your property outright, then how does this affect the balance between owning and renting?? Cheers... |
Re: Housing prices
Well like was said depends on where you live!! you are right!! house prices are fallin but the so called experts say it will recover in a few years or so. So
i would say rent till the prices are low enough and the market show signs of recovering hop on a house but if you cant wait buy now!! |
Re: Housing prices
Originally Posted by Rickster
(Post 4307267)
Well like was said depends on where you live!! you are right!! house prices are fallin but the so called experts say it will recover in a few years or so. So
i would say rent till the prices are low enough and the market show signs of recovering hop on a house but if you cant wait buy now!! In my non-expert opinion, the US$ will continue to fall and the housing and equity markets will continue to rise in direct proportions. :( |
Re: Housing prices
Originally Posted by MikeK
(Post 4306569)
Perhaps I should have mentioned, that if I buy a place, then I can purchase the property in full.
No mortgage. I figure that I might even be able to get a better deal as well, since the closing time will be reduced considerably. I am not rich, but I have equity in my current house, and some savings, so there is easily enough to get a two bedroom condo in clear lake, for example. So, if you take out of the equation the interest on a mortgage as you own your property outright, then how does this affect the balance between owning and renting?? Cheers... 6% tax deductible interest is very cheap money - you should be able to get better. |
Re: Housing prices
Originally Posted by MikeK
(Post 4306569)
So, if you take out of the equation the interest on a mortgage as you own your property outright, then how does this affect the balance between owning and renting?? The thing that could make/break it would be cost of property tax, and that really depends on where you decide to live, so can't help you there. |
| All times are GMT -12. The time now is 8:10 pm. |
Powered by vBulletin: ©2000 - 2026, Jelsoft Enterprises Ltd.
Copyright © 2026 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.