|
Depends on area 100%
|
|
As low as interest rates are right now its cheaper to buy compared to renting. Here in Denver a $200,000 house with 10% down you're looking at about a $1000 a month payment with taxes and insurance. To rent that same home would be anywhere from $1500 to $1700 a month.
The rental market has boomed with all these foreclosures as people can't qualify to buy a house. Slowly those people are becoming in the position to be back in the market and this will drive demand and prices will rise, its starting to happen now and I think we are at the beginning of another housing boom. |
Aren't you still in the Orlando area? I'd have figured your market hit rock bottom a few years ago.
When we were just there I saw newly constructed homes that were going for under $150k. |
I don't know, every real estate agent i know seems to think it's at a All time low now, and it's the best time to buy.
I know what you're gonna say; they are trying to sell, but one of them is family so i am thinking she might actually be honest. Your daughter can always rent it out if she needs to... renter's market is huge right now |
Quote:
My house is actually up about 40% since I bought it 5 years ago so the market up here needs a correction. |
Quote:
Btw can you help me with an average monthly number to rent a decent apartment for a single dude in Trondheim, Rotvoll? I have an employee we might outsource there and I need to do some math. |
As long as the total amount of house payments (mortgage + interest) is lower than or equal to the total amount of rent you'd pay during that same period, a house is a great deal. Even if it depreciates in value by 90%, you still have 10% more left than if you had been renting the entire time.
Assuming, of course, you'd have the same space and standard of living in your own house as you would in a rental. |
Quote:
|
Quote:
Either you rent and basically throw your money away since you are not building equity, or you buy something that is up to your standard, that you can afford and that will not cost you more than a rent. Even if it depreciates, you are still better off in the long term than renting. |
Quote:
I had a look at the student org in Trondheim and the avg price for a 3 room apartment up there is 13000 NOK a month ($2100). DKK and NOK is about even at the moment. With students coming in I doubt you'll find anything decent atm :/ |
Rent for now and wait 6 months, if values goes up your still in time to buy. If it goes down, wait longer. Its simple. For now i would WAIT!
|
As one poster said, you're not really buying the house, literally. How many people ever really finish paying for a house before they move out? Same with a car, also.
|
Quote:
We don't need a student apartment, 3 bedroom is more than he needs - but now I know the pricerange, thanks! :thumbsup |
Quote:
House: depreciates or appreciates slowly, still worth lots after a lifetime. Buying a house is nothing like buying a car. One is an investment, the other is an expenditure. |
I don't think you are looking at it properly at all. Buying is ALWAYS going to be better than renting. Why rent somewhere for $1,000 a month say as opposed to putting $1,000 into your own place?
I moved to Canada 2 years ago and bought a house, some people said I was an idiot and should have rented since I wasn't sure I'd be here more than 3-5 years. Last week my neighbour just sold her house for 30% more than I paid for mine. I'm easily up 20% in just under 2 years, probably more as my house is much better than hers. |
The areas of Florida I'm most familiar with are Ft Myers/Cape Coral and Tampa. You can still find a lot of homes with a square foot cost below what the materials alone sell for. I'm talking $50 per ft range.
That being said if she puts down at least 25% and has financing pre approved there's nothing wrong with making low ball offers until someone accepts. This is a buyers market make sure she is a smart buyer. The biggest negatives I see are personal ones. If she's young will she want to move around to different cities or be tied down to one location for years. The other is most marriages end in divorce ...... Either one then makes her a seller in a buyers market. . |
Oy. This stuff makes my head hurt when I think about buying. I think I'll just be saving my money without any intent to buy for the next few years... At least by the time things level off, I'll be able to throw down a huge chunk if not the whole thing. I wish Toronto real estate wasn't so expensive. I envy the US in that respect.
|
It's a great time to buy especially because interest rates are so low. Also remeber interest and property taxes are both tax deductible. Personally I would get her to wait until she can put 20% down, interest rates aren't going up anytime soon
I'm a little skeptical about the math of ~7% depreciation a year, maybe in the short term but you don't buy a house for the short term. |
As a landlord I love reading how Americans are scared to buy and think renting is the best way to go.
