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I'm selling my place soon, and to be honest, I don't believe I'll be buying any time soon. I think I'm gonna bank the money and rent until I see where the hell the economy is headed. It's way too unstabile right now. And I'll be damned if I'm gonna end up a statistic, screw that.
Isn't "renting" and "banking money" an oxymoron? Can't save too much money if you are throwing it away on rent. Yeah, buying doesn't exactly allow you to save per se, but you build equity and and at least have the potential to hopefully make money upon selling. There is no money to be made in renting.
Rather than rent, why not hold on to your place for a bit longer and see where the market is and then sell and buy something else?
Isn't "renting" and "banking money" an oxymoron? Can't save too much money if you are throwing it away on rent. Yeah, buying doesn't exactly allow you to save per se, but you build equity and and at least have the potential to hopefully make money upon selling. There is no money to be made in renting.
Rather than rent, why not hold on to your place for a bit longer and see where the market is and then sell and buy something else?
That's what the common misconception is. How much of what you pay towards your mortgage actually goes to principle? And then, after that, how much does upkeep and taxes offset that?
There is a very good "rent vs buy" calculator online somewhere. The only problem with it is that it can't factor in negative appreciation on a house. Obviously a pre-2008 calculator. http://michaelbluejay.com/house/rentvsbuy.html
Isn't "renting" and "banking money" an oxymoron? Can't save too much money if you are throwing it away on rent. Yeah, buying doesn't exactly allow you to save per se, but you build equity and and at least have the potential to hopefully make money upon selling. There is no money to be made in renting.
Rather than rent, why not hold on to your place for a bit longer and see where the market is and then sell and buy something else?
People are crunching the numbers and walking away from their homes because renting is cheaper - this is happening all over the country. You're not "building equity" when values continue to go down and will go down further.
"Saving" money by renting without losing that equity and paying for all the things homeowners need to pay to maintain a house is "making" money.... just semantics.
It's really quite simple. The areas that are attracting businesses, building infrastructure, and doing well are predominantly fiscally conservative areas.
Until NY state elects politicians that have a vision...of cutting taxes, creating incentives for corporations to move here, improving infrastructure...we will remain pretty much status quo. We'll live off of whatever Manhattan can provide us.
Why did so many new startups relocate to Northern Virginia? (Just taking the example people like to use). Because the politicians in VA, primarily Republicans, created and fostered an environment that allowed it. Same goes for other successful areas like Utah, Indiana, Texas, NC, SC, etc.
As long as we keep electing establishment politicians with no vision, we will be stagnant. By the way, most NY Republicans fall into the same category of Democrats.
It's nice to think that LI is "special" for its proximity to the city. It is to some extent when you're talking about very specific areas. But, people STILL either don't get it, refuse to believe it, or just need too much money to break even everywhere. Prices are still way over inflated on a broad scale all across the Island.
When that next wave of foreclosures hit this year, you better hope you don't have to sell your house anytime soon as you watch your neighbors ruin what little value you think you have right now.
LI is not special at all, the same principles apply to NNJ and Westchester if not most of the country. Back to the OP's original question about the chances of this changing in the next 10 years:
"The ability to own a modest 4 bedroom, 2-bath house, have two relatively new cars, live in a nice town with good schools, and NOT have a growing mountain of debt is limited to so few individuals".
The answer is no, there's no going back I'm afraid.
Not too long ago dad would work 9-5 at the local factory, buy a cozy 4/2 in a good neighborhood mom would stay home to raise the kids. a 2 week vacation every summer. Dad would retire at 60 with a gold watch and a pension to live out his days, the kids inherit his house
Fast Forward a generation, dad still works 9-5 at the factory, mom works part time as well to make ends meet, pay for a second car and to pay for the summer vacation. they own a nice home in a nice neighborhood as well. Dad work until 62 and gets his nice pension, no watch but he is able to pass down the house to his kids.
Jump ahead a decade, with dad's 9-5 job and moms full-time job they almost make ends meet, dad works part-time on the weekend for a little extra spending money and to buy siding for their nice house in the same neighborhood. Dad works until 65 and has to sell the house to retire, living out his days peacefully down south.
Now a generation later, mom and dad are working longer hours. Even with all the income somehow a bill or two just don't seem to get paid every month. Forget about a vacation, a few trips to the beach over the weekend will have to do. Buying a house would be nice but not anytime soon, maybe dad will get a promotion this year. How come just 10 or 20 years go things were so much easier? Dad will probabally work until his body gives out on him around 70. Hopefully Social Security will still be around, the days of pensions are long gone. Hopefully the kids do OK for themselves so dad can move in with them instead of a nursing home, the extra check will help the kids make ends meet anyway.
People are working longer hours for less reward. It's been a trend decades in the making. I can do the math on debt to income and loan to value, makes sense on paper. Does that mean your journeyman and his wife who works hard and saves theirmoney will afford a cozy home in Garden City anytime soon? I can't see it happening.
