Better to rent "100 percent of the time." - Page 2

Site Notices

[ARCHIVED THREAD] - Better to rent "100 percent of the time." (Page 2 of 3)

Posted: 2/17/2012 8:04:16 AM EDT

[#1]

The article is retarded.

I used to rent a shitty little apartment for $800 when i was young.

So I bought a townhouse, the mortage and taxes and maintenance was way less than $800 after the tax breaks were figured in.

I sold it 7 or 8 years later and had built up $50K worth of equity, because a chunk of each payment was actually applied to me owning the thing.

And yet it was easily three times the size of the apartment I had been renting.

Did I "break even"? Of course not. Did I live in 10X better of a house for way less money? YES

Here's another thing - Your mortgage payment says the same, it doesn adjust for inflation. But rent does.

The payment $1000 payment at the beginning of the loan is only really worth maybe $500 out of your pocket at the end of the loan.

The article is dumb.

Posted: 2/17/2012 8:12:28 AM EDT

[#2]

Quoted:

Do you want to know the secret? Do you really?

Live uncomfortably.

Comfort costs money. The less comfort you can deal with, the more money you will have. Period. Now, "uncomfortably" to you might mean a tent in an OWS camp. It might mean a 500sqft apartment. It might mean a double-wide. But whatever your minimum threshold is, find it and live it. You will save a ton of money, guaranteed. It is the number one best way to save obcene amounts of cash.

I lived on a 300sqft steel houseboat with no heat for 2.5 years. In the ghetto in DC. It sucked more than you can possibly imagine, and, really, it wasn't all *that* bad. It was livable, you know? And I banked almost $100k in that time. Do you know what it's like to be 23 years old and to have a fat bank account that you earned every penny of yourself? It's fucking wild, let me tell you. Of course, then I blew it all on a house and got married. But I didn't earn it to look at it, so whatever.

The shit thing to me is, I lived in voluntary poverty for a long time. At least, as long as I could stand it. Hunger, cold, and uncertainty are extremely powerful motivators to go to work every day.

And here's these welfare queens, and we give them a comfortable apartment with heat and a full kitchen, hot and cold running water, free food, free healthcare, free entertainment at the communicty center, library, a free playground for the kids...

Fuckin' A. A few years ago, I'd have considered that paradise. Put them up in some fucking FEMA trailers and let them be uncomfortable for a change. I guarantee it'll motivate them to better their position themselves. Guaran-fucking-teed.

Lot of truth to this.

Posted: 2/17/2012 8:26:08 AM EDT

[#3]

Lol. You could die any moment. What happens to all that money you saved while being borderline miserable?

Quoted:
Do you want to know the secret? Do you really?

Live uncomfortably.

Comfort costs money. The less comfort you can deal with, the more money you will have. Period. Now, "uncomfortably" to you might mean a tent in an OWS camp. It might mean a 500sqft apartment. It might mean a double-wide. But whatever your minimum threshold is, find it and live it. You will save a ton of money, guaranteed. It is the number one best way to save obcene amounts of cash.

I lived on a 300sqft steel houseboat with no heat for 2.5 years. In the ghetto in DC. It sucked more than you can possibly imagine, and, really, it wasn't all *that* bad. It was livable, you know? And I banked almost $100k in that time. Do you know what it's like to be 23 years old and to have a fat bank account that you earned every penny of yourself? It's fucking wild, let me tell you. Of course, then I blew it all on a house and got married. But I didn't earn it to look at it, so whatever.

The shit thing to me is, I lived in voluntary poverty for a long time. At least, as long as I could stand it. Hunger, cold, and uncertainty are extremely powerful motivators to go to work every day.

And here's these welfare queens, and we give them a comfortable apartment with heat and a full kitchen, hot and cold running water, free food, free healthcare, free entertainment at the communicty center, library, a free playground for the kids...
Fuckin' A. A few years ago, I'd have considered that paradise. Put them up in some fucking FEMA trailers and let them be uncomfortable for a change. I guarantee it'll motivate them to better their position themselves. Guaran-fucking-teed.

