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

To: MulhollandDrive who wrote (1668)	2/19/2002 7:58:52 PM
From: Tradelite	Read Replies (2) \| Respond to of 306849

Mrs. Peel....your son is getting a steal in a high-priced area. My older son lives in Atlanta and is sharing a house at a personal cost of $400 a month and will soon move out to a shared apartment at the same cost per month. My younger son has his own bedroom in a three-bedroom apartment at college in a nondescript town in North Carolina at $400 a month. If your son can get a one BR at $850 in LA, that's a steal in my book. He oughta keep it-----unless of course, he's not a student and has a high income and is paying huge bucks to Uncle Sam and his landlord every month with no deductions. Then he should probably consider other arrangements.

To: MulhollandDrive who wrote (1668)	2/19/2002 8:31:19 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 306849

Ms. Peel, in all fairness, I am going to say the same thing that I said to Joan P. When calculating between renting and buying, one needs to look at like properties. For instance, I live in Queens, a hop skip and a jump into east midtown, where I work. I pay $1125 rent (including indoor garage parking valued at $150/mo). I also had to pay a substantial broker's fee to get my apt. So let's say $1200/mo amortized over 2 years. Anyway, it's a one bedroom which I share with my wife. We are currently looking at 4 bedrooms 2 bathroom houses in Long Island valued at around 300k. To fairly value that house, I should look at how much it would cost me to rent a house of equivalent stature. Clearly there is a jump in the standard of living going from a 1 bed apt to a 4 bed house. What one will notice, at least in NYC and SF is that renting and buying does not match up for equivalent properties. Buying clearly costs more than renting even with tax benefits versus standard deduction.

To: MulhollandDrive who wrote (1668)	2/20/2002 5:14:11 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

Look I got a 2-1 in Livermore Calif that I'll sell you right now for 280k that I get 1200 a month for which is under the market rent rate and it's no dump. You can buy it and raise the rent going in. If your son's rent was doubled to 1700. For that same 1700 he could carry a 280k note at 6%. Which is possible because my brother just picked one up at no points. He'd have to pay taxes 280k x 1.41% =3946 plus insurance 450 = 4396/12 =366per. Giving him a monthly 2045.07. And he'd own it with it's tax advantage and equity potential.