Apartment living ... dealing with rent increases ...

[DenyGFX]

It depends. I'm in one of the Avalon properties and it's very well maintained. Response time for a problem is quick. Of course we pay higher rents to cover that.

Avalon has one of the best maintenance programs and thats why their renters pay for it. I know we used to wait on people hand and foot whenever there was a problem.

There's nothing wrong with larger companies, it's just they inflate the market. On one hand they offer more modern living and more amenities. On the other, their rates are higher than a small guy would have.

Also, that guy with 8-10 properties is struggling to keep those in good shape. Larger companies have the capital andresources to keep things running well.

 

[SparkyJJO]

I live in a yuppie area where 10% price hikes are common. But I like the location so I pay.

For me renting still makes more sense than paying more for a mortgage, property taxes and HOA or condo association fees. And then having to do my own maintenance. I send the difference off to my brokerage account so I build up a fund balance instead of equity.

Meh, you don't need to pay any HOA or condo fees if you buy something not under fascist control

I dealt with rent costs by buying a house.

 

[SickBeast]

This is a terrible option for most people. Have you looked at real estate prices lately? They have shot up way past the bubble prices of 2008. Real estate is extremely overpriced by all metrics. For one thing look at the net worth, income, and debt load of the largest house buying demographic, 18-29 year olds.

The only reason to buy a house is because you want property you can modify and/or other intangible factors.

That's nonsense. I'm building $1000 a month in equity with my mortgage. It's always better to buy. Renting is money out the window. You might as well burn your money every month. Give your head a shake.

 

[Ns1]

That's nonsense. I'm building $1000 a month in equity with my mortgage. It's always better to buy. Renting is money out the window. You might as well burn your money every month. Give your head a shake.

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

(ie, it's not ALWAYS better to buy. it's USUALLY better to buy)

 

[xeemzor]

That's nonsense. I'm building $1000 a month in equity with my mortgage. It's always better to buy. Renting is money out the window. You might as well burn your money every month. Give your head a shake.

Your anecdotal evidence does not change the fact that most people lose money buying homes. It's funny how homeowners almost always forget to include the total cost of ownership when boasting how cheap their mortgage is. You conveniently forget to include taxes, repair costs, time costs, and opportunity cost.

With the unstable real estate prices lately calling it an investment is a joke. Historically the ROI has been much higher in other assets. Buying a house only makes sense for a small segment of people. But hey, don't let me stop you from being house poor.

 

[Ns1]

Your anecdotal evidence does not change the fact that most people lose money buying homes. It's funny how homeowners almost always forget to include the total cost of ownership when boasting how cheap their mortgage is. You conveniently forget to include taxes, repair costs, time costs, and opportunity cost.

With the unstable real estate prices lately calling it an investment is a joke. Historically the ROI has been much higher in other assets. Buying a house only makes sense for a small segment of people. But hey, don't let me stop you from being house poor.

they do get that awesome mortgage interest deduction though

 

[DenyGFX]

Your anecdotal evidence does not change the fact that most people lose money buying homes. It's funny how homeowners almost always forget to include the total cost of ownership when boasting how cheap their mortgage is. You conveniently forget to include taxes, repair costs, time costs, and opportunity cost.

With the unstable real estate prices lately calling it an investment is a joke. Historically the ROI has been much higher in other assets. Buying a house only makes sense for a small segment of people. But hey, don't let me stop you from being house poor.

People forget also long term maintenance costs like furnaces, roofs, etc. Cost of materials has skyrocketed and some people are allowing their houses to get run down because of not having the available funds to fix them.

 

[xeemzor]

they do get that awesome mortgage interest deduction though

It's still usually not worth it.

 

[Aikouka]

I've been seeing rent increases pretty much every year, but I moved in at just the right time and got in on a sweet deal of $2000 off my rent for a 12-month lease. Let's just say that the last time I went in to renew my lease, the newer agents were flabbergasted when they saw my deal.

 

[jpiniero]

That's nonsense. I'm building $1000 a month in equity with my mortgage. It's always better to buy. Renting is money out the window. You might as well burn your money every month. Give your head a shake.

Tell that to the guy who posted on AT who said he lost 100k on his condo in Chicago. I saw a couple condos here where they were losing 20,30k AND had to put in 10k in fixes to get it sold. Then you have the realtor fees...

I won't say you would be better off renting and putting the down payment plus extra funds into an index fund though.

 

[Ventanni]

Per year? That is high. I was under the assumption (maybe false) that because there is a lot of apartment construction across the country that rents would level out or even come down. But maybe because a lot of these new apartments are on the fancy side, the builders and owners feel the rent should be at a certain level.

That's per month. What I rented in 2011 for $645/month is now in the $800-850 range. I'm looking for apartments again and it's crazy just how much rent has increased across the board. You can't even find a deal like you used to either. Like, when I moved into my apartment back in 2011, they gave me half off the first three months. They also waived the application fees and all that. I moved in pretty nicely. Now? Good luck.

