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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Yes and some have been removed from the market and relisted as rentals. [/quote]

My DH and I are moving our family into a larger house and listing our current house as a rental.  I think we would be lucky to break even if we sold.  Makes more sense to rent right now. (Luckily we can afford to do this.)[/quote]

+1 It's sometimes better to wait and either rent or even just hold the property until the market bounces back rather than cut $200-300K. The market generally isn't down for long periods in the DC area.

We did the math for a beach property we just took off the market. [b]Our carrying costs [/b]are so low that it doesn't make sense to take lower offers. We're looking at renting or even just letting it sit until the market improves.[/quote]

Oppurtunity cost for not using equity for few years should be added with carrying cost.

For example, if you can have 500K now vs 600K 3 years later then cost = carrying cost + lost oppurtunities with 500K. Assuming no loan here, but poit is same. [/quote]

True, and that's why I said sometimes and used $200-300K as the example. Plus we have a loan and the payments are just principal now. If we decide to rent it then the math skews even more towards not taking that $200-300K cut on price because we could net a good profit. Also we lost a bit in the stock market when it tanked so the diversification of assets is appealing. There's no guarantee that the stock market would yield significant returns over the next 1-2 years, and the second home market usually goes up and down with the stock market anyway.

Time will tell if this was the right move or not.[/quote]

For 1-2 years, stock market is not a good idea.

It's not hard to see if something is a decent idea.

You just see what asset is producing. Assume no loans. Based on most places, I see 3-4% yield after taking account of maintainance, empty rental during changes, property tax etc. Rental became less attractive with treasury rates in 4-5% range in the last few years. If and when it drops to 1-2% then same rental yield will become attractive. Taking 6-7% loan is not a great idea with rental yield of 3-4% as well.

I agree that calcualtion will be different for different poeple based on rates, but it's pretty easy to see big picture. I also agree that having some diversification is good for most families. You always don't need to maximize retursn, as long as decent enough returns with dertainly, it works. Real estate will mostly work for most families due to leverage. But at current sitaution, leverage is working against families if they take loan right now.

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