Posted: 2/17/2012 8:26:32 AM EDT

[#4]

The federal government takes more out of my paycheck than my mortgage, property tax, and homeowners insurance combined. Can I sell my government and rent a new one?

Posted: 2/17/2012 8:42:51 AM EDT

[#5]

Quoted:
I love my paid for home. Fuck renting.

This. I never want to rent.

Posted: 2/17/2012 8:49:09 AM EDT

[#6]

Quoted:
Lol. You could die any moment. What happens to all that money you saved while being borderline miserable?

Quoted:
Do you want to know the secret? Do you really?

Live uncomfortably.

Comfort costs money. The less comfort you can deal with, the more money you will have. Period. Now, "uncomfortably" to you might mean a tent in an OWS camp. It might mean a 500sqft apartment. It might mean a double-wide. But whatever your minimum threshold is, find it and live it. You will save a ton of money, guaranteed. It is the number one best way to save obcene amounts of cash.

I lived on a 300sqft steel houseboat with no heat for 2.5 years. In the ghetto in DC. It sucked more than you can possibly imagine, and, really, it wasn't all *that* bad. It was livable, you know? And I banked almost $100k in that time. Do you know what it's like to be 23 years old and to have a fat bank account that you earned every penny of yourself? It's fucking wild, let me tell you. Of course, then I blew it all on a house and got married. But I didn't earn it to look at it, so whatever.

The shit thing to me is, I lived in voluntary poverty for a long time. At least, as long as I could stand it. Hunger, cold, and uncertainty are extremely powerful motivators to go to work every day.

And here's these welfare queens, and we give them a comfortable apartment with heat and a full kitchen, hot and cold running water, free food, free healthcare, free entertainment at the communicty center, library, a free playground for the kids...
Fuckin' A. A few years ago, I'd have considered that paradise. Put them up in some fucking FEMA trailers and let them be uncomfortable for a change. I guarantee it'll motivate them to better their position themselves. Guaran-fucking-teed.

Money is the not purpose of life. Happiness is. Living is the purpose of life. I want to live as comfortably as I can afford, while also amassing wealth for security. I want it all, because that is living.

The secret isn't saving, it is improving your value, and learning to rake in increasingly large amounts of cash. The trick is to have fun doing it, then you'll never work a day in your life, and amass a fortune while enjoying the finer things in life.

There are plenty of points to fail in what I just described and most people find at least one of them. I used to find them all the time, but I have been slowly and steadily building a nice platform above that life.

ETA: I rent my current house, but rent OUT another house.

Renting is the most convenient and advantageous situation for me. Buying a house is NOT a good idea in this market unless you have seriously hardcore job security.

Posted: 2/17/2012 8:52:51 AM EDT

[#7]

Quoted:

Ask the renters who had to move out of their residences because the mortgage company foreclosed on the owner.

Exactly.

Not to mention everytime you lease is up it's entirely up to the Landlord whether to renew you or not. Plus, you're not exactly always in an equal bargaining position when drafting terms of a lease and the landlord can add things or change things in the lease with a "take it or leave it" attitude.

Lived in an apartment for five years. Paid my rent every month on time without fail. My landlord decided at one point we couldn't even have a gas propane grill and every year kept raising my rent $25.00 even though they couldn't fill half the apartments. I'm soooo glad we have a house now. No shitty neighbors sharing a wall or people taking my damn parking spot. I can gril 24/7 365 if I feel like it now.

Posted: 2/17/2012 8:55:49 AM EDT

[#8]

Quoted:

Rich Arzaga owns a luxury home in San Ramon, California

Yeh, I could see where that might be a problem, finance-wise...

