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Old 02-26-2012, 12:53 AM
 
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Hi there...
This stuff makes my eyes cross... but does anyone know or keep track of the rental parity thing especially in So. Orance County?
We keep putting off buying something. Want to get settled somewhere soon though as it feels like our apartment is ready to get bulldozed (or should be!) Downstairs neighbors have had numerous slab leaks, walls are thin, fixtures falling apart and maintenance keep putting band aids on problems etc.
Mainly hanging out here cause it's cheap and we're saving, but feel on edge now.

Any insight would be appreciated, thanks!!
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Old 02-26-2012, 01:01 AM
 
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I would think you would need to run the numbers for each specific property.

Lots of factors come into play... condition, age, principal, interest, taxes, insurance, maintenance, mello fees (if any)... income tax bracket...

Generally... it is almost always less expensive to rent in the short run...
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Old 02-26-2012, 07:52 AM
 
Location: Aliso Viejo, Orange County, CA
4,948 posts, read 6,341,100 times
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Quote:
Originally Posted by Podo944 View Post
Hi there...
This stuff makes my eyes cross... but does anyone know or keep track of the rental parity thing especially in So. Orance County?...
You might be better off buying if you plan to stay put for at least five years.

Rents Keep Rising, Even as Housing Prices Fall
http://www.nytimes.com/2012/02/25/bu...r%20buy&st=cse
As you know, mortgage rates are low. Also, Iím sure you are aware that the only glitch is that it is now harder for most, even many with good credit and income, to qualify for a mortgage. This helps the rental market flourish.

I recall an article from the Register which said local landlords are hoping for 5% annual increases in rent. Currently, it seems that although SoCal rents are up, they are below 2008 levels and definitely not where landlords think they should be:
Foreclosures sap demand for apartments - Lansner on Real Estate : The Orange County Register

Life is short and quality of life really matters. So why live in crummy surroundings, stress-out, and possibly endanger your health, just to save a few bucks?

If I were a renter, I would buy and stay put.

Last edited by pacific2; 02-26-2012 at 08:06 AM..
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Old 02-26-2012, 12:42 PM
 
3,145 posts, read 3,075,121 times
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Quote:
Originally Posted by pacific2 View Post
You might be better off buying if you plan to stay put for at least five years.

Rents Keep Rising, Even as Housing Prices Fall
http://www.nytimes.com/2012/02/25/bu...r%20buy&st=cse
As you know, mortgage rates are low. Also, Iím sure you are aware that the only glitch is that it is now harder for most, even many with good credit and income, to qualify for a mortgage. This helps the rental market flourish.

I recall an article from the Register which said local landlords are hoping for 5% annual increases in rent. Currently, it seems that although SoCal rents are up, they are below 2008 levels and definitely not where landlords think they should be:
Foreclosures sap demand for apartments - Lansner on Real Estate : The Orange County Register

Life is short and quality of life really matters. So why live in crummy surroundings, stress-out, and possibly endanger your health, just to save a few bucks?

If I were a renter, I would buy and stay put.
You're absolutely right!
We actually started looking around and researching condo complexes about a year and a half ago, but we had big chunk of credit card debt we needed to pay down. In spite of it, we maintained a pretty good credit score.
We went around with one realtor about a year ago and he was so pushy we were turned right off. Also, I kept hearing that prices might keep falling so we kept paying off the debt.
We are now in touch with a very non pushy realtor and we are pre qualified with the lender he works with so ready to go!
We're not one of the "big bucks" folks around here and our salary is probably chump change to some, but we can go up to 400K, which could get us a small SFR, but we don't want to be house poor. We prefer to stay around the 200-300K range IF we can find a condo that has at least a one car garage.
It's been a little frustrating... we had our eyes set on one area, but now I was warned by someone who couldn't wait to get out of there, that the foreclosures in the complex got eaten up by investors and are now full of troublemakers!
We're also learning about the cheap construction and pipes bursting, and what's with the living rooms smaller than closets with a big fireplace taking up a whole wall where the TV should be? (BTW, I hate the appliance over the fireplace look!)
Okay, I'm just squawking now! LOL!!
The apartment we have now, despite it's problems is a one bedroom with a basic floor plan. A small kitchen attached to a dining room big enough to hold our large round table, and a decent sized living room! They also haven't raised our rent since we moved into the place over 4 years ago!
But I know it's time to make a move, and we definately plan on staying put for as long as possible!!

