Comments on: The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Activity for the Week of February 23rd

By: Lori Turoff

Lori Turoff — Wed, 03 Mar 2010 16:09:41 +0000

I’m closing comments on this post – please move it over to today’s WWWU. I’ve asked my tech guys to make “pages” so you don’t have to scroll so much. Thanks for your cooperation.

Lori

By: Craig

Craig — Wed, 03 Mar 2010 16:01:03 +0000

Thoughts – your rent vs. own calculations are right on the money. I have appealed my real estate taxes and the firm handling it says they will be reduced by at least $2200 annually. With that reduction and with all the income tax deductions factored in, my condo will cost exactly $22 a month more than my prior rental (which was a nice 900 sq. ft. 1 br + den duplex that rents for less than my 1300 sq. ft. 2 br/ 2 bath condo would cost to rent).

One way to know whether it makes economic sense to own in a particular market is to look at the housing price/rent ratio. Look at an equivalent unit that is for rent and for sale. If the annual rent of the rental multiplied by 15 equates to the sale price of an equivalent unit, then buying makes sense. But once you go much over that ideal 15 multiplier (say 17 max), then that market is overpriced and it makes more sense to rent.

By: Higher Education

Higher Education — Wed, 03 Mar 2010 14:52:00 +0000

homeboken

The bubble has already popped for MBAs.
The demand for lawyers has softened considerably.
Graduating doctors are not becoming general practitioners because the money isn’t there.
On top of this, the cost of all education has rapidly outstripped inflation over the 10+ years.
My opinion seems to be inline with yours.