3 ms·

Would you mind following up on this, specifically what lesson are they learning?

drzaiusapelord 13y ago
I'm not well versed in SF, but whats going on there is whats going on in Chicago. Due to a few factors like migration back into the city and gentrification, rent values have gone up pretty high in Chicago and much higher in SF. Renters are seeing rates that they simply cannot afford in the long run. Meanwhile, homeowners are seeing the value of their homes go up. Its a win for the owners and a loss for the renters. The decision to own isn't a static one. Its a relationship between what a house costs and what renting costs and when its appropriate to make the move. On top of that, one needs to worry about what happens in 20-30 years. I'll be retired with a paid off home and a low property tax load due to a senior exemption. Lifelong renters will still need to pay full rent until their dying day. This can affect when or even if you retire.
malyk 13y ago
Rent for my 1 bedroom/1 bath, 1000 sq ft. loft in SF: $3200 Mortgage for my 2 bed/1 bath, 1200 sq ft. home in Oak: $1900* We had to pay ~$70k in closing costs, so it isn't /easy/ to just go and buy something, but one possible lesson is that if you spend your whole life renting you are subject to the whims of your landlord (especially if you don't have rent control) and could end up paying a lot more for a place to live then you would if you had bought. Of course, the buy to rent numbers alternate back and forth depending on market conditions, so that doesn't hold true all the time. * - Lots of confounding variables here though. SF vs. Oakland, $650 a month for property taxes aren't accounted for in the monthly mortgage cost. But we have a 40'x 50' yard, a garage, no shared walls, easier parking, etc. So it's an individual choice, but even all in my house is much cheaper than an equivalent rental unit in SF (maybe even if you factor in a new roof every 20 years, other maintanence, etc...at least in these market conditions.)

I'm not well versed in SF, but whats going on there is whats going on in Chicago. Due to a few factors like migration back into the city and gentrification, rent values have gone up pretty high in Chicago and much higher in SF. Renters are seeing rates that they simply cannot afford in the long run. Meanwhile, homeowners are seeing the value of their homes go up. Its a win for the owners and a loss for the renters. The decision to own isn't a static one. Its a relationship between what a house costs and what renting costs and when its appropriate to make the move. On top of that, one needs to worry about what happens in 20-30 years. I'll be retired with a paid off home and a low property tax load due to a senior exemption. Lifelong renters will still need to pay full rent until their dying day. This can affect when or even if you retire.

malyk 13y ago

Rent for my 1 bedroom/1 bath, 1000 sq ft. loft in SF: $3200 Mortgage for my 2 bed/1 bath, 1200 sq ft. home in Oak: $1900* We had to pay ~$70k in closing costs, so it isn't /easy/ to just go and buy something, but one possible lesson is that if you spend your whole life renting you are subject to the whims of your landlord (especially if you don't have rent control) and could end up paying a lot more for a place to live then you would if you had bought. Of course, the buy to rent numbers alternate back and forth depending on market conditions, so that doesn't hold true all the time. * - Lots of confounding variables here though. SF vs. Oakland, $650 a month for property taxes aren't accounted for in the monthly mortgage cost. But we have a 40'x 50' yard, a garage, no shared walls, easier parking, etc. So it's an individual choice, but even all in my house is much cheaper than an equivalent rental unit in SF (maybe even if you factor in a new roof every 20 years, other maintanence, etc...at least in these market conditions.)