Exactly. The article is as stupid as pointing out that buying a Ferrari is a "terrible investment" (because of the huge depreciation and maintenance costs), and then concluding that people would be better off renting cars from Hertz instead of owning a car.

The other thing that morons who claim this FORGET is that while we are working, we can afford the mortgage - and then when we are done working after 40 years, and our income drops considerably as we start living off our retirement savings and pensions, etc - we have PAID OFF the house, and can live in it for the rest of our lives with only maintenance costs and property taxes to worry about.

The people renting will still have to rent, even after they retire and their income drops. Then what?

Exactly. Plus, if you have a fixed interest rate unless your property value goes way up and property taxes go way up your house payment is going to be steady from year to year while you're paying off your mortgage. If you rent who knows what the new monthy rate will be when it comes time to renew your lease.

Our house payments actually went down, because the value of the homes in our area went down bringing their taxable value down.

Posted: 2/17/2012 9:00:07 AM EDT

[#9]

Quoted:
Can I sell my government and rent a new one?

Sorry, George Soros and Goldman Sachs already have a rent seeker living at their 1600 Pennsylvania Ave pad.

Posted: 2/17/2012 9:02:33 AM EDT

[#10]

I would rather own than rent. I rented before for a short period of time and it sucks relying on other people to get shit done for you.

Posted: 2/17/2012 9:05:35 AM EDT

[#11]

I'd have to agree. my gf's mom rents 1 houses and used the profit from those 2 rentals to make her mortgage payment now. ive debating renting my house out for the same thing, but the idea of packing/moving stops me.

Posted: 2/17/2012 9:08:55 AM EDT

[#12]

Quoted:

The reason is simple. While a home is the main repository of wealth for many Americans, it comes with numerous hefty expenses. The carrying costs - what's needed to hold and maintain the asset - range from property taxes and home insurance to emergency repairs and renovations. In a rental situation, the landlord covers those costs, leaving the occupant free to invest revenue in other areas.

That's stupid. All those costs are figured into the rent. The renter is paying all that and more.

The owner just has the burden of having the money for an unexpected costly repair.

The owner also has the burden of selling if they ever want to move. Renters don't.

As with most things in life, there is no one-size-fits-all answer.

Posted: 2/17/2012 9:13:11 AM EDT

[#13]

I rented while it made sense for me to do so, now it makes sense for me to own a home.

Renting would be far higher than my mortgage living in comparable property.

Posted: 2/17/2012 9:22:00 AM EDT

[#14]

The rent for the same size house around here is at least 25% more than mortgage + insurance + taxes

Posted: 2/17/2012 9:25:25 AM EDT

[#15]

As one person wrote, :too simplistic".

Had a relative. He worked through at least 85 years old. Worked downtown LA. In the depression, he saw housing prices crash, so he decided to rent and never own. He complained that the last place he lived in had gone from about $150 a month to $2000 a month in rent over the years. He mused that he should have bought a home.

One size fits all.
"Plastics".
Better to be debt free.
Buy low and sell high.
Buy for the long haul.
Be ready to bail out.
For a good job get a good education.
Stock up for Y2K.

and now - drum roll please . . . .

Better to rent than to buy.

It is amazing how many trite articles are written in the name of journalism.

Oh, and don't forget your umbrella, it is going to rain.

Posted: 2/17/2012 9:26:25 AM EDT

[#16]

http://www.carlaemery.com/frugal.htm
I lived in a rental fixer and traded work for rent until I got the cabin built on my own property.

Posted: 2/17/2012 9:31:31 AM EDT

[#17]

Quoted:

I could have already paid for half a house with the money I pissed away on rent.

Until recently I was stuck owning a home in an economically depressed area, unable to sell the house and unable to move closer to work. I spent thousands of dollars every year on gas and maintenance, and over the years it adds up to enough for more than a 10% downpayment on a really nice house near where I work.

Had I been renting, I would have just moved. And saved over $3000 and hundreds of hours of my life (commuting time) each year.

