Quote:
Originally Posted by Porsche-O-Phile
Not even close.
Prices are still way too far out-of-whack with rental costs.
Of course, that doesn't preclude one from renting at a loss initially in hopes of recouping once that gap closes, but that's a much higher-risk game and I wouldn't recommend it for most people (who don't have high risk tolerances).
Case-in-point, I have a 2BR on the beach with two garage spaces. I pay +/- $1,300/mo. My neighbor two doors down with a similar unit, 2BR with ONE garage space (building is about the same age, etc.) pays well north of $2,500/mo on his interest-only mortgage. Granted he bought about two years ago, but that's illustrative of how goofy things are.
And yes, I've checked other markets/buildings too. It's virtually impossible to get the rents to cover the carrying costs right now. I'd wait a couple of years.
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Admittedly I was checking rental rates for folks in my position, married with 2 kids, single family home, in the same community I now live. All matches for a 3bdrm,2.5ba, garage, single family home in my neighborhood started at $2400/mo for a dump and moved up to $4500/mo for a home that was equal to the home I now own. That $4500 would cover my mortgage, ins, property taxes, and still net me $600+/month.
$1300 month here is a 2bdrm/2bath apartment.
All that said - you're right - prices are still falling and will continue to do so through '08 and into '09. How much is anyone's guess. There are homes out there that are currently priced at a bargain (college student specials) that I could totally see a kid with proper backing funds picking up and renting the remaining rooms out. It could even swing into a rent free existence for him.