Interesting Projections of a 72% price gain in Panama City...
http://money.cnn.com/popups/2006/biz2/newrules_bestinvest/index.html
Joe CompleteJoe CompleteBeach LoverTaxahassee FL/Watercolor173 postsJoined View profileMessageBeach Lover
Joe CompleteBeach LoverTaxahassee FL/Watercolor173 postsJoined View profileMessageBeach Lover17,041 views
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BlueMtnBeachVagrantBlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach Fanatic
BlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach FanaticDid BMBV just ask 30gAy what his POINT was? :floor:I'm learning.
Bobby JBobby JBeach FanaticBlue Mountain beach4,041 postsJoined View profileMessageBeach Fanatic
Bobby JBeach FanaticBlue Mountain beach4,041 postsJoined View profileMessageBeach Fanatic:popcorn: This is good stuff..... Pushed out, sea walls, pollution, 30Gay, etc... No need to look at any other threads...... 😀
BlueMtnBeachVagrantBlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach Fanatic
BlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach Fanatic.....You say why not rent? IT is rediculous(sp.) for us to waste about $1,000 a month on something we will get no return out of.Since you bit on 6thGen's provocative question, part of your reply is not necessarily accurate.
Worse case...
If you "bought" a home last year, you'd probably be in the hole equity wise. It definitely would be better to have rented then.
Real case today (right now)...
You'd like to live south of 30A but know you can't afford to buy in. Let's pretend (really hard) that this home on 30A is $150,000 instead of typical $400,000 to $1,000,000+ range. The mortgage on a the home (after you put down $30,000) would be around $760/mo. (30 years at 6.5%)
Hey wait a minute. You've got association dues...tack on another $200 minimum. Whoa there's more...property tax on 150K would be around $100 per month (guess). Then you have upkeep....$200/month. Then you have INSURANCE which is... who the hell knows?...but we'll say $300 month.
Let's add it up....760+200+100+200+300=$1560/month
Remember this is dreaming that the house south of 30A is only worth $150,000.
If the house was worth twice that, your monthly payment would be almost twice so let's say $3000/month. That would be for a $300,000 home.
As we know homes south of 30A typically are far more than $300,000 which would drive the monthly cost even higher than $3000/month.
Take a look at Brand New House South of 30-A in Blue Mountain Beach - SoWal Beaches Forum....
Brand new house for rent in Blue Mountain Beach, South of 30-A and walking distance to the beach.
2 stories, 4 bedrooms, 3 bathrooms, 1700+ sq. ft.
Top of the line Kitchen with Bar that opens to the Living Room, creating a warm social environment.
Beautiful wood floors in main living areas and carpet in the bedrooms.
Tons of storage
We will consider pets, deposit will depend on type and size.
Flexible lease options-
Month-to-Month- $1200.00
6 Month- Negotiable
1 Year- Negotiable
$1200/monthly. Sounds like a freakn' deal to me. 4 bedrooms? Get a roommate. This is a steal by any standards. I do assume you could get this rate all year long however (not that unlikely for a yearly lease). Oh yea, remember you did not have to come up with 30 freakn' thousand dollars either to move in.
You make money by saving your cash flow and investing it "wisely", not as I did.;-)
Hopefully you can see that renting "these days" is not bad idea.
BUT (and a big but - assuming appreciation) in the long term, I agree, you're better off owning in "normal" times and in "normal" places.
Keep an open mind.
If anyone rents this place because of this post, I want a finders fee. OK I'm not a RE agent. How about a beer?😀
Capt. WilliamCapt. WilliamBeach ComberPort St. Joe35 postsJoined View profileMessageBeach Comber
yes that does sound like a deal. And thankyou for putting more accurate numbers in for me. I was more or else talking about the south end in a whole not only 30A. Thankfully I bought my house in St. Joe last year and the market has stopped here but it never reached the walton county levels:clap_1: so it still has plenty of room to grow in the oncoming years.
