renting is ALWAYS beneficial over owning

if the market is supporting rents going up by 10%, you dont think property values will go up as well? ur an idiot.

I smell Eddie Wilson.

both? again?

"Indeed, let's say you spend $4,000 a month to rent an apartment that would sell for $1 million. Your rent goes up 10%, your apartment goes down 10%. That translates into a $4,800 a year net rent increase, and a $100,000 loss on your "investment.""

This is a typical short-sighted comparison between renting and owning.

Owning real estate is a LONG-TERM investment ... 15 years and beyond.

Right off the bat you failed to factor in the mortgage interest tax deduction. And you're forgetting that eventually, after you've paid off your mortgage, there will be no more mortgage payment, while the rent never goes away.

Holy cow, the OP gets the donkey award for sure.

No JM - your claim that prices wouldn't fall get the J.A. award for sure. In fact, the OP, as Eddie copied it from me, represents approximately what is going on in the real estate market. Except rents have actually fallen since 2008, and prices have fallen by far more than 10%.

The future is uncertain, though perhaps we do see the modest declines in home prices for the next 2-3 years. The OP may have a vested interest in promoting rentals just looking at the statement that rents will increase 10% per year which we all know will not happen given the inventory levels. Most likely, renting and owning will go in the same direction. But if they go down, probably not for more than a few years.

-Deb

Totally, JuiceMan. Of the many attempts to quantify the rent/buy ratio I've seen on this board, this one gets a big fat F for effort.

Exbreezy is mocking stevejhx who posted the exact same thing, first, here: http://streeteasy.com/nyc/talk/discussion/22643-in-major-reversal-apartment-vacancies-rise

Renting is better than buying under purely economic reasons, for the now and the next year. But not because of stevejhx math,logic, or blanked always true assumptions.

Did OP just say "always" and then give ONE unrealistic EXAMPLE as and EXPLANATION?

"Always" is a strong word

So basically exbreezy is a troll?

Lovely. Just what the boards need.

"No JM - your claim that prices wouldn't fall get the J.A. award for sure."

steve, don't take your embarrassments out on me, I didn't post it.

"Lovely. Just what the boards need."

evnyc, agreed.

exbreezy, what's your point? If you are going to make fun of steve, at least do it in an intelligent manner. We just can't accept lackluster insults around here. steve worked really hard to become the laughing stock of this board. You are required to treat him with a certain respect and recognize all of his hard work in earning his complete lack of credibility.

No need to thank me steve, I got your back.

"We just can't accept lackluster insults around here."

Too true! Us regular posters work so hard at coming up with clever ways to snipe at one another. It's like Thanksgiving and Christmas and Ramadan and Rosh Hasannah all rolled into one, every day, all the time.

as a small-time LANDLORD..

please keep renting so rents keep rising, thanks ;)

Definitely time for a JuiceMan advisory:

http://streeteasy.com/nyc/talk/discussion/2651-where-are-all-the-idiots-who-made-the-2007-doomsday-predictions

A simple thank you would have done steve

You're right, Juicy - I shouldn't keep on bringing up the past. Did you read the Charlie Munger thing, BTW?

Yes, and if you are in commercial real estate or timber there is more pain to come. Your point is what?

My point is you're one-sided: whereas I happily admit that rents have risen, you quote Warren B. but then disregard Charlie M., his right-hand cohort man.

And as with Warren B., you only quote part of what Charlie M. said: he sees no jobs on the horizon.

I'm a bear on the overall economy steve and think we are in deep doo-doo. I saw an article where Buffet was talking about growth so I posted it. I hope he is right! Why does it bother you so much? You need more sunshine in your day, think positive, be happy when others do well. You know, be normal.

Calling people abnormal is uncalled for, JM! I, too, think we're in deep doodoo right now, it's showing up in my work. I don't know if there will be a double-dip, but I think the economy is grinding to a halt, and have thought so since May, when things really slowed down.

Heaven help us if the Tea Partiers win - cutting government spending is the worst possible thing to do right now.

Buffett was keen on the economy in the darkest days of October 2008. He's right in the long-term; it's the medium- and short-terms that I'm worried about. Fortunately I have a job that computers can't do. Not so sure about dentistry, though: a string and a doorknob is how Moe, Larry, and Curly did their oral surgeries.

> I saw an article where Buffet was talking about growth so I posted it. I hope he is right!

Buffetty and the

housing bubble!?! HE DIDN'T SEE IT!
Great Recession!? HE DIDN'T SEE IT!
Double-Dip!? It's NOT gonna happen! Cause HE DOESN'T SEE IT!

Steve, i agree your profession is a very good barometer for the economy, as you have mentioned before. It is a discretionary spend (albeit an important one) and if you are feeling it, things are definitely getting tight. I hope things pick up for you and wish you well.

steve, in what sector do you work?