Zillow Advice: Rent vs. Buy - Buy a starter home or keep renting?

RENT is overall VOTE of audience ...

Tue, 09 Jun 2009 05:02:00 GMT

RENT is overall VOTE of audience (unless they have axe to grind I.E. make money in selling)
(I did not make fun of your english, backed you up) saying it did not matter. You were good at being a leader, and doing math with out doubt.

My calculation was very conservative ...

Mon, 08 Jun 2009 16:31:00 GMT

My calculation was very conservative :
By the calculation of Wall Street, the nation housing inflate rate is 5% ( Calculated as 30 years back )

"…From 1890 through 1990, the return on residential real estate was just about zero."
–Robert Shiller, Yale professor

FHA Loan Program helps 1st ...

Mon, 08 Jun 2009 04:02:00 GMT

FHA Loan Program helps 1st time home buyers and stimulate new home sales

My calculation was very conservativeNo ...

Mon, 08 Jun 2009 02:18:00 GMT

My calculation was very conservative

No it wasn't. You're just applying stats from the last 30 years which included the bubble and extrapolating to the future. You could have used this same methodology 2 years ago and expected an even bigger jump from 2X today's prices. Even if we see 5% house price inflation once the market bottoms out, it could take a long time just to get back to today's prices. And that's only talking nominal prices - in real dollars it might be decades in some still-bubbly areas.

Your "calculations" are much like the numbers in the stress test, that included "worst case" unemployment that was lower than the actual unemployment at the time. They tell you the answer that you want to hear, as long as you don't pay too much attention to the question.

Linda - Your new icon is very fitting.

1st time home buyer $8000 ...

Mon, 08 Jun 2009 01:08:00 GMT

1st time home buyer $8000 tax credit may be applied instantaneously

My calculation was very conservative ...

Sun, 07 Jun 2009 23:23:00 GMT

My calculation was very conservative :
By the calculation of Wall Street, the nation housing inflate rate is 5% ( Calculated as 30 years back )
Let take normal inflate rate is 4%, and then the housing value in next 30 years will be $570,838.

the rental price will increment 3% a year, in next 15 years the rental price will be $1,246 a month.( in Los Angeles, average rental's price incresed 5% a year )

Let alone living in the house is different from living in the apartment.( I taken the reantal apartment's price and compare It to SHF's mortgage monthly payment)

HAONG, you are taking a MASSIVE ...

Sun, 07 Jun 2009 23:10:00 GMT

HAONG, you are taking a MASSIVE leap if you are expecting 5% appreciation from today's values for the next 30 years. I expect many areas will be just getting back to today's values in about 5 years, and that's only by inflation.

But I think this is a much better way to put it: Unless your interest, taxes, and insurance are less than rent on a comparable place, you are building equity faster by renting - even before you account for falling house values.

I think you should do what ...

Sun, 07 Jun 2009 22:43:00 GMT

I think you should do what fits you and your budget

Are You Facing Foreclosure?

Hi Cvov13,"Or as I noticed ...

Sun, 07 Jun 2009 02:39:00 GMT

Hi Cvov13,
"Or as I noticed you do math rather well", I don't try to prove I'm good at doing math, since there are hundreds millions of American are much more better than me, I'm using it only to respond to someone insulted my English ( which is true ) on the other thread ;-)
You are right, you will pay double in 30 years for the house you paid for today.
If we take nation wide data, median home's price is $176,000, rental price $800. ( apartment and SFH as whole ).
For easier calculation, I take out Down payment, commission of sell the house or for sale by owner, etc...
If We loan $176,000 at 5.5% today interest rate with 30 years term.
Monthly mortgage payment is $999.31
Los Angeles property tax is $176. ( monthly )
Insurance and maintenance $150.
$999.31 + $176. + $150. = $1,325.31 ( monthly expense )
$1,325.31 x 360 ( months ) = $477,111 Total of expensed in 30 years
By the calculation of Wall Street, nation housing inflate rate is 5% ( Calculated as 30 years back )
Let take normal inflate rate is 4%, and then the housing value in next 30 years will be $570,838.
$570,838 - $477,111 = $93,727. saving.
$93,727 / 360 ( months ) = $260.35 monthly saving.
$260.35 + $800 ( rent ) = $1060.35 total of monthly saving.
The about calculation is conservative, since the rental price will increment 3% a year, in next 15 years the rental price will be $1,246 a month.
Let alone living in the house is different from living in the apartment.
By the way my post is not worth as 1 cent, since it's free. ;-)

OK, Here in California (Ground ...

Sun, 07 Jun 2009 01:29:00 GMT

OK, Here in California (Ground Zero Foreclosures) Homes are ranging from poor areas (meaning crime higher, and nice people still) around 200,000 and then there is the newer end of that area, with pools and all, those 3,000 Sq Ft. Mc Mansions are about 400,000 so lets use the NON FHA 20% down, 40,000 down, on low end leaving about 160,000 plus fees, and higher end about 80,000 down, and 320,000 as mortgage.
160,000 * today's SO So Rate of what, say 5.25-5.50
360 * 910=327,600+ DP of 40,000=367,600 after 30 years, and out here for the next 10-15 years is likely to yield a NEG appreciation and then who knows for the next 30 with taxes, and invested savings of renting vs. owning and paying interest, and not having to pay upkeep, prop. taxes (out here currently 1.% plus other local bonds) so that is the math... OK with you Hoang Chau Phan? Or as I noticed you do math rather well, please ad your 4 cents. (inflation)
Same for larger home, just bigger numbers
1817*360=654,120+DP =694,120 same added texted as above.