Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login

Site Notices
Posted: 5/30/2008 11:39:04 AM EST
Sorry for the strange subject line. Anyways, I have been renting for two years in southern California. I expect to stay here for an additional 4 years. Is that a reasonable amount of time to buy instead of rent a home? I don't want to get stuck here after the 4 years. So, my question is should I continue renting for the 4 years @ $1,400 per month, which is about $67,000 over the 4 year period, or search around for a home to buy?
-SOB
Link Posted: 5/30/2008 12:24:11 PM EST
Search and buy. Don't buy beyond your means. You may be there longer than you now plan for.
Link Posted: 5/30/2008 12:28:32 PM EST
Yeah, I'm just wondering if 4 years is way out of line for buying real estate.
Link Posted: 5/30/2008 4:49:12 PM EST
Is it possible for you to be there longer than 4 years? Or shorter than 4 years?

If you asked this question 2 years ago when you first moved out there, it would have been different.

Are the values decreasing in that area of CA?

When doing the math, make sure to factor in the closing costs of buying the home plus the 4-6% realtor fee when selling it. That could be a deciding factor in itself.
Link Posted: 5/30/2008 6:07:02 PM EST

Originally Posted By Glockhair:
Is it possible for you to be there longer than 4 years? Or shorter than 4 years?

If you asked this question 2 years ago when you first moved out there, it would have been different.

Are the values decreasing in that area of CA?

When doing the math, make sure to factor in the closing costs of buying the home plus the 4-6% realtor fee when selling it. That could be a deciding factor in itself.

will do, thanks
Link Posted: 5/31/2008 4:19:02 AM EST
Link Posted: 5/31/2008 4:04:24 PM EST

Originally Posted By ar-jedi:

Originally Posted By mr_sob:
So, my question is should I continue renting <...> or search around for a home to buy?


here is an article that will help:
www.nytimes.com/2008/05/28/business/28leonhardt.html?_r=2&sq=leonhardt&st=nyt&oref=slogin&scp=2&pagewanted=all&oref=slogin

also see
www.oftwominds.com/blogapr08/RE-bottom4-08.html
and
www.diehards.org/forum/viewtopic.php?t=17591&highlight=rent
and
www.diehards.org/forum/viewtopic.php?t=17012&highlight=rent

ar-jedi


Good reads, thanks
Link Posted: 5/31/2008 5:11:16 PM EST
[Last Edit: 5/31/2008 5:13:03 PM EST by ar-jedi]

Originally Posted By mr_sob:
Good reads, thanks


apologies if that first link didn't work. the NYT is militant about referrer information and cookies.

try plugging the URL into the following web page:
www.majcher.com/nytview.html

you will have to click a few buttons to fake out the registration process.

OK, never mind, i figured out a direct way... click here, this should work forever...
www.nytimes.com/2008/05/28/business/28leonhardt.html?partner=rssuserland&emc=rss&pagewanted=all

see
nytimes.blogspace.com/genlink


ar-jedi
Link Posted: 6/1/2008 8:30:25 AM EST

Originally Posted By ar-jedi:

Originally Posted By mr_sob:
Good reads, thanks


apologies if that first link didn't work. the NYT is militant about referrer information and cookies.

try plugging the URL into the following web page:
www.majcher.com/nytview.html

you will have to click a few buttons to fake out the registration process.

OK, never mind, i figured out a direct way... click here, this should work forever...
www.nytimes.com/2008/05/28/business/28leonhardt.html?partner=rssuserland&emc=rss&pagewanted=all

see
nytimes.blogspace.com/genlink



ar-jedi

It worked when I read it yesterday. There is also a good chart right off to the side of the article that tells you when it is more valuable to rent or buy. Thanks again though.
-SOB
Link Posted: 6/3/2008 10:59:58 AM EST

Originally Posted By mr_sob:
Sorry for the strange subject line. Anyways, I have been renting for two years in southern California. I expect to stay here for an additional 4 years.


Depending on exactly where you are, I'd keep renting. There's a good chance that residential real estate, once it stabilizes, will remain stagnant for some time.

You wouldn't get much, if anything, for $1400 per month, so every dollar over and above that amount that you "would have" spent can be saved.
Top Top