Home rental prices

[MorningGlory]

I know this thread has been around a while but I just saw this article today.....this woman lives and works in San Francisco.  Wait 'til you read how much a BUNK costs in that city!  S.F. is one of my favorite cities, btw, and I actually lived there when I was younger; just wouldn't want to live there now.

http://qz.com/524138/rent-is-so-high-in-san-francisco-that-im-a-software-engineer-and-i-live-in-a-van

$1,600.00/month is pretty much going rate for a three bedroom house here.

That's way higher than here in the Houston area (unless you rent in Tanglewood or Kingswood) but in S.F. they're renting a BUNK in a room with seven other people for $1000 a month.  A house like mine, in the S.F. area, would be worth about three million dollars.  It's worth about $100,000 here.  I don't know who can afford to live there. 

[missmuffet]

I know this thread has been around a while but I just saw this article today.....this woman lives and works in San Francisco.  Wait 'til you read how much a BUNK costs in that city!  S.F. is one of my favorite cities, btw, and I actually lived there when I was younger; just wouldn't want to live there now.

http://qz.com/524138/rent-is-so-high-in-san-francisco-that-im-a-software-engineer-and-i-live-in-a-van

$1,600.00/month is pretty much going rate for a three bedroom house here.

That's way higher than here in the Houston area (unless you rent in Tanglewood or Kingswood) but in S.F. they're renting a BUNK in a room with seven other people for $1000 a month.  A house like mine, in the S.F. area, would be worth about three million dollars.  It's worth about $100,000 here.  I don't know who can afford to live there. 

Yes,and these are very average homes with nothing extra such as a/c, etc.And these are also in some very average areas.A lot of people are moving out of town and into the country now.The two lane country road that I travel has now become busy when there used to be only a few cars on the road.

Edited October 18, 2015 by bopeep1909

[MorningGlory]

I know this thread has been around a while but I just saw this article today.....this woman lives and works in San Francisco.  Wait 'til you read how much a BUNK costs in that city!  S.F. is one of my favorite cities, btw, and I actually lived there when I was younger; just wouldn't want to live there now.

http://qz.com/524138/rent-is-so-high-in-san-francisco-that-im-a-software-engineer-and-i-live-in-a-van

$1,600.00/month is pretty much going rate for a three bedroom house here.

That's way higher than here in the Houston area (unless you rent in Tanglewood or Kingswood) but in S.F. they're renting a BUNK in a room with seven other people for $1000 a month.  A house like mine, in the S.F. area, would be worth about three million dollars.  It's worth about $100,000 here.  I don't know who can afford to live there. 

Yes,and these are very average homes with nothing extra such as a/c, etc.And these are also in some very average areas.A lot of people are moving out of town and into the country now.The two lane country road that I travel has now become busy when there used to be only a few cars on the road.

No A/C?  What would you do if it got really hot?

[missmuffet]

I know this thread has been around a while but I just saw this article today.....this woman lives and works in San Francisco.  Wait 'til you read how much a BUNK costs in that city!  S.F. is one of my favorite cities, btw, and I actually lived there when I was younger; just wouldn't want to live there now.

http://qz.com/524138/rent-is-so-high-in-san-francisco-that-im-a-software-engineer-and-i-live-in-a-van

$1,600.00/month is pretty much going rate for a three bedroom house here.

That's way higher than here in the Houston area (unless you rent in Tanglewood or Kingswood) but in S.F. they're renting a BUNK in a room with seven other people for $1000 a month.  A house like mine, in the S.F. area, would be worth about three million dollars.  It's worth about $100,000 here.  I don't know who can afford to live there. 

Yes,and these are very average homes with nothing extra such as a/c, etc.And these are also in some very average areas.A lot of people are moving out of town and into the country now.The two lane country road that I travel has now become busy when there used to be only a few cars on the road.

No A/C?  What would you do if it got really hot?

Like where we live you roast to death.Well,we are still living.This summer the upstairs was 94 degrees.

