Should I buy an apartment with 8.14 price-to-rent ratio right now?

I found 2 apartment owners selling at 67.32% and 70.71% of their original purchase price. They paid the unit with monthly installment.

I offered the units at 7% premium compared to my projection of the asset value if the effect from the recession is similar to the 2008 crash. I use RPPI from the Central Bank between 2008 and 2009. I also use Case-Shiller U.S. National Home Price Index between July 2006 and Feb 2012 (I don’t trust the RPPI, the market recovered within 1 year while the U.S. need 6 years). Therefore, I am prepared to hold this unit for at least 6 years to break even (not counting opportunity loss et cetera).

submitted by /u/kidfromtheast
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I found 2 apartment owners selling at 67.32% and 70.71% of their original purchase price. They paid the unit with monthly installment. I offered the units at 7% premium compared to my projection of the asset value if the effect from the recession is similar to the 2008 crash. I use RPPI from the Central Bank between 2008 and 2009. I also use Case-Shiller U.S. National Home Price Index between July 2006 and Feb 2012 (I don’t trust the RPPI, the market recovered within 1 year while the U.S. need 6 years). Therefore, I am prepared to hold this unit for at least 6 years to break even (not counting opportunity loss et cetera). submitted by /u/kidfromtheast [link] [comments]

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