Housing

[Cuchullain]

I recently bought my first condo (I moved in this week). The mortgage payments scare me a little, because housing is notoriously expensive here in Jersey. That got me thinking: is housing expensive where you live? What type of housing do most people in your neck of the woods live in (houses, townhouses, condos, apartments)? Can you afford to live close to work?

To afford even a condo, I had to move about 45 minutes from work (in rush hour traffic). Factor in the current gas prices, and may prove to be painful. But at least it's mine (or will be, in about 30 years).

 

[classical_hero]

Things are quite expensive here. A few years ago you could easily get a house for about half or even a third of what you are paying right now.

 

[jamiethearcher]

I own a Condo. Western New York has tons of these, and they are quite affordable. I hated the idea of renting, because its basically throwing money away. Yes, the mortgage payment may be scary, but at least you will eventually get the money back! (unless your house depreciates, in which case you will get some of it back, which is still more than you would get if you rented!)

 

[JerichoHill]

I live in the DC area. Around here you can rent for about 75% of a mortgage payment, so its better to rent. My Fiancee has a home but she bought several years ago when it was cheaper

 

[Shaihulud]

In Singapore property reverts back to government control in 90 yrs or less, from the time you buy it, so it never appreciates. Unless the governmet wants it it to, and since they own more than 99% of the housing people live in, it is rather easy for them to manipulate the market to make a quick buck. More than 99% of the population are living in public housing which the government kindly provides, the purchase primarily comes from a form of compulsory saving which you cannot withdraw, unless it is to purchase something the government sanctioned, such as government housing. Land is scarce, so you can imagine that housing is also very expensive and petite.

 

[jamiethearcher]

I live in the DC area. Around here you can rent for about 75% of a mortgage payment, so its better to rent. My Fiancee has a home but she bought several years ago when it was cheaper

How can you say it is better to rent? yes the rent may be less on a month to month basis, but on a long term basis, you are THROWING THAT MONEY AWAY. you are never ever going to see it again. If you buy, it may cost you more in the short term, but when you sell, you will get it back.

 

[Cuchullain]

How can you say it is better to rent? yes the rent may be less on a month to month basis, but on a long term basis, you are THROWING THAT MONEY AWAY. you are never ever going to see it again. If you buy, it may cost you more in the short term, but when you sell, you will get it back.

That's exactly why I finally decided to buy. After the first few payments, I should start to get used to it, and maybe it won't hurt so much. Plus, I expect to get more money back in taxes this year.

 

[jamiethearcher]

That's exactly why I finally decided to buy. After the first few payments, I should start to get used to it, and maybe it won't hurt so much. Plus, I expect to get more money back in taxes this year.

well congratulations, do you have any pictures to post? what about DIY improvement projects? that the most fufilling part of ownership to me - I can increase the value through nothing more than some sweat and time!

We put a new tile floor in our bathroom when we bought it (turned out really nice), and then put a laminate wood floor in the kitchen - again, it turned out really nice, and they are SUPER easy to put in.

 

[soul_warrior]

in israel, most live in apartments.
prices are abhorently high in the metropolitalan area.
(250k$ for a 2.5 bedroom)
rural places are cheaper.

housing here is bloody expensive.
i think prices in tel aviv rival those of london and tokyo (atleast relating to the average income)

 

[Rossiya]

I recently bought my first condo (I moved in this week). The mortgage payments scare me a little, because housing is notoriously expensive here in Jersey. That got me thinking: is housing expensive where you live? What type of housing do most people in your neck of the woods live in (houses, townhouses, condos, apartments)? Can you afford to live close to work?

To afford even a condo, I had to move about 45 minutes from work (in rush hour traffic). Factor in the current gas prices, and may prove to be painful. But at least it's mine (or will be, in about 30 years).

why did you move from america to jersey?

 

[Yeeek]

Where i live (Grenoble) is very expensive. It wasn't like that few years back in the early 90" for instance.

I'm paying 600'ish € per month (roughly 600 US$ i guess) for an apartment worth of 80m². Its of course a lot more expensive in other place such as Paris. But the price here really started to get higher i guess due to the fact that Grenoble attract a lot of engineers and other well paying profession working in the new technologies department. At least, thats my only explanation of this phenomeon.

