[kort677]

Originally Posted by SKB

Who will be further out ahead you or me?

If I rent for 1,000 per month a nice 3 bed +den two bath, pool, nicely landscaped, fenced etc..and wait for the price to come down for a year. So it costs me 12K. What if that house depreciates in 12 months 24K and I buy it then. I have now saved myself 12K + property taxes and insurance and maintenance.

I just don't understand why you bought now, in a declining market? We have no idea how far down prices will go.

My friends have now lost 20K+ from when they bought in Feb, that is only four months ago.
Do you think it was wise for them to buy then? They are in it long term but still they could have rented out the same place for 1750 monthly right down the street. What if this place depreciates another 20K in the next four months?
What if I can buy it for 100K less next year in Oct, shouldn't I wait?

You really believe that the prices are not going to come down don't you?

I wish I had that confidence, I just don't want to risk it. It's to big a loss for me to take.

Well, enjoy your new house, I am sure it must be pretty nice.

and if you see no depreciation then where are you?
FWIW: I am not in the shot gun shack league
Lesson #1 in real estate, location!
you can go look it up for yourself, my zip 32082 is up in value even though like everywhere else sales are down.
I am confident that my area will retain value better than other areas, or I wouldn't have taken the plunge.

[firemed]

Originally Posted by firemed

I don't think it would be fair. But you are a little late to the game. I was in the 1st inning don't forget I was here. Thats history now. And here is some more history
Anybody who had chosen this moment to predict that the bull market was on the verge of a wild advance which would make all that had gone before seem trifling would have been quite mad-or else inspired with a genius for mass psychology. The banker who advised caution was quite right about financial conditions, and so were the forecasters. But they had not taken account of the boundless commercial romanticism of the American people,


Home, Sweet Florida

Its an addiction,

[JimKing]

Sure all real estate is local. But all I know is that we are looking at several possible areas to move back to....Jupiter, Parkland, Tampa, Sarasota, Coral Springs.

In every one of those areas we can rent houses for $2000-2500 that are on the market for $400,000-700,000. 200 to 300 times monthly rental is insane.

We would be absolute fools to buy and not rent in any of those locations. We will take our monthly savings and utilize online savings accounts paying 5.5-6% to save the difference.

As for the person who used New Jersey as an example. NJ didn't have hurricane insurance skyrocket, NJ has much higher average wages, NJ has a very diverse work force. NJ has nothing to do with Florida.

[firemed]

Originally Posted by JimKing

Sure all real estate is local. But all I know is that we are looking at several possible areas to move back to....Jupiter, Parkland, Tampa, Sarasota, Coral Springs.

In every one of those areas we can rent houses for $2000-2500 that are on the market for $400,000-700,000. 200 to 300 times monthly rental is insane.

We would be absolute fools to buy and not rent in any of those locations. We will take our monthly savings and utilize online savings accounts paying 5.5-6% to save the difference.

As for the person who used New Jersey as an example. NJ didn't have hurricane insurance skyrocket, NJ has much higher average wages, NJ has a very diverse work force. NJ has nothing to do with Florida.

THANK YOU !!

[rstate]

I agree with Kort, but that's because I also live in NE florida. Southern Florida might be tanking, but that doesn't mean ALL of Florida is going to drop 25-50% or spiral out of control for the next 5 years. Real estate is Local and each local market will drive prices. There are still a lot of people moving to Jacksonville/Ponte Vedra which will keep up demand. On weekends, we have people driving through our neighborhood all the time looking for homes. Obviously, it's taking longer for homes to sell, but people aren't dropping prices lower than what they paid for them back in 2005. If I didn't like the subdivision I was living in, I also wouldn't have a problem buying a home in Jax/Ponte Vedra...... And you are not going to save ANY money renting a home in this area vs buying.

