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Trend or coincidence

Does a week make a trend or is it simply coincidence.

I usually get an inquiry or two just about every day from buyers seeking additional information about Charleston homes for sale. Even though I'm not the listing agent for every home for sale on the Charleston MLS (darn), I can still help anyone by providing additional information and then help them with the purchase of the home as their buyers agent.

But in the last week, I had at least 7 inquiries about homes for rent while in the past I may have gotten 1 in a month at best. I don't handle property management and have no experience in rentals. I usually answer the question if I can and refer the person to one of several property management companies I know of.

So I was thinking, why are there so many rental inquiries right now. Are people thinking about renting because they can no longer qualify for a mortgage due to tighter lending qualifications or are people simply afraid to buy a home when the media is relentlessly negative on the housing industry. I think it could be a little bit of both.

I've bought homes and condos and I've rented apartments but never rented a house. There is a time and place for both. In my previous business career, I was asked to move a lot by my company. Because I was single at the time, I didn't need a big house and an apartment served my purposes. Plus if I was going to be asked to relocate again by my company, you can't just sell your home in a day. Generally, you need to live in a home for several years in order to at least break even on the transaction.

By the way, my website has a very nice mortgage calculator with a rent vs. buy analysis you can use to help determine which is the better choice for you to make.

What do you think, trend or coincidence?   

Published Monday, February 25, 2008 8:46 AM by Howard Arnoff

Comments

# re: Trend or coincidence

Good grief Howard, who came up with that Rent vs. Buy calculator…the National Realtors Association?  It appears be making some interesting assumptions that are not based on current market conditions but most of all not taking everything into account when buying, owning and SELLING a house.  

Even changing the “Number of Years you Plan to stay in the house” to 1…tells me that buying is the best option!  This is insane.  If you want to give people a comprehensive and complete picture of Rent vs. Buy, please give them the following link

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html

Monday, February 25, 2008 2:36 PM by Claude Daigle

# re: Trend or coincidence

Claude, I will admit I never tried the calculator out but you should also know as a regular reader that I do tell it like it is. Now as to the "grey lady", the Times seems to be trending toward some of the gossip rags with a recent story but I hope their mortgage calculator works well.

Actually, I'm preparing a post on how the National Association of Realtors is becoming a little more forthcoming lately and it's a breath of fresh air for Realtors (R) who have been embarrassed by some of their commentary on market conditions.

Claude, I have rented and have generally considered the $12,000 annually I spent on rent to be throwing money away. Sometimes you have to do it but in general, purchasing a home makes more sense.

Monday, February 25, 2008 3:24 PM by Howard Arnoff

# re: Trend or coincidence

I should also say that the default for annual appreciation, number of years, etc., came built into the software and while they can be manually changed when using the calculator, they don't represent current realities in the market.

Monday, February 25, 2008 3:27 PM by Howard Arnoff

# re: Trend or coincidence

You are a straight shooter...which is why I was shocked to see that very deceptive calculator on your website.  

The NYT calculator is not making assumptions on current market conditions or  "gossip"...it's a calculator.  It simply gives you a more complete picture of buying a selling and the cost involved. It even factors in inflation and Income tax rates.

Having a buy vs rent calculator on your site is great, but please make sure it is accurate.  

Monday, February 25, 2008 5:02 PM by Claude Daigle

# re: Trend or coincidence

The Times is considered to be a Communist Rag by real Nyers!

Monday, February 25, 2008 9:33 PM by Mike G

# re: Trend or coincidence

Mike, but the times just dropped their online subscription model and that was a good thing, now I'm waiting for WSJ to follow.

Claude, forget the calculator, don't be analytical, just buy a house ;)  

Tuesday, February 26, 2008 6:32 AM by Howard Arnoff

# Buy or rent

Yesterday, I wrote a post about a recent trend or coincidence I noticed and my friend Claude pointed

Tuesday, February 26, 2008 9:12 AM by Charleston Real Estate Blog

# re: Trend or coincidence

Although it is a rather left leaning publication to say the least...I will admit The Times is an indispensable periodical if you can sift through the subtle brainwashing with which it deploys.

Wednesday, February 27, 2008 10:55 PM by Mike

# re: Trend or coincidence

Mike, tell us how you *really* feel, don't hold back :)

Thursday, February 28, 2008 9:12 AM by Howard Arnoff
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