Comments on: Three reasons why you should be happy about renting in California: Glut of rental housing, mobility, and hedge against future price drops. http://www.doctorhousingbubble.com/renting-california-smart-decision-in-todays-real-estate-market-rentals-vacancy-glut-mobility/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 03:22:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ben http://www.doctorhousingbubble.com/renting-california-smart-decision-in-todays-real-estate-market-rentals-vacancy-glut-mobility/#comment-61053 Ben Thu, 28 Oct 2010 00:08:12 +0000 http://www.doctorhousingbubble.com/?p=3381#comment-61053 This writer must be a renter who doesnt understand that house doubles in value about every 10 yrs on average in CA, you have see how much rent you will be renting the same house 10, 20, even 30 years later when i have my house paid off. I remenber my dad was paying $525 to rent an apt about 15 yrs ago, the same apt now rents for about $1600. Good luck renting, I am trying to buy 1 more one now. This writer must be a renter who doesnt understand that house doubles in value about every 10 yrs on average in CA, you have see how much rent you will be renting the same house 10, 20, even 30 years later when i have my house paid off. I remenber my dad was paying $525 to rent an apt about 15 yrs ago, the same apt now rents for about $1600.
Good luck renting, I am trying to buy 1 more one now.

]]> By: Sean http://www.doctorhousingbubble.com/renting-california-smart-decision-in-todays-real-estate-market-rentals-vacancy-glut-mobility/#comment-50549 Sean Tue, 06 Jul 2010 19:11:47 +0000 http://www.doctorhousingbubble.com/?p=3381#comment-50549 I think you missed something on the scenario: "$2,704 (PITI) – $1,795 (rental) = $909 per month". I thought the rule of thumb was that you can take add about 1/3 to your current rent because you get it back in mortgage interest deduction each year. So that would net about $300 per month, post tax, vs. your $909 per month pre tax. $300 x 60 = $18,000 So savings on house of $32,000 exceeds post tax value of $18,000, showing net of $14,000 represented in principal. The rest holds up, such as home value not holding up when interest rates go up. I do not see interests rates going to 9% though yet. In the short to med run, we are in a deflationary/low inflation environment. Longer term we should see inflation, but the "bad" inflation related to currency and public debt servicing. I think you missed something on the scenario:

“$2,704 (PITI) – $1,795 (rental) = $909 per month”.

I thought the rule of thumb was that you can take add about 1/3 to your current rent because you get it back in mortgage interest deduction each year. So that would net about $300 per month, post tax, vs. your $909 per month pre tax.

$300 x 60 = $18,000

So savings on house of $32,000 exceeds post tax value of $18,000, showing net of $14,000 represented in principal. The rest holds up, such as home value not holding up when interest rates go up. I do not see interests rates going to 9% though yet. In the short to med run, we are in a deflationary/low inflation environment. Longer term we should see inflation, but the “bad” inflation related to currency and public debt servicing.

]]> By: Forty2 http://www.doctorhousingbubble.com/renting-california-smart-decision-in-todays-real-estate-market-rentals-vacancy-glut-mobility/#comment-49992 Forty2 Mon, 21 Jun 2010 11:13:20 +0000 http://www.doctorhousingbubble.com/?p=3381#comment-49992 I keep waiting for the NODs to show up. My landlord is underwater on the two condos he owns in this building and even tried to talk me into buying the one I'm renting, but no thanks. If I stay another year he'll cut the rent $50/mo (well whoopdedoo) but refuses to renovate the bathroom where the tiles are falling off the wall. Gotta decide by the end of the month if I'm staying here. Considering the town he offered a good price but buying a condo is even dumber than buying a house now. I keep waiting for the NODs to show up. My landlord is underwater on the two condos he owns in this building and even tried to talk me into buying the one I’m renting, but no thanks. If I stay another year he’ll cut the rent $50/mo (well whoopdedoo) but refuses to renovate the bathroom where the tiles are falling off the wall. Gotta decide by the end of the month if I’m staying here.

Considering the town he offered a good price but buying a condo is even dumber than buying a house now.

