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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Beth1210
Posted by KellyFG
buying in a property with an inflated value and/or stretching to buy a house you really can't afford are two things that are never smart.
Homeownership is still one of the best finacial moves you can make LONG TERM.
It always has been & always will be.
I'm not augring with that- I totally agree- which is exactly why I decided to wait an extra 2 years - what's 2 years out of lifetime???? to make the right move
I think you did the right thing Beth, you have talked about buying on LI, Queens, Westchester & now you guys decided on Florida so if you would have bought here, you might be dealing with the stuff your brother is going through if you decided you'd rather live in Florida.
Nobody can ever be 100% sure they'll stay in a house 10 years+ but when you can be 90% sure its still better to buy if you can afford it.
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Posted 7/9/08 8:30 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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Beth
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by KellyFG
Posted by Beth1210
Posted by KellyFG
buying in a property with an inflated value and/or stretching to buy a house you really can't afford are two things that are never smart.
Homeownership is still one of the best finacial moves you can make LONG TERM.
It always has been & always will be.
I'm not augring with that- I totally agree- which is exactly why I decided to wait an extra 2 years - what's 2 years out of lifetime???? to make the right move
I think you did the right thing Beth, you have talked about buying on LI, Queens, Westchester & now you guys decided on Florida so if you would have bought here, you might be dealing with the stuff your brother is going through if you decided you'd rather live in Florida.
Nobody can ever be 100% sure they'll stay in a house 10 years+ but when you can be 90% sure its still better to buy if you can afford it.
I never wanted to buy a house- just to buy a house - I have always looked at it as a long term investment
the amount of pressure that has been put on us to buy one- esp b/c of my husband profession is insane -
I know many people that regret what and where they bought and they are stuck right now - I am free - I don't even have a lease
so while it might seem like we are "all over the place" we are just trying to figure out what will fit us best for the next 30 years- it's not exactly easy- esp. when you don't have family that you want to stay close too - I will be the first to admitt our situation is different then most
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| Posted 7/9/08 8:40 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Beth1210
Posted by KellyFG
Posted by Beth1210
Posted by KellyFG
buying in a property with an inflated value and/or stretching to buy a house you really can't afford are two things that are never smart.
Homeownership is still one of the best finacial moves you can make LONG TERM.
It always has been & always will be.
I'm not arguing with that- I totally agree- which is exactly why I decided to wait an extra 2 years - what's 2 years out of lifetime???? To make the right move
I think you did the right thing Beth, you have talked about buying on LI, Queens, Westchester & now you guys decided on Florida so if you would have bought here, you might be dealing with the stuff your brother is going through if you decided you'd rather live in Florida.
Nobody can ever be 100% sure they'll stay in a house 10 years+ but when you can be 90% sure its still better to buy if you can afford it.
I never wanted to buy a house- just to buy a house - I have always looked at it as a long term investment
the amount of pressure that has been put on us to buy one- esp b/c of my husband profession is insane -
I know many people that regret what and where they bought and they are stuck right now - I am free - I don't even have a lease
so while it might seem like we are "all over the place" we are just trying to figure out what will fit us best for the next 30 years- it's not exactly easy- esp. when you don't have family that you want to stay close too - I will be the first to admitt our situation is different then most
I'm not criticizing Beth, I hope it didn't come across that way. I'm agreeing with you that you did the right thing by renting. I'm sure moving closer to family will be awesome for you guys.
I hope things work out for your brother, I remember you saying you thought he was crazy when he was buying that place.
I know a couple that were in the mortgage industry & bought at the height of the market because they felt pressured & it didn't turn out well for them. People should do what suits them & not worry about everyone else.
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| Posted 7/9/08 8:47 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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Beth
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Re: Rent vs. Buy- rule of 15 from Today Show
thanks Kelly!
I hope my brother finds away out of this
he is the kind of person that tells you everything is great- when you know that it couldn't possibly be
he has NO job- he quit with nothing lined up
he closed a loan (so he says)
and went on vacation
he just lives in a dream world - but I worry about him, I really do
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| Posted 7/9/08 8:54 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
clearly this is not a good formula for LI!
