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Friday, November 27, 1981

Monday Open Thread

This is your open thread for today. Please post random links and off-topic discussions here.

4 comments:

Christina said...

The Coming Collapse in Housing from SafeHaven.com, guest-written by Gary Shilling.

PugetHouse said...

Thanks!

Very sexy data.

Christina said...

Housing Cost Calculator from Center for Economic and Policy Research.

Note that CEPR is factoring in a 43% drop in house appreciation (in 2005 dollars) in the Seattle-Bellevue-Everett area. Play around and see how long it takes to be on the winning side of homeownership costs.

synthetik said...

Thanks - pretty cool site. Too bad you can't modify the house appreciation numbers... although I suppose I could pretend I live in Victoria, TX with fairly flat appreciation.

The place we're renting currently would easily go for about $850,000-950K at current inflated prices.

For my calculation I entered $750K (about the type of home we'd actually buy if the price were $450K or so), then $300K down and a 7% fixed rate mit 35% tax bracket and itemized deductions, staying in the home for 5 years.

According to that site, my net cost of owning for 5 years would be $226,200, while renting a place like that would be about $1850/mo or $111,000 over 5 years.

Roughly half the cost.

Even with our current rent of $136,500, renting is still quite a steal.

Of course, if I decide to move the family to Victoria, TX with only -4% appreciation, my net cost of owning the same deal goes down to $-50,400 and I've lost $166,400K over 5 years. (or $186,500 at current rent)

Assuming you can actually rent a place in Victoria, TX for $2275/mo.