August 18, 2013

Around the Web: Useless Realty-Related Infographics

Maybe by 2014 everyone will be sick of these ubiquitous infographics, but for now they’re everywhere.  And not everyone is improved by the addition of spurious graphics. Realtards aren’t the only ones out there giving out self-serving information while suggesting they’re helping you.  Homebuilders also play many of the same games we know and love.  Here’s a fun infographic, if by “fun” we really mean “see how much fun you can have spotting all the misleading information in one image.”

Not only is “Myth One” a real hoot in the Bay Area (let alone the Real Bay Area), it isn’t even true without all the special pleading for tax exemptions and future streams of payments and other sneaky accounting tricks.  Remember, Richard Florida pointed out that in Opposite of the Real Bay Area, it’s actually cheaper to buy than rent, as in monthly payments there are lower than monthly rents.  Why?  Because everyone who wants a house has bought one, so there are few potential customers.  In the RBA, lots of people want to buy but can’t afford to, so prices stay high as they save up until they can.

We don’t even want to mention that unlike the Bay Area, there are many places in the US where it’s very difficult to rent a typical single family house, so comparative rent vs buy is almost impossible. Perhaps more people would rent if they could get a house instead of an apartment.

What’s your situation? Do you live in a SFH, a townhouse, or an apartment? Do you own or rent? What do you think if this silly poster?


Comments (6) -- Posted by: madhaus @ 7:04 am

6 Responses to “Around the Web: Useless Realty-Related Infographics”

  1. DonnieJ Says:

    I will comment since you ask.
    Been in the bay since 2003. Wanted to buy witihn a few years back then, until I saw what was happening (no doc loans, skyrocketing prices).
    I have always paid close to $2k for rent, whether it’s just me or 2 other roomates. I could afford this for a mortgage payment.

    I think what people fail to understand is a 20% ~150k cash payment doesn’t fall out of trees when you consider if buying is cheaper than renting. Even in a market where I would have a chance with a 5-15% downpayment, it’s still tough to find.

    So when you consider a huge barrier to entry, a security deposit on a $2k rent is a lot cheaper than a 20% down on $2k mortgage payment.

  2. waiting_for_the_fall Says:

    I did want to buy again after selling in 2005, but the market is so manipulated, I decided it is better to rent and save my money.
    Renting leaves me free to travel to other states for employment, if needed.
    Eventually, I will buy again. But probably not in California.

  3. Petsmart groomer Says:

    “Historically, a homeowner’s net worth ranges from 31-46 times that of renters!

    If that’s not enough to convince you…

  4. madhaus Says:

    I love the audacity of the Myth Two graphic. Title mentions owners vs renters but cherry picks mortgage payments in 2005 vs 2012 and no sign of average rent anywhere. Compares favorably!

    Also who the hell buys a house in November?

  5. Tom Paine Says:

    Very few people buy homes in November, which is why you can sometimes get a deal on a stale listing then. Especially if you can close a couple of weeks before Xmas.

  6. DreamT Says:

    #4 – er… I did

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