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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (54513)	2/22/2006 6:53:36 PM
From: anachronist	Respond to of 110194

I merely went through the rent vs. buy calculation because someone suggested what would have been a good deal 10-15 years ago isn't one now. It is still a good deal unless you think rents will continue to stay where they are for the next 30 years. Well, you compared a $1600 house payment for a 3 bedroom house to an $800 payment for a studio apartment. Thats kind of apples and oranges (especially if someone can afford $800 but not $1600). What would an equivalent property rent for? Lets be generous and say $1400. What are property taxes? What about upkeep? I think the monthly cost could be close to $200 with PITI. What is the local job market like? $2000 a month is 1/3 the salary of a family earning $72000 a year. Its half for an annual nut of $48000, which I imagine is closer to the average for this area. Given the ecample above, I think the median family would be better off renting than buying that 3 BR house. I know that is my experience here in LA. Surprised to see it works out in Baltimore too.