rent rates these days

[Tuff Otelia]

what are your peoples opinions about the inflated rental rates in the past 3-4 years? do any of you guys remember the time when you were
able to afford to pay an apt. rent on a minimum wage job. What kind of an economy is it where people need to split the costs with a roomie just to get by. outrageous.

[getforfree]

Re: rent rates these days

In 1998 my parents were paying $500/month for a 3-bedroom appt. Now those go for more than $900/month.

I know a friend, who pays $1100/ month for a 3-bedroom house rent. I pay almost $1500 for mine, but I own it, and we bought it only 2 yrs ago, when the prices were already inflated, but not as much as now. My uncle pays about $900/ month, but he owns it, and it costs almost as much as mine now, and he bought it about 6 yrs ago, when the prices were lower.

So, if you make minimum wage and work ft, you would barelly cover the rent, and no food or car.

[rooskers]

Re: rent rates these days

My rent is $695 and has been that way for awhile. Rent in Southern Oregon has gone up but not nearly as much as house prices. For example a place I rented in 97 for $550 now goes for $695 however a house that sold for $169,000 now sells for $320,000. So it looks like I will be renting for awhile. Note that in a nicer area of town I saw a house for sale for 1.2 million didn't sell last time I went by it I saw a for rent sign. LOL who would rent a 1.2 million dollar house with guest house.

[bjl584]

Re: rent rates these days

I've never rented. I bought a house a few years after I got out of school, so I really don't know what current rental rates are in my market. I had to live in the dorms at college, and that's when I decided that I never wanted to live in an apartment. I grew up in a rural area, so I've always liked my space.

[MonkeyMama]

Re: rent rates these days

Rents have gone down considerably in California the last few years, so actually little to complain about here.

I have a friend in San Francisco who paid $1200/month rent for studio apartment in the slums a few years back. She pays closer to $900 now.

We bought a condo in the Bay in 2000 because it was far cheaper to buy a $300k apartment than to rent it for $3k/month. It was 3-bedroom, but in a so-so neighborhood, nothing fancy. The same condo is now $500k or so and $2000/month to rent. It is nice that rent is actually an option over buying around here these days (since buying is hardly an option). Though as a landlord not much of an option if you bought the last few years - you can't even begin to recover costs. For that reason renters have it good.

I now live in a city where people complain about paying $500/month for a studio now. I can't get behind the complaining - it is all so relative. I don't remember ever being able to afford to rent.

[Ima saver]

Re: rent rates these days

When I first moved here, the few rentals were gong for 300-400 a month, now they are coser to $1000 a month, out here in the boonies. We do have some new low cost apts. if you have low income. They are really nice and kept up. If you qualify, you can get one for $400 a month.
My very first rental was $65 a month. When I bought my house a year later, my house payment was $96 a month.
I don't know how young people can afford to buy a house anymore.

[Gruntina]

Re: rent rates these days

Rent here for a one bedroom apartment goes for about 1200 per/month. The cheapest mortgage I know so far of anyone I know personally who is paying off their home is 2,800 per month for a small 2bed 1 bath home for a 30 year fixed loan. I know some people with larger homes paying about the same that but on an interest only loan with no plans to sell it in the near future because they can not afford to upgrade the home to increase the value to resell. I am not sure what is better, to rent a more expensive apartmet so more than one bedroom or get a home on an interest only loan with the intention to never pay it off?

[Ima saver]

Re: rent rates these days

Well, I certainly would not get an interest only loan!

[JanH]

Re: rent rates these days

Wow. Interest only loan. I'd never heard of that before. That's scary.

[Ima saver]

Re: rent rates these days

I have hearad of them and it is amazing how many people get them. They just pay interest every month and pay nothing off on the principal They are fairly common in California.

[Ima saver]

Re: rent rates these days

Do any of you have interest only mortgages?

[Jacklad]

Re: rent rates these days

I have hearad of them and it is amazing how many people get them. They just pay interest every month and pay nothing off on the principal They are fairly common in California.

I guess they are just hoping that the housing bubble doesn't burst - if you can't sell the property for at least what you paid for it, you'd end up still owing.

Jackie

[Gruntina]

Re: rent rates these days

I guess they are just hoping that the housing bubble doesn't burst - if you can't sell the property for at least what you paid for it, you'd end up still owing.

Jackie

I am curious, if you had a choice to rent an apartment for the same price of living in a nice home with yard and etc. The only choice would be Rent or Interest Only loan. In both ways you are still blowing your money away but you are tied to the home with a loan.

Which of the two choices would be best? I am wondering if those that are on the interest only loan are using justification on a home they can not afford? Well honestly with the prices of homes in California and seeing millions of beautiful homes around me, I would have to believe a percentage can't afford the homes since the low end home prices are at a handle bar that is much too high for people who has not acclimated a lot of wealth yet.

[bjl584]

Re: rent rates these days

I would tend to think that the only reason to get an interest only loan is to justify buying a house that you could otherwise not afford. Have you noticed that there are suddenly a whole lot of foreclosers in the housing market? That's mostly because the grace period on all of those interest only loans is expiring and the principal is kicking in. All of a sudden people's payments are doubling. Faced with the choice, I think that I'd much rather rent than get into an interest only loan.

[Jacklad]

Re: rent rates these days

I am curious, if you had a choice to rent an apartment for the same price of living in a nice home with yard and etc. The only choice would be Rent or Interest Only loan. In both ways you are still blowing your money away but you are tied to the home with a loan.

Which of the two choices would be best? I am wondering if those that are on the interest only loan are using justification on a home they can not afford? Well honestly with the prices of homes in California and seeing millions of beautiful homes around me, I would have to believe a percentage can't afford the homes since the low end home prices are at a handle bar that is much too high for people who has not acclimated a lot of wealth yet.

Honestly, in that case I would rent. That way, when the roof goes or the plumbing backs up, the landlord is responsible. And I can calculate exactly what it's costing me - with the interest only situation, not only am I still on the hook for the property taxes, maintenance and utilities, but I can still end up owing money if I can't recoup my purchase price.

If I was planning to flip the house, I might take the interest only risk.

Jackie