Renting vs. Buying in this economy

I do not believe that the $525000 home is the same quality as the $3500 rental. In fact, things are generally the other way. The rental stock in NYC, with the exception of the new phenomenon of new condo owners renting out their places, the rental stock is much lower quality in the better parts of Manhattan - UES, UWS, GV, Soho, Tribeca. This was driven by the past half dozen years where people who had money demanded more by way of building amenities and quality of finishings in their apartment. Rental companies, even those building new buildings, weren't going to put the same level of amenities and apartment finishes than the developers did for new condos, and then for co-ops that renovated and sold. Generally the argument of renting is cheaper than buying is looking at post-college and lower-level type buildings vs. what upper middle class and wealthier people demanded in the better parts of Manhattan. Don't believe me, go check it out or even look at some of the examples that people on here have posted - studios in bad areas, etc. that just don't compare.

Please, that is total bullshit. $3500 gets you a luxury one bed in a recently built rental building and $525k gets you small one bed. Also, people need to stop acting like every coop you walk into is newly and tastefully renovated and in great condition. If you go out with $8000-9000 to spend on a rental, you can look at some very very nice stuff...and you'd have to spend nearly $2mm to duplicate it which is still 'out of whack' however many of you want to deny that.

Ah, when rhino knows he is looking stupid, he resorts to cursing at people. You always point to this graph, which when you analyze the underlying assumptions, and actually look at the costs and rates, your conclusion from the graph doesn't hold.
Why is it that when halevio give his personal example of seeing rentals generally not being the same quality as condos and coops he has seen, you curse at him and tell him he is wrong, but some renters post random biased examples of random apartments they remember from years back, that to you is concrete proof? You are becoming as much of a joke as steve.

Funny enough, just looked at $10K/month 3bdrm rentals.... there like 171 units just on the UWS that fits the bill, would cost $2MM+ to replicate.... mkts gotz a lotz to fall... ahhhh the summer doldrums.... sellers just jockeying for position to what to do come September... remember it's only been 9 months Lehman... so let's say we are in inning one with 2 outs... m'okay

LICC, see w67th is just another person agreeing with me. If you look back in this thread, you will find many more. Is it your position there was no bubble in Manhattan, or is you position that there was no bubble in real estate at all? I just want to be clear about how big an idiot you are. Here, I fon't think you ever read this. Mortgage rates are similar to 2002, so your argument doesn't hold water. The graph of rents, condos and coops is very clear.

http://www.urbandigs.com/2009/05/contracts_continuing_to_be_sig.html

I will leave you with HSBC's MAY 2009 Mortgage Bulletin with the following Housing Update for Manhattan, which included the following charts. I'll let you interpret them on your own and I apologize that I don't have the full report available. Notice the first chart showing the widened gap between condo & coop prices and market rents - now that rents are falling too, it makes the down move in prices more muted for this ratio of valuation premiums and affordability:

-Noah from same

LICC, take two seconds to look at the chart titled Trends of Manhattan Property Prices and Rents from HSBC's MAY 2009 Mortgage Bulletin. Then please tell me what you find confusing about it.

http://www.urbandigs.com/2009/05/contracts_continuing_to_be_sig.html

Discussions about cap rates are not at all relevant for owner occupied housing. Cap rates can not be used to justify the cost of housing. Rather, the all-in mortgage payments relative to income, and the expected appreciation in the marketplace based on the strength of the economy, is the proper way to look at housing prices.

Can we hear from some people who don't have an agenda?

Who has an agenda?

Why did I never hear back from LICC on what is confusing about the graph Noah posted?

Offering my challenge once again to hear from some people who don't have an agenda.