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Old 04-22-2010, 01:16 PM
Location: Living on the Coast in Oxnard CA
16,290 posts, read 30,193,616 times
Reputation: 21833


I read an article recently talking about the best time to buy a home. The idea was that if you are renting a home and plan on buying a similar home in a similar area than you devide the cost of the home by 20 to come up with your target price. If that amount which is a yearly amount is cheaper than the yearly amount that you are now paying in rent then it is the time to buy a home. The lower the number the better for you.

for example a $300,000 home devided by 20 gets me $15,000 or $1250 a month. Current rents for a similar home in Oxnard are between $2200 and $2500 a month. When I ran the numbers I needed to get down to deviding the purchase price by 12 before it worked out to a similar amount as the rent. The article stated that 20 is the baseline and anything below that means that chances are you are not living in a bubble anything over that and it is questionable. Over 25 and chances are you will want to rent instead of buy.

Maybe we could have a list of other areas within the region to see how it works within your area. For me it seems that Oxnard is a good buy if you don't mind living there, and I don't mind living there.
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