Posted: 2/17/2012 9:37:29 AM EDT

[#18]

I could probably afford to buy, but by buying I not only would have a higher monthly cost, but I would have all sorts of maintenance costs and property tax to pay as well. Because I don't spend my disposable income on these things, I am able to have a higher quality of living.

At a certain point, I will be able to afford both, but for right now, rent is the better option for me. Sure I could buy, (which over all is the better option) but what would be the point of buying if I am broke and miserable all the time?

Posted: 2/17/2012 10:08:17 AM EDT

[#19]

There are pluses and minuses to both. I had a lot more personal life when I rented, but I was rather self absorbed then. Now I have a wife, 4 kids, 2 dogs, and more cats than I care to count.

At the moment the bank owns my house, and I rent a lot for my camper. The lot rental is great - yard is always mowed, and the bath rooms are always clean. I guess for the same price I could pay people to do the same at home...

Posted: 2/17/2012 11:15:46 AM EDT

[#20]

Buying even a modest home where I live, the mortgage payment would be 2, 2.5 times what I'm paying in rent.

(And that's not including home owners insurance or property tax.)

Posted: 2/17/2012 11:28:55 AM EDT

[#21]

Sometimes owning a house is also not always about which is cheaper or more economically.

I have lived in Apts and duplexes most of my life and it is hit or miss when it comes to peace and quiet. If you have noisy neighbors in an apartment or duplex it can drive you crazy.

Most houses I have lived in did not have this problem. Yes there can be noisy neighbors when owning a house but I have found it to be less so.

And I am not really paying that much more than if I rented.

Posted: 2/17/2012 11:36:38 AM EDT

[#22]

Quoted:
I love my paid for home. Fuck renting.

Your still renting. Don't believe me, stop paying taxes.

Posted Via AR15.Com Mobile

Posted: 2/17/2012 11:37:08 AM EDT

[#23]

You're flushing your money down the toilet.

Renting:
Pay $950 a month and never see it again.

Owning:
Pay $1200 a month.
Get $100 in equity
Pay $1100 in interest
Pay for heat
Pay for property tax
Pay for insurance
Pay for repairs.

Wait, wut? Someone help me with this math.

Oh wait I got it:

Net worth after 30 years: $175,000 equity,

Renting Equity = zero, but your E*Trade account is at $450,000 beause of the money you put away.

Nope, still not getting the math.

Posted: 2/17/2012 11:38:04 AM EDT

[#24]

Quoted:
I love my paid for home. Fuck renting.

QFMFT

Posted: 2/17/2012 12:06:02 PM EDT

[#25]

Quoted:
You're flushing your money down the toilet.

Renting:
Pay $950 a month and never see it again.

Owning:
Pay $1200 a month.
Get $100 in equity
Pay $1100 in interest
Pay for heat
Pay for property tax
Pay for insurance
Pay for repairs.

Wait, wut? Someone help me with this math.

Oh wait I got it:

Net worth after 30 years: $175,000 equity,

Renting Equity = zero, but your E*Trade account is at $450,000 beause of the money you put away.

Nope, still not getting the math.

What sort of property are you comparing? How does a property owner stay out of the poor house if he's paying $1200 a month plus your heat, repairs, tax and insurance and only charging $950?

Posted: 2/17/2012 12:12:34 PM EDT

[#26]

I enjoy my tenants.

They cover all the costs of owning the house, and then some.

If I could only get someone to pay off a loan I used to purchase stock.

Posted: 2/17/2012 12:16:28 PM EDT

[#27]

They have it very, very wrong. It is better to be the guy who owns the house and is renting it out. Ask me how I know!

Posted: 2/17/2012 12:31:00 PM EDT

[#28]

Quoted:
I enjoy my tenants.

They cover all the costs of owning the house, and then some.

If I could only get someone to pay off a loan I used to purchase stock.

