Ironically, another 1720 address is on the market, not for sale but as a rental.
1720 Spur Ridge Lane, the newly listed rental, is located on the very next street. Take a look at the pictures and you'll see the houses are nearly identical.
1720 Spur Ridge Lane:
1720 Canyon Run:
One difference, besides the paint color, is how much you'll pay a month to live in each home.
At 1720 Spur Ridge Lane they are asking $1900 a month.
If you were to buy 1720 Canyon Run with an FHA home loan (3% down) at a 30 year fixed rate slightly under 5% you would be looking at almost $2700 a month with taxes and insurance.
That $800 a month difference is significant.
Given that housing prices are expected to decrease for the foreseeable future, and buying with interest rates at these low levels is risky in and of itself, renting is clearly the smarter option.
Absolutely correct, and this is the issue with the down market. Why would anyone buy until these rates are aligned? To paraphrase a saying "why should you pay off someone else's bubble prices?"
ReplyDeleteEven the pricing on REO properties assumes stable or increasing rents and a low interest rate environment.It is too early to buy here and I can not predict when the time to buy will be with any assurance.I can make a S.W.A.G. that it will be within a year to 18 months but it IS a guess.
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