]]> By: rob918 http://www.doctorhousingbubble.com/renting-california-smart-decision-in-todays-real-estate-market-rentals-vacancy-glut-mobility/#comment-49989 rob918 Mon, 21 Jun 2010 05:43:20 +0000 http://www.doctorhousingbubble.com/?p=3381#comment-49989 People have always thought their homes were overpriced. My first home in a quiet east bay city was less than 100K and I thought that was overpriced, it was a bargain years later when I sold it for several times what I bought it for. My parents bought 1 acre in Sonoma County, near the city of Sonoma with 2 small homes on it for 38K in 1978 and they thought they it was overpriced, my friends in the Hollywood Hills down the street from Ellen Degeneris (she sinced moved) paid less than 100K in the 1970s and they thought they paid too much. I bought a nice piece of acrage property with a home on it in the early 80s for less 100K and I thought I paid too much for that at the time. Again, it was a bargain as the years passed by. I am yet to meet someone that thought they didn't pay too much for a home. My parents first home in a middle class neighborhood in the mid 60s was 6K and they wondered how they would make the payments with 3 kids and only one parent working. Same thing happed in the mid 70s when they bought a home in an upper class neighorhood in the east bay area and they thought the same thing. Talk to anyone over 40 or 50 and they will tell you the same stories. People have always thought their homes were overpriced. My first home in a quiet east bay city was less than 100K and I thought that was overpriced, it was a bargain years later when I sold it for several times what I bought it for. My parents bought 1 acre in Sonoma County, near the city of Sonoma with 2 small homes on it for 38K in 1978 and they thought they it was overpriced, my friends in the Hollywood Hills down the street from Ellen Degeneris (she sinced moved) paid less than 100K in the 1970s and they thought they paid too much. I bought a nice piece of acrage property with a home on it in the early 80s for less 100K and I thought I paid too much for that at the time. Again, it was a bargain as the years passed by. I am yet to meet someone that thought they didn’t pay too much for a home. My parents first home in a middle class neighborhood in the mid 60s was 6K and they wondered how they would make the payments with 3 kids and only one parent working. Same thing happed in the mid 70s when they bought a home in an upper class neighorhood in the east bay area and they thought the same thing. Talk to anyone over 40 or 50 and they will tell you the same stories.

]]> By: rob918 http://www.doctorhousingbubble.com/renting-california-smart-decision-in-todays-real-estate-market-rentals-vacancy-glut-mobility/#comment-49988 rob918 Mon, 21 Jun 2010 05:29:39 +0000 http://www.doctorhousingbubble.com/?p=3381#comment-49988 I don't know where you live, but if you're ready just buy a home. You have the down payment and if you get a fixed rate mortgage, go for it. If you listen to all the naysayers on this board, you will never get a home. I have heard the same thing about real estate for 30 years at various times........the market ebbs and flows and you can't time the housing market any better than you can time the stock market. If I would have listened to all the stuff over the 30 year I still wouldn't have property. I grew up in the bay area and people were always saying that it was too expensive. Talk to folks my age in their late 40s or early 50s and they will tell you the same thing. Buying your first place is a little scary, but you'll be glad you did in the long run. Just don't buy places to flip it or turn it or whatever the word of the year is. Live in it, enjoy it, raise a family it, pay it off as fast as you can, then get the next one. Just don't get greedy and get in over your head. After a few of these you'll start keeping them and using them as income property. You'll look back and be glad you did. I have posted here before that I have never lost money on California realestate (bay area, north bay area and metro socal). I don’t know where you live, but if you’re ready just buy a home. You have the down payment and if you get a fixed rate mortgage, go for it. If you listen to all the naysayers on this board, you will never get a home. I have heard the same thing about real estate for 30 years at various times……..the market ebbs and flows and you can’t time the housing market any better than you can time the stock market. If I would have listened to all the stuff over the 30 year I still wouldn’t have property. I grew up in the bay area and people were always saying that it was too expensive. Talk to folks my age in their late 40s or early 50s and they will tell you the same thing. Buying your first place is a little scary, but you’ll be glad you did in the long run. Just don’t buy places to flip it or turn it or whatever the word of the year is. Live in it, enjoy it, raise a family it, pay it off as fast as you can, then get the next one. Just don’t get greedy and get in over your head. After a few of these you’ll start keeping them and using them as income property. You’ll look back and be glad you did. I have posted here before that I have never lost money on California realestate (bay area, north bay area and metro socal).

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