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Morning Briefing: Blow to housing market as renters don’t plan to buy

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Mortgage Professional America | 17 Mar 2016, 05:23 AM Agree 0
Blow to housing market as renters don’t plan to buy… New York, Los Angeles among world’s top 10 most expensive cities… Refi mortgages down further…
  • | | 17 Mar 2016, 09:21 AM Agree 0
    Question, how much of the local inflation is caused by regulations on real estate which burdens density and increase cost of construction, barrier to entry for building and population growth cause real estate to go up in value not inflation, there will never be enough inflation to bring property values back in Detroit. Then look at Houston with light zoning laws and see where it is on affordability scale. Have a nice day I love real estate!
  • 75 year old - been there done that | | 17 Mar 2016, 10:39 AM Agree 0
    Every yr. companies raise prices not 3-5% but 20-25% and they now in this past 10 years call it De-Flation. Look at the survey they use the Word cost bread . Now I get it , it used to be lettuce now its bread they pick a item that never goes up in price. Ok more of the same yesterday by the FED accomodate the Market mode and we say there is a shortage of homes. I got it again tell people there is a shortage and raise the price so you pay sky high Real estate taxes ( the power to TAX is the power to destroy.) Get it now. Why buy when for the past 9 years Home Ins. rate go up 20% a year because they earn NO Interest on there money in the Bank. I got it again. I bought my present home 7 years ago and the Tax Assessor on average says my home value is going up 22% a year, Yes 22% ( who wants that cost for getting no benifet < no kids in school and our county has only had 2 small fires caused both by Construction companies. ( and they charge for comomg out to investigate a fire a fee of $450.00) Ya why buy. If there really is a shortage then why are the homes on my street not selling? Answer that. I have paid on $98,000 for R.E. Tax in the 7 years and $14,000 in Home Ins. and $33,000 in home maintenance costs ( added a few small capirtal Improvements that won't return a dime.) and then if i want to sell they charge 6% fee < or $36,000 plus another $4,500 in closing and title fee> YOU DO THE MATH- Is it cheaper to Rent or Own.
  • | | 17 Mar 2016, 12:48 PM Agree 0
    Cheaper to own most definately over the long term. Speak with a tax advisor and make sure you get all the benefits you're entitled to. Your capital improvements increased your cost basis thereby decreasing your capital gains tax once you decide to sell. Oh, forgot to mention, if those were energy efficient capital improvements you may have missed out on the rebates offered by local and federal governments. I'm sure you're deducting your mortgage interest on your income taxes you're paying during the time in which you own. As you mentioned, you're also gaining at present 22% on the 600k home and that's more appreciation than most earn by actually working a job. If you think, renting is still cheaper, then you should take a look at rental statistics. When have you ever know rents to decrease? Never. Are there any tax benefits to renting? None, unless you run a home based business, which most folks don't. I've done the math. Cheaper to own.
  • Oxide | | 17 Mar 2016, 05:46 PM Agree 0
    Then you're not doing honest math.

    The reality is renting is half the cost of buying at current grossly inflated asking prices.
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