Comments on: Renting Costs More Than Owning http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/ Blog About Real Estate, Salt Lake City, Technology, and Other Stuff Thu, 31 Dec 2009 20:54:37 +0000 http://wordpress.com/ hourly 1 By: oaklandcounty http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23576 oaklandcounty Tue, 25 Sep 2007 11:11:43 +0000 http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23576 Market factors need to play into this. I work in a market with declining values. I have more than one client who will pay up to 20K a month in rent because they are here on a short term basis (a few years). For them, it does not make sense to invest. I do recognize that my market is an unfortunate exception. Market factors need to play into this. I work in a market with declining values. I have more than one client who will pay up to 20K a month in rent because they are here on a short term basis (a few years). For them, it does not make sense to invest. I do recognize that my market is an unfortunate exception.

]]> By: rob aubrey http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23434 rob aubrey Sun, 23 Sep 2007 00:40:08 +0000 http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23434 I agree that owning is better if you have any plans on living somewhere for a period of time. As far as prices going backwards, I don't think we have much to worry about in the 1st and 2nd price tiers. It is the glutton of starter mansions in the south end of the valley that were over built, by speculators that did no homework AT ALL. The idea that the first two tiers are a pretty safe market is based on the makeup of Utah’s demographics. We are not going to run out of first time homebuyers any time soon. As long as we can keep the loan fraud out of the entry level we will be OK. DON’T LISTEN TO THE NATIONAL MEDIA. REAL ESTATE IS LOCAL IN NATURE I agree that owning is better if you have any plans on living somewhere for a period of time. As far as prices going backwards, I don’t think we have much to worry about in the 1st and 2nd price tiers. It is the glutton of starter mansions in the south end of the valley that were over built, by speculators that did no homework AT ALL.
The idea that the first two tiers are a pretty safe market is based on the makeup of Utah’s demographics. We are not going to run out of first time homebuyers any time soon. As long as we can keep the loan fraud out of the entry level we will be OK.
DON’T LISTEN TO THE NATIONAL MEDIA. REAL ESTATE IS LOCAL IN NATURE

]]> By: John Harper http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23210 John Harper Tue, 18 Sep 2007 22:40:41 +0000 http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23210 According to today's paper, rents in the SFO Bay Area have increased 12%. Housing prices in most of the Bay Area are suffering downward pressures. It's not the cost of the house as much as a question affordability. My guess would be that California is at an all time low for affordability. Though affordability is considered at a crisis point by the California Commissioner of Real Estate, the Governator's attention is elsewhere. According to today’s paper, rents in the SFO Bay Area have increased 12%. Housing prices in most of the Bay Area are suffering downward pressures. It’s not the cost of the house as much as a question affordability.

My guess would be that California is at an all time low for affordability. Though affordability is considered at a crisis point by the California Commissioner of Real Estate, the Governator’s attention is elsewhere.

]]> By: Greg http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23136 Greg Mon, 17 Sep 2007 22:16:54 +0000 http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23136 Tim <strong>I couldn't disagree more.</strong> Job transfer, losing your job, neighbor is a drummer, wife has twins or triplets- all those things can happen just as easily whether you live in an apartment or condo. You do not need ANY money down to buy a home, certainly not 20% down. We've represented about 60 buyers so far this year in buying a home- I guess maybe 20 of them had 20% down (people who had sold a home and put that much down on their new one), with the remaining buying with little or no money down. I bought my house with no money down, even though I could have easily put 20% down- but I took that money and invested in a rental that made me a lot of money. A house is an investment and it should absolutely be looked at as an investment. Anytime you spend hundreds of thousands of dollars on something you should look at it's investment potential- not doing so would be foolish at best. I have made hundreds of thousands of dollars in my life from <strong>homes I have lived in</strong> appreciating (not even including rentals I have owned). Renting this whole time I would have nothing. Putting your money into an appreciating asset is the very definition of an investment... Tim

I couldn’t disagree more. Job transfer, losing your job, neighbor is a drummer, wife has twins or triplets- all those things can happen just as easily whether you live in an apartment or condo.

You do not need ANY money down to buy a home, certainly not 20% down. We’ve represented about 60 buyers so far this year in buying a home- I guess maybe 20 of them had 20% down (people who had sold a home and put that much down on their new one), with the remaining buying with little or no money down.

I bought my house with no money down, even though I could have easily put 20% down- but I took that money and invested in a rental that made me a lot of money.

A house is an investment and it should absolutely be looked at as an investment. Anytime you spend hundreds of thousands of dollars on something you should look at it’s investment potential- not doing so would be foolish at best.

I have made hundreds of thousands of dollars in my life from homes I have lived in appreciating (not even including rentals I have owned). Renting this whole time I would have nothing.

Putting your money into an appreciating asset is the very definition of an investment…

]]> By: Tim B http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23133 Tim B Mon, 17 Sep 2007 21:51:31 +0000 http://blueroof.wordpress.com/2007/09/17/renting-costs-more-than-owning/#comment-23133 I guess it all depends on your circumstances as to whether renting is right (more affordable) or buying is more affordable. Getting a job transfer, losing your job, a new neighbor is a drummer for the local punk rock band, your wife has just been diagnosed with twins or heaven forbid triplets and 2 bedrooms will not cut it in 2 years. If someone cannot afford 20% down in this economy, then renting is really the only sensible thing to do. One thing people need to realize...a house can be a home but it should never be considered an investment. I guess it all depends on your circumstances as to whether renting is right (more affordable) or buying is more affordable. Getting a job transfer, losing your job, a new neighbor is a drummer for the local punk rock band, your wife has just been diagnosed with twins or heaven forbid triplets and 2 bedrooms will not cut it in 2 years. If someone cannot afford 20% down in this economy, then renting is really the only sensible thing to do.

One thing people need to realize…a house can be a home but it should never be considered an investment.

]]>