Housing Bubble Popped but why aren't the prices reflecting it? (Sarasota: real estate, rent)

[SKB]

Originally Posted by cariad

You can't change the assumption to prove a point, all you are doing is twisting it.

I can't buy that house now for 400k, the seller is asking 1.2 mil. But I do want to live in a 1.2 mil house, not buy a lesser house that is selling for 400K. Solution-rent the biggie and invest the rest.

I have not attacked your position on buying now, only tried to refute your claim that renters are throwing their money away and don't appreciate my reasoning as being labeled as petty jealousy, just because I disagree.

Your mention of 3-6% appreciation per year on real estate is in line with what salaries would historically support over the years. The salary of the average middle class worker looking to buy anytime between now and the next however many years cannot support 20-50% gains over short periods of time. Many of those trying to do so without understanding all the financial ramifications are mortaging and risking their future, not just the house.

cariad,

Brilliantly said!!!!!!

[UKOK]

Originally Posted by kort677

I can when the original assumption is contrived, they contrive facts to suit their examples and so did I

[quote=firemed;861108]

Originally Posted by kort677

no the point that was trying to be floated was that there are guys who are stuck in their homes and will bail at any opportunity and there certainly are people in that boat and sure you might get a cheap rental, but unless your predicted crash happens, and I don't think it will be as hard as some people who post here do, in a few years when things do change and they will, you might be left on the sidelines again and that guy who you rent from will have had you paying his costs over the bad times and he will reap the benefits.
YMMV

[quote=cariad;861936]You can't change the assumption to prove a point, all you are doing is twisting it.

QUOTE]


My original assumption was not contrived, it was fact. Buy a house for 1.2 mil or rent it for 3,500 a month was the choice. For some reason you have become incredibly defensive, like you own the house. I never implied the owner was stuck in it, I said, and I will say again, I DON'T CARE what he paid for it or what his payments are. It is totally irrelevant to me. My point was, simply, that given a choice of buying or renting THIS HOUSE, renting is the obvious choice.

[UKOK]

Originally Posted by cariad

You can't change the assumption to prove a point, all you are doing is twisting it.

I can't buy that house now for 400k, the seller is asking 1.2 mil. But I do want to live in a 1.2 mil house, not buy a lesser house that is selling for 400K. Solution-rent the biggie and invest the rest.

I have not attacked your position on buying now, only tried to refute your claim that renters are throwing their money away and don't appreciate my reasoning as being labeled as petty jealousy, just because I disagree.

Your mention of 3-6% appreciation per year on real estate is in line with what salaries would historically support over the years. The salary of the average middle class worker looking to buy anytime between now and the next however many years cannot support 20-50% gains over short periods of time. Many of those trying to do so without understanding all the financial ramifications are mortaging and risking their future, not just the house.

Very nicely put.

[kort677]

[quote=UKOK;862716][quote=firemed;861108]

Originally Posted by cariad

You can't change the assumption to prove a point, all you are doing is twisting it.

QUOTE]


My original assumption was not contrived, it was fact. Buy a house for 1.2 mil or rent it for 3,500 a month was the choice. For some reason you have become incredibly defensive, like you own the house. I never implied the owner was stuck in it, I said, and I will say again, I DON'T CARE what he paid for it or what his payments are. It is totally irrelevant to me. My point was, simply, that given a choice of buying or renting THIS HOUSE, renting is the obvious choice.

maybe in your area you can rent a 1.2 million house at that level, but that isn't the case everywhere in FLA.
If it works for you go for it, may all your dreams come true

[info please]

By the time this whole thing is over .The rates will be up and no one will be moving.

[SKB]

The rates will not have an impact on the people like me who are waiting on the sidelines with cash.

[UKOK]

Originally Posted by kort677

maybe in your area you can rent a 1.2 million house at that level, but that isn't the case everywhere in FLA.
If it works for you go for it, may all your dreams come true

Like I said, it was a house in Sarasota, not a house all over Florida.

[Hondax]

Originally Posted by SKB

The rates will not have an impact on the people like me who are waiting on the sidelines with cash.

That makes two of us not worried about rates. Can we call two a consensus....

[rstate]

I'm not sure why the two of you aren't concerned if interest rates increase..... it impacts everyone, whether or not you own a home.

[Hondax]

Originally Posted by rstate

I'm not sure why the two of you aren't concerned if interest rates increase..... it impacts everyone, whether or not you own a home.

Rstate,

You can certainly say everything effecting money be it lending rate, savings rate, bond rate,...etc, will have it's effect. Can we at least agree that someone paying cash for real estate is not as worried about real estate interest rate?