Quote:
Originally Posted by C. C. Rider
Just doing some "back of the envelope" calculations, that doesn't sound very profitable to me. It seems to me that a brand-new house of the same size and quality would have to increase in price about 16% to 18% per year just to break even on the deal... not counting anything for your time involved. Making a profit on the deal would require an even greater price increase year-over-year.
I know that housing is becoming more expensive every year, but is it actually increasing at 25% or more per year which is what I figure it would take to make it worthwhile?
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When I read the first post on this, about the "couple" who buy these houses and don't even rent some of them, just wait a couple years and sell them. But I wonder, do they calculate that monthly amenity fees on each one, the bond fees, the property taxes, and... don't they have to keep the utilities on in these homes ? Don't they have irrigation on ? And lawn mowing services ? I know property appreciates but... there are a LOT of expenses that go along with the property that needs to be considered !