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nostatic nostatic is offline
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Join Date: Sep 2001
Location: SoCal
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Quote:
Originally Posted by john70t View Post

fwiw:
Paying $4K/month to someone else is no small matter.
Over 5 years it equals to a quarter million dollars...
But that is none of my business.
Quote:
Originally Posted by john70t View Post
The rent multiplier is 1% to 1.5% as I've been told.
(i.e. If the house is valued at $100,000, the rent should be $1,000/month.)
SoCal is a different market. fwiw, this house, with some exterior paint and clean-up, likely would go on the market for $1.5M. The house two doors down, which is right next to a major street, sold for $1.3M some months back and Zillow says it is worth $1.5M now. No way you can get 1% rent for those. Also it just isn't practical for us to buy. Yes, I've spent a huge chunk of money - but the way the market has gone in LA (especially where I am), if I bought at the wrong time and had to sell at the wrong time that much could easily be flushed.

At this point of our lives, there doesn't seem to be much reason to buy a place. We won't own anything outright (can't even come close in our area), so we're essentially "renting" either way. Only difference is equity that gets built up and passed down to my son. Everything is ephemeral. If I was 30 it would be a totally different calculus. At 53 though, any days forward are pretty much "rented"
Old 05-15-2015, 11:50 AM
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