Comments on: Rent Increase http://ericfaller.com/blog/2008/01/14/rent-increase/ Pithy Quote Goes Here Sun, 28 Mar 2010 12:48:11 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Eric Faller http://ericfaller.com/blog/2008/01/14/rent-increase/comment-page-1/#comment-6914 Eric Faller Wed, 16 Jan 2008 08:03:20 +0000 http://efaller.com/blog/2008/01/14/rent-increase/#comment-6914 Hmm I'm not sure I've heard of HOA fees for regular houses before, but that does seem like a ripoff. How annoying! Don't worry about wasting too much space in the comments section - there's plenty of pixels to go around :) Hmm I’m not sure I’ve heard of HOA fees for regular houses before, but that does seem like a ripoff. How annoying!

Don’t worry about wasting too much space in the comments section – there’s plenty of pixels to go around :)

]]> By: serena http://ericfaller.com/blog/2008/01/14/rent-increase/comment-page-1/#comment-6920 serena Tue, 15 Jan 2008 21:01:50 +0000 http://efaller.com/blog/2008/01/14/rent-increase/#comment-6920 Just be sure that if you buy a house, that the neighborhood doesn't have an HOA instituted. That is very common here, even with actual houses (instead of condos or townhouses.) I actually don't even understand how this is legal if you are buying property! If you own the land that your home is on...how can they tell you what to do and force you to pay extra money? I have to pay over $200 a month and I resent it big time. I could tell you stories but I have already taken up too much space in your comments section! Just be sure that if you buy a house, that the neighborhood doesn’t have an HOA instituted. That is very common here, even with actual houses (instead of condos or townhouses.) I actually don’t even understand how this is legal if you are buying property! If you own the land that your home is on…how can they tell you what to do and force you to pay extra money? I have to pay over $200 a month and I resent it big time. I could tell you stories but I have already taken up too much space in your comments section!

]]> By: Eric Faller http://ericfaller.com/blog/2008/01/14/rent-increase/comment-page-1/#comment-6919 Eric Faller Tue, 15 Jan 2008 08:49:02 +0000 http://efaller.com/blog/2008/01/14/rent-increase/#comment-6919 Yeah I am not all that pleased with the rent increase, small(er) as it may be. I'll try to bargain with them to get it lowered, but unfortunately I have a 'special' apartment which is supposedly in high demand. And yep, we have HOA fees here too as well. A condo I was looking at recently had a fee of $350 per month(!), which over a 30-year mortgage would effectively raise the cost of the condo by $125,000. That, along with property taxes and that kind of thing made me decide not to buy a condo (any time soon anyway). The numbers just don't add up compared to renting. For a little bit more (less than twice the price), you can get a full house that's a lot better than a condo, and doesn't have any HOA fees to boot. I think I'll plan to save and do that. Yeah I am not all that pleased with the rent increase, small(er) as it may be. I’ll try to bargain with them to get it lowered, but unfortunately I have a ‘special’ apartment which is supposedly in high demand.

And yep, we have HOA fees here too as well. A condo I was looking at recently had a fee of $350 per month(!), which over a 30-year mortgage would effectively raise the cost of the condo by $125,000. That, along with property taxes and that kind of thing made me decide not to buy a condo (any time soon anyway). The numbers just don’t add up compared to renting.

For a little bit more (less than twice the price), you can get a full house that’s a lot better than a condo, and doesn’t have any HOA fees to boot. I think I’ll plan to save and do that.

]]> By: Simon http://ericfaller.com/blog/2008/01/14/rent-increase/comment-page-1/#comment-6918 Simon Mon, 14 Jan 2008 23:05:17 +0000 http://efaller.com/blog/2008/01/14/rent-increase/#comment-6918 Like I said a year ago, I would negotiate down your monthly rent. Tell them you will move out if they increase it further, mentioning how much your rent has already gone up despite falling house prices. Chances are they will work with you on the price in order to keep you in a lease - they will stand to lose a lot of money if the apartment is unoccupied for even one month. If you ask for a $0 increase and the best they give you is a $20 increase, you've still done better than if you just kept your mouth shut. Like I said a year ago, I would negotiate down your monthly rent. Tell them you will move out if they increase it further, mentioning how much your rent has already gone up despite falling house prices. Chances are they will work with you on the price in order to keep you in a lease – they will stand to lose a lot of money if the apartment is unoccupied for even one month.

If you ask for a $0 increase and the best they give you is a $20 increase, you’ve still done better than if you just kept your mouth shut.

