(I told myself I'd never get into these kinds of discussions and I'd just troll the site for useful information, but in this case I really have to say something...)
A "loser" is a person who fails to achieve his goals.
Second, cities are complex places. Rents can vary dramatically. The quality of apartments also varies dramatically. Comparisons aren't so easy as in the suburbs.
One person may pay $900 for an apartment he's been in for 18 years, while his neighbor pays $1600 for the same type of apartment (as a result of rent-control, under the table dealing, whatever). This has been my personal experience in LA and NYC. The person outside NYC who's renting a townhouse for $3500+ sounds like he's getting a bad deal if it sells for only $850K. Perhaps this demonstrates the difference between the city and suburbs of the major US cities. I rented a beautiful 1 bedroom apt. on the upper west side 2 years ago for $3200. I'm certain that place would have sold for well over $1MM.
Here in LA there are lots of crummy 1960s apartments sitting next to well-constructed charming 1920s bungalows, sitting next to brand new multi-million dollar luxury townhouses. The bungalow-renter may be paying much less than the 1960s crap apartment-renter. The owner of the 1920s bunglow is an old lady who bought the place in 1960 and her mortgage has long since been paid off, and she doesn't mind charging less when she finds a quality tenant. The townhouse-owner paid cash and rents the attached guest apartment to a roommate. The crap apartment-renter just blew into town and simply looked in the paper for his first LA digs, and consequently gets the worst deal imaginable.
One can find a decent apartment here in the city for $1500-2000. A 2-bedroom townhouse in West Hollywood that rents for $1800-2000 would sell for more than $1MM, easily. In this case renting is a much better deal for people who don't have enough money to pay cash.
Perhaps in the suburbs of these big cities, comparisons are easier to make and the rent-vs.-buy situation switches. It sounds like it may better to buy, especially if you must get a loan.
Regarding the quality of life issue and America vs. Europe. It depends on your goals. In my experience, living in Paris is a much richer and vital experience compared to Manhattan. But we can't put a price on that.
- d
A "loser" is a person who fails to achieve his goals.
Second, cities are complex places. Rents can vary dramatically. The quality of apartments also varies dramatically. Comparisons aren't so easy as in the suburbs.
One person may pay $900 for an apartment he's been in for 18 years, while his neighbor pays $1600 for the same type of apartment (as a result of rent-control, under the table dealing, whatever). This has been my personal experience in LA and NYC. The person outside NYC who's renting a townhouse for $3500+ sounds like he's getting a bad deal if it sells for only $850K. Perhaps this demonstrates the difference between the city and suburbs of the major US cities. I rented a beautiful 1 bedroom apt. on the upper west side 2 years ago for $3200. I'm certain that place would have sold for well over $1MM.
Here in LA there are lots of crummy 1960s apartments sitting next to well-constructed charming 1920s bungalows, sitting next to brand new multi-million dollar luxury townhouses. The bungalow-renter may be paying much less than the 1960s crap apartment-renter. The owner of the 1920s bunglow is an old lady who bought the place in 1960 and her mortgage has long since been paid off, and she doesn't mind charging less when she finds a quality tenant. The townhouse-owner paid cash and rents the attached guest apartment to a roommate. The crap apartment-renter just blew into town and simply looked in the paper for his first LA digs, and consequently gets the worst deal imaginable.
One can find a decent apartment here in the city for $1500-2000. A 2-bedroom townhouse in West Hollywood that rents for $1800-2000 would sell for more than $1MM, easily. In this case renting is a much better deal for people who don't have enough money to pay cash.
Perhaps in the suburbs of these big cities, comparisons are easier to make and the rent-vs.-buy situation switches. It sounds like it may better to buy, especially if you must get a loan.
Regarding the quality of life issue and America vs. Europe. It depends on your goals. In my experience, living in Paris is a much richer and vital experience compared to Manhattan. But we can't put a price on that.
- d