Thankfully I have no desire to own a house south of 30A my home owners insurance is high enough where i am now I think I would have a heart attack at way to young of an age if I had to pay that bill
Thankfully I have no desire to own a house south of 30A my home owners insurance is high enough where i am now I think I would have a heart attack at way to young of an age if I had to pay that bill
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6thGen6thGenBeach Fanatic1,491 postsJoined View profileMessageBeach Fanatic
6thGenBeach Fanatic1,491 postsJoined View profileMessageBeach FanaticWell lets see if the average piece of property is around $300,000(very low estimate) and I nor my sisters and friends are making over $50,000(high estimate) before we pay taxes bills buy gasoline and so on.(I think SJ and many others just had a thread on this if you want all the correct information, this topic has been beaten to death) This means we can not afford to buy a home in south walton. You say why not rent? IT is rediculous(sp.) for us to waste about $1,000 a month on something we will get no return out of. In my particular case when I graduated highschool i went to niceville for school then left niceville trying to make it back into south waltonand lived in a run down trailor with roomates. That was not working and I could not afford to rent a place on my own. So I moved to Port St. Joe where I could still afford to buy my home.
If that's the case you weren't forced out. The rent vs. buy argument has been made, so I don't have to address that. When attempting to make an ad antiquitatem argument, you threw a red herring and said that you were forced out when you never lived in the area on your own to begin with. Children who grew up in Mountain Brook, Buckhead, and other wealthier areas can't afford to buy a house where they grew up for many years out of school, if ever. There are legitimate arguments to be made on affordable housing, but they should at least be made honestly.
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BlueMtnBeachVagrantBlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach Fanatic
BlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach Fanatic......Thankfully I have no desire to own a house south of 30A my home owners insurance is high enough where i am now I think I would have a heart attack at way to young of an age if I had to pay that bill"Higher Insurance Rates...... Coming to a theater near you."
Smiling JOeSmiling JOeSoWal Expert31,643 postsJoined View profileMessageSoWal Expert
Smiling JOeSoWal Expert31,643 postsJoined View profileMessageSoWal ExpertBMBV makes a good point about renting. Going back to Capt Williams thought that renting is throwing money away. On the surface, that may sound true. However, dig deeper and you will see that there is always a cost associated with housing, whether you rent or own. Once you take out potential appreciation of owning, an owner has housing expenses of interest (which accounts for most of the payments during the first 15 yrs of paying off a 30 yr note. Property Insurance is also in that equation, along with Property taxes. Using a real entry level home priced at $300,000 as an example, the interest during the first year will be around $14,500 (with 20% down and 30 yr fixed mortgage at 6%). Add Home Onwers Insurance of $3600, maintanance of around $500, and taxes of $3000, and you get a cost of housing (owning, in this case) being around $21,600 for the year. (no homeowners assoc in my example, because entry level typically has none)
Compare that to the cost of renting at let's say today's real rental price of $1000 per month. Add $100 per month for rentor's insurance, and your cost of housing (when renting) is around $13,000, about half of the cost to own.
So, again, renting is sometimes a way of saving money on housing. You are not throwing that money away. It just needs to be recognized as the cost of housing. 😀
Compare that to the cost of renting at let's say today's real rental price of $1000 per month. Add $100 per month for rentor's insurance, and your cost of housing (when renting) is around $13,000, about half of the cost to own.
So, again, renting is sometimes a way of saving money on housing. You are not throwing that money away. It just needs to be recognized as the cost of housing. 😀
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goofergooferBeach Fanatic1,165 postsJoined View profileMessageBeach Fanatic
gooferBeach Fanatic1,165 postsJoined View profileMessageBeach FanaticAnalyzing the numbers certainly makes renting the better choice now. But life is not all about "the numbers" What kind of value do you place on having a place you call your own ? The memories that accumulate ( along with the bills ) the security of owning your owns digs, the culmination of your life's work represented by a beautiful home. All psychic gratification that is difficult to put a number on. Bottom line is that your house should not be part of your "investment thinking". Housing has been throuhout history, despite the ups and downs, a good "investment". But you have to have a very long term view. You live in your house...you invest in real estate !! There is a difference.
On the other hand if you want to invest in property OUTSIDE your primary shelter, this may be a good time to start the process. Lots of choices, motivated sellers, lots of deals to work, universal skepticism, daily newspaper, radio, tv reports of the "sky is falling mentality", foreclosures on every corner, fraud by builders, banks, mortgage cos., lawyers,developers, Wall St., low and getting lower interest rates (even though I do not advise leverage)and cover stories in the Nations major weekly magazines that the bubble is bursting. ALL SIGNS POINTING TO A BOTTOM. The environment that exists now is pretty ideal...almost Goldilockish, to coin a phrase. But real estate investing is done through the brain and not the heart......strictly mercenary. There are bargains out there......Time to start looking and Acting.
