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6thGen

Beach Fanatic
Aug 22, 2005
1,491
152
Well 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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BlueMtnBeachVagrant

Beach Fanatic
Jun 20, 2005
1,289
375
......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 JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
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. :D
 
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goofer

Beach Fanatic
Feb 21, 2005
1,165
191
Analyzing 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.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
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.

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. William

Beach Comber
Aug 30, 2006
35
0
Port St. Joe
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. :D

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.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Yes 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. William

Beach Comber
Aug 30, 2006
35
0
Port St. Joe
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.
 

BlueMtnBeachVagrant

Beach Fanatic
Jun 20, 2005
1,289
375
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.
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!!!!!!!
 
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