Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: arun gera who wrote (67440)	11/28/2006 6:57:20 PM
From: Dale Baker	Respond to of 306849

Because the interest alone on the $500-600K mortgage you need to buy in his area is much more than what the market will bear for rentals (thanks to competition in the area). Most rentals around there, I would guess, are owned by people who bought the houses long before the current price increases so they do OK in cash flow terms at much lower rents. I wouldn't rent for 30 years in the DC area but I wouldn't buy now when my rent is far below the interest I would throw away with a mortgage. Whether I am right or wrong about price appreciation over the next few years doesn't matter since I don't plan to stay there long-term.

To: arun gera who wrote (67440)	11/28/2006 7:05:24 PM
From: Tradelite	Read Replies (3) \| Respond to of 306849

What do you call "low" rent? Average rent for a one or two BR hi-rise or garden-type apartment in the DC area is somewhere around $1,500 and can go MUCH higher than that if you want certain amenities and a decent neighborhood. (Check rental ads, which I think are available at washingtonpost.com and elsewhere). For a single-family home, rent varies way up into the thousands, depending on size and location. A house the size of mine in the same school district would probably pull in $3,500 a month for a landlord these days.