Is It Time To Move When Rentals Go Up?

[RedJoker]

Originally Posted by Tahitijack

If you own a condo or townhouse in a community that is 40% rentals it's probably time to sell and move. Especially if the demographic it transitioning down.

What do you mean by "demographic is transitioning down?" And how would I be able to tell?

[imwjl]

Originally Posted by RedJoker

What do you mean by "demographic is transitioning down?" And how would I be able to tell?

That was pretty easy when I think of the places my wife and I have been in over the past 28 years.

Things like upkeep, noise, trash, police calls and broad daylight drug dealing all helped you know change toward down was in the air.

Transitioning up is easy to tell too. Where we are now homes sell fast. People spend on expensive improvements. Newer and more expensive vehicles. Fewer people who are overweight.

[Rudals]

Originally Posted by Tahitijack

If you own a condo or townhouse in a community that is 40% rentals it's probably time to sell and move. Especially if the demographic it transitioning down. If rentals are strong and demand is high and you can afford it can you rent your place and buy another home? Your HOA must be proactive dealing with absentee owners to enforce the cc&r.

CC&R? What is that?
It's a weird neighborhood. My neighborhood comprises mostly with families with kids in elementary school and a handful of gay couples. The houses that are rented out, some are military folks going overseas but will come back and some we've never seen the owners. And then there is my next door neighbor. The first African American family in our neighborhood and paid the most for their house in our neighborhood. So the neighborhood is not going down hill but we have young couples moving in and the prices that they pay are going up absurdly. The people who rent are usually military.

Originally Posted by imwjl

That was pretty easy when I think of the places my wife and I have been in over the past 28 years.

Things like upkeep, noise, trash, police calls and broad daylight drug dealing all helped you know change toward down was in the air.

Transitioning up is easy to tell too. Where we are now homes sell fast. People spend on expensive improvements. Newer and more expensive vehicles. Fewer people who are overweight.

Yes, we have homes that sell in JUST ONE DAY. People tear up their kitchens and remodel the heck out of them. We see BMW X5s, Benzes, Mercedes, Audi, and less and less Hondas, etc. We have a lot of dogs walking people and...I am probably the most overweight person in our neighborhood...185lbs/6 ft.

[jpd]

"So the neighborhood is not going down hill but we have young couples moving in and the prices that they pay are going up absurdly. The people who rent are usually military."


This is my street too. The cost to buy is getting beyond the reach of young families. Now the rents have increased commensurate with the selling price of homes. Military gets a small stipend to help, but at these rental rates it is not much help. More "extended" family housing is becoming commonplace(along with a glut of excess vehicles)

[Rudals]

Originally Posted by jpd

"So the neighborhood is not going down hill but we have young couples moving in and the prices that they pay are going up absurdly. The people who rent are usually military."


This is my street too. The cost to buy is getting beyond the reach of young families. Now the rents have increased commensurate with the selling price of homes. Military gets a small stipend to help, but at these rental rates it is not much help. More "extended" family housing is becoming commonplace(along with a glut of excess vehicles)

Holy macro and cheese!
My neighborhood is running out of parking spaces too! We're lucky that we can park 1 in the garage and at least 2 more in the driveway. If I come home from work late, there are no places to park besides the front of my house. This becomes a pain since our family car sits in the garage and I have to pull out my car, then the family car, and put my car back on the drive way, etc. It's driving me nuts.

[tbeltrans]

Originally Posted by Rudals

Holy macro and cheese!
My neighborhood is running out of parking spaces too! We're lucky that we can park 1 in the garage and at least 2 more in the driveway. If I come home from work late, there are no places to park besides the front of my house. This becomes a pain since our family car sits in the garage and I have to pull out my car, then the family car, and put my car back on the drive way, etc. It's driving me nuts.

Pardon the pun!

Tony

[imwjl]

Originally Posted by Rudals

Yes, we have homes that sell in JUST ONE DAY. People tear up their kitchens and remodel the heck out of them. We see BMW X5s, Benzes, Mercedes, Audi, and less and less Hondas, etc. We have a lot of dogs walking people and...I am probably the most overweight person in our neighborhood...185lbs/6 ft.

