Renters Enjoying This Boom
There is no stronger economic fact that points to a housing bubble than the rent to ownership ratio. The SFGate has a story up about people who have decided to sit this mania out. "'Every two or three years, I get the urge to buy a place to live in, and then the urge goes away very quickly,' said Guy Smith. 'The amount of risk and up-front capital is not matching the amount of reward I want.'"
"'Personally, I don't like the idea of overbidding 13 times and not getting the house,' said Jim Buckmaster, chief executive of Craigslist in San Francisco. 'I don't have the patience for that type of thing.'"
"Even mortgage professionals see the point in renting. 'It's easier to be a renter with the current level of competition for buying homes,' said Kevin Clay, a former head of the California Association of Mortgage Brokers. 'When you rent, you have more flexibility. You can get another job and move. You don't have the responsibility of a home. You don't have to pay the plumber to fix the toilet.'"
"Ellyn Hament came to a similar conclusion recently, settling in an Outer Sunset flat after enduring a arduous home-buying search. She was advised by her real estate agent forgo a pest inspection that could have protected her from potential structural damage. Hament's TIC offer was accepted, but then she found out about a leaky roof. The seller refused to let her in to inspect the damage, so Hament pulled out of the deal."
"Hament said, 'We didn't want to feel ripped off. Plus, our monthly payments would have been between $2,500 and $3,000. My hand kept shaking when I did the calculations.' Now, she lives 'happily' in a large two-bedroom flat. 'We are savoring the relative stress-free-ness of having a new place to live,' she said."