[LingLing]

There is absolutely nothing wrong to rent. You should do what you like. Why worry about others’ opinion? For me, I like stability. I like to have a home that fits my life style and remodeled/decorated way I like. Yes, I do work to make a living. What is money for? Money is spent to enjoy life. If you like renting, rent is well spent!

[CJFlorida]

Originally Posted by LingLing

There is absolutely nothing wrong to rent. You should do what you like. Why worry about others’ opinion? For me, I like stability. I like to have a home that fits my life style and remodeled/decorated way I like. Yes, I do work to make a living. What is money for? Money is spent to enjoy life. If you like renting, rent is well spent!

The original poster was asking about renting vs buying from a financial standpoint. Decorating, etc. is not important in that context. Making the right financial decision based on the market, the future, and ones personal situation is what the OP was asking about.

That is why they are soliciting other opinions. There is no "stability" in today's Florida market unless you can guarantee a house you buy now will be kept for 20 years or more...and hardly anyone can guarantee that.

[Fleurdelis]

Hi, CJFlorida

Thanks for your comments. You make some excellent points. I basically started this thread wondering if anyone would post some information that might change my mind. So far, it's been the same old, same old stuff that we've been hearing from real estate agents: "It's going to turn around real soon now, I don't think prices can go much lower, blah blah."

My response is always to ask, "What evidence do you have for that?" As far as I'm concerned, opinions are just hot air unless you have something to back them up.

One of the funniest assertions we keep hearing (which someone also posted here) is that "prices can't go much lower because sellers just won't take less."

Oh really? Seems to me they'll take what the market gives them. One guy told us he absolutely, positively wouldn't take less than $315,000 for his place. We notice that he finally sold it recently . . . for $225,000.

Another smugly told us his house was a "steal" at $345,000, and he wouldn't even listen to offers for less. This guy was particularly funny because he was a real estate agent and his wife was a professional house stager. He assured us that, although all those other turkeys might have trouble unloading their places, he had the inside track and would get top dollar. We saw that he just lowered his price to $299,000.

The fact is, when you have to sell, you have to sell -- as we found out ourselves the hard way in New York. No way are we going through that again!

[LingLing]

Originally Posted by CJFlorida

That is why they are soliciting other opinions. There is no "stability" in today's Florida market unless you can guarantee a house you buy now will be kept for 20 years or more...and hardly anyone can guarantee that.

In this world, what kind of guarantee are you looking for? The other day, I saw a car accident that killed a New Yorker and I know a professor just passed away due to cancer. I know someone who just made a fortune in this market and I also know someone who lost a fortune in this market. The original poster has made up his or her mind. He or she feels safe to rent. Then do what feels right. 20 years from now, she or he may or may not be happy with their decision. But it is not what you or I can predict. Unfortunately, the "stability" I was talking about was not the "stability " you are talking about.

[sunrico90]

This link might help:
default (http://www.floridahousing.org/Home/HomebuyersRenters/default.htm - broken link)

[chisoxfan]

Originally Posted by Fleurdelis

So far, it's been the same old, same old stuff that we've been hearing from real estate agents: "It's going to turn around real soon now, I don't think prices can go much lower, blah blah."

Though I'm a homeowner, I will never, ever advise someone looking to move to Florida right now not to rent. The evidence strongly indicates that home prices will fall for a while. Add to that the expensive, unsettled state of taxes and insurance for Florida homeowners and I think it's certainly prudent to at least wait a year or so before buying.

It's funny, my wife and I will be looking to downsize in a few years and had a discussion a few days ago about renting vs. buying a smaller home when the time comes. We haven't ruled it out.

[**NoodLes**]

So I guess the "magic words" you are looking for is "I guarantee that you will not lose money in Florida real estate for the next 20 years." Sorry but you will never hear that. Just like the stock market or any other investment you don't know what will happen, you could make a ton or you could lose alot. You might buy in a neighborood and overnight it turns to trash, or someone paints their house a crazy color, affecting everyone's property value. But with a house at least you have somewhere to live and if you could pay for it cash, then why not. If you want to rent than rent and see what the market does, there is no guarantee and I'm afraid no matter what anyone tells you, you will be skeptical or hesitant. just my 2 cents

[riveree]

Originally Posted by **NoodLes**

But with a house at least you have somewhere to live and if you could pay for it cash, then why not.

