Quote:
Originally Posted by Realtor 1
comical
Said economists, banks, analysts, etc have also been saying this for years and years and years.
It is not for me to say if there is a bubble or not but true value is what that home is worth today, not what some crystal ball predicts it to be worth in 5 years.
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What I find comical is discounting something simply because it last a long time. Great logic there.
Quote:
Originally Posted by Realtor 1
If said economists, banks, analysts, etc have held true to their belief in this bubble, they have most likely been renting for at least 5 years. Add up all those rent payments and they could have owned, experienced the bubble and would still have come out on top.
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Really?? Ok let's runs some fairly average numbers to see if they really would be ahead IF the bubble bursts and they have to sell before the market creates another bubble (if ever). Lets use your assumption of 5 years.
Rent house for 5 years at $1800/month:
$108 000
Buy house, 500k house, 200k down, assume interest rate 2.6% for 5 years.
30% reduction in asset value, just by itself = $150 000. So right away your costs are much more than just renting.
Additional costs of owning:
Property taxes $3500/year = $17 500
Servicing 300k loan = $36 000
House maintenance 2000/year = $10 000
Home owners insurance 1000/year = $5000
Total cost of owning =
$218 500
I don't think that's called "coming out on top"
Obviously you have a pretty strong bias, but then again I hardly expect a realtor to be an objective source on this matter.