Pricing in WaterColor

a little birdie just told me a house in phase II is about to sell at $600k, less than $300 per sq. ft. Where is the bottom?!?!?!?

a little birdie just told me a house in phase II is about to sell at $600k, less than $300 per sq. ft. Where is the bottom?!?!?!?

right here....

AA, I thought you had posted about home values versus rents but cannot find it. Anyway, according to the linked article, home values are historically 16 times annual rents. Hence, a home that rents for $1,000 monthly will be worth $192,000, etc.

How to calculate a home's value (Page 1 of 2)

right here....

M E O W~~~~~

AA, I thought you had posted about home values versus rents but cannot find it. Anyway, according to the linked article, home values are historically 16 times annual rents. Hence, a home that rents for $1,000 monthly will be worth $192,000, etc.

How to calculate a home's value (Page 1 of 2)

I have my own belief that's simple: A home should rent for an amount equal to it's monthly 30 year mortgage payment after a 20% down payment. Add value if you think the property is special enough to appreciate and subtract value if you think it will depreciate.

I'm chicken and can't bring myself to deviate from this. If the rental covers the bulk of the purchase price that's good. If the rental provides excess cash after all costs that's very good. There are always homes (or lots with home plans) for sale that can achieve this. As for picking winners that don't follow my thesis, I don't know how people do it.

a little birdie just told me a house in phase II is about to sell at $600k, less than $300 per sq. ft. Where is the bottom?!?!?!?

Dominoes, Has your birdie reported back on this. Do we have a $600K comp. yet?