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Great advice!
So I should walk away from my house too?
Tell me what part of L.I. I can "Rent" a 1700 SF, 3 BR, 2 bath, with a basement & garage for the current price of my mortgage amount of $2,600? Which includes my taxes & homeowners insurance too?
You need some "BASIC" Economic classes.
Didn't think I'd get an answer back.
Basic economics
I'm willing to bet money that this humble NYC MoD from Far Rockaway would have no problem living in any one of them....I know one right off the bat has no LIRR stop so that's an automatic no.
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
Didn't think I'd get an answer back.
Basic economics
Your going to get an answer, just not the one you want.
In economics;
The demand for Housing on Long Island has become inelastic, there are no substitutes to be found in a captive market. In a captive market you have two choices;
1) accept captivity, and accept the price no matter what it is (eg a $5 cup of coffee in an airport)
2) escape captivity, leave the market (and get a cup of coffee for the correct price $1.50)
As I have explained "captivity" has occurred because of of debt accumulation, mismanagement, and criminal enterprise (eg public policy).
AS to rent or buy; If you had to live here (as a captive, in a captive market) the correct financial decision would be to RENT even if the "monthly payment for renting would be more than taxes+mortgage+insurance. The advantage of renting is that you can exit at will rather than being stuck in a losing proposition for thirty years. The real cost of buying has to include opportunity cost and it has to take into account both time and risk.
FYI I taught basic economics when I was on a full scholarship in graduate school... In my very early retirement I am continually dragged back to work in a "family office" for copious amounts of drinking. https://www.forbes.com/sites/russala.../#618a0d287708 We discuss bying everything from farms, complete busiensses, rental property, foreign property, defunct hedge funds, distressed debt, distressed mortgage debt, legal claims, funding litigation, collecting on class actions, and basically whatever can make money. I have actually looked at mortgage backed securities, mortgage pools, senior secured trances of the same and tranches so bad they only had voting rights.
Your going to get an answer, just not the one you want.
In economics;
The demand for Housing on Long Island has become inelastic, there are no substitutes to be found in a captive market. In a captive market you have two choices;
1) accept captivity, and accept the price no matter what it is (eg a $5 cup of coffee in an airport)
2) escape captivity, leave the market (and get a cup of coffee for the correct price $1.50)
As I have explained "captivity" has occurred because of of debt accumulation, mismanagement, and criminal enterprise (eg public policy).
AS to rent or buy; If you had to live here (as a captive, in a captive market) the correct financial decision would be to RENT even if the "monthly payment for renting would be more than taxes+mortgage+insurance. The advantage of renting is that you can exit at will rather than being stuck in a losing proposition for thirty years. The real cost of buying has to include opportunity cost and it has to take into account both time and risk.
FYI I taught basic economics when I was on a full scholarship in graduate school... In my very early retirement I am continually dragged back to work in a "family office" for copious amounts of drinking. https://www.forbes.com/sites/russala.../#618a0d287708 We discuss bying everything from farms, complete busiensses, rental property, foreign property, defunct hedge funds, distressed debt, distressed mortgage debt, legal claims, funding litigation, collecting on class actions, and basically whatever can make money. I have actually looked at mortgage backed securities, mortgage pools, senior secured trances of the same and tranches so bad they only had voting rights.
So when my home losses 75% in value (Like you stated in a previous post) I can then buy a 400k home for 100k. I'll buy 5 of them for 500k and rent them for $2500+ each per month! Make a fortune! Basic Economics.
Your going to get an answer, just not the one you want.
In economics;
The demand for Housing on Long Island has become inelastic, there are no substitutes to be found in a captive market. In a captive market you have two choices;
1) accept captivity, and accept the price no matter what it is (eg a $5 cup of coffee in an airport)
2) escape captivity, leave the market (and get a cup of coffee for the correct price $1.50)
As I have explained "captivity" has occurred because of of debt accumulation, mismanagement, and criminal enterprise (eg public policy).
AS to rent or buy; If you had to live here (as a captive, in a captive market) the correct financial decision would be to RENT even if the "monthly payment for renting would be more than taxes+mortgage+insurance. The advantage of renting is that you can exit at will rather than being stuck in a losing proposition for thirty years. The real cost of buying has to include opportunity cost and it has to take into account both time and risk.
FYI I taught basic economics when I was on a full scholarship in graduate school... In my very early retirement I am continually dragged back to work in a "family office" for copious amounts of drinking. https://www.forbes.com/sites/russala.../#618a0d287708 We discuss bying everything from farms, complete busiensses, rental property, foreign property, defunct hedge funds, distressed debt, distressed mortgage debt, legal claims, funding litigation, collecting on class actions, and basically whatever can make money. I have actually looked at mortgage backed securities, mortgage pools, senior secured trances of the same and tranches so bad they only had voting rights.
Contrary to what you say, many areas are doing well. I tried to buy apiece of crap home in my Nassau county Hamlet so I could renovate and rent it. It sold in days for 460k(amazing price for a ranch in the area on a 12k sq ft lot) and 2 months later it is now back on the market (still being built) for 1.1mm. Guess what I assure you the house sells within 50k of asking since it happens all the time. We are a suburb of the largest city in the country. There is no more land, and there is demand. The housing market keeps trending up value wise because builders,developers and investors are buying up the smaller and cheaper homes in nice neighborhoods and knocking them down for brand new houses, as you know this drives the prices up for everything else in the area. Not every one want's to leave and as long as NYC prices are insane LI prices will be also.
Contrary to what you say, many areas are doing well. I tried to buy apiece of crap home in my Nassau county Hamlet so I could renovate and rent it. It sold in days for 460k(amazing price for a ranch in the area on a 12k sq ft lot) and 2 months later it is now back on the market (still being built) for 1.1mm. Guess what I assure you the house sells within 50k of asking since it happens all the time. We are a suburb of the largest city in the country. There is no more land, and there is demand. The housing market keeps trending up value wise because builders,developers and investors are buying up the smaller and cheaper homes in nice neighborhoods and knocking them down for brand new houses, as you know this drives the prices up for everything else in the area. Not every one want's to leave and as long as NYC prices are insane LI prices will be also.
What hamlet? Without that info, you're serving a bacon egg and cheese on a roll without the bacon, egg, or the cheese.....
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
Your going to get an answer, just not the one you want.
In economics;
The demand for Housing on Long Island has become inelastic, there are no substitutes to be found in a captive market. In a captive market you have two choices;
1) accept captivity, and accept the price no matter what it is (eg a $5 cup of coffee in an airport)
2) escape captivity, leave the market (and get a cup of coffee for the correct price $1.50)
As I have explained "captivity" has occurred because of of debt accumulation, mismanagement, and criminal enterprise (eg public policy).
AS to rent or buy; If you had to live here (as a captive, in a captive market) the correct financial decision would be to RENT even if the "monthly payment for renting would be more than taxes+mortgage+insurance. The advantage of renting is that you can exit at will rather than being stuck in a losing proposition for thirty years. The real cost of buying has to include opportunity cost and it has to take into account both time and risk.
FYI I taught basic economics when I was on a full scholarship in graduate school... In my very early retirement I am continually dragged back to work in a "family office" for copious amounts of drinking. https://www.forbes.com/sites/russala.../#618a0d287708 We discuss bying everything from farms, complete busiensses, rental property, foreign property, defunct hedge funds, distressed debt, distressed mortgage debt, legal claims, funding litigation, collecting on class actions, and basically whatever can make money. I have actually looked at mortgage backed securities, mortgage pools, senior secured trances of the same and tranches so bad they only had voting rights.
It is all so much clearer now.
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