rent rates these days

[Gruntina]

Re: rent rates these days

I did not know there was a grace period on the Interest only loan. That is good to know and definetly makes a huge difference in the choices between Renting and Interest only loans

[bjl584]

Re: rent rates these days

Yeah, you pay interest only for like the first two years or something, then the principal starts to kick in and gets added to your payment. That's what makes these types of loans attractive to people that could otherwise not afford the house in the first place. You can get a house for a low monthly payment at first. People figure that by the time the principal starts to become due they will be on their feet, better job, have some money saved up, etc. It never really works that way though. If you weren't financially responsible to buy the house in the first place, it's unlikely that anything is going to change in a couple years. Thing is, people just simply walk away from the house when they realize that they can't pay and the bank takes it. They have no equity in the house since they were only paying interest, so they really aren't losing anything except ruined credit. But, somebody that would do that willingly probably isn't worried about their credit or their finances anyway.

[kealina]

Re: rent rates these days

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.

while it's not quite as bad as San Francisco, it's pretty high here in hawaii...
a dinky 1 bedroom in a junk area runs $600 a month... a one bedroom in a decent area easily runs 1,100+ a month and at that price they are immediately filled and rising every year... and these are considered the cheap options... for a nice 1 bedroom you can easily spend 2K here...
it's all very relative and i don't think it was every really low here either... it's just high and steadily increasing...

[MonkeyMama]

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.

There is no other way to buy a house otherwise in many cases.

Gruntina - ah we are neighbors then...

In our case we refused to go bankrupt over buying a house and moved. I have plenty of relatives who make good money that I Can only imagine have ARMs or interest only loans - I have no idea how you can afford a 800k fixxer upper on 100k income otherwise. But I Am just assuming...

No interest-only here. If I had to buy a house with interest only I would not feel comfortable buying it.

[MonkeyMama]

Re: rent rates these days

Most of the people that I assume are doing the interest only thing in the Bay actually intend to only own a couple of years and then move. I Am not sure what their plan is if the market crashes or if they have even considered that possibility. IT is kind of like the dot com era in the bay - people are making tons of equity by doin the ARM thing, and so they are taking a big gamble.

My SIL made 300k off her condo, which they paid little on, and now they have an 800k fixxer upper that they intend to only own a couple of years. I have no idea if they have a backup plan if things go bad, we really worry about them. In their eyes they have no other option, and it has fared them well thus far. But we all really worry about them - no one else in our family was willing to take such financial risk. In the end they may be millionaires before they are 30 - who knows - and thinking all of us careful were suckers - hehe. A gamble for sure.

In the city I live in now - yeah people use interest loans to buy what they can not afford. After coming from such an expensive area it amazes me how entitled people feel around here. If they need an interest only to afford that mansion they want - they will do it. I don't know how many 20-year-olds I See who feel entitled to a mansion and have no concept of waiting to affrord to make big purchases - it's sad.

[Ima saver]

Re: rent rates these days

I wonder how much a new mobile home is selling for? There are a lot of older mobile homes for rent around here.

[amberbamber]

Re: rent rates these days

When my husband and I were in college, we rented a one bedroom apt for 560 a month. That was in 2000. Now we will be renting a 2700 sq ft house for 800 a month. Plus a yard with 2+ acres. Good deal if you ask me

[Bookie]

Re: rent rates these days

I wonder how much a new mobile home is selling for? There are a lot of older mobile homes for rent around here.

A couple I know bought a very nice moble home about two years ago for $35,000. They owned a homesite and seem pleased with the arrangement.

[abowers]

Re: rent rates these days

In upstate NY 2 years ago, I was paying $200 as one of 3 people in a 3 BR apartment, no utilities included.

We moved to central NJ last year, in grad student apartments, subsidized by the university, we were paying $829 for a 1 BR including everything but electricity, just renovated.

This year we are still in grad student apartments subsidized by the university, this one's older but has an extra 170 sq feet, and we are paying $758 for a 2BR, only incl. hot water.