The only thing worse than being a renter is being a landlord.

No thanks.

I don't give a shit what it pays, that's not worth the headaches.

Posted: 2/17/2012 12:31:36 PM EDT

[#29]

Quoted:
I love my paid for home. Fuck renting.

Posted: 2/17/2012 12:37:39 PM EDT

[#30]

berkley wins again

Posted: 2/17/2012 12:39:25 PM EDT

[#31]

Quoted:

Living with in your means is the key no matter what you do.

Posted: 2/17/2012 12:49:03 PM EDT

[#32]

Not this shit again.

Examining 250 properties around the U.S., and going through close to 40 client files to project the financial impact of owning real estate
versus liquidating it, Arzaga, an adjunct professor in personal finance
at the University of California at Berkeley, found that, "100 percent
of the time it was better to rent, rather than own."

That's Right now, paying the mortgage + taxes + insurance, my house is half as much, per sqft, as my last apartment less than 2 miles away. And the house is MUCH nicer. When the mortgage is paid off, the monthly costs of taxes and insurance will make the house cost ONE QUARTER as much as the apartment, again, per sqft.

Saving 75% on my monthly housing expenses, every month from when the mortgage is paid off until the end of my life, sounds like a hell of an investment. My sunk cost to secure that investment was the cost of the house. My initial investment of ~$200,000 for the house and interest on the loan (I'm paying off at a very fast pace), will save me $1400 a month for the rest of my life.

That's an 8.4% return on investment per year.

Conclusion: that guy is a chump.

Posted: 2/17/2012 12:53:30 PM EDT

[#33]

Quoted:

Living with in your means is the key no matter what you do.

X100000. Yea, if I buy the biggest house I can possibly afford and get laid off then i'm fucked. If I buy a house that I can much more easily afford and pay it off quickly, then even if my job situation goes south, I won't be homeless.

Posted: 2/17/2012 12:55:42 PM EDT

[#34]

Quoted:
I could probably afford to buy, but by buying I not only would have a higher monthly cost, but I would have all sorts of maintenance costs and property tax to pay as well. Because I don't spend my disposable income on these things, I am able to have a higher quality of living.

At a certain point, I will be able to afford both, but for right now, rent is the better option for me. Sure I could buy, (which over all is the better option) but what would be the point of buying if I am broke and miserable all the time?

You do realize YOU are the one paying the owners taxes and maintenance costs with your rent money right?

Posted: 2/17/2012 1:03:48 PM EDT

[#35]

Neighborhood gets shitty, I can pick up and move.

Taxes get outrageous, I'm not stuck with a house I can't sell.

Any reason I want, I'm gone.
Anchors suck.

Posted: 2/17/2012 1:04:38 PM EDT

[#36]

I say the guy is a dick.

Notice he was talking pre-bubble and post-bubble. Well, all righty then... Not everywhere had a bubble CA boy. Where I lived we had a slow but steady increase in home values. It never had a bubble and it never burst.

I moved and made some money recently. Not a ton but I did OK. My place before that was a cheap condo that tripped in value in the time i lived there. That money helped me buy my next house.

I moved to a place that had a huge bubble and the bubble burst. I picked up a crazy, house that was super cheap. No way I lose money on my new house. I like where I live and couldn't rent a place I like better. I could sell my house now and make 30% after 5 months.

Not everything is dollars and cents. Sometimes you buy something because you want it.

Posted: 2/17/2012 1:05:44 PM EDT

[#37]

Quoted:

Rich Arzaga owns a luxury home in San Ramon, California

Yeh, I could see where that might be a problem, finance-wise...

Exactly. The article is as stupid as pointing out that buying a Ferrari is a "terrible investment" (because of the huge depreciation and maintenance costs), and then concluding that people would be better off renting cars from Hertz instead of owning a car.

