ezekiel's chariot - 張敦楷 (pjammer) wrote,
ezekiel's chariot - 張敦楷

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Buy vs. Rent Calculator. Real Estate Bubbles. Toastmasters.

A handy tool that I have been forwarding to every client I've been speaking with in recent weeks since I found it:

Note: I have a few quibbles with some of the default assumptions in the 'general' tab under the advanced settings section that has a rather dramatic effect on the calculations

  • "Return on Investments" ought to be at least 7% if one assumes a 70/30 equity/fixed-income portfolio - even 100% bond funds average about 5~6% per annum.

  • The average home-buyer is probably closer to the 30~35% tax bracket, not 20%.

  • Inflation tracks rental increase rates - both should be at or close to 3% given historical trends.

Other resources:

For a more, ah, slanted perspective on the whole issue, I would direct your attention to HousingPanic, who gleefully trumpets the misdeeds of real-estate speculators and those who accept crushingly unsustainable debts to bankroll their properties. ernunnos, any suggestions of other blogs people should be following on this subject?

P.S. After re-joining Toastmasters through the Lee Emerson Bassett club two months ago, then adding a double-membership at Adobe Speakers, I've sustained a grueling pace of delivering almost a speech every week out of the Ten-Speech CTM Manual; normally, members are expected to finish the CTM course over one to two years, but I am on track to complete the CTM in three months. This Weds, I will be delivering Speech #8, entitled "Why Smart People Are Statistically Destined to Remain Single - a Whimsical Look at Dating Markets for Outliers" (a spoken version of Why Pjammer is Doomed to Eternal Bachelorhood with "Lawrence Lessig" style slides).

Those in the Palo Alto area are invited to come along and check it out - drop me a comment and I will add you to the guestlist.
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