That's a good point.

If you're paying cash, then your immediate concerns are insurance and property taxes, both of which are tax deductible.

If you rent, then that nest egg is being whittled away every month and you have no write off.

So......

What if you have $300k cash. You could buy a $300k house today, no monthly mortgage payments, and just pay your taxes and insurance.

But you decide to rent instead. You rent a comparable house for $1300/mo.

After a year, you've spent $15,600 on rent, so now your nest egg is down from $300k to $284,400.

Essentially, you'd be betting that the real estate market will go down by at least 6% over the next year.

Looking at the past year, that would be a pretty good bet. But is it a good bet going forward?

We're in an election year, historically a time when real estate does not go down.

We just had the property tax amendment go through and that is supposed to help pick the market back up.

The feds have lowered the prime rate, so people are feeling good about mortgage rates again.


Renting for a year or less probably won't make a difference - it could end up being a wash.

But if you're going to "time the market", buying once the market has shown an upturn is the wrong time, it's too late - you should buy when it's low (and it's low now).

For the OP, it doesn't really make any difference, they've decided to rent and are happy with the decision and they'll buy when they're comfortable with the idea.

For anyone else considering trying to time the market, I would say "why wait?" If you want to buy, then buy, just buy smart.

[CJFlorida]

Originally Posted by **NoodLes**

So I guess the "magic words" you are looking for is "I guarantee that you will not lose money in Florida real estate for the next 20 years." Sorry but you will never hear that. Just like the stock market or any other investment you don't know what will happen, you could make a ton or you could lose alot. You might buy in a neighborood and overnight it turns to trash, or someone paints their house a crazy color, affecting everyone's property value. But with a house at least you have somewhere to live and if you could pay for it cash, then why not. If you want to rent than rent and see what the market does, there is no guarantee and I'm afraid no matter what anyone tells you, you will be skeptical or hesitant. just my 2 cents

Residential real estate is not an investment, never has been. From 1900-2000 it has barely kept ahead of inflation when all the costs are deducted. Residential real estate is a place to live.

Rental real estate is an investment as long as it has positive cash flow.

Stocks and bonds are investments. From 1900-2000 they have done very well.

Primary residences and stocks should never be used in the same sentence when referring to investments.

[gypsychic]

Originally Posted by Fleurdelis

My husband and I moved to the Ocala area a few months ago (after selling our house elsewhere) and have been renting. At first, we assumed we would buy a new place quickly. But now we're wondering whether we should just rent for the next few years.

We're looking at houses in 55+ communities, and have focused primarily on Oak Run because we like the location and all the beautiful trees. We're getting very wary of the housing market here, however.

When we first "discovered" Oak Run last spring, there were around 140 or so houses on the market. Now there are 190, and the listings just keep piling up. House sales are slow, slow, slow -- which makes us reluctant to bid on anything, since we don’t want to buy a house we can't sell if necessary.

We hope to live here for many years to come, but who knows what may happen down the road? We've been through bad real estate markets before, and know from experience that they can drag on for years. We bought a house in Westchester County (New York) in the early 1990s (during a dreadful market) and then had to sell it four years later when my husband switched jobs. We sold the house for barely more than we'd bought it for, and in fact lost gobs of money once we took into account the renovations we made to the house, real estate commissions, etc.

So, anyway, we're thinking we might rent for the next several years. We could actually pay cash for just about any house on the market here, but don't see why we should set ourselves up to lose money.

Anyone else out there renting for the long haul?

By the way: No responses from real estate agents, please! We've heard your lines a zillion times, and are not impressed.

You are in an enviable position - go ahead and rent at first - you can change your mind and buy anytime you want to. Since you can pay cash, if you see the market start edging up, you can go in and scoop up a deal.

Bottom line, everyone should do what they feel is best for them. My husband and I have a saying "We do what WE want to do" and not what friends, relatives or even industry experts say we should do!