March 2011

Found 3 blog entries for March 2011.

There was a great article in CNN money today about rising rents.

CNN explains that "Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years."

chart_rent_up.top_475

And it made me realize that my previous post about renting vs. buying was flawed, because rents never stay the same for 30 yrs.  They go up!  They go up nearly every year, while a 30 yr fixed mortgage stays the same, for 30 years! 

From the article: 

"The demand for rental housing has already started to increase," said Peggy Alford, president of Rent.com. "Young people are starting to get rid of their roommates and move out of their parent's basements."

By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer

5,338 Views, 4 Comments

[UPDATE] - Price has been lowered to $660,000! 

What kind of home can you buy on Oahu for under $700k?  This house, just listed this week in Royal Kunia, might be one of the best homes available.  It's in a great newer neighborhood just 20 minutes to Schofield army base, and 30-40 minutes to downtown Honolulu.

This house is in Royal Kunia, a master planned community just North of Ewa Beach, about 1/2 mile to the freeway.  It has 2 good sized shopping areas, and a lot of nice open space.  The newly built neighborhood recreation center, available only to Royal Kunia residents, is one of the nicest on Oahu. 

This beautiful home is 2140 sqft, has 3 bedrooms, 3 bathrooms, a very large loft, and a nice new den addition of 10x11 feet that is not

5,419 Views, 0 Comments

There are thousands of articles on the web comparing renting to buying, almost entirely focused on the monthly or annual cost of rents, mortgages, repairs, etc.

The problem is that it's not a fair comparison. No matter how cheap your rent is, after 30 years of renting, you still have nothing to show for it. Even if you had invested the money you saved by not buying, the long term tax benefits of owning a home, having a mortgage, and tax free capital gains, make owning a house a substantially better financial decision.  It's forced savings.

All you have to do is own it a long time. 

If you rent for 5 years, at an average Hawaii rent of $2500/month, you have paid $150,000 in rent.  And you have - nothing to show for it. 

If you put just 3.5% down

8,499 Views, 4 Comments