Rent vs. Buy?

12/23/2008:

When pastures seemed much better back in August, I published a simple Rent vs. Buy chart (see it after the jump).

How about you guys play with this fun interactive Rent vs. Buy calculator over at the New York Times website?

With property taxes now ballooning in Hoboken, and many folks now getting their adjustable-rate mortgages kicking into high gear – renting may not look like a bad idea now, right?

nyt-buy-versus-rent-calculator.gif

See original post after the jump…

8/11/2008:

One Hoboken411 reader thought you mind find the following chart interesting.

Which side of the fence do you fall on?

real-estate-rent-versus-buy-hoboken.gif

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12 Comments on "Rent vs. Buy?"

chili agee
Member
chili agee

[quote comment=”124128″][quote comment=”124111″]30 year mortgage rates at 5.25 fixed. BUY[/quote] There havnt been any 1 bedrooms sold since October[/quote]

If I’m counting correctly, there were 35 1 bedrooms sold in the month of October and 58 from October first through this week. I don’t believe that includes for sale by owner units or units sold by developers like Toll Bros. I got my numbers from the market statistics posted every Wednesday on http://HobokenRealEstateNews.com which tracks sales by unit size every week. It also shows what they sold for, what they were listed for, what went under contract and what came on the market. The posts seem to be pretty accurate as they link back to the MLS listings.

Skywalker
Member

[quote comment=”124230″]I bought a 500 sq. ft. apartment for $220K in 2007, sank about $40,000 in renovations and sold it in September for close to $350K….best decision I ever made was to buy.[/quote]
This sounds fishy…first off I don’t think there was any such thing as a $220K apartment in Hoboken in 2007….was this in Jersey City or Union City or something? Beyond that, the real estate market was falling or flat at best between 2007 and 2008, so it’s hard to believe you made a 33% + gain during that time.

monk
Member
monk

[quote comment=”124225″][quote comment=”124220″]…Give yourself five to seven years of ownership to enjoy some appreciation….

The minimum cost of ownership in Hoboken is around $2300 per month for a 500-600 starter 1-bedroom….[/quote]
I’m of the belief that housing prices in this town in five years will be lower than they currently are. Whither appreciation?????

I currently rent one of those starter 1 bedroom places for 1500 (on Washington). Why in the hell would I pay 800 a month more to buy it? Especially when I don’t believe it will appreciate.[/quote]

My mortgage payment is just a bit more than what you are paying now but I do get a sweet tax return each year which actually brings my total payment far below your $1500. For the record, I have 760 sq ft, parking spot, and gym in building.

Overall I feel the “rent vs. buy” conversation is just like the “which came first, chicken or the egg?” It is really dependent on what fits your beliefs more appropriately.

Stabone130
Member

I bought a 500 sq. ft. apartment for $220K in 2007, sank about $40,000 in renovations and sold it in September for close to $350K….best decision I ever made was to buy.

mcgato
Member
mcgato

[quote comment=”124220″]…Give yourself five to seven years of ownership to enjoy some appreciation….

The minimum cost of ownership in Hoboken is around $2300 per month for a 500-600 starter 1-bedroom….[/quote]
I’m of the belief that housing prices in this town in five years will be lower than they currently are. Whither appreciation?????

I currently rent one of those starter 1 bedroom places for 1500 (on Washington). Why in the hell would I pay 800 a month more to buy it? Especially when I don’t believe it will appreciate.

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