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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: TheStockFairy who wrote (1643)	2/19/2002 5:28:13 PM
From: Tradelite	Respond to of 306849

No, I cannot. This is something that is best done in a face-to-face or telephone conversation with a mortgage loan officer who has software on his laptop to do the calculations specifically for your income level, tax bracket, etc. You can also find places on the internet to try these calculations yourself. Try the websites for Countrywide Mortgage or some other similar big company. You could also do a search for rent vs. buy and probably come up with a site where you can plug in the numbers yourself.

To: TheStockFairy who wrote (1643)	2/19/2002 6:20:59 PM
From: MulhollandDrive	Read Replies (4) \| Respond to of 306849

Just did...plugged in $300,000 house $20,000 down move in 5 years ... Renting will cost you $22,484 less than owning over the 5 years, in today's dollars. Regarding Ownership for the 5 Years Total Tax Savings $50,033 Total Maintenance $3,500 Selling Price $348,485 Equity Upon Sale $84,224 Selling Costs $34,849 Total Payments Renting Owning Principal and Interest NA $1,910 Taxes and Insurance NA $550 Mortgage Insurance NA $156 Total Monthly Payment $1,015 $2,616

To: TheStockFairy who wrote (1643)	2/19/2002 8:01:48 PM
From: MSI	Respond to of 306849

Interesting comparison -- but to make it an "investment" comparison requires future price expectation. That factor swamps the others, especially in places like San Francisco. That's an extreme example due to rent control... My sister rents in SF for $1200/mo. rather than buy a $550k similar one-bedroom place, because she'd probably get one in a year or two at the same price or cheaper. Plus she'd rather buy more space, even if it's outside of town 45 min. My advice to her: that's a no-brainer, invest in something out of town now, move, or rent it, or bare land to build later. I'd like her to avoid what we euphamistically call "event risk", in the stock, bond and real estate markets, and diversify a bit.