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I am not interested in renting but am interested in buying more rental properties. The only time I would personally consider renting is when I retire and want to spend a few months in Florida during the winter. In that case I would be looking for a condo in a nice complex that is like a hotel with a nice pool, access to the beach, fitness center, and is close to restaurants and things to do. I am looking for my next primary residence now focusing on a great strategic location that minimizes car travel, has walkable options, and carries a lower property tax.
there is a development near us where i would love to live. surprsingly when you get up into the more expensive apartments renting and buying get pretty close . alot closer than you would expect and alot closer in price than single family homes.
the bay club which is around the corner from us has 2 bedroom condo's for about 750k on average....
with 25% down a 560k mortgage is about 2800.00 common charges and taxes are about 5k a year
.
rents are right around the price of the mortgage in the 2800 dollar range so the difference is really the money lost on income on the deposit and the taxes and common charges.
figuring a muni bond that is about 7500.oo a year in income so the difference between renting there and buying is about 13k a year.
A friend decribed this to me as "rent compression". There is intense competition at the low end of the rental market driving up rents at the bottom but at the top of the market, rents are restrained by the fact that high-end renters (liike you perhaps?) have the option of buying a home and therefore can exit the rental market if renting becomes more expensive than owniing for them. Low-end renters cannot buy, so they are fair game for landlords to exploit.
A friend decribed this to me as "rent compression". There is intense competition at the low end of the rental market driving up rents at the bottom but at the top of the market, rents are restrained by the fact that high-end renters (liike you perhaps?) have the option of buying a home and therefore can exit the rental market if renting becomes more expensive than owniing for them. Low-end renters cannot buy, so they are fair game for landlords to exploit.
But as long as landlords allow such arrangements, people can make an affordable low-end rent by splitting the rent on a bigger place with multiple bedrooms. Besides, if people are willing to pay $450 for a bedroom and only $900 for a 3-bedroom place, why would a landlord not want to rent out each room separately? Eventually high-end and low-end rents must come to equilibrium with each other.
A friend decribed this to me as "rent compression". There is intense competition at the low end of the rental market driving up rents at the bottom but at the top of the market, rents are restrained by the fact that high-end renters (liike you perhaps?) have the option of buying a home and therefore can exit the rental market if renting becomes more expensive than owniing for them. Low-end renters cannot buy, so they are fair game for landlords to exploit.
That's a really useful concept. The very high end of the rental spectrum caters to second homeowners and wealthy families. There is little activity in the gray area of lower high end.
That's a really useful concept. The very high end of the rental spectrum caters to second homeowners and wealthy families. There is little activity in the gray area of lower high end.
I highly doubt that there is any "gap" between lower and high end.
Retired, rent. The idea of home repairs/maintenance/taxes, etc in general, ugh. I was a home owner and landlord for years, always looked at houses as investments, not simple shelter. Just more freedom, in my case, not owning at all right now.
The way the markets been so crazy the last few years, idk what I'd recommend, the 'facts' that used to apply just don't anymore.
When you rent there is no payment applied to principle.
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