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| Posted 7/9/08 8:57 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Beth1210
and the NY metro area is on the top half of that list
renting isn't always throwing money away- in this market- buying could be throwing it away also
let's take my brother as an example- he lives with in 15 miles of CaMacho
in a similar townhouse (hers is nicer IMO)
my brother paid about 3 times what she paid
his mortgage payment is triple what his rent was
and his house is worth IMO 60% of what he paid
so if he continued to rent- he would be in a much better place now!
so I really hate when people say renting is a waste of money
ITA agree with you. how is having a place to live equate to throwing money away? especially with the point you made in this post!
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| Posted 7/9/08 9:05 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by SweetestOfPeas
clearly this is not a good formula for LI!
the woman that presented the "article" on the Today show basically said, in areas where there is a huge gap b/w house prices and the "rule of 15" then house prices haven't come down enough and it isn't prudent to purchase, yet.
she said because every market is different, the rule of 15 calculation makes it a little easier to figure out.
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| Posted 7/9/08 10:29 PM |
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jax1023
LIF Adult
Member since 3/07 1165 total posts
Name:
Jackie
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Re: Rent vs. Buy- rule of 15 from Today Show
I live OOS, but it works well for me. We pay 1020 a month in rent for a 2 bedroom 1 bath apartment. Based on the formula that would mean we could buy for 183,600.
We are purchasing a 2 bed, 1 bath condo in a nicer part of town for 173,000.
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| Posted 7/9/08 10:30 PM |
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Googlie
LIF Adolescent
Member since 3/06 532 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
We purchased our coop for less than the amount comes to when using the numbers that the apartment we would have rented was if we didnt buy
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| Posted 7/9/08 11:07 PM |
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MrsM-6-7-08
<3
Member since 8/06 4249 total posts
Name:
Nicole
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Re: Rent vs. Buy- rule of 15 from Today Show
We rented a 1 bedroom 1.5 bathroom apartment with garage, and parking pools and hot tub for 2200 a month not including utilities
According to that we should be able to buy a house for 396k
We bought our house in 2006 for 425k
I think we got a good deal, and i love the area and house was in good shape too
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| Posted 7/10/08 12:36 AM |
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KvsGrl
Round 2!!
Member since 1/07 1202 total posts
Name:
Samantha
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Re: Rent vs. Buy- rule of 15 from Today Show
This article is way off for the NY Metro area! They should not be lumping NJ, PA or even LI with NYC. It is a totally different market. Their listed rent for a 2-bdrm is $1318/mo. I paid more than that for a 200 sq ft studio 6 years ago!
The rule of 15 also appears to be a little low for my neighborhood, but not unreasonable. I paid within an 8% differential of the rule of 15. That being said, I got a great price!
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| Posted 7/10/08 9:39 AM |
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MST9106
My life:)
Member since 6/06 9589 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by donegal419
well, i guess according to the today show, i'm screwed.
I came up with $168,300 --- can't find a house for that ANYWHERE on Long Island. We paid a little more than doulbe the $168 figure... granted though, we could afford more than we're paying in rent, but we have been trying to save money by renting a basement studio,
We're in the same boat...according to the formula we would only be able to afford a $170,000 home which don't exist in these days...in NY at least. I think garages go for more than that. But this doens't mean that we cannot afford to pay more for rent than we do. Actually we can afford quadruple of what we pay but we choose to live below our means, and save for our own house. I think no matter what, depending on your financial situation, it is better to own than to rent. But you don't want to stretch yourself and live paycheck to paycheck either. I don't think one is better than the other and I never judge what people decide to do...I think the article puts things in perspective and how inflated the house market is right now and that people should be conscious of their finances when purchasing property. I think they want to reverse the "trend" started by Bush that everyone should own...if renting is what you want then its fine.
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| Posted 7/10/08 9:43 AM |
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banda61007
LIF Infant
Member since 7/07 296 total posts
Name:
Bonnie
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Re: Rent vs. Buy- rule of 15 from Today Show
I'm not sure I agree with this formula as there is a lot of other things to consider. For us, the tax savings we get from buying far outweighs the extra amount per month that we are paying, so we think it is worth it, but accordign to the formula, probably not.
