Comments on: Diversify Your Portfolio by Renting http://www.mynewplace.com/blog/2008/02/13/73/ MyNewPlace Blog Fri, 21 Nov 2008 08:16:52 +0000 http://wordpress.org/?v=2.3.2 By: Matt DiChiara http://www.mynewplace.com/blog/2008/02/13/73/#comment-34 Matt DiChiara Mon, 25 Feb 2008 23:53:41 +0000 http://www.mynewplace.com/blog/2008/02/13/73/#comment-34 thanks for the detailed feedback, gertrude and ricardo. it certainly is an interesting question.glad to see we are in good company with the Brookings Institution.These links, are helpful quantitative devices:http://finance.move.com/homefinance/Calculators/RentBuy.asp?poe=homestore and http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html#They are from move.com and the www.nytimes.com respectively, are helpful starting points for investigating options and analyzing data. thanks for the detailed feedback, gertrude and ricardo. it certainly is an interesting question.

glad to see we are in good company with the Brookings Institution.

These links, are helpful quantitative devices:
http://finance.move.com/homefinance/Calculators/RentBuy.asp?poe=homestore and http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html#
They are from move.com and the http://www.nytimes.com respectively, are helpful starting points for investigating options and analyzing data.

]]> By: ricardo http://www.mynewplace.com/blog/2008/02/13/73/#comment-31 ricardo Thu, 21 Feb 2008 22:09:14 +0000 http://www.mynewplace.com/blog/2008/02/13/73/#comment-31 As we wait for the housing market to "bottom out", renting may be the best investment opportunity available. It is predicted my most economist that our recession will be shallow and will last no more than 18 months, however, they all seem to feel the housing market will bottom out sometime late Q2 '08. With the corresponding rate reduction already in place (with more anticipated)sitting on your cash and waiting for the final market correction may turn out to be the best investment you can make. Obviously this is a nationwide problem, however, there are some markets that seem to be harder hit than others and may take longer to "bottom out" or "rebound". Places like Florida, Nevada, Arizona, California come to mind. The New England states seem to have avoided the wild ride so far and most don't see much opportunity in that part of the country. So hold on while the wild ride continues, sit on your cash, and in the meantime rent!! As we wait for the housing market to “bottom out", renting may be the best investment opportunity available. It is predicted my most economist that our recession will be shallow and will last no more than 18 months, however, they all seem to feel the housing market will bottom out sometime late Q2 ‘08. With the corresponding rate reduction already in place (with more anticipated)sitting on your cash and waiting for the final market correction may turn out to be the best investment you can make. Obviously this is a nationwide problem, however, there are some markets that seem to be harder hit than others and may take longer to “bottom out" or “rebound". Places like Florida, Nevada, Arizona, California come to mind. The New England states seem to have avoided the wild ride so far and most don't see much opportunity in that part of the country. So hold on while the wild ride continues, sit on your cash, and in the meantime rent!!

]]> By: Gertrude http://www.mynewplace.com/blog/2008/02/13/73/#comment-28 Gertrude Wed, 20 Feb 2008 21:43:02 +0000 http://www.mynewplace.com/blog/2008/02/13/73/#comment-28 An important and eloquently expressed insight. Certain economists and housing experts have been building upon this research in recent years. Among the more recent and specific evidence is a report by Craig Somerville and colleagues (titled something to the effect of "Do Renters Miss the Boat?" and published in a volume from last year called "Household Credit Usage"), in which the authors compare the wealth generated by owning versus renting and buying stocks in Canadian cities. The result: in 7 of the 9 cities, households did in fact do better for themselves by renting and investing instead of purchasing their homes. I’m sure you guys are aware that the Harvard Joint Center for Housing Studies has also looked at this (see, for example, Belsky, Retsinas, and Duda’s 2005 report, “The Financial Returns to Low-Income Homeownership”). These guys recently edited a book published by the Brookings Institution on rental housing policy, which may be worth checking out: http://www.brookings.edu/press/Books/2007/revisitingrentalhousing.aspx. It’s a highly relevant question that seems to finally be descending from the ivory towers, as it gets increasingly pondered by consumers and policymakers alike. What's unfortunate is that it took an economic crisis before most people took notice. Hats off to you guys for staying current with/ahead of the popular paradigm. An important and eloquently expressed insight. Certain economists and housing experts have been building upon this research in recent years. Among the more recent and specific evidence is a report by Craig Somerville and colleagues (titled something to the effect of “Do Renters Miss the Boat?" and published in a volume from last year called “Household Credit Usage"), in which the authors compare the wealth generated by owning versus renting and buying stocks in Canadian cities. The result: in 7 of the 9 cities, households did in fact do better for themselves by renting and investing instead of purchasing their homes.

I’m sure you guys are aware that the Harvard Joint Center for Housing Studies has also looked at this (see, for example, Belsky, Retsinas, and Duda’s 2005 report, “The Financial Returns to Low-Income Homeownership”). These guys recently edited a book published by the Brookings Institution on rental housing policy, which may be worth checking out: http://www.brookings.edu/press/Books/2007/revisitingrentalhousing.aspx.

It’s a highly relevant question that seems to finally be descending from the ivory towers, as it gets increasingly pondered by consumers and policymakers alike. What's unfortunate is that it took an economic crisis before most people took notice. Hats off to you guys for staying current with/ahead of the popular paradigm.

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