On the other hand if you want to invest in property OUTSIDE your primary shelter, this may be a good time to start the process. Lots of choices, motivated sellers, lots of deals to work, universal skepticism, daily newspaper, radio, tv reports of the "sky is falling mentality", foreclosures on every corner, fraud by builders, banks, mortgage cos., lawyers,developers, Wall St., low and getting lower interest rates (even though I do not advise leverage)and cover stories in the Nations major weekly magazines that the bubble is bursting. ALL SIGNS POINTING TO A BOTTOM. The environment that exists now is pretty ideal...almost Goldilockish, to coin a phrase. But real estate investing is done through the brain and not the heart......strictly mercenary. There are bargains out there......Time to start looking and Acting.
SHELLYSHELLYSoWal Insider5,763 postsJoined View profileMessageSoWal Insider
SHELLYSoWal Insider5,763 postsJoined View profileMessageSoWal InsiderHousing has been throuhout history, despite the ups and downs, a good "investment". But you have to have a very long term view. You live in your house...you invest in real estate !! There is a difference.
On the other hand if you want to invest in property OUTSIDE your primary shelter, this may be a good time to start the process.
There's no need to rush into this market at this point......so this time maybe they will look beyond the "Rules" brochure that came in the Monopoly game box to learn what "investing in real estate" is all about. :roll:
Capt. WilliamCapt. WilliamBeach ComberPort St. Joe35 postsJoined View profileMessageBeach Comber
BMBV makes a good point about renting. Going back to Capt Williams thought that renting is throwing money away. On the surface, that may sound true. However, dig deeper and you will see that there is always a cost associated with housing, whether you rent or own. Once you take out potential appreciation of owning, an owner has housing expenses of interest (which accounts for most of the payments during the first 15 yrs of paying off a 30 yr note. Property Insurance is also in that equation, along with Property taxes. Using a real entry level home priced at $300,000 as an example, the interest during the first year will be around $14,500 (with 20% down and 30 yr fixed mortgage at 6%). Add Home Onwers Insurance of $3600, maintanance of around $500, and taxes of $3000, and you get a cost of housing (owning, in this case) being around $21,600 for the year. (no homeowners assoc in my example, because entry level typically has none)
Compare that to the cost of renting at let's say today's real rental price of $1000 per month. Add $100 per month for rentor's insurance, and your cost of housing (when renting) is around $13,000, about half of the cost to own.
So, again, renting is sometimes a way of saving money on housing. You are not throwing that money away. It just needs to be recognized as the cost of housing. 😀
Very true except in my opinion five years after renting you cannot sell your house and get a considerable amount of your money back as in buying. Yes I know you will always have living expenses but owning shows a return where as renting you dont get any return.
SHELLYSHELLYSoWal Insider5,763 postsJoined View profileMessageSoWal Insider
SHELLYSoWal Insider5,763 postsJoined View profileMessageSoWal InsiderYes I know you will always have living expenses but owning shows a return where as renting you dont get any return.
Not always true....
(A) just ask the sellers who have to bring a check to the closing table because they are underwater.
(B) just ask the renters who've been banking/investing the 'difference' between paying the total carrying costs and the rent they're paying for a similar condo/house in a bubble area.
Capt. WilliamCapt. WilliamBeach ComberPort St. Joe35 postsJoined View profileMessageBeach Comber
Not always true....
(A) just ask the sellers who have to bring a check to the closing table because they are underwater.
yes well i never said everyone knew where to buy or when but in the majority you get a return on your home maybe not on an investment unfortunatly if you bought when it was topping out.
BlueMtnBeachVagrantBlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach Fanatic
BlueMtnBeachVagrantBeach Fanatic1,385 postsJoined View profileMessageBeach Fanaticyes well i never said everyone knew where to buy or when but in the majority you get a return on your home maybe not on an investment unfortunatly if you bought when it was topping out.And that's it in a nutshell. We're all dancing around the same fire and seeing the same thing from different angles. Just try not to trip. ;-)
OK...the rent topic has "burned" out...NEXT!
How 'bout them 'tainin walls? JUST KIDDING!!!!!!!
goofergooferBeach Fanatic1,165 postsJoined View profileMessageBeach Fanatic
gooferBeach Fanatic1,165 postsJoined View profileMessageBeach FanaticNot always true....
just ask the sellers who have to bring a check to the closing table because they are underwater.
That is precisely my point. I want to be the buyer at thst table.
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