The Masked Tulip Posted April 8, 2012 Share Posted April 8, 2012 Something 'Crazy' Is Happening In The Southern California Housing Market Monthly payments on a house are now cheaper than monthly rents on a similar house in most of North San Diego and Southwest Riverside counties, according to an analysis of county-supplied and Realtor data by the North County Times. "I don't think this has ever happened before," said G.U. Krueger, a principal economist for HousingEcon.com. "It's a function of the huge housing price collapse which has left a lot of people in the lurch." Or, as Carlsbad real estate agent Tyson Lund put it: "This is crazy." Read more: http://www.businessinsider.com/something-crazy-is-happening-in-the-southern-california-housing-market-2012-4#ixzz1rSbXO9be Quote Link to comment Share on other sites More sharing options...
sims Posted April 8, 2012 Share Posted April 8, 2012 Something 'Crazy' Is Happening In The Southern California Housing Market Read more: http://www.businessinsider.com/something-crazy-is-happening-in-the-southern-california-housing-market-2012-4#ixzz1rSbXO9be By that measure, does that mean property prices in the UK are cheap? Quote Link to comment Share on other sites More sharing options...
frederico Posted April 8, 2012 Share Posted April 8, 2012 there's a lot more to it than just being able to make the payments. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 8, 2012 Share Posted April 8, 2012 When they can pay the mortgage by taking in a lodger, then they'll know what crazy is. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 8, 2012 Share Posted April 8, 2012 "I don't think this has ever happened before," said G.U. Krueger, a principal economist for HousingEcon.com. "It's a function of the huge housing price collapse which has left a lot of people in the lurch." Read more: http://www.businessinsider.com/something-crazy-is-happening-in-the-southern-california-housing-market-2012-4#ixzz1rSiXVAtu surely the whole reason behind BTL is that the rent is more than the mortgage? Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted April 8, 2012 Share Posted April 8, 2012 I thinks it's comparing if you buy now to if your renting a place someone bought years ago. Given that houses were being sold in places like Detroit for 10s of dollars, this isn't news. Quote Link to comment Share on other sites More sharing options...
markyh Posted April 8, 2012 Share Posted April 8, 2012 By that measure, does that mean property prices in the UK are cheap? Umm, when I bought in 1996 in the SE this was exactly the situation. Was £50 to £100 cheaper p/m to buy a 2 bed house rather than rent and that was with first time buyer mortages @ 7% IR and £1k mortage indemnity payment. M Quote Link to comment Share on other sites More sharing options...
cybernoid Posted April 8, 2012 Share Posted April 8, 2012 "Monthly payments on a house are now cheaper than monthly rents on a similar house" So the first time ever renting out a house has made financial sense. Crazy times. Quote Link to comment Share on other sites More sharing options...
frederico Posted April 8, 2012 Share Posted April 8, 2012 aren't they just saying that the BTLers are stuffed having over paid for the house. Quote Link to comment Share on other sites More sharing options...
EmpiricalBear Posted April 8, 2012 Share Posted April 8, 2012 Don't forget that lots of places in the US have rent controls. For that reason rents may not be fair market rents, i.e.: unfairly low. Er... similar here, exept that rents here are kept high by HB.... so not fair market rents, i.e.: unfairly high. Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted April 8, 2012 Share Posted April 8, 2012 Further to this anecdotal, both houses have now been sold and have new OOs in them, both of whom bought in the $140s. So in San Bernadino County at least (50-100 miles north-east of the places mentioned in the OP's article), prices appear to be creeping up a bit, albeit from spectacular lows compared to the 2007 peak. Quote Link to comment Share on other sites More sharing options...
ader Posted April 8, 2012 Share Posted April 8, 2012 In the 80s upto mid 90s repayment mortgage payments were cheaper than rents all over the UK. Quote Link to comment Share on other sites More sharing options...
cybernoid Posted April 8, 2012 Share Posted April 8, 2012 In the 80s upto mid 90s repayment mortgage payments were cheaper than rents all over the UK. I think thats normal, now is not. This is why its stupid to get into BTL now, without capital appreciation you're sunk. Doesn't stop many from doing it though. Im a little confused as to why a reversion to actual sense is now 'crazy'. Quote Link to comment Share on other sites More sharing options...
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