That reads more like a decision of do you just like being there vs one to avoid the trouble we saw come to our old neighborhood.

Still, I get where there can be concerns if only thinking about the property tax bill. We're not wealth and already have an $8,000 per year property tax bill.

Good luck, and I'm glad to know you're not facing some really bad problems we did where we used to live.

[Cypress Knee]

We have been renting for the past eighteen months and just closed on a home that we want. Fortunately we have accrued enough equity in past home purchases that we could afford the down payment.

Our mortgage will be less than our current rent payment. However, our landlady was happy to see us go without a penalty, because she was able to secure renters for the house before we moved out....and increased her monthly rent income by $450.

She was able to do this because we were in a desirable neighborhood with a great elementary school within walking distance, but families with children in the early grades typically don't have enough money for a twenty percent down payment on a mortgage. But they do have the cash flow to pay rent way above the mortgage amount.

Just my .02 today.

CK

[Mr. Jelly]

Personally I can't imagine retiring with rental payments. And the majority of us have to retire sometime.

[JosephW]

Originally Posted by jpd

"So the neighborhood is not going down hill but we have young couples moving in and the prices that they pay are going up absurdly. The people who rent are usually military."


This is my street too. The cost to buy is getting beyond the reach of young families. Now the rents have increased commensurate with the selling price of homes. Military gets a small stipend to help, but at these rental rates it is not much help. More "extended" family housing is becoming commonplace(along with a glut of excess vehicles)

Same where I was, fewer owners and more renters. Now, it seems reversed here, so far in the last calendar year, three renters have vacated and the houses are for sale. Probably those ritzy California types moving in...

I'm a huge fan of owning if you can swing it at all. It's really worth it.

[jpd]

Originally Posted by JosephW

Same where I was, fewer owners and more renters. Now, it seems reversed here, so far in the last calendar year, three renters have vacated and the houses are for sale. Probably those ritzy California types moving in...

I'm a huge fan of owning if you can swing it at all. It's really worth it.

Hold one of those for me

[Tahitijack]

CC&R are covenants, conditions and restrictions. Usually applied to all properties in a planned community development. They govern what you can and can't do with your property. In residential projects they are usually enforced by an HOA.

[RP]

Originally Posted by Mr. Jelly

Personally I can't imagine retiring with rental payments. And the majority of us have to retire sometime.

It's very do-able depending on one's retirement income and rent costs. I personally wouldn't want to have to worry about coming up with the cost of major home improvements like a new roof, driveway, heating/cooling system, and property taxes let alone those condo communities (like my girlfriend's) where HOA dues + property taxes equal my monthly rent. There's pros and cons for both homeowners and renters, especially in retirement when one's income has stabilized...

[Geof S.]

I work about two miles from the beach in California and I refuse to do long commutes any more (did that for over 15 years and I'm done). As a result, I am forced to rent by economic factors: a modest home on a small lot in a decent neighborhood near my work is around $800,000, which is out of my price range.

My rent has increased 25% over the last four years, but there is a shortage of rental properties in this area so the landlords can keep pushing the rent up and still fill their properties. I feel like every rent check is basically wasted: if there were any affordable houses around, my monthly rent (almost $2k now) would cover a big part of a mortgage payment and I could be building up equity.

Anyway, sometimes life forces you into compromises. My trade-off is a job that is almost perfect for me with a short commute, and living in an apartment (which I would rather not do). I will continue to rent and save as much as possible while I am still working, with the idea of paying cash for a home when I retire. That will involve me moving somewhere houses are more affordable (even moving 30 miles or so inland would work).

[ManyMartinMan]

To me renting is very much like leasing cars - you keep paying and never own anything. Unfortunately everyone won't be able to afford to buy where they live so relocation and/or commuting can become a must to many. The ideal is to buy something and work to get it paid off prior to retirement. Then when income decreases substantially, for most, there are no more mortgage payments. That is why many people move to Arizona or Florida (and other) retirement areas to lower their payments after retirement. Sadly many of the musicians I know keep trading down (age-wise) their wives as they themselves age and pay at times enormous alimony, support and mortgage for their exes. It's like watching a slow-moving mud slide engulfing everything in its path.