Home prices and mortgage rates are at historic lows, if there was any time to buy this is it! Why pay off the property for someone else? Last house I bought I rented back to the previous owner. They have 4 kids in 3 different schools all within a couple miles of the house. He signed a multi-year lease because he dreads having to move, their lives are entrenched in the community. I paid $101k for the house and collect $1000 a month rent, which is at least $200 under market but I'm helping a struggling hard working honest family. They will be there for the next 10 years and will pay off the house for me and then some. Care to tell me how renting beats buying? Their mistake was buying at a high and spending more than they should have, so many family's got caught up in that. |
Doesn't it really simply depend on if it's "just another investment idea" versus "I need a place to live"?
The phrase "buy low" comes to mind also. When is a better time to buy.. when the value goes up and the interest rates on loans go up right along with them? I guess if you have a crystal ball then theres no need to ask (not that anyone was asking). |
1. You know that old saying "buy low", well the housing market is at it's low right now. Sure, it might go lower - but not so much it's going to be a big difference than where it is now.
2. By renting they're throwing that money away anyway. So just compare how much they're currently throwing away each year and it's pretty easy to figure out if it's worth it and how much house they can afford. 3. 5% down? WTF? I always thought you wanted at LEAST 10%, but 20% is the best (or more if you can afford it). |
Quote:
|
I believe it is extremely smart to purchase a house right now, I just did.
a) The market has never been in the buyers favor as it is now. When going to the bidding table, you can easily find a seller who needs to sell ASAP -- getting the deal of a life time. b) I just closed on my house with a 3.7% 30 yr fixed rate -- $100 down. ... beating a 3.7% rate would be a miracle. c) While it takes a while to find the home you want, being picky can land an awesome deal. I just closed on the home, after doing minor work ($3000-$5000) my appraisal will jump almost 20,000$ All in all, buy a house. If you are a seller, just hang on to the house, lol. |
Quote:
. |
Quote:
|
Yes i think its a good idea to buy a house instead of putting money into somebody elses pocket by renting a property, at least when you buy your investing in something for yourself and house prices rise and fall all the time even if it takes 10 years to make a profit by selling or upgrading/ downgrading to another house
|
Quote:
|
As for the crystal ball comments, no one knows where the housing market will go, just like the stock market.
BUT look at the cost per sq. ft. on the house you want to buy, in many cities you can find newer (10 years old or newer) homes for under $80 a sq ft. Well under the cost to rebuild which is about $150/ sq ft on average. Hard to go wrong when you are buying a place at 50% of what it costs to rebuild |
Quote:
. |
Quote:
tell her to buy a house at no more than 70% of the current value, plenty of deals on foreclosures, plenty of deals for refinance deals. All you have to do is to find the right mortgage company and have a team full of real estate agents sniffing out deals for you and you will save an insane amount, so that takes away your depreciation worries. Then if you wanted to go further you'd find 3 or 4 more and do the same thing and rent them out and live off the cash flow. You have any idea how much you can save on taxes when you own rental property? if you're not making money in real estate? it's because you are playing the speculation game and not really an investor at all. |
Quote:
|
Quote:
|
its so crazy to see the difference between the canadian and american real estate market. prices here just go up and up and up for the past 10 years or so. i'm sure they'll come down at some point but i don't see any signs yet.
|
Quote:
|
I'm surprised you didn't steer her towards one of those underground bunker houses. On a serious note I saw a couple of nice houses coming up for sale in the next sheriff's tax sale.
|
Quote:
|
Quote:
http://www.neighborhoodscout.com/fl/fort-myers/rates/ It's on the internet so it must be true. |
Quote:
|
Quote:
|
| All times are GMT -7. The time now is 04:12 AM. |
Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2025, vBulletin Solutions, Inc.
©2000-, AI Media Network Inc123