You have $400k in cash, buy House with it or rent & invest - Page 2

MatthewRyan · #11 10-30-2007, 09:59 PM

I think so many people forget that rents go up every year. And they also forget the value of having you own (much larger) living space, a garage/yard/no one complaing about loud music, etc etc etc

Moonshine · #12 10-30-2007, 10:35 PM

I dont think the housing market has bottomed out yet

still though, i think it's a pretty decent time to buy if you're in it for the long term. 30 years from now it wont matter if you're house went down 2% the year after you bought it but recovered in the next 29. Prices have dropped more in the last year than they have in a while

if you choose to invest i wouldnt just go throwing it into the stock market either...

Tien · #13 10-30-2007, 10:43 PM

They're gonna keep dropping I certain areas of the country.

I've spoken to many investors in the States that have said that bank owned real estate account for up to 20-25% of homes on the market in some areas. That's huge.

With more mortgage resets bound to happen next year, the worse is still to come.

BradleyT · #14 10-31-2007, 12:24 AM

What kind of rent do you charge on a $400K house?

Danastasio1 · #15 10-31-2007, 12:58 AM

The quality of my investment decisions has improved immensely since I stopped renting. [img]/images/graemlins/grin.gif[/img]

KUJustin · #16 10-31-2007, 02:08 AM

[ QUOTE ]
What kind of rent do you charge on a $400K house?

[/ QUOTE ]

Where I'm from it's generally around $3,000-$3,500/mo.

eastbay · #17 10-31-2007, 02:19 AM

[ QUOTE ]
[ QUOTE ]
What kind of rent do you charge on a $400K house?

[/ QUOTE ]

Where I'm from it's generally around $3,000-$3,500/mo.

[/ QUOTE ]

Where the heck are you from?

You could borrow the full $400k and owe significantly less than $3k a month in PITI, assuming 1% property tax. That doesn't add up.

eastbay

SlowHabit · #18 10-31-2007, 02:38 AM

[ QUOTE ]
[ QUOTE ]
What kind of rent do you charge on a $400K house?

[/ QUOTE ]

Where I'm from it's generally around $3,000-$3,500/mo.

[/ QUOTE ]
Sick.

Henry17 · #19 10-31-2007, 05:48 AM

That seems high. I live in a $600k condo and only pay $2700.

spex x · #20 10-31-2007, 10:11 AM

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
What kind of rent do you charge on a $400K house?

[/ QUOTE ]

Where I'm from it's generally around $3,000-$3,500/mo.

[/ QUOTE ]

Where the heck are you from?

You could borrow the full $400k and owe significantly less than $3k a month in PITI, assuming 1% property tax. That doesn't add up.

eastbay

[/ QUOTE ]

There isn't one answer to this question. In any rental, you charge as much as the market will bear. The price of a house has almost nothing to do with the rent. Also, different investors might have different goals, which could effect rents as well.