Tag: t_rent]US

live on rented home

389 Washington St^43R

Posted on by tiger40490

As of Sep 2019 Jersey City high-rise 2BR rent is at least 3700/M. Chris Ma felt single family 2-kids living in this part of JC is tough.

As of Jun 2018, 2BR is worth mostly likely $1M or higher.

  • +$3700 rent income … below 4% gross rental yield only, but partly due to the 1.67% low tax
  • -$1400 tax if you buy now. (Chris Ma bought a 2BR in 389 Washington S in 2008 so his tax is $1100 only.)
  • -$900 HOA
  • —–
  • = $1400 net income ~ 1.4% rental yield excluding mortgage maintenance and vacancy

Note this location is for the top-rated PS16 school district, so price is higher.

In June 2018, a 756 sqf 1BR is asking $700k. The original price was $500k in 2008..

In contrast, 43 Rockledge hotel model monthly rent is 4 times Chris’s case. You can’t divide a $1M unit into 20 rooms and rent out for $750 each

U.S.rent cost(!!net-income) ≈pTax+mtgXq+runn`cost

Posted on by tiger40490

U.S.rent≈tax + mtg xq + runn`cost

Jack He reiterated that his bills prove that. Jack said he may not want to buy another property.

Jack’s home is a SFH. For a condo, pTax (and maintenance?) can be cheaper but consider HOA. I think it is can be higher or lower than SFH.

In general, I agree that pTax and mtg xq are like the carry cost or rent you pay to HOLD a commodity. If the commodity appreciates, then .. equity-appreciation (and vice versa). This is a common bias and deep conviction of some “investors” including me. However, suppose we have reason to believe the property market will stay flat for 12M. Then the carry cost doesn’t buy us anything compared to renting the property! In fact, as Jack said, the property ties us down.

Q: Does rental charged by owner always include pTax?
A: Not always. It is still driven by supply/demand.

Utility cost is actually borne by the tenant, even if not explicit.

For renters, additional cost would include moving + furniture.

Note calculation here includes mtg xq not principal repayment. I argued that the repayment pays towards ownership, which can lead to asset appreciation or depreciation.

mtg monthly payment + pTax can easily exceed $4k, much higher than rental. Eats into our lifestyle.

##frugal living]branded SDXQs

Posted on by tiger40490

If school district becomes a real requirement, we could consider

Sugg: rent]学区until we want2sacrifice CC+RD

Posted on by tiger40490

See https://tanbinvest.dreamhosters.com/2017/05/13/school-district-tips/

Good school districts are affluent. I don’t want to bend over backward to compete there. Perhaps my peers could afford it years ago. Looking at the price level, I simply can’t afford.

Lucky rent is a real option in the U.S. system.

If my kids are suitable for these schools then I could consider buying a home there.

If my kids are not suitable (for whatever reason) then sacrificing CC, RD etc is a silly sacrifice.