]]> By: Serena http://ericfaller.com/blog/2008/01/14/rent-increase/comment-page-1/#comment-6915 Serena Mon, 14 Jan 2008 19:37:23 +0000 http://efaller.com/blog/2008/01/14/rent-increase/#comment-6915 Unless they are doing major repairs or improvements at your complex, I don't understand the big increases. On a related housing topic: Being a financial genius, I never thought I'd say renting is smarter than owning. But I think that if you're single and plan to move in the next five years, it is so much smarter to rent than it is to own. I don't know if Home Owners Associations are all the rage in Seattle, but they are here and I HATE them. Oh, I know, they're supposed to serve the purpose of making sure you don't have a neighbor with a bright orange front door or a junker parked out front, but really? I think HOAs are a crock of...well, a crock (watching my language!) If you own a home, you have taxes, HOA fees (which can be HUNDREDS per month), all the repairs, all the utilities. If you rent, chances are one or more of your utilites are included or at least available at a reduced rate. You don't have property taxes. You don't have to repair your own stuff in most cases...if something breaks, your landlord fixes it. Owning is EXPENSIVE! One appliance breaks and boom! It's $2000 or more every time. Still a bummer that your rent has gone up, but owning can be pretty craptastic. Unless they are doing major repairs or improvements at your complex, I don’t understand the big increases.

On a related housing topic: Being a financial genius, I never thought I’d say renting is smarter than owning. But I think that if you’re single and plan to move in the next five years, it is so much smarter to rent than it is to own. I don’t know if Home Owners Associations are all the rage in Seattle, but they are here and I HATE them. Oh, I know, they’re supposed to serve the purpose of making sure you don’t have a neighbor with a bright orange front door or a junker parked out front, but really? I think HOAs are a crock of…well, a crock (watching my language!)

If you own a home, you have taxes, HOA fees (which can be HUNDREDS per month), all the repairs, all the utilities. If you rent, chances are one or more of your utilites are included or at least available at a reduced rate. You don’t have property taxes. You don’t have to repair your own stuff in most cases…if something breaks, your landlord fixes it.

Owning is EXPENSIVE! One appliance breaks and boom! It’s $2000 or more every time.

Still a bummer that your rent has gone up, but owning can be pretty craptastic.

]]> By: Eric Faller http://ericfaller.com/blog/2008/01/14/rent-increase/comment-page-1/#comment-6916 Eric Faller Mon, 14 Jan 2008 18:32:58 +0000 http://efaller.com/blog/2008/01/14/rent-increase/#comment-6916 Hmm, yes it is of course very complicated, and that scenario is entirely possible. But a drop in the median home price from $501K in August to $455K in December is quite a big drop to be accounted for by saying "expensive sales have slowed". It's also interesting that the inventory of unsold homes is up 70%, meaning that people aren't buying at these still-inflated prices. So the only way to clear that inventory is to either drop prices, or wait for a very long time with no price increase. Also, are you sure you want to get your data from a real estate agent whose entire income depends on convincing people that prices are going up up up, and they should buy right away? Of course they will tell you that prices aren't declining :) Hmm, yes it is of course very complicated, and that scenario is entirely possible. But a drop in the median home price from $501K in August to $455K in December is quite a big drop to be accounted for by saying “expensive sales have slowed”. It’s also interesting that the inventory of unsold homes is up 70%, meaning that people aren’t buying at these still-inflated prices. So the only way to clear that inventory is to either drop prices, or wait for a very long time with no price increase.

Also, are you sure you want to get your data from a real estate agent whose entire income depends on convincing people that prices are going up up up, and they should buy right away? Of course they will tell you that prices aren’t declining :)

]]> By: Andy http://ericfaller.com/blog/2008/01/14/rent-increase/comment-page-1/#comment-6917 Andy Mon, 14 Jan 2008 18:14:02 +0000 http://efaller.com/blog/2008/01/14/rent-increase/#comment-6917 I'm not sure I believe home prices have fallen in Seattle. The very simple stat they show is the average price has fallen, which more likely means expensive home sales have slowed while entry-midrange homes haven't slowed as much. The stats I see from my agent break things down more based on home value range, where # of sales per month are down differently based on price range, but within each range the homes selling were still going up I’m not sure I believe home prices have fallen in Seattle. The very simple stat they show is the average price has fallen, which more likely means expensive home sales have slowed while entry-midrange homes haven’t slowed as much.

The stats I see from my agent break things down more based on home value range, where # of sales per month are down differently based on price range, but within each range the homes selling were still going up

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