You had a great deal. That is definitely not the norm. Rental rates have not decreased in fact, they've increased. I mean think about it, who would rent their house for less than their mortgage (unless they were one who overpaid for their house)?
You must be renting a 1 BR apt. Housing rentals were the same or higher than mortgages! I could easily rent my house for MORE than my mortgage payment.
Sorry vrail, but somehow you’ve glanced over the facts, deemed they don’t apply, and then continue with straw man comments.
But as the last few years has shown, there have been better alternatives financially and it’s generally accepted that prices were propped up significantly by artificial measures.
You bought a 2 BR house the same size as your apt. and pay more than double? Why?
You bought a 2 BR house the same size as your apt. and pay more than double? Why?
See you're comparing apples to oranges. You can't compare the rent of a 2 BR apt. to a 3 BR house with half an acre. You could easily rent your house for $1,800.00/mth.
. Buuuttt.....the argument that you're trying to prove here isn't exactly right on. Go to realto.rcom and see how much house you can get now for what you're paying in a mortgage. Theres TONS out there and there's some really really nice ones for not that much $.
I think you have to admit that you had a hell of a deal renting that much water front for that little amount. I don't believe that is real world. If that's the case everyone would be on waterfront property. I'll rent it and rent my house out.alright, how bout dis - House # 1 I rented for $1250/mo - 3 acres, on the water with my own private pier - 3 car garage, 4 bedrooms, 2 baths, all wood floors. House #2 I rented for 1500$/mo. 3 bedrooms, 3 full baths, 3000+ square feet, right on the water with my back deck walking out on my own private pier, covered parking for 3 cars, wood throughout, granite counter tops the whole lot - basically a million dollar home. I buy a house for 280k, its basically a rambler on a finished basement and my mortgage is 1800$ /mo.
Now like I said, I'm all for owning and not renting cause now I get to do what I want when I want plus I love my tax refund
Not everyone gets exactly what they're paying in mortgage out of rent - lots do it as an investment and can actually take a loss on the rent so as to get a sweet write off for taxes. Others have owned the house and the rent is just money in the bank. I'm pretty sure no one would rent my house for what I pay for a mortgage payment; not with all the awesome homes out there right now for less.
One thing to put things in to perspective, tho, is to remember that with House #1, you were living in a home that was built in the early 40's, right? And recall that the electricity bills were routinely very high, as compared to what other people were paying. So...you had a somewhat low rent, but the electricity bills were very high, and the long commute and the lack of close-by shopping is what made the rent so reasonable.alright, how bout dis - House # 1 I rented for $1250/mo - 3 acres, on the water with my own private pier - 3 car garage, 4 bedrooms, 2 baths, all wood floors. House #2 I rented for 1500$/mo. 3 bedrooms, 3 full baths, 3000+ square feet, right on the water with my back deck walking out on my own private pier, covered parking for 3 cars, wood throughout, granite counter tops the whole lot - basically a million dollar home. I buy a house for 280k, its basically a rambler on a finished basement and my mortgage is 1800$ /mo.
Now like I said, I'm all for owning and not renting cause now I get to do what I want when I want plus I love my tax refund
Not everyone gets exactly what they're paying in mortgage out of rent - lots do it as an investment and can actually take a loss on the rent so as to get a sweet write off for taxes. Others have owned the house and the rent is just money in the bank. I'm pretty sure no one would rent my house for what I pay for a mortgage payment; not with all the awesome homes out there right now for less.
But we’re talking comps here. At some price point, the cost of purchasing House #X in addition to the high electricity bills, when you could rent a comparable house instead (at a much lower cost) makes purchasing not as financially attractive.
That's 3.9X for mortgage alone.....not total bills...that I was refering too.
MRIS stats for yearend totals are out for 2009. Welcome back to 2005 prices.
Year End Real Estate Trend Indicator
Now, if only we could get the government out of the business of propping up home prices..
It should be original price, but it’s the price at the time of sale. In other words, it does not follow the market down. Keep in mind, all this data is skewed for the better for the seller (i.e. sellers agent). When the bubble first started showing its cracks, it was not uncommon to see the list price changed to the selling price; making this percentage for that particular house 100%. Also, these prices do not account for seller subsidies (and neither does the tax man for that matter). If the price is $290k with $10k in seller subsidies, $290k gets reported and that is what is taxed.