[kort677]

Originally Posted by JimKing

As for the person who used New Jersey as an example. NJ didn't have hurricane insurance skyrocket, NJ has much higher average wages, NJ has a very diverse work force. NJ has nothing to do with Florida.

you've mentioned many of the basket cases of FLA real estate wise, if you think you're getting a bargain, go for it!Like a broken record, real estate is very localized and what conditions might hold true where you are may not be the reality of where I am.
may all your dreams come true.

while NJ has higher wages, many, many jobs are disappearing and if you live anywhere near the shore you are in the same boat with insurance as you are in FLA, granted rates aren't quite as high but companies are dropping policies and rates are high, if you can find a company to cover you, on another note auto insurance is 1/3 the cost of NJ, things balance out

[cariad]

Originally Posted by kort677

how about we change the assumption to the guy bought the house in 01 for 400k, it's now worth 1.2, and he's renting it out for 4k a month. he's ahead of the game.
my point is that these 1 size fits all scenarios are meaningless attempts to justify petty jealousies.


FWIW I am in that boat, I own a house in that is worth at least 1.2, and between my loans mortgage and insurance it costs me about 3500 a month to keep it, I may not want to sell it, so if I rent it out, get at least 3500 a month for it, I'm ahead of the game, the renter pays my expenses and maybe in a few years it will sell for even more money. If it doesn't sell for more money, I've lost nothing, the renter is paying my expenses.

You can't change the assumption to prove a point, all you are doing is twisting it.

I can't buy that house now for 400k, the seller is asking 1.2 mil. But I do want to live in a 1.2 mil house, not buy a lesser house that is selling for 400K. Solution-rent the biggie and invest the rest.

I have not attacked your position on buying now, only tried to refute your claim that renters are throwing their money away and don't appreciate my reasoning as being labeled as petty jealousy, just because I disagree.

Your mention of 3-6% appreciation per year on real estate is in line with what salaries would historically support over the years. The salary of the average middle class worker looking to buy anytime between now and the next however many years cannot support 20-50% gains over short periods of time. Many of those trying to do so without understanding all the financial ramifications are mortaging and risking their future, not just the house.

[firemed]

Each day in Florida things look down, You can't keep adding perks to the deal to make the comps look good. And just like the 1920s in Florida, Anybody who had chosen this moment to predict that the bull market was on the verge of a wild advance which would make all that had gone before seem trifling would have been quite mad-or else inspired with a genius for mass psychology. The banker who advised caution was quite right about financial conditions, and so were the forecasters.

But they had not taken account of the boundless commercial romanticism of the American people,


Tax relief may work against real estate vultures - 06/10/2007 - MiamiHerald.com (broken link)

[kort677]

Originally Posted by cariad

You can't change the assumption to prove a point, all you are doing is twisting it.

I can when the original assumption is contrived, they contrive facts to suit their examples and so did I


I am sorry that you felt that comment about jealousies was aimed at you because it wasn't, but even you can admit some of the comments are driven by those emotions and lastly I agree that 50% annual increases are ridiculous and unsustainable.

What is working for you in your area may not work for other people in different areas, I am happy for your success and may all your dreams ans aspirations come true

[nychiefsfan]

Originally Posted by SKB

Who will be further out ahead you or me?

If I rent for 1,000 per month a nice 3 bed +den two bath, pool, nicely landscaped, fenced etc..and wait for the price to come down for a year. So it costs me 12K. What if that house depreciates in 12 months 24K and I buy it then. I have now saved myself 12K + property taxes and insurance and maintenance.

I just don't understand why you bought now, in a declining market? We have no idea how far down prices will go.

My friends have now lost 20K+ from when they bought in Feb, that is only four months ago.
Do you think it was wise for them to buy then? They are in it long term but still they could have rented out the same place for 1750 monthly right down the street. What if this place depreciates another 20K in the next four months?
What if I can buy it for 100K less next year in Oct, shouldn't I wait?

You really believe that the prices are not going to come down don't you?

I wish I had that confidence, I just don't want to risk it. It's to big a loss for me to take.

Well, enjoy your new house, I am sure it must be pretty nice.

(((((standing ovation)))))