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#11
11-15-2007, 11:44 AM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
[ QUOTE ] If your "$550k home" will only fetch $495k ...doesnt this whole scenerio/idea change drastically OP now? [/ QUOTE ] My contention is that it doesn't. That continuing to own given the price of a comparable rental is just insane. Edit: This is most definitely not about me. [/ QUOTE ] So in other words you will sell your house at any price....inorder just to rent? That doesnt make sense.....their MUST be some other mitigating factors....you may need the funds,debt consolidation,you dont like the home/neighborhood you are living in,you HAVE to sell eg.due to divorce ,falling behind in payments,job loss/change,home ownership responsibility.....whatever? So in other words.....if you couldnt get your price and NET $300k....you will take whatever you can,...at whatever price? What am I missing here? Stephen [img]/images/graemlins/smile.gif[/img] 
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#12
11-15-2007, 11:48 AM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
For real estate as a whole, I pretty much just assume it will do around inflation + 1% or so at best long term. [/ QUOTE ] This seems reasonable. You have all the numbers so it should just be a math problem. What's your estimate on inflation and at what point does that change the decision?
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#13
11-15-2007, 12:13 PM
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Re: Is my thinking off here? (renting vs owning situation)
Sorry, I meant the $50k in your example is probably not enough to make a difference.
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#14
11-15-2007, 06:32 PM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
Sorry, I meant the $50k in your example is probably not enough to make a difference. [/ QUOTE ] Now I am confused. If 50 thousand dollars in cash won't make any difference why is saving $300 per month renting going to matter? After all that is almost 14 years of rent payments they "don't care about". Jimbo
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#15
11-15-2007, 07:18 PM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
[ QUOTE ] Sorry, I meant the $50k in your example is probably not enough to make a difference. [/ QUOTE ] Now I am confused. If 50 thousand dollars in cash won't make any difference why is saving $300 per month renting going to matter? After all that is almost 14 years of rent payments they "don't care about". Jimbo [/ QUOTE ] I'm saying that the situation is so skewed towards renting being correct, that even if you knocked off $50k from the equity, it is probably still correct.
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#16
11-15-2007, 08:18 PM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
[ QUOTE ] [ QUOTE ] Sorry, I meant the $50k in your example is probably not enough to make a difference. [/ QUOTE ] Now I am confused. If 50 thousand dollars in cash won't make any difference why is saving $300 per month renting going to matter? After all that is almost 14 years of rent payments they "don't care about". Jimbo [/ QUOTE ] I'm saying that the situation is so skewed towards renting being correct, that even if you knocked off $50k from the equity, it is probably still correct. [/ QUOTE ] I understood your message but for the life of me can see no reason why. Did you miss the part about the $300 they save monthly by renting will take 14 years for them to recover the lost 50 grand? Jimbo
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#17
11-15-2007, 08:21 PM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
For real estate as a whole, I pretty much just assume it will do around inflation + 1% or so at best long term. [/ QUOTE ] If someone understands when it is and isn't a good time to buy/sell a house, and the importance of location, then they can do much better than inflation + 1%.
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#18
11-15-2007, 08:53 PM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
Sorry, I meant the $50k in your example is probably not enough to make a difference. [/ QUOTE ] Wow I have no idea how you can justify a $50k loss vs. saving $300 in monthly rent,as "not enough to make a difference" It will take 13.88 yrs(I am being a geek myself with plain ole' simple math....lol)..to recover/make-up that $50k...and thats only "IF" you get the sale price figure I used in my example? Something just aint right here [img]/images/graemlins/confused.gif[/img]
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#19
11-15-2007, 08:56 PM
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Re: Is my thinking off here? (renting vs owning situation)
Stephen,
I did the same thing at first. Then I read the OP again and saw they will be paying $300 more not less per month by renting and willing to lose 50k. If I wasn't confused at first (which I obviously was) I most certainly am now. Jimbo
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#20
11-15-2007, 09:06 PM
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Re: Is my thinking off here? (renting vs owning situation)
[ QUOTE ]
Stephen, I did the same thing at first. Then I read the OP again and saw they will be paying $300 more not less per month by renting and willing to lose 50k. If I wasn't confused at first (which I obviously was) I most certainly am now. Jimbo [/ QUOTE ] Its insane.....something is DEF. wrong here [img]/images/graemlins/confused.gif[/img]
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