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Old 03-09-2007, 04:35 AM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 12,988,540 times
Reputation: 991

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How much is rent in your area vs. cost to buy? I ask this because ive noticed that there is a big disparity the more expensive a place, the "cheaper" the rent is versus cost to buy.

Like in many California cities a house or apartment can be $500k while rent can be anywhere from $1400 to $2200 a month. More expensive houses are even "cheaper" to rent versus buy, I know someone renting a $1.5m house for just under $4k a month. This is about 1:350 ratio! I have seen ratios anywhere from 1:225 to as favorable as 1:600!

Florida cities arent as favorable towards rent with $200k apartments renting out for $1200 a month. Houses are more favorable, especially expensive houses. Ratio is generally 1:175 to 1:250 in that state. Occasionally you can find some really good ratios of 1:300 to 1:400.

In cheaper states like OH, WV, PA and some midwest states, why would anyone wanna rent? Houses there can cost $50k to $100k, yet rent can be $500 a month for a $50k house, a $100k house is more favorable, like $750 a month. I have seen ratios as bad as 1:50, average is 1:80 to 1:120 and its rare to find ratios better than 1:160

If rent<interest+taxes+HOA+HOI+repairs then definately rent!
If rent>interest+taxes+HOA+HOI+repairs then definately buy!

The experts are saying a ratio of 1:125 to 1:175 is the cut off in deciding to rent or buy.

Why is rent in CA so much more favorable than in FL? Even the lower property tax percent and cheaper insurance doesnt explain why in San F. you can rent this:


1/1 at $1400($450k 1:321), 2/2 at $2000($650k 1:325).
I see studios going for around $1200 and lots of 2/2 going for $1800 to $2500 depending how nice and big. To buy, those studios could be $300k to $400k and the 2/2s could be $600k to $900k!

The experts here would lean strongly into favor to rent

Meanwhile in West Palm Beach, FL the rent ratio is less favorable.


1/1 at $900($150k 1:167)2/2 at $1100($200k 1:182) 3/2 at $1300($230k 1:177)

The experts here would lean slightly into favor to rent. I see lots of 2/2 condos going for around the $200k mark that cost around $1200 a month to rent. For the same $1200 a month rent, you could be living in an expensive $350k studio in SF!

Alot of people could benefit by relocating from FL to CA. Youd pay $500-800 more a month over FL but your jobs would pay much more too and this increased salary far exceeds the increased rent cost. Not to mention CA is a better location than FL
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Old 03-09-2007, 04:13 PM
 
Location: Missouri
6,047 posts, read 21,647,987 times
Reputation: 5052
Have you considered going into economics or perhaps accounting?
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Old 03-10-2007, 12:59 AM
 
Location: Phoenix metro
20,005 posts, read 69,394,911 times
Reputation: 10115
In Chicagoland: rent= arm. Buy= leg.
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Old 03-10-2007, 01:03 AM
 
Location: PA
669 posts, read 2,944,858 times
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Quote:
Originally Posted by Need_affordable_home View Post
Youd pay $500-800 more a month over FL but your jobs would pay much more too and this increased salary far exceeds the increased rent cost.
Not sure about that part. $5/hour extra in salary, which is a generous number, only adds $10k to your total income. That might not offset the difference in total cost of living.
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Old 03-10-2007, 01:26 AM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 12,988,540 times
Reputation: 991
Quote:
Originally Posted by bmurphy View Post
Not sure about that part. $5/hour extra in salary, which is a generous number, only adds $10k to your total income. That might not offset the difference in total cost of living.

Its usually alot more than that but as long as salary>rent then relocate

Keep posting guys, tell me whats the rent vs. buy in your city
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Old 03-10-2007, 03:38 AM
 
Location: NE Florida
17,835 posts, read 29,961,812 times
Reputation: 43273
you can get a nice 1 bedroom here for around $800 +
there is a house in our neighborhood that is up for rent they are asking $1675, a similar house sold for $350k

Now go 12 miles east to the beach and you will pay allot more
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Old 03-10-2007, 04:45 AM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 12,988,540 times
Reputation: 991
Quote:
Originally Posted by myfask View Post
you can get a nice 1 bedroom here for around $800 +
there is a house in our neighborhood that is up for rent they are asking $1675, a similar house sold for $350k

Now go 12 miles east to the beach and you will pay allot more

Thanks for the reply. Thats expensive for north Florida


Keep the replies comming!
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Old 03-10-2007, 09:16 AM
 
Location: Missouri
6,047 posts, read 21,647,987 times
Reputation: 5052
Okay.
We have the cheapest apartment in town. We got really lucky. We pay $855/month for a 2 bed, 1.5 bath apartment. Trash and water are included, but no utilities are. There are laundry facilities on premise, but no other amenities...no pool, no nothing like that. Our apartment was one of the cheapest in our complex because most of the other units have been updated but ours really hasn't been. There was a new stove and fridge when we moved in, but most other units have new flooring in the kitchen, new cabinets, and a dishwasher. I wish we had a dishwasher. Anyway, the majority of the one bedroom apartments are at least $850/month, 2 bed apartments would be around $1000/month.
Condos are $200k - $325k, plus association fees.
The townhomes in this area range from the low $300ks - $425k, plus association fees.
Houses in this area start in the mid-$300ks (the ones on the lower end of the price range will be in developments and will have association fees) and go up to $1.5 million...most houses are in the $500ks.
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Old 03-15-2007, 05:27 AM
 
7,139 posts, read 13,180,231 times
Reputation: 2333
A very nice condo, vaulted ceilings, ceiling fans, carpet/wood combo, nice veranda, 2/2 for $750/mo. lease to buy option. That's my Texas!
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