2023 Real Estate Observations (Boston, Newton, Brookline: crimes, cottage, ranking)

[massnative71]

Originally Posted by MtPleasantDream

Yeah I don't think I can go back to 700 sqft either.
However, many people live in a smaller home and are happy with it. If it is in a big city (e.g. Boston), many activities will not be at home anyway.
Living in a small apartment in the countryside is a nightmare, especially if you don't have a car.

That's the thing, renting vs. buying is rarely going to be apples/apples. Long term vs. short term, etc.. Different motives. A renter is far more apt to go minimalist, ie. what will meet their needs for the next 12 months...while a buyer is going to sit down and say "what will suite me for the next 10+ years? Start a family? New pets? New hobbies? I'll possibly be stuck there for a very long time, so I better not have any regrets!"

[newenglandgal123]

Originally Posted by massnative71

Many seem to forget that the market is what determines what can be charged for rent, as opposed to the ownership expenses. I strongly disagree that most people will come out ahead buying vs. renting, right now.



As one who rents the condo that I reside in, and at the same time rents out a condo that I own...just for fun I went and crunched some numbers. It's a real eye opener.



Where I live:


Current Zestimate value/mortgaged at 6.5% for 30 years/monthly payment (if purchased today)

+ condo fee
+ taxes
+ insurance (rough guess)
+ $100/mo maintenance/repair costs (very conservative)

- what I pay my landlord in rent

= $2024











My rental property:


Current Zestimate value/mortgaged at 6.5% for 30 years/monthly payment (if purchased today)

+ condo fee
+ taxes
+ insurance
+ $100/mo maintenance/repair costs (very conservative)


- what my tenant pays me in rent

= $514

Unless you need to live where you live now for commuting/work reasons, wouldn't it be even better to just live in the place you own and not pay rent to a landlord yourself? The $514 profit you are making as cash flow on your rental seems like it's just going to your landlord, no?!

[massnative71]

Originally Posted by newenglandgal123

Unless you need to live where you live now for commuting/work reasons, wouldn't it be even better to just live in the place you own and not pay rent to a landlord yourself? The $514 profit you are making as cash flow on your rental seems like it's just going to your landlord, no?!

You misunderstood. I meant that if one were to buy my condo today at today's rates, they would have to pay $514 more a month than what my tenants are currently paying me in rent. I'm personally still making a profit, because I bought it in the housing crash and the mortgage is paid off. Probably a pretty common scenario, and an example of why the rental market is totally separate from the "buy" market and not at all based on what it would cost to own a place purchased in 2023.



Likewise if I bought the place I'm living in at today's rates, I would have to come up with an additional $2K/month. Even if I could afford that, no way!

[newenglandgal123]

Originally Posted by massnative71

You misunderstood. I meant that if one were to buy my condo today at today's rates, they would have to pay $514 more a month than what my tenants are currently paying me in rent. I'm personally still making a profit, because I bought it in the housing crash and the mortgage is paid off. Probably a pretty common scenario, and an example of why the rental market is totally separate from the "buy" market and not at all based on what it would cost to own a place purchased in 2023.



Likewise if I bought the place I'm living in at today's rates, I would have to come up with an additional $2K/month. Even if I could afford that, no way!

Ok, that makes sense. However, the part I am confused about is why would you want to pay someone else rent if you have a paid off place? Doesn't that defeat the purpose because I'd assume a lot of your rent proceeds are going to pay your own rent?

[massnative71]

Originally Posted by newenglandgal123

Ok, that makes sense. However, the part I am confused about is why would you want to pay someone else rent if you have a paid off place? Doesn't that defeat the purpose because I'd assume a lot of your rent proceeds are going to pay your own rent?

I'd definitely save money, but I would have a longer commute. Also the current tenants have been good to me, so not dying to push them out just yet. There's several factors involved. I may end up moving back in, or may end up selling it. What I'm doing now is temporary, until I figure things out and see where the market is going.

[massnative71]

Originally Posted by mikeugh

Yet it is factually correct. You have to earn relatively little to be able to get SNAP benefits, and 70% of the people that do work full time. Reality doesn't change based on your opinion.

Originally Posted by massnative71

Please provide data to back that up.



This source says only 33% or so of recipients are working families, of which of course not all will be full time.


https://www.cbpp.org/research/food-a...#Massachusetts

Not even gonna take a stab at it?

[jayrandom]

Originally Posted by simplexsimon

All I'm saying is to run the numbers. Do not rely on sayings like ”why would you pay your landlord's mortgage?” I'm not making any predictions about the direction and magnitude of real estate prices and rents.

You compare rent to a mortgage in one sentence and the next sentence say that rent needs to pay for a landlord's insurance, real estate taxes, HOA fees, and maintenance. So the buyer needs to include all these costs in their analysis as well. Add in transaction costs (both to buy and sell) and investment opportunity costs.

NYT has a good buy vs rent calculator that factors in all of these assumptions.

I totally agree.

I think the implicit assumption in all “pay your landlord’s mortgage” arguments is that real estate prices only go up. Of course comparing buying 10 years ago to renting today is going to favor buying 10 years ago when prices have doubled. People should compare renting today to buying today.

Beyond that, though, renting and buying are so different as to make even a dollar for dollar comparison difficult. It’s still good to run the numbers, but people should remember they are ultimately spending money in return for real stuff. Which people always seem to forget and say absolutely crazy things like “rent is throwing money in the trash”. No. It’s just one of the many ways you can spend money. It’s a bit like saying buying groceries is flushing money down the toilet.

Some people would be better off even paying a bit more for the flexibility of renting. Alternately some people will be better off paying more for the stability of ownership. There’s also the practical difference around here that it’s very difficult to rent a SFH, making ownership a lot more realistic for those who want that specific kind of dwelling.

[BostonMike7]

Originally Posted by newenglandgal123

Why don't folks have common sense? Do they feel they are immune to theft just because they live in Swellesley? lol https://www.necn.com/news/local/poli...doors/2971667/

WHat sorts of cars are getting stolen here? Not exactly easy to steal a modern car given the immobilizers and smart key tech in most. If the thieves have the tech to bypass this, then locking the door just slows them down for a moment. If they want your car (for instance, a high end luxury car that's in demand overseas) they are going to take it regardless of if the door is locked or not.

[newenglandgal123]

Originally Posted by BostonMike7

WHat sorts of cars are getting stolen here? Not exactly easy to steal a modern car given the immobilizers and smart key tech in most. If the thieves have the tech to bypass this, then locking the door just slows them down for a moment. If they want your car (for instance, a high end luxury car that's in demand overseas) they are going to take it regardless of if the door is locked or not.

The problem is none of these folks locked their doors. If a thief has to spend/waste time fiddling with locks to try and gain entry they'll likely move on to an easier, unlocked target. Smashing glass in a residential area where vehicles are parked most likely near someone's window or door will create noise...so that might not be as likely (although possible) a scenario either.


Also, any of these well to do folks in Wellesley who maybe have a BMW Alpina, McLaren or whatever are probably smart enough to have some sort of GPS tracking device installed. They're just not smart enough to lock their doors......because......well, they live in Swellesley. Nothing bad can ever happen there in mulitmillionaire land, right?! Wrong.

[ca1337]

Originally Posted by newenglandgal123

They're just not smart enough to lock their doors......because......well, they live in Swellesley. Nothing bad can ever happen there in mulitmillionaire land, right?! Wrong.

All the other top-tier towns around Boston have people that are equally as rich but you only target Wellesley for some reason? Where is the love for Newton, Brookline, etc? Even Needham at this point.