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As I was checking craigslist, I found a few single-family houses for rent for around $3000, in clifton, nutley, lyndhurst, etc. As I am paying $1800 for my rent and already feel the pinch, I wonder who would spend that much renting a 3-4 bedroom house like this? With that much money, wouldn't the renter be able to afford to buy one for him/herself?
Sure you could buy for that, but why do so if the market is still shaky and you're not sure you're going to stay? There are plenty of folks who are hanging on the sidelines and seeing what the market is going to do before making a purchase.
one man's $3K is another man's $1800. in my personal situation, i wouldn't do it, but i'm not in those ppl's shoes. 9 yrs ago we paid $1700/mo for a TINY 2 bdrm condo (~600 sq ft?), i'm sure others thought we were insane, but there was a method to the madness.
The problem you are running into is that people are paying extraordinary amounts for mortgages, so they are asking for a lot of money for houses that aren't really worth it to try to cover that mortgage. We ran into that while we were looking for places last month -- we went to one place that was $2500/month expecting a palace, and instead found something overpriced...
I would think for 3K, you could do better than Clifton.
I know couples with double income, working on Wall Street, each earning 6 figure salary renting those high-rise luxury apts in place like New Port, Hoboken. I am not surprised seeing them paying $3000 for a 2-bed apt. But in suburban areas like Clifton, Nutley, I jsut don't see these very often.
one man's $3K is another man's $1800. in my personal situation, i wouldn't do it, but i'm not in those ppl's shoes. 9 yrs ago we paid $1700/mo for a TINY 2 bdrm condo (~600 sq ft?), i'm sure others thought we were insane, but there was a method to the madness.
You are probably right. I wish I could afford $3k in rent! Time to buy lottery
$36,000/year in rent is not a good investment decision. IMO, you'd only do this if you were desperate for space and couldn't get by with a townhome or condo and/or you can't get qualified for a mortgage.
Rents are always negotiable BTW, the landlord could be covering the mortgage and getting some rental income on top.
The other excuse renters say right now is they are afraid to buy in this market. Well that's OK but renting for 36,000/year is locking in a loss of 36,000/year as you have no financial asset at the end of the term plus the costs of the move, any additional items associated with the move and the deposit which may or may not be refundable. So a renter might lose close to $45,000 in year 1 of rental situation and then think they are saving money by not buying. Possibly, but not a good long term strategy. Plus you have to move again when you decide to buy unless it is a lease to own situation.
Last edited by MoorestownResident; 01-05-2009 at 12:03 PM..
$36,000/year in rent is not a good investment decision. IMO, you'd only do this if you were desperate for space and couldn't get by with a townhome or condo and/or you can't get qualified for a mortgage.
Rents are always negotiable BTW, the landlord could be covering the mortgage and getting some rental income on top.
The other excuse renters say right now is they are afraid to buy in this market. Well that's OK but renting for 36,000/year is locking in a loss of 36,000/year as you have no financial asset at the end of the term plus the costs of the move, any additional items associated with the move and the deposit which may or may not be refundable.
It's not so easy to get qualified for a mortgage these days. So desperate times...
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