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

To: sammy™ -_- who wrote (49973)	3/11/2006 10:49:41 AM
From: GraceZ	Respond to of 306849

I've been doing calculations like that for the last 15 years for friends in the CA market with the same conclusion and I've been proven wrong every single time. People who ignored me and bought anyway are sitting on tax free cap gains that completely dwarf the neg cash flow figures. Would I buy under that scenario, nope! But then I wouldn't have bought there back then either so your guess is as good as mine as to when cost to rent and cost to own will come more into line with each other in some areas. The two costs are much more in line where I live. I bought my rental properties when they were much cheaper to buy than rent, now they are cheaper to rent than buy but not by much and I expect rents to adjust higher as the RE market cools.