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

To: Doughboy who wrote (68112)	12/6/2006 10:57:13 AM
From: Dale Baker	Respond to of 306849

As Tradelite mentioned, if you put your $120K down payment in the stock market and made 10% per year over five years, that is another $60K off the cost of renting, on a net-net basis. Otherwise you are spot on, which is why I am renting in the DC area now.

To: Doughboy who wrote (68112)	12/6/2006 11:26:20 AM
From: Les H	Respond to of 306849

1) In DC, the real estate tax would be about $ 5300 on the entire assessed property value of $ 600,000. 2) The homeowners insurance would probably be somewhere north of $ 600 (Northern Va ballpark guess). 3) Do certain jurisdictions within DC have a piggyback tax assessed on real estate? This was true of incorporated towns in Virginia when we owned rentals in Leesburg and Herndon. Probably not in your case. 4) You're missing the homeowners association fee, or condo fee.

To: Doughboy who wrote (68112)	12/6/2006 5:00:41 PM
From: deeno	Respond to of 306849

"The renter benefits from not having to put down the $120,000 down payment. At 7% compounded annually over five years, that's a benefit of around $48,000." Opportunity costs are very valid, but i dont see how you can justify giving one and not give to the other. Certianly at 7% we are not talking about a riskfree investment. Also there is the opportunity that the property COULD appreiciate in value. I would call it a wash. condo fees should be significant.

To: Doughboy who wrote (68112)	12/10/2006 8:43:32 AM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<Did I miss anything?>> Only one thing......that people decide to rent or buy based on what they NEED at the time and what they might need in their own personal forseeable futures. This need is usually based on their personal employment and financial situations, personal goals, personal projections of where they will be living or working in the future, personal needs of the family members they have or don't have..and maybe much more than that. It's not easy to project the future of stock prices or real estate prices when the people who drive those prices are real people with different lifestyles and goals. There must be a reason I don't have any money invested in real estate-related stocks, other than REITS, which sorta just cater to a growing population in general......I guess I just defined my investment plans for myself. Thank you for helping me define it. <<GG>>