 

[Syterion]

I live in Massachusetts. That's enough information for anybody who knows Massachusetts. Basically, in the past 8, 9 years, housing values have doubled. It's around 350,000 dollars for a basic two story house. Even a one story house is expensive.

 

[Birdjaguar]

We live in a house with a big yard and pool we don't use. Relative to many other US cities Albuquerque is pretty inexpensive.

 

[RedWolf]

How can you say it is better to rent? yes the rent may be less on a month to month basis, but on a long term basis, you are THROWING THAT MONEY AWAY. you are never ever going to see it again. If you buy, it may cost you more in the short term, but when you sell, you will get it back.

Well consider the scenario if you're a disciplined saver (few people are though). The 25% you saved is money you have NOW... which can be saved and invested which also appreciates in value (if you're smart with it).

Home ownership in a lot of ways is a forced saving plan - since money going towards your living expenses is being saved (and thus growing). So it depends on the market - in a hot real estate market where your home value is certainly appreciating rapidly - then yes ownership is probably better (but not always depending on many different factors - interests rates, stock market performance, difference in price between rent and morgtgage as well as property taxes etc)

However in a stale real estate market where your house is appreciating slowly... Maybe you'd be better off renting, saving the extra cash and thus investing...

So it depends on a lot of different factors... I don't think it's fair to say owning is ALWAYS better then renting.

 

[History_Buff]

Here in Calgary, housing costs are just rediculous, since this newest boom got going. In the next decade, we could be short up to 300,000 workers in the city. The problem is that there is nowhere for these people to live. I've heard people say Calgary is about the size of New York City, but there is only a million people here, and it's nothing but suburbs. There are actually people living just outside the city in campgrounds and such that work in the city, making alright money, who can't find a place to live.

The house I'm in now cost about 240,000, now it's probably worth half a million, at least 400,000. And we've only lived here for 10 years.

 

[Sidhe]

20 years ago my house cost 27,000 pounds it's now worth 140,000

Even if you double the value(very liberal probably should be 50%) Every ten years to allow for inflation, it still doesn't add up. It is widely believed in England that house prices are excessive although they are starting to level off.

 

[jamiethearcher]

Well consider the scenario if you're a disciplined saver (few people are though). The 25% you saved is money you have NOW... which can be saved and invested which also appreciates in value (if you're smart with it).

Home ownership in a lot of ways is a forced saving plan - since money going towards your living expenses is being saved (and thus growing). So it depends on the market - in a hot real estate market where your home value is certainly appreciating rapidly - then yes ownership is probably better (but not always depending on many different factors - interests rates, stock market performance, difference in price between rent and morgtgage as well as property taxes etc)

However in a stale real estate market where your house is appreciating slowly... Maybe you'd be better off renting, saving the extra cash and thus investing...

So it depends on a lot of different factors... I don't think it's fair to say owning is ALWAYS better then renting.

O.K. I can accept your explanation in theory. However, I don't know anyone who would actually be disciplined enough to do that in real life.

 

[Arcadian83]

I understand the value of owning a home, but keep in mind that you may pay 1% of the value of that property to the government every year.

Property values in my area are very high, so it's nigh impossible to keep developers out. Ironically, they're high because there is a lot of quiet, rural land nearby. I suspect putting down rows of IMO tacky million-dollar (seriously ) houses will lower land values, appraoching an equalibrium.

In fact, what used to keep them out was the fact that we have clay soil, which doesn't percolate well. Now values are high enough that it's worth putting sewers in to get around that.

It's still a shame to see all the horse pastures and farms turn into developments and gold courses.

 

[A'AbarachAmadan]

I just moved to Omaha from Okinawa. Housing here is relatively inexpensive. I bought a 2700+ sq ft home with an excellent golf course view (on a hill behind a green with a beautiful lake along the side of the fairway) with a whopping mortage payment of about $1025.

 

[Elta]

why did you move from america to jersey?

not the island of jersey but the U.S. state of New Jersey.