To buy or rent a home, which is better? Great article (San Francisco: to rent, condos)

[CaliRestoration]

Originally Posted by bmw335xi

Do the math again or re-read my post...

If the average price is $1 million and the market goes up 30% the average price will be $1.3 million and then if the housing crashes the average house will be around $650,000

Uh, you said:

I'm saying we will at some point see around a 50% drop, whether home prices appreciate another 30% who knows.

So you made a claim that we will see a 50% drop, then maybe some offhand comment about "who knows" how much it will go from here. Sorry, but that wasn't very clear to me.

But since you seem to have made a firmer stance on your prediction, you think that homes will appreciate another 30%, and then drop 50%. Okay let's work with that.

You think 2 bedroom homes in the Inner Richmond will be $650,000 in the near future?

[CaliRestoration]

Originally Posted by bodyforlife99

Right on the money, CaliRestoration with your posts. I have mirrored your comments in many threads. You will have tomatoes thrown at you by the class envy people (which is all this is when you get down to the meat and potatoes of it).

I'm used to it.

I don't think many people like to think about things using actual logic or facts on most message boards, they would rather vent based on emotion and how they feel.

That's how you get people who think Inner Richmond 2 bedroom homes will be $650k in the near future.

[bodyforlife99]

Originally Posted by bmw335xi

Do the math again or re-read my post...

If the average price is $1 million and the market goes up 30% the average price will be $1.3 million and then if the housing crashes the average house will be around $650,000

There still is no basis for that reasoning. Even if the average price is $1.3 million, why would they drop 50%? They didn't drop 50% after 2008 from their high (at least not homes in the SF metro region). Our home in Daly City peaked at about $780 in 2006 (had it appraised at the time) and never went below $500K. Homes did not drop that much and lending standards are tighter now with no liar loans (so complete income verification), and many cash buyers that have plenty of equity. Anyone can scream the sky is falling, but how about trying to justify why the next recession would be worse than the last one. I don't think you can.

[bodyforlife99]

Originally Posted by CaliRestoration

I'm used to it.

I don't think many people like to think about things using actual logic or facts on most message boards, they would rather vent based on emotion and how they feel.

That's how you get people who think Inner Richmond 2 bedroom homes will be $650k in the near future.

Yep

[Ms.MoneyPenny]

Originally Posted by bmw335xi

Do the math again or re-read my post...

If the average price is $1 million and the market goes up 30% the average price will be $1.3 million and then if the housing crashes the average house will be around $650,000

Math can be hard for some people

He's still trying to attach a dollar amount to your prediction which is quite amusing since it's quite obvious you only mentioned percentages.

[CaliRestoration]

Originally Posted by Ms.MoneyPenny

Math can be hard for some people

He's still trying to attach a dollar amount to your prediction which is quite amusing since it's quite obvious you only mentioned percentages.

Post: 2
Registered: June 2016 (just started posting within the past couple of hours)

Now he's creating his own sock puppet accounts to support his own dubious predictions.

[bodyforlife99]

Originally Posted by CaliRestoration

Post: 2
Registered: June 2016 (just started posting within the past couple of hours)

Now he's creating his own sock puppet accounts to support his own dubious predictions.

Hilarious!

[TheGreatCurve]

Originally Posted by Upstate67

Hate to break it to you, but you don't escape paying property tax, interest and insurance when you rent. Renters may not get a tax bill in the mail, or see the interest and insurance charges on a mortgage statement, but oh are they paying it...

Signed: A rental property owner.

Hate to break it to you, but you can only charge in rent what the market will bear. You cannot charge way more than the market rate regardless of what your total expenses are.

For example, if the market rent for a 2BR/2BA unit in your area is $2,000/month but your total monthly expenses (i.e., mortgage (interest + principle), property taxes, maintenance, insurance, HOA, etc.) for that unit is $3,000/month, too bad for you. You cannot charge $3,000/month to cover your expenses because no one would rent it. And you will rent it for the market rate of $2,000/month and take the $1,000/month loss because a $1,000/month loss is still better than a $3,000/month loss if it sits vacant.

[Upstate67]

Originally Posted by TheGreatCurve

Hate to break it to you, but you can only charge in rent what the market will bear. You cannot charge way more than the market rate regardless of what your total expenses are.

I never said you could.

See my follow up post though. If the total for principal, interest, and property tax is LESS than what the market rate is for rent, then you bet your ass the landlord is not paying it.

For example, if the market rent for a 2BR/2BA unit in your area is $2,000/month but your total monthly expenses (i.e., mortgage (interest + principle), property taxes, maintenance, insurance, HOA, etc.) for that unit is $3,000/month, too bad for you.

That's the thing though, rent is seldom less than a mortgage. One more time, don't take my word for it - see for yourself. Go to a real estate website and get some estimates. Then compare them with rents for similar properties in that same area.

I'm honestly not trying to be argumentative, but if I have heard renters laugh about not paying taxes and insurance once I've heard it 100 times. That simply is not the case though.

[TR95]

Originally Posted by CaliRestoration

Post: 2
Registered: June 2016 (just started posting within the past couple of hours)

Now he's creating his own sock puppet accounts to support his own dubious predictions.

BMW obviously has too much time on his hands. Funny how people really waste their time on the Internet. They are the ones with the most posts and the ones that complain the most about not owning a home. Hilarious!