[Scott456]

I am spending $900/month for a studio apartment now, this includes rent, utilities, water, trash, cable, internet. I can buy a home in cash, but am hesitant in this market. If I buy, I only want to use up to $150K, just because the R.E. market trend in Vegas is so bad. These days, buying a real estate property is almost like buying a car, it is only good for consumption, not for investment.
So I keep going back and forth on renting v.s. buying. Any suggestions how to decide?

Rent--
Pros:cheap, no long term commitment (longer than one year), no mainteance cost.
Cons: small, doesn't feel like a home.
Buy--
Pros: bigger space (a house), stability (can stay forever, I have enough cash reserve for raining days). My $150K cash in the bank does not earning much interst anyway.
Cons: maintenance cost, house value may go down furthur, property tax, and have to find someone to house sit if I travel.

[Dizzydee]

Buy Buy Buy This sown will turn around Las Vegas Always lags the country for recovery between 12-18 months. By then you will be out of the market.

[vegaslocal55]

I think one flaw in your analysis is considering a rental is a small place & buying would a large place. You are comparing apples to oranges. Consider the price of buying a studio vs. renting where you are now. Or consider the cost to rent a place the size you're considering buying.
I got lucky. A homeowner in the 80s & 90s, I then sold in 2005. I put everything on paper-the cost of renting vs. owning. Figuring 2-3% appreciation (of course I was off a little!) it made sense to rent. I'm hundreds of thousands of dollars ahead because of that decision. Finally tomorrow I'm buying again-yeah, prices may go down, but they're plenty low for me now.
Good luck with your decision-it's so easy to be a renter, & easy to pick up & move. Don't let all the homeowners give you that line of "You've gotta buy so you can get the tax deduction''.

[MadManofBethesda]

Originally Posted by vegaslocal55

Don't let all the homeowners give you that line of "You've gotta buy so you can get the tax deduction''.

First of all, no homeowners have said any such thing.

Secondly...what tax deduction? He's talking about paying cash; absent some other incredible itemized deductions, he's not going to have any tax deduction for his house. Taking the standard deduction, his tax liability will be the same whether he rents or buys.

I do agree with your other comment that the OP is comparig apples to oranges. If he's an apt/condo type, then that is what he should be comparing in the rent vs. buy scenario, not small studio apt. rent vs. larger living space purchase.

[JohnG72]

Agree about the apples to oranges thing as well.

Also, OP includes fixed costs(utilities etc) in his assessment of his rental cost, but does not include them in his fixed housing costs(which will also include property tax and possibly HOA's) even though those costs will be the same regardless of rent or buy.

TBH OP, there are lots of really nice properties available for sale.

To me, it would depend on quality of life issues, how much space I wanted, and how permanent my living situation would be.

If you have any reasonable expectation you will not stay in Vegas for several years, I simply would not buy. OTOH, if I had stable employement/income, and knew I would be bound to Las Vegas, I'd buy a nice place I liked.

[olecapt]

Scarey..JohnG and I agree.

The time is good for buying if buying is a good thing for you to do. Low prices and interest rates make it close to optimum. I don't see any big spike in prices in the immediate future but I would think an interest rate rise is very likely over the next months as the Fed tries to drive up inflation.

On the other hand you need to decide if you like living in a studio or you could move up a little at low cost. The house thing is strictly a life style decision.

[tony soprano]

Originally Posted by olecapt

The time is good for buying if buying is a good thing for you to do. Low prices and interest rates make it close to optimum. I don't see any big spike in prices in the immediate future but I would think an interest rate rise is very likely over the next months as the Fed tries to drive up inflation.

You have things backwards - if the Fed is intent on driving up inflation they wouldn't do so by raising interest rates. The Fed raises interest rates when they're trying to tame inflation.

[Scott456]

Here are my thoughts:
I am renting a studio only because I don't want to throw money away on rent. If I buy a property, I will take into consideration on "enjoyment" and "pride of ownership". However, I would still buy a small house, personally I don't need a lot of space. So a 2 bd/2 bath around 1200sq ft would be plenty.
Does anybody know how much the property tax is for a $150K house?
I am trying to figure out the cost of owning a house: property tax + HOA + water + trash + cable +internet + utilities. (no need for a pool)

[olecapt]

Originally Posted by tony soprano

You have things backwards - if the Fed is intent on driving up inflation they wouldn't do so by raising interest rates. The Fed raises interest rates when they're trying to tame inflation.

Never said they would. And I don't think that is the intent. But I do think there is a desire to get at least moderate inflation going which will drive interest rates up in and of itself perhaps inspite of the Fed.

Later they may drive interest rates up I suppose to keep the economy from getting to enthusiastic...would that not be a nice change of scenario?

[tony soprano]

Originally Posted by olecapt

Never said they would. And I don't think that is the intent. But I do think there is a desire to get at least moderate inflation going which will drive interest rates up in and of itself perhaps inspite of the Fed.

Later they may drive interest rates up I suppose to keep the economy from getting to enthusiastic...would that not be a nice change of scenario?

You think there is a desire to get at least moderate inflation going? Who exactly has this desire?

Originally Posted by olecapt

...I would think an interest rate rise is very likely over the next months as the Fed tries to drive up inflation.

You refer to the Fed trying to drive up inflation - how are they trying? What would the Fed do with interest rates as they try to drive up inflation? Here's a hint - they wouldn't raise rates.