tag:blogger.com,1999:blog-3143724362136202099.post7781804797363007531..comments2024-02-13T14:25:06.949-05:00Comments on the bottlenecked blog: Really Thinking About Real EstateHarrison Brookiehttp://www.blogger.com/profile/05372315442336546216noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-3143724362136202099.post-41376209927871306772009-10-24T19:01:49.932-04:002009-10-24T19:01:49.932-04:00Some people would actually rather rent. Like, uh, ...Some people would actually rather rent. Like, uh, me for instance.Justinhttp://justinis.comnoreply@blogger.comtag:blogger.com,1999:blog-3143724362136202099.post-31172817889901876462009-10-24T19:01:32.685-04:002009-10-24T19:01:32.685-04:00Yea I can see your point only if you are spending ...Yea I can see your point only if you are spending the same amount on rent as you are on mortgage and only if you disciplined enough to be putting your down payment money into a place where you can get 8% rate. So the difference is negligible (2500 dollars give or take) but the whole time person A has been living in a house while person B has been renting an apartment.Austin Brookiehttp://austinbrookie.comnoreply@blogger.comtag:blogger.com,1999:blog-3143724362136202099.post-56942454577682292862009-10-24T19:01:17.358-04:002009-10-24T19:01:17.358-04:00Something to consider is that if it is radically c...Something to consider is that if it is radically cheaper to buy in the Carolina's, then it is probably equally cheaper to rent here as well.<br /><br />At first glance it looks as if that $18,000 of profit you claim is not counting your maintenance, taxes and insurance, and opportunity cost of down payment over the last 5 years?<br /><br />Down Payment: $5,000 x 8% return=$1,700<br />Taxes & Insurance: $2500 x 5 years=$12,500<br />Avg. Monthly Main.: $100 x 60 months=$6,000<br />Major Repairs & Improvements: $1000<br />Total: $21,200<br /><br />My point was not that it's dumb to buy or dumb to rent. But that it all depends on your income, interest rate, and how long you plan on living there.Harrison Brookiehttps://www.blogger.com/profile/05372315442336546216noreply@blogger.comtag:blogger.com,1999:blog-3143724362136202099.post-37775686731940458962009-10-24T19:01:05.631-04:002009-10-24T19:01:05.631-04:00Wow, you've really done you're homework on...Wow, you've really done you're homework on this. Austin makes a pretty dang good case, though.<br /><br />I heard a guy on the radio say that it wasn't worth buying if you plan to move in 6 years or less. Never knew if that was actually true. I guess I still don't.Justinhttp://justinis.comnoreply@blogger.comtag:blogger.com,1999:blog-3143724362136202099.post-6160705078104797682009-10-24T19:00:47.291-04:002009-10-24T19:00:47.291-04:00This post I have a problem with because you are na...This post I have a problem with because you are national average figures (including ridiculous housing markets like San Fran., Los Angeles, New York, etc) instead of taking regional or statewide average figures which is a main reason you are living where are you now and why people continue to flock toward the southeast region in general. Look at the differences in numbers when you run them at an area where you should be running them (where you live)... These numbers are no where close to the numbers you have posted.<br /><br />For example:<br />Exact numbers from my first house (a good 2 Bed, 2 Bath starter house for a young family)<br /><br />Purchase Price: $115,000<br />Down Payment: $5,000<br />Interest Rate: 5.1%<br />Taxes & Insurance: $2500<br />Avg. Monthly Main.: $100<br />Major Repairs & Improvements: $1000<br />Monthly Mortgage: $760.00<br />-------------------------------------------------<br />Avg. Monthly Rent in Greenville, SC: $750.00<br /><br />I will buy and sell this house less than 4 years later and make approx. 18,000 profit.<br /><br />If I had rented I would have made 0 profit.<br /><br />In conclusion, if you are lucky enough to be living in a low-cost real estate environment, which you are... renting is simply not a financially sound decision no matter how long you want to stay in a house after you buy.Austinhttp://austinbrookie.comnoreply@blogger.com