Comments on: Real Homes of Genius: Culver City home for sale at $925,000 or available for rent at $3,795. The distorted Los Angeles housing metrics point to further price adjustments. http://www.doctorhousingbubble.com/culver-city-home-prices-show-housing-bubble-culver-city-rental-and-hemet-rental-comparison-rhog/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 06:16:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: asg http://www.doctorhousingbubble.com/culver-city-home-prices-show-housing-bubble-culver-city-rental-and-hemet-rental-comparison-rhog/#comment-60788 asg Mon, 25 Oct 2010 17:05:48 +0000 http://www.doctorhousingbubble.com/?p=3391#comment-60788 Also tell the buyer that if he pays in gold coins, he can get a free toaster as house warming gift. Also tell the buyer that if he pays in gold coins, he can get a free toaster as house warming gift.

]]> By: QED Real Estate Consulting http://www.doctorhousingbubble.com/culver-city-home-prices-show-housing-bubble-culver-city-rental-and-hemet-rental-comparison-rhog/#comment-50224 QED Real Estate Consulting Mon, 28 Jun 2010 17:23:51 +0000 http://www.doctorhousingbubble.com/?p=3391#comment-50224 Good Aricle, Good Information. The death of the myth of housing being an investment will take a long time. Your article points out how irrational the market was, and in some areas, continues to be. Eventually, kicking and screaming, they find out that there is no Santa Claus. Good Aricle, Good Information. The death of the myth of housing being an investment will take a long time. Your article points out how irrational the market was, and in some areas, continues to be. Eventually, kicking and screaming, they find out that there is no Santa Claus.

]]> By: QED Real Estate Consulting http://www.doctorhousingbubble.com/culver-city-home-prices-show-housing-bubble-culver-city-rental-and-hemet-rental-comparison-rhog/#comment-50223 QED Real Estate Consulting Mon, 28 Jun 2010 17:08:25 +0000 http://www.doctorhousingbubble.com/?p=3391#comment-50223 Great post, great information. The market is not rational. The death of the myth of a house being an investment will take a long time. When that myth had life it never took into account the cost to keep the structure alive. Yet that myth lives on. Great post, great information. The market is not rational. The death of the myth of a house being an investment will take a long time. When that myth had life it never took into account the cost to keep the structure alive. Yet that myth lives on.

]]> By: RealisticOptimist http://www.doctorhousingbubble.com/culver-city-home-prices-show-housing-bubble-culver-city-rental-and-hemet-rental-comparison-rhog/#comment-50160 RealisticOptimist Sat, 26 Jun 2010 13:19:24 +0000 http://www.doctorhousingbubble.com/?p=3391#comment-50160 @Chraze - you are accurate to some extent. Prices alone are definitely not an apples to apples comparison. However, you also have to factor in a larger down payment on the higher priced house. 125k vs 85k if putting down 20%. That's a 40k difference. Then 18750 vs 12750 in closing costs (3%) for another 6k difference. That's 46k more for that higher price. If you spread that across the 10 years in your example (46000/120 months), that's an extra 380 dollars a month (and that doesn't factor in the opportunity cost of things you could do with that money in the meantime). Then add in the extra money for taxes/insurance on the higher priced house, and you are probably looking at 450-600/month more in total. That's roughly 13-18% more a month. 13-18% more on what is most likely your biggest bill...I think that's pretty significant. In addition, if you buy with a higher interest rate, you can always refinance if/when the rates go down. Check out patrick.net to read more on this whole concept. Obviously, if you can afford what you bought w/o a problem, you really wanted to own now, and you love your house - none of this matters. It's just information to keep in mind though. @Chraze – you are accurate to some extent. Prices alone are definitely not an apples to apples comparison. However, you also have to factor in a larger down payment on the higher priced house. 125k vs 85k if putting down 20%. That’s a 40k difference. Then 18750 vs 12750 in closing costs (3%) for another 6k difference. That’s 46k more for that higher price. If you spread that across the 10 years in your example (46000/120 months), that’s an extra 380 dollars a month (and that doesn’t factor in the opportunity cost of things you could do with that money in the meantime). Then add in the extra money for taxes/insurance on the higher priced house, and you are probably looking at 450-600/month more in total. That’s roughly 13-18% more a month. 13-18% more on what is most likely your biggest bill…I think that’s pretty significant.

In addition, if you buy with a higher interest rate, you can always refinance if/when the rates go down. Check out patrick.net to read more on this whole concept.

Obviously, if you can afford what you bought w/o a problem, you really wanted to own now, and you love your house – none of this matters. It’s just information to keep in mind though.

]]> By: El K http://www.doctorhousingbubble.com/culver-city-home-prices-show-housing-bubble-culver-city-rental-and-hemet-rental-comparison-rhog/#comment-50150 El K Sat, 26 Jun 2010 07:50:24 +0000 http://www.doctorhousingbubble.com/?p=3391#comment-50150 I make a decent living, probably over $370k this year, and if I were in the SoCal market, I'd rent instead of buy. Too much downside to putting down 20%, then paying $6000 PITI on top of that, and biting your nails while you pray that the market doesn't tank further. If you can find a rental at a reasonable price, take it! I make a decent living, probably over $370k this year, and if I were in the SoCal market, I’d rent instead of buy. Too much downside to putting down 20%, then paying $6000 PITI on top of that, and biting your nails while you pray that the market doesn’t tank further. If you can find a rental at a reasonable price, take it!

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