A lot of companies are renovating right now, and I gotta admit, the properties look great. The problem is though is that it's just not affordable for me.

On to continuing the search!

 

[halik]

I live in a yuppie area where 10% price hikes are common. But I like the location so I pay.

For me renting still makes more sense than paying more for a mortgage, property taxes and HOA or condo association fees. And then having to do my own maintenance. I send the difference off to my brokerage account so I build up a fund balance instead of equity.

When you rent, you're paying for someone elses mortgage, HOA, property taxes and condo fees...

<- landlord

 

[halik]

Your anecdotal evidence does not change the fact that most people lose money buying homes. It's funny how homeowners almost always forget to include the total cost of ownership when boasting how cheap their mortgage is. You conveniently forget to include taxes, repair costs, time costs, and opportunity cost.

With the unstable real estate prices lately calling it an investment is a joke. Historically the ROI has been much higher in other assets. Buying a house only makes sense for a small segment of people. But hey, don't let me stop you from being house poor.

People that own rental places aren't in it to lose money; you're paying for all the above with your rent. It's not as if property owners sit on cashflow negative properties and rent them out out of the goodness of their heart...

 

[xeemzor]

People that own rental places aren't in it to lose money; you're paying for all the above with your rent. It's not as if property owners sit on cashflow negative properties and rent them out out of the goodness of their heart...

The extent of what a renter pays is usually much smaller and more consistent. For example, I didn't pay a dime when they had to redo a huge amount of plumbing at my place. The $15 increase in my rent may cover the expense over many years but another issue could certainly pop up.

Most importantly I also take on no risk of losing value in the home. How can the current prices in many markets be justified when real incomes are flat? There are obvious signs of another housing bubble. I'm not against home ownership per say but I am against paying ridiculously inflated prices for it.

 

[SparkyJJO]

Your anecdotal evidence does not change the fact that most people lose money buying homes. It's funny how homeowners almost always forget to include the total cost of ownership when boasting how cheap their mortgage is. You conveniently forget to include taxes, repair costs, time costs, and opportunity cost.

With the unstable real estate prices lately calling it an investment is a joke. Historically the ROI has been much higher in other assets. Buying a house only makes sense for a small segment of people. But hey, don't let me stop you from being house poor.

Rent is (almost) always going to cost more than the mortgage + taxes + repairs. You know why? Because rent includes all that stuff, PLUS profit for the rental owner.

Even if "most" people are losing money buying homes (and I doubt it is that many), that is still better odds than ALL people who rent losing money. Because hey, at least with a mortage after several years you have some equity, while with rent you have absolutely nothing at all.

Obviously if you move around a lot then renting is your better option, no doubt. Some people simply don't want to own, and that's fine too. But if you're staying put, then generally buying is going to be the financially better option. Just don't over pay, obviously. If someone does that's their own fault.

 

[HybridSquirrel]

Hawaii? Forgive the rest of us if we don't feel sorry for you!

It isn't all sandy beaches. I drive 1 hour a day to work 12 hours at work and 1 hour back. I haven't seen a beach in 2 months man! Most people who live/work here don't get out to the beach and are living at home because our wages are a lot lower than our mainland counterparts.

But then again the sunrise is pretty...

 

[xeemzor]

Rent is (almost) always going to cost more than the mortgage + taxes + repairs. You know why? Because rent includes all that stuff, PLUS profit for the rental owner.

Even if "most" people are losing money buying homes (and I doubt it is that many), that is still better odds than ALL people who rent losing money. Because hey, at least with a mortage after several years you have some equity, while with rent you have absolutely nothing at all.

Obviously if you move around a lot then renting is your better option, no doubt. Some people simply don't want to own, and that's fine too. But if you're staying put, then generally buying is going to be the financially better option. Just don't over pay, obviously. If someone does that's their own fault.

Equity is meaningless. The new york times has a good calculator for seeing if you should buy or rent.

Around here the average cost for a 3 bedroom 2 bath house in a decent area would take around 15 years to break even vs renting. The average person moves roughly every 8 years.

 

[SparkyJJO]

Equity is meaningless. The new york times has a good calculator for seeing if you should buy or rent.

Around here the average cost for a 3 bedroom 2 bath house in a decent area would take around 15 years to break even vs renting. The average person moves roughly every 8 years.

Meaningless... sure, having something (or owning a portion of something) of value is meaningless since when?

Where are you getting your numbers to come up with this 15 year "break even" point? Based off of what? Renting the same thing vs buying is always going to cost more per month to start off, so you're already losing by renting right from the get go. Yes, even with property taxes and insurance figured in there, for the reasons I've already mentioned. And not having to pay for a replacement water heater doesn't count, because you're actually already paying for that replacement heater in the rent.

Look, if you prefer renting, that's fine. But I get the impression that you're somehow trying to prove that renting is somehow going to be cheaper than buying when all else is equal, and that just is flat out wrong.

I rented for 3 years and had enough of that. I've only owned my place for a few months, and yes have had some repairs to do (some of which I didn't expect), but I'm still coming out ahead despite that anyway.