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| Posted 7/10/08 10:02 AM |
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jxnoscar
Baby Delicious!
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Nancy
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Beth1210
Posted by Smileyd17
I didnt rent..or at least have to pay rent..I was in my moms apt for a yr prior to the house.
I just didnt want to throw my money away at rent every month, JMO..why I purchased a home and no my mtg payment is not even near what rent in LI is but its MINE
it's nice that you had that option- not everyone is that lucky
so to me renting isn't throwing away money - it's a place to live while I decide where I want to buy a house- I have to live somewhere
Rent is def not throwing my money away. I would rather rent the beautiful apartment I own in the city, close to where my husband and I work than settle for an overpriced small home on the market right now. Add my commute, taxes a mortgage, maintaince on the house, water bills, etc.
Renting works for us. We are saving money and still have an amazing quality of life. And when something breaks, goes wrong in our apartment, SOMEONE ELSE pays for it, repairs it and fixes it. Fabulous
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| Posted 7/10/08 10:08 AM |
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Smileyd17
kids
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Mommy
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by jxnoscar
Rent is def not throwing my money away. I would rather rent the beautiful apartment I own in the city, close to where my husband and I work than settle for an overpriced small home on the market right now. Add my commute, taxes a mortgage, maintaince on the house, water bills, etc.
Renting works for us. We are saving money and still have an amazing quality of life. And when something breaks, goes wrong in our apartment, SOMEONE ELSE pays for it, repairs it and fixes it. Fabulous
I said FOR ME, my opinion, I feel that way.
It dosent mean anyone has to agree with it.
I own, pay a mtg...and am happy with it.
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| Posted 7/10/08 10:10 AM |
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Theresa05
Sofialiciciousssssssssssss
Member since 10/06 4891 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
I have been on both sides of this..
We moved in together at 22.. there was no way we were bying anything .. HELLO we were babies..
We rented for a long time, paid for a wedding, bought a benz, and after the wedding bought a co-op which we could afford and fix to what we like..
I couldnt afford a house in HB at the time 700k and over and my parents don't give me $ like others to help with a DP.. we did it all on our own..
I will be 31 and owning my 2nd house and proud to say I don't need the sale from my apt for my new house..
we learned thru many financial mistakes to pay off all debt and pay cash always.....
so we did the mortagage for each house on one salary so god forbid anything happens we could make it. .and not choke..
its all a matter of choice and what you can afford at the time
no right or wrong!
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| Posted 7/10/08 10:19 AM |
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MST9106
My life:)
Member since 6/06 9589 total posts
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Theresa05
we learned thru many financial mistakes to pay off all debt and pay cash always.....
so we did the mortagage for each house on one salary so god forbid anything happens we could make it. .and not choke..
its all a matter of choice and what you can afford at the time
no right or wrong!
Perfectly stated and sooooo true!
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| Posted 7/10/08 10:24 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
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remember, when Gulliver traveled....
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Theresa05
so we did the mortagage for each house on one salary so god forbid anything happens we could make it. .and not choke..
its all a matter of choice and what you can afford at the time
no right or wrong!
this is exactly what we are doing. buying a house based on ONE salary so we can keep our lifestyle.
I see what other people are going through right now, how far they are stretched and it reminds me of how I grew up.
I NEVER want to feel like that and I NEVER want my children to feel what I felt.
we are even KEEPING our rental apt...yes paying a mortgage AND rent b/c our rent is CHEAPER than the cost of commuting into the city to work.
everyone's situation is unique. I figure we are all fairly smart, and dont' take our families comfort of financial future lightly.
whatever works ladies...whatever works.
enjoy life! 
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| Posted 7/10/08 10:30 AM |
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Re: Rent vs. Buy- rule of 15 from Today Show
Our rent was cheap 1300 a month. Good luck finding a house for 234K!
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| Posted 7/10/08 10:44 AM |
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PreshusSmurf
So in love with my little guys
Member since 1/07 2963 total posts
Name:
Jess
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by donegal419
well, i guess according to the today show, i'm screwed.
