Author Topic: Rental market implosion in Lakewood- implications  (Read 8674 times)

Offline David Smith

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Re: Rental market implosion in Lakewood- implications
« Reply #45 on: May 02, 2017, 10:24:58 AM »
and a side note is that people need real lessons in finance to explain that you can't buy a house with an assumption that you will have a basement renter for 12 months out of a year.  way to many people make that mistake and get into problems...
Many basement rentals in Lakewood are 3 BR apartments, not 1 BR dumps. They're suitable for young families, not just newlyweds. It's not so unreasonable to expect a degree of stability once you have a tenant.
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ

Offline Mordyk

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Re: Rental market implosion in Lakewood- implications
« Reply #46 on: May 02, 2017, 10:27:27 AM »
Many basement rentals in Lakewood are 3 BR apartments, not 1 BR dumps. They're suitable for young families, not just newlyweds. It's not so unreasonable to expect a degree of stability once you have a tenant.
expect a degree is different than relying on rent to cover, and if you have a month with no tenant then you cant cover...

Offline Super Speed

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Re: Rental market implosion in Lakewood- implications
« Reply #47 on: May 02, 2017, 10:30:32 AM »
This has happened before and will happen again. It is all cyclical.
If you think this is anything like we've seen in the past you're delusional.

Offline Super Speed

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Re: Rental market implosion in Lakewood- implications
« Reply #48 on: May 02, 2017, 10:37:14 AM »
rental income for full townhouse should be min. $1600 and for basement Min. $800    should almost cover a mortgage if someone put down 20%.

and a side note is that people need real lessons in finance to explain that you can't buy a house with an assumption that you will have a basement renter for 12 months out of a year.  way to many people make that mistake and get into problems...
A year ago it was a given and all the agents were selling high ticketed houses with that sales pitch.

Online jye

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Re: Rental market implosion in Lakewood- implications
« Reply #49 on: May 02, 2017, 10:38:50 AM »
At best the mortgage payment would be a wash even after factoring in equity, more likely a losing proposition vs renting. As far as the fear of being squeezed down the road by rising rent prices, rent prices are almost certain to rise but that would only factor in to your rent vs buy calculation if you think house prices will be rising as well. If you think the market is softening (which in all likelihood it is) then it makes sense to take advantage of the low rent prices now, and then buy when rent prices start to go up....

Online aygart

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Re: Rental market implosion in Lakewood- implications
« Reply #50 on: May 02, 2017, 10:45:44 AM »
If you think this is anything like we've seen in the past you're delusional.
If you think it isn't you are either ignorant or forgetful.

For the record I have ZERO financial interest in Lakewood real estate other than my own house without a basement apartment, but if the market crashes I would be more than happy to snap up some investment properties.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline churnbabychurn

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Re: Rental market implosion in Lakewood- implications
« Reply #51 on: May 02, 2017, 12:38:40 PM »
At best the mortgage payment would be a wash even after factoring in equity, more likely a losing proposition vs renting. As far as the fear of being squeezed down the road by rising rent prices, rent prices are almost certain to rise but that would only factor in to your rent vs buy calculation if you think house prices will be rising as well. If you think the market is softening (which in all likelihood it is) then it makes sense to take advantage of the low rent prices now, and then buy when rent prices start to go up....
+1

From an economic perspective, the average Lakewood family living on a budget should definitely be renting at this time.

Iv run the numbers, it makes zero economic sense to purchase new construction now...

Online jye

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Re: Rental market implosion in Lakewood- implications
« Reply #52 on: May 02, 2017, 03:47:06 PM »
+1

From an economic perspective, the average Lakewood family living on a budget should definitely be renting at this time.

Iv run the numbers, it makes zero economic sense to purchase new construction now...

Maybe buyers are thinking they are locking in lower interest rates...

Offline churnbabychurn

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Re: Rental market implosion in Lakewood- implications
« Reply #53 on: May 02, 2017, 04:06:10 PM »
Maybe buyers are thinking they are locking in lower interest rates...
Meh. Not that low.

But to pay all that interest and think they are "building equity"...

Offline henche

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Re: Rental market implosion in Lakewood- implications
« Reply #54 on: May 02, 2017, 04:48:50 PM »
Yah, yah, building equity.

I've run the numbers, and if I would be homeless for the next 30 years, I'd be a millionaire.

Online jye

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Re: Rental market implosion in Lakewood- implications
« Reply #55 on: May 02, 2017, 05:46:22 PM »
Meh. Not that low.

But to pay all that interest and think they are "building equity"...

Well it's worked in the past and people are slow to adjust. Just a few years ago the numbers worked- rental income just about covered mortgage plus taxes and the principle paid down each month was icing on the cake..

Online aygart

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Re: Rental market implosion in Lakewood- implications
« Reply #56 on: May 02, 2017, 05:55:20 PM »
Well it's worked in the past and people are slow to adjust. Just a few years ago the numbers worked- rental income just about covered mortgage plus taxes and the principle paid down each month was icing on the cake..
Numbers which don't work nave a tendency to force people to adjust. They almost always win.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline thaber

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Re: Rental market implosion in Lakewood- implications
« Reply #57 on: May 02, 2017, 06:01:28 PM »
This has happened before and will happen again. It is all cyclical.
If you think this is anything like we've seen in the past you're delusional.
Why buy when u can move to Lakewood and rent a brand new 5 bedroom townhouse for $1600 a month?

So in 2007 I rented a 5 bedroom new construction home on 1/2 an acre near Pine and MLK for $1500. that would seem to point to a cycle?
ETA: owner didn't even bother finishing the basement, there was no market for it.
« Last Edit: May 02, 2017, 06:44:40 PM by thaber »

Online jye

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Re: Rental market implosion in Lakewood- implications
« Reply #58 on: May 02, 2017, 10:36:32 PM »
Numbers which don't work nave a tendency to force people to adjust. They almost always win.
But the adjustment can take a long time. There are quite a few groceries in Lakewood that are still open even though the numbers are not on their side...

Online aygart

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Re: Rental market implosion in Lakewood- implications
« Reply #59 on: May 02, 2017, 10:37:54 PM »
But the adjustment can take a long time. There are quite a few groceries in Lakewood that are still open even though the numbers are not on their side...
being unable to pay your mortgage payment can be very effective in getting people to adjust
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.