Charlotte picked in 25 home markets poised to fall

http://money.cnn.com/galleries/2007/fortune/0711/gallery.real_estate.fortune/13.html

 

Man they use that rent cost vs. own costs thing.

Scary stuff. I have analyzed this for my own home / neighborhood, JUST THIS WEEK, and to my surprise keeping my house is a better deal, way better.

That's not the case if the home depreciates, which I doubt it will. I used a 5% lost appreciaition on my current home value. If I cashed my equity, invested it and could get 8%, stopped having to pay Taxes, insurance, and maintenance, it would cost me about $5k per year to rent.

Get less than 5% return and renting is better. I would imagine that for people buying today, at a much higher price than I bought at, at higher interest rates, renting is better.

Of course - you can't rent many luxury homes in Myers Park - so i anticipate that model is not valid for my locality.

 

Oh yeah -

In June I rented an oceanfront beach house for $1400 per week.

The best summers at this condo get about $25k in rent. The taxes on the condo are $30k. The codo I was in was for sale for $1.6 million.

So - $25k to rent for the entire year, or like 6 times that to own. Granted, you don't get the appreciation, but fuckin' A. I knew then that Wrightsvilee was gonna get HAMMERED.

 

That condo has not sold....

http://www.intracoastalrealty.com/w.../home_search_details.asp?listingnumber=386299

 

So recap for me.... What are the overall thoughts on renting vs. owning now?

My brother, who's hobby is money matters says not to buy now. Rent, wait it out a couple years. The economy, the baby boomers, a 1.5 hour lecture on it

My sister, owns a real estate company says, who the hell knows whats going to happen, people are scared, but you still have to have a place to live, be smart, but it's ok to do it.

 

Non-jumbo arms are about 1 pt above where they were at the bottom. Still pretty cheap IMHO. Couple that with the fact that it is a buyers market and I say if you can afford to put 20% down then go for it.

If you are stretching and putting nothing down...don't even consider it.

 

It's the 20% I'm worried about losing in depreciation. Especially considering I might move within 3 years.

 

I wouldn't consider buying anything for 3 years except to remodel and flip it...just doesn't make sense. You would need crazy appreciation just to pay for the realtor fees.

 

rent.

 

My brain understands you and you sly, thanks.
House ownership is more emotional for women I think. The whole paint, fluff, decorate thing... Knowing we can use whacked out colors, get pissed and rip the carpet up etc...