I came up with $168,300 --- can't find a house for that ANYWHERE on Long Island. We paid a little more than doulbe the $168 figure... granted though, we could afford more than we're paying in rent, but we have been trying to save money by renting a basement studio,
same here
our rent is pretty inexpensive for a 1 bedroom, 1 bath apartment ... comes to a figure of $175,500.
and we are looking at houses around double that figure ... around $350,000
looking up rent for a 3 bedroom, 2 bath house in our neighborhood, found one for $2200/month ... which would be $396,000 according to this formula. houses in our town have started to come down to that price range ... so i guess that means it isn't a *bad* time to buy? 
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| Posted 7/10/08 1:21 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by MST9106
Posted by donegal419
well, i guess according to the today show, i'm screwed.
I came up with $168,300 --- can't find a house for that ANYWHERE on Long Island. We paid a little more than doulbe the $168 figure... granted though, we could afford more than we're paying in rent, but we have been trying to save money by renting a basement studio,
We're in the same boat...according to the formula we would only be able to afford a $170,000 home
someone correct me if I am wrong- but I didn't think this rule of 15 was for what you CAN afford- I thought the rule was for what the house should be priced at for buying vs renting to be worth it
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| Posted 7/10/08 1:42 PM |
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Christine
2nd verse same as the 1st
Member since 5/05 15287 total posts
Name:
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Beth1210
Posted by MST9106
Posted by donegal419
well, i guess according to the today show, i'm screwed.
I came up with $168,300 --- can't find a house for that ANYWHERE on Long Island. We paid a little more than doulbe the $168 figure... granted though, we could afford more than we're paying in rent, but we have been trying to save money by renting a basement studio,
We're in the same boat...according to the formula we would only be able to afford a $170,000 home
someone correct me if I am wrong- but I didn't think this rule of 15 was for what you CAN afford- I thought the rule was for what the house should be priced at for buying vs renting to be worth it
That's how I took it but to further mean a comparable style home as well.
eg...the theory being if you rent a 2 br apartment for $1500 - that extends to $270,000. Can you purchase a 2br apartment for that amount? If so, you would be better off buying.
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| Posted 7/10/08 1:49 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Rent vs. Buy- rule of 15 from Today Show
Posted by Christine
Posted by Beth1210
Posted by MST9106
Posted by donegal419
well, i guess according to the today show, i'm screwed.
I came up with $168,300 --- can't find a house for that ANYWHERE on Long Island. We paid a little more than doulbe the $168 figure... granted though, we could afford more than we're paying in rent, but we have been trying to save money by renting a basement studio,
We're in the same boat...according to the formula we would only be able to afford a $170,000 home
someone correct me if I am wrong- but I didn't think this rule of 15 was for what you CAN afford- I thought the rule was for what the house should be priced at for buying vs renting to be worth it
That's how I took it but to further mean a comparable style home as well.
eg...the theory being if you rent a 2 br apartment for $1500 - that extends to $270,000. Can you purchase a 2br apartment for that amount? If so, you would be better off buying.
that's how I took it also- I was just having an problem explaining it
my example was a good one
I rent a 3bed/2 bath - for $1950 a month (with a parking spot)
when I did the math - I got $350K
in bayterrace Queens- that gets you a 1 bedroom, maybe a Junior 4
so techinally - it's better for me to rent
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| Posted 7/10/08 2:00 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Rent vs. Buy- rule of 15 from Today Show
I don't agree with this formula simply because of the additional costs involved with owning a house: unforseen repairs, cosmetic work, maintenance, etc. All this when renting is covered by a landlord. I live in SC. We are paying 1800 a month and we are looking for a house in the 250-275 range. NOT available in NY. Here that will get me a 3 BD 2.5 ba relatively new construction(or older if I want) in a great school district.
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| Posted 7/10/08 3:23 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Rent vs. Buy- rule of 15 from Today Show
I took my rent from 1995, before we bought the house and the number came up $7,000 MORE than we paid so I guessed it worked for us!
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| Posted 7/10/08 3:50 PM |
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