 

[halik]

The extent of what a renter pays is usually much smaller and more consistent. For example, I didn't pay a dime when they had to redo a huge amount of plumbing at my place. The $15 increase in my rent may cover the expense over many years but another issue could certainly pop up.

Most importantly I also take on no risk of losing value in the home. How can the current prices in many markets be justified when real incomes are flat? There are obvious signs of another housing bubble. I'm not against home ownership per say but I am against paying ridiculously inflated prices for it.

Well yeah, that's the whole idea - people that own investment properties spend money up front that generate ROI from the tenants. We recently rehabbed our rental condo and upped the rent; remodeling is paid for in 1.8 years.

Also when your landlord forecloses, you're equally f'd and eventually will have to move. Literally the only risk you don't face is 7 year ding on your credit.

The only real arguments for renting vs owning are
1) timeframe too short to recoup the fixed costs
2) not having money
3) not having income to the extent that itemizing makes sense

 

[xeemzor]

Well yeah, that's the whole idea - people that own investment properties spend money up front that generate ROI from the tenants. We recently rehabbed our rental condo and upped the rent; remodeling is paid for in 1.8 years.

Also when your landlord forecloses, you're equally f'd and eventually will have to move. Literally the only risk you don't face is 7 year ding on your credit.

The only real arguments for renting vs owning are
1) timeframe too short to recoup the fixed costs
2) not having money
3) not having income to the extent that itemizing makes sense

No. It all depends on the input variables of your market. See here.

 

[PricklyPete]

It isn't all sandy beaches. I drive 1 hour a day to work 12 hours at work and 1 hour back. I haven't seen a beach in 2 months man! Most people who live/work here don't get out to the beach and are living at home because our wages are a lot lower than our mainland counterparts.

But then again the sunrise is pretty...

That sounds horrible.

 

[Schfifty Five]

I've been living in this apartment complex for a few years now and generally like it - value is decent and I cannot complain about anything. This year, the apartment complex has a new owner (a property management/holding type of company). Their plans, from what I gather are to modernize the apartments, add extra amenities and generally make the place look a bit more higher end. It seems like they are trying to keep up with the competition.

Of course, spending all this money means that rents will rise. Mine will increase quite a bit, especially when compared to when I first moved in. Despite this, staying here is my first choice because of the location. It's convenient because it's just about in the middle of everything. I know if I shop around I can probably save a little money but once you factor in the deposit, moving expenses and time, it probably becomes close. But when I realize how much more I'm paying now than when I first moved in (late 2011), I wonder if the value is still there.

So basically, I'm leaning towards spending the extra money to stay in a generally convenient location. Ah, the trade-offs of life. I live alone so paying this much for a 1 bedroom seems high. Yes, I am whining.

So, any of you guys dealing with these rent increase and/or apartment living issues? I was hearing for a while that rents were on the rise. I wonder if you guys have experienced this.

Around here, so many apartments have been built in the last few years. Most of them seem to be on the fancier side. Yet despite that, even more are being built. So the supply should, from what I see, not be a big issue.

But then again, a lot of apartments seem to be renovating in order to compete so those expenses have to be covered. I could be wrong though.

Been in your shoes (still am sorta).

Where do you live and how much has your rent increased over the years?

 

[Newell Steamer]

I knew my rent was gon' be late about a week ago
I worked my ass off, but I still can't pay it though
But I just got just enough
To get up in this club
Have me a good time, before my time is up
Hey, let's get it now

Ooh I want the time of my life
Oh baby
Ooh give me the time of my life
Let's get it now

 

[cbrsurfr]

That's nonsense. I'm building $1000 a month in equity with my mortgage. It's always better to buy. Renting is money out the window. You might as well burn your money every month. Give your head a shake.

Till the bottom falls out. I thought the same with my first house. How can I lose? I bought for $146K and put another 50 or so in it, so all in I'm at 200K. The upgrades are all equity, right? That's what all the home shows on cable say. At one point I was completely surrounded by foreclosures. Going rates in my neighborhood were 40-50K till 2012. There's a couple houses asking in the 90-100K range now that have been sitting on the market forever. If I had to sell today I could probably get 80K for it and it's one of the nicest houses in the neighborhood with a full finished basement. That's a 120K loss and doesn't factor in taxes, insurance, and interest I've paid over the years.

I could have saved a ton more by renting.

 

[nageov3t]

People that own rental places aren't in it to lose money; you're paying for all the above with your rent. It's not as if property owners sit on cashflow negative properties and rent them out out of the goodness of their heart...

not necessarily to the same scale, though.

in Jersey, which granted has ridiculously high property taxes, what the landlord of my old 4-unit building paid in yearly property taxes wasn't a whole lot higher than I would have had to pay for a 2-3 bedroom standalone house.

so while $250 of my monthly rent might have been going towards the property taxes on the building, if I had purchased a house in the same town, I might have been looking at a $900 monthly tax payment on top of the mortgage.