Comments on: How You’ll Know When It’s OK to Buy http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html Redfin Los Angeles Sweet Digs Sun, 22 Nov 2009 17:43:07 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Arash http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html/comment-page-1#comment-15343 Arash Tue, 05 Aug 2008 16:33:34 +0000 http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html#comment-15343 Renting in Los Angeles area makes much sense until about 2010, we will see the market then. There is no way the prices can sustain themselves. I know a lot of my coworkers that were laid off since Sept of 07 and still have not found a steady job and they are good capable people. I know a few that have left California for cheaper markets such as Austin and NC where salaries are about 15% less and housing costs are 1/5 or 80% less than LA. And some went to newer cities like Houston where the infrastucture is much better than LA since the city is newer with tremendous amount of freeways and new road construction and the houses average around 15 years old. Well, they are not in CA anymore but hey they have about an extra $3000 in the bank every month so essentially they can take a week off in the bahamas every month and still have the same money left over as they had in LA! Renting in Los Angeles area makes much sense until about 2010, we will see the market then.

There is no way the prices can sustain themselves. I know a lot of my coworkers that were laid off since Sept of 07 and still have not found a steady job and they are good capable people. I know a few that have left California for cheaper markets such as Austin and NC where salaries are about 15% less and housing costs are 1/5 or 80% less than LA. And some went to newer cities like Houston where the infrastucture is much better than LA since the city is newer with tremendous amount of freeways and new road construction and the houses average around 15 years old. Well, they are not in CA anymore but hey they have about an extra $3000 in the bank every month so essentially they can take a week off in the bahamas every month and still have the same money left over as they had in LA!

]]> By: Is It Time to Buy? | Redfin Los Angeles Sweet Digs http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html/comment-page-1#comment-15288 Is It Time to Buy? | Redfin Los Angeles Sweet Digs Mon, 04 Aug 2008 15:14:17 +0000 http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html#comment-15288 [...] measure of whether buying makes sense is calculating its rent ratio. The ratio of home prices to annual rents in the Los Angeles area was 20 as of March 31, meaning [...] [...] measure of whether buying makes sense is calculating its rent ratio. The ratio of home prices to annual rents in the Los Angeles area was 20 as of March 31, meaning [...]

]]> By: Did These Buyers Get a Deal? | Redfin Los Angeles Sweet Digs http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html/comment-page-1#comment-12853 Did These Buyers Get a Deal? | Redfin Los Angeles Sweet Digs Mon, 02 Jun 2008 15:10:54 +0000 http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html#comment-12853 [...] the ballpark. A similar house to the Browns’ would cost around $1,700 a month to rent, so the rent ratio is 12 — very [...] [...] the ballpark. A similar house to the Browns’ would cost around $1,700 a month to rent, so the rent ratio is 12 — very [...]

]]> By: Cindy Allen http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html/comment-page-1#comment-12783 Cindy Allen Sat, 31 May 2008 17:49:47 +0000 http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html#comment-12783 Absolutely true that there are reasons to buy a home other than price. In fact, price should definitely not be the first consideration. But there's no reason to overpay for anything you buy, especially a home. Absolutely true that there are reasons to buy a home other than price. In fact, price should definitely not be the first consideration. But there’s no reason to overpay for anything you buy, especially a home.

]]> By: sfvrealestate http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html/comment-page-1#comment-12775 sfvrealestate Sat, 31 May 2008 14:21:07 +0000 http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html#comment-12775 Naturally, this story was all over LaLand this week. By all means, if you want to rent, rent. However, most buyers should -- and do --have many compelling reasons to buy aside from this rent ratio. Naturally, this story was all over LaLand this week. By all means, if you want to rent, rent. However, most buyers should — and do –have many compelling reasons to buy aside from this rent ratio.

]]> By: candice http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html/comment-page-1#comment-12698 candice Thu, 29 May 2008 17:17:53 +0000 http://blog.redfin.com/losangeles/2008/05/how_youll_know_when_its_ok_to_buy.html#comment-12698 There is a house on the market in the west valley that is listed at $615K or for lease at $3250/mo. That's a rent ratio of 15.7. Now, given that you could probably purchase for less than asking, the rent ratio isn't so horrible. But I do have a feeling that house is going to drop in price, especially since it looks like it needs some TLC. So, why buy when I can wait a couple months and get it at a better price. The only thing is, of course, unless someone else snaps it up. There is a house on the market in the west valley that is listed at $615K or for lease at $3250/mo. That’s a rent ratio of 15.7. Now, given that you could probably purchase for less than asking, the rent ratio isn’t so horrible. But I do have a feeling that house is going to drop in price, especially since it looks like it needs some TLC. So, why buy when I can wait a couple months and get it at a better price. The only thing is, of course, unless someone else snaps it up.

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