Thanks for letting me rant!
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Old 02-26-2012, 09:07 PM
 
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I completely agree that if you choose to buy, plan to stay put for at least 5 years. In the 300k range, I would think that you could very well find a nice condo/townhome that would be comparable to renting. The lower price point, IMHO, is much closer to the "bottom". Check out Aliso Viejo, Mission Viejo, Ladera Ranch, etc.
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Old 02-28-2012, 09:41 AM
 
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Quote:
Originally Posted by Lallo View Post
I completely agree that if you choose to buy, plan to stay put for at least 5 years. In the 300k range, I would think that you could very well find a nice condo/townhome that would be comparable to renting.
The lower price point, IMHO, is much closer to the "bottom". Check out Aliso Viejo, Mission Viejo, Ladera Ranch, etc.
Thanks for the feedback... When you're referring to as "the bottom", do you mean a smaller place or a sketchier area? There are 200K condos even in AV, but boy are they small! (and they still have mello roos)
I know we need to be careful about resale value in some areas where the schools are not as good etc. (although it's just the two of us, second marriage no kids in the house)
If we find a place 200K or lower, in five years we could build up equity quicker by making extra payments and perhaps trade up to an SFR or other single level place (I'd rather not have stairs, but it's almost impossible around S. OC!) for our retirement, but we still need to be happy enough with where we live for those five years!
BTW, we've come across the occasional 1 level condo (with no one above) and they seem to be older places that are overrun with multiple family living like the New World Condos off Moulton in Laguna Hills. Crazy!
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Old 02-28-2012, 09:54 AM
 
3,145 posts, read 3,075,121 times
Reputation: 3575
Quote:
Originally Posted by pacific2 View Post
You might be better off buying if you plan to stay put for at least five years.

Rents Keep Rising, Even as Housing Prices Fall
http://www.nytimes.com/2012/02/25/bu...r%20buy&st=cse
As you know, mortgage rates are low. Also, Iím sure you are aware that the only glitch is that it is now harder for most, even many with good credit and income, to qualify for a mortgage. This helps the rental market flourish.

I recall an article from the Register which said local landlords are hoping for 5% annual increases in rent. Currently, it seems that although SoCal rents are up, they are below 2008 levels and definitely not where landlords think they should be:
Foreclosures sap demand for apartments - Lansner on Real Estate : The Orange County Register

Life is short and quality of life really matters. So why live in crummy surroundings, stress-out, and possibly endanger your health, just to save a few bucks?

If I were a renter, I would buy and stay put.
Yup, we're definately wanting to make a move this year, the sooner the better. I know with short sales, it may take more time, but it will be worth it! We are already traumatized by rent hikes we experienced during the bubble... when we were in an Equity managed apartment, the first 2 years they hiked the rent 100 dollars. The third year they wanted 175 more on top of that, ("sorry, it's just market price" the manager claimed) and we said, "Bye Bye!"
So we've been in an older Mission Viejo apartment for the last 4 years. Truth be told, we haven't been miserable here... we're in a nice location in the complex, have cool neighbors, and they haven't raised our rent once! Nevertheless, the place is starting to rot!
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Old 02-28-2012, 10:19 AM
 
575 posts, read 1,596,701 times
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Quote:
Originally Posted by Podo944 View Post
When you're referring to as "the bottom", do you mean a smaller place or a sketchier area?
When lallo referred to the bottom I'm sure he/she meant the point when prices have bottomed out, or reached their lowest level before starting to improve.

I'm seeing some economists who are saying the same, although I think many of them have made that call repeatedly, and no one will know which time they were right until after the fact.
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Old 02-28-2012, 12:35 PM
 
3,145 posts, read 3,075,121 times
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Quote:
Originally Posted by Axiom View Post
When lallo referred to the bottom I'm sure he/she meant the point when prices have bottomed out, or reached their lowest level before starting to improve.

I'm seeing some economists who are saying the same, although I think many of them have made that call repeatedly, and no one will know which time they were right until after the fact.

Okay, I see... I have noticed looking at Redfin there are condos around that are more than 50% less than what they sold for at the peak of the bubble! One area we looked at, the small one bedrooms are at 2001 prices, however I was recently told the place has gone down hill and not recommended.
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Old 02-28-2012, 06:18 PM
 
Location: Aliso Viejo, Orange County, CA
4,948 posts, read 6,341,100 times
Reputation: 4070
Quote:
Originally Posted by Podo944 View Post
...but we can go up to 400K, which could get us a small SFR, but we don't want to be house poor. We prefer to stay around the 200-300K range IF we can find a condo that has at least a one car garage...
It does look like you might have to up your budget to around 300K if you are trying to find a non-short sale condo in Aliso with at least 1300 sq ft ( random pick). Alternately, you may have to wade through the short sale process.
Have you checked this one? At 295K and 1317 sq. ft., it has a one car garage plus another parking space:
55 SANDCASTLE, Aliso Viejo, CA 92656 | MLS# S688810

Ask your realtor to give you a heads-up to any short sales in the Windwards area, since those units have two-car garages (some also have two-car driveways), cathedral ceilings and lots of windows. Many also have backyards.

Good luck in your hunt.

Last edited by pacific2; 02-28-2012 at 07:00 PM..
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