[missmuffet]

12 disciples living together have the blessing of Yahweh besides much lower strain and stress to pay the bills every day.

now,   if anyone can just find 12 disciples anywhere ... ... ... ... 

Oh yes times were different then.Times were even different when I was a youngun.I could buy a bag full of candy for 3 cents.

[Neighbor]

View from the other side-

Well as a former "greedy" landlord, might I say  it is not the top line but instead the bottom line that counts for the owner.

Property taxes, special rental income taxes (depending on city county State), IRS treatment of rental income, property and liability insurance, health insurance, FICA, depreciation and recapture of depreciation at sale, loss of revenue due to  occupant nonpayment, Pest control, cable tv and internet, repairs due to deliberate damage by  non paying tenants, wear and tear by good tenantsrequiring replacement of items  such as new carpet  paint appliances fixtures, legal fees for evictions, accounting fees, tax preparation fees, Grounds keeping/landscaping costs, utility costs for common areas, water bill, trash removal, State county and city licensing fees, changing  mortgage interest rates,  refinancing balloon mortgage costs, document stamps, tangible assets taxes, advertising -

These are a few of the expenses that  a landlord faces in order to get a return on investment. That price of $1,500 or more may not be unreasonable at all, though to the tenant it may seem a high fee. I have family member that pays $2700 a month for a bungalow at a California locale.

Then there is the risk of the marketplace where the value of the property either drops or increases affecting mortgage availability and also property taxes,  plus the ability to sell the asset. Real estate is not necessarily a very liquid asset. Sometimes one is just stuck with it.

And then there is the owners time, and on it goes-

 I just sold out after 31 years, and so has my commercial real estate broker. He can't handle what risk is out there ( risky tenants) anymore either. The market is just too hard to work with, far too much damage to units nowadays. The reward is no longer worth the risk. But it fed my family for a long time, and I am grateful.  It was a lot of work with much risk, financial and sometimes physical. Very glad to be done, and won't get into any property rental situation today! It is just too hard a game now. 

Edited December 21, 2016 by Neighbor

[Guest BacKaran]

I dunno, my house cost $72000 thirty years ago and now is selling for 250k?

That is so wrong! I don't have gold guild my fence, I don't have silver bathroom fixtures and still I think the taxes are crazy!

The house I grew up in in Mpls is in this high market but the city taxes are double what I pay... Ridiculous.

Nothing makes sense money wise and there's gotta be a crash soon to begin the real weight of money... Like that bag of penny candy for 3 cents is now half of that candy but the price is.  $3 and more....

Crrrrazy!???

[Neighbor]

BT- we had a contractor neighbor that  stopped building and went into the kitchen and bathroom cabinet drawer building business just to supply  landlord needs for replacement drawers. Seems lots of people don't empty cabinets when they move. They  just take them filled with their  "stuff"when they move. He  made a very substantial  fortune on that one item- the drawer box, no designer fronts just the boxes.

So it is a tough business nowadays.

[Neighbor]

17 minutes ago, BacKaran said:

I dunno, my house cost $72000 thirty years ago and now is selling for 250k?

That is so wrong! I don't have gold guild my fence, I don't have silver bathroom fixtures and still I think the taxes are crazy!

The house I grew up in in Mpls is in this high market but the city taxes are double what I pay... Ridiculous.

Nothing makes sense money wise and there's gotta be a crash soon to begin the real weight of money... Like that bag of penny candy for 3 cents is now half of that candy but the price is.  $3 and more....

Crrrrazy!???

 AND, if you have a State version of property tax limits, your property taxes don't go up. But the new guy that buys at $250,000 gets slammed with  full tax at value based upon purchase price. Also, you might have  addition exemptions  on the property tax that no landlord ever gets, and  so the tenants of a rental have to cover the higher taxes on rental property.

Edited December 21, 2016 by Neighbor

[Guest BacKaran]

Oh no, this is mn, Democrats love their taxes.

I want line by line removal of old school taxes etc. . But dems are locked in this state...ugh!