That's what the common misconception is. How much of what you pay towards your mortgage actually goes to principle? And then, after that, how much does upkeep and taxes offset that?
There is a very good "rent vs buy" calculator online somewhere. The only problem with it is that it can't factor in negative appreciation on a house. Obviously a pre-2008 calculator. Renting vs. Buying a Home: Which is better?
Houses generally do not depreciate...although yeah in this market it has been known to happen, but it's different than a car...b/c market trends can get better. A car will always depreciate, a house may or may not...it's a gamble, yeah, but to me...I think it's better than renting.
I also may be warped b/c I lucked out with my place and I pay less than a $1,000 a month to own. For me renting would have cost more, but for someone else, maybe, maybe not.
In the end though, what are you getting in return for renting...other than a place to live? With buying you get a place to live and the chance to hopefully make some dough (market trend dependant, of course).
Central Nassau has plenty of businesses. Number of jobs in Long Island ( not including jobs in Manhattan that is) is comparable to number of Jobs in NoVA area. More than half my neighborhood work for a company in Long Island and do not commute to the city.
Quote:
Originally Posted by grant516
vs. say Central Nassau where a similar 2 bedroom, 2 bath condo might cost $340K, 7K in annual taxes, has little to no Major Business employment in the nearby area.... and the rail ride to penn is 50 minutes, costs $10.75 peak.
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Isn't "renting" and "banking money" an oxymoron? Can't save too much money if you are throwing it away on rent. Yeah, buying doesn't exactly allow you to save per se, but you build equity and and at least have the potential to hopefully make money upon selling. There is no money to be made in renting.
Rather than rent, why not hold on to your place for a bit longer and see where the market is and then sell and buy something else?
I know renting is basically flushing money down the toilet, but I was considering it short term. I'm poor, the only thing I have in life is my home and it's equity. I don't have a savings, or investments and IRA's and all that other fancy money stuff. I'm just afraid that if things get much worse with the economy I might end up in big financial trouble and sitting on a house that aint worth what I paid for it anymore let alone seeing any miniscule amount of profit. If I sell soon I can still make a little money and recoup my down payment, put the money somewhere safe and just sit on it until things turn around or stabilize. I'm looking to move out of state anyway, so renting before I buy would actually be a smart move to begin with. So, in a way I'd still be saving money by not watching my home/equity comtinue to depreciate, and not lose my shirt should I move out of state and have it not work out and being stuck with a house I can't sell, like many LI'ers who headed south.
I know renting is basically flushing money down the toilet, but I was considering it short term. I'm poor, the only thing I have in life is my home and it's equity. I don't have a savings, or investments and IRA's and all that other fancy money stuff. I'm just afraid that if things get much worse with the economy I might end up in big financial trouble and sitting on a house that aint worth what I paid for it anymore let alone seeing any miniscule amount of profit. If I sell soon I can still make a little money and recoup my down payment, put the money somewhere safe and just sit on it until things turn around or stabilize. I'm looking to move out of state anyway, so renting before I buy would actually be a smart move to begin with. So, in a way I'd still be saving money by not watching my home/equity comtinue to depreciate, and not lose my shirt should I move out of state and have it not work out and being stuck with a house I can't sell, like many LI'ers who headed south.
Mr. Karl,
Most who will not leave Long Island have a big reason to stay here .... inertia.
It looks like you have already overcome that powerful force. If I were you, I would be strongly looking to get out as soon as possible. Before you know it you will want to retire, and a mortgage is the biggest expense that you will be facing. If you find a suitable place you might be surprised that you can buy a better home and pay it off earlier than what you have left now. So assuming worst case scenario, you might be able to get thru' on Social Security.
Also, its never too late to save. $25 per week will go a log way if you can start with that even today. Good luck with your future, till then.... Long Island is the best place on the planet !
I know you call yourself poor in a humble way, but poor in NY maybe middle class or rich elsewhere ....
oh, btw renting is not flushing money in the toilet all the time....
01-21-2010, 02:24 PM
grant516
n/a posts
Quote:
Originally Posted by WJFM
Central Nassau has plenty of businesses. Number of jobs in Long Island ( not including jobs in Manhattan that is) is comparable to number of Jobs in NoVA area. More than half my neighborhood work for a company in Long Island and do not commute to the city.
I strongly disagree. Nassau's population is just a bit smaller than the combination of Loudoun, Fairfax, and Arlington Counties... though quickly the gap is growing.
Just driving down the 66, you see dozents of 10-15 story buildings with some impressive logos on them.
Central Nassau has a small handful, nothing remotely close though.
Plenty of minimum wage jobs here, but obviously that isn't working for most poeple.
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People are working longer hours for less reward. It's been a trend decades in the making. I can do the math on debt to income and loan to value, makes sense on paper. Does that mean your journeyman and his wife who works hard and saves theirmoney will afford a cozy home in Garden City anytime soon? I can't see it happening.