The other thing that morons who claim this FORGET is that while we are working, we can afford the mortgage - and then when we are done working after 40 years, and our income drops considerably as we start living off our retirement savings and pensions, etc - we have PAID OFF the house, and can live in it for the rest of our lives with only maintenance costs and property taxes to worry about.

The people renting will still have to rent, even after they retire and their income drops. Then what?

Posted: 2/17/2012 1:07:28 PM EDT

[#38]

Quoted:

Here's another thing - Your mortgage payment says the same, it doesn adjust for inflation. But rent does.

My rent hasn't increased one penny in over ten years.

Posted: 2/17/2012 1:09:55 PM EDT

[#39]

My mortgage is 50% of what a comparable house rents for. Even when you factor in the $500/year I pay for a home warrantee, that paid for itself 10 times over in the two years after we bought the the house.

Then there are the deductions, which actually result in our refund being more than a year's worth of mortgage payments.

Utilities are a wash, since no one in this area includes them.

And if we wanted to move tomorrow we could, since the market for rentals is strong.

I don't see the problem with home ownership.

Posted: 2/17/2012 1:13:22 PM EDT

[#40]

Quoted:

Quoted:

Here's another thing - Your mortgage payment says the same, it doesn adjust for inflation. But rent does.

My rent hasn't increased one penny in over ten years.

You are an exception to the rule , for sure .

Renting for 25 + years in 5 different states , I cant remember anywhere that didnt go up after a couple years .

The only thing I worry about going up now is my property tax , and $800 a year now is much better than $800 a month for some shit-hole I'll never own .

Posted: 2/17/2012 1:14:14 PM EDT

[#41]

I don't know many rich people who don't own property.

Posted: 2/17/2012 1:20:46 PM EDT

[#42]

I currently rent an apartment and I'll be looking to buy a house some time this year.

I rented a house for a couple of years, and I hate being back in an apartment. This time it makes more sense to buy.

Posted: 2/17/2012 1:31:15 PM EDT

[#43]

Quoted:

Quoted:

I could probably afford to buy, but by buying I not only would have a higher monthly cost, but I would have all sorts of maintenance costs and property tax to pay as well. Because I don't spend my disposable income on these things, I am able to have a higher quality of living.

At a certain point, I will be able to afford both, but for right now, rent is the better option for me. Sure I could buy, (which over all is the better option) but what would be the point of buying if I am broke and miserable all the time?

You do realize YOU are the one paying the owners taxes and maintenance costs with your rent money right?

You do realize that the owners taxes and maintenance costs are often lower than paying a mortgage? Some landlords like at apartment complexes own the land that it's on.

Posted: 2/17/2012 1:41:42 PM EDT

[#44]

Quoted:
You're flushing your money down the toilet.

Renting:
Pay $950 a month and never see it again.

Owning:
Pay $1200 a month.
Get $100 in equity
Pay $1100 in interest
Pay for heat
Pay for property tax
Pay for insurance
Pay for repairs.

Wait, wut? Someone help me with this math.

Oh wait I got it:

Net worth after 30 years: $175,000 equity,

Renting Equity = zero, but your E*Trade account is at $450,000 beause of the money you put away.

Nope, still not getting the math.

What apartment provides free electrical power, gas, and insurance? I lived in a a dozen apartments in six states and three countries and never had that deal!

Don't know how fucked up your credit would have to be to pay more for a home than an apartment.

Here you can rent a three bedroom apartment with a two car garage for $1200 or a four bedroom three car garage for $1600.

The mortgage on my four bedroom three car garage home is $1125 with principle, interest, taxes, and all fees. I put in another $475 meaning my 30 year mortgage will be paid off in 13 years. I have about $150,000 in equity today. I certainly don't miss the 15 years I lived in apartments one little tiny bit.

Posted: 2/17/2012 1:43:01 PM EDT

[#45]

Quoted:

You do realize that the owners taxes and maintenance costs are often lower than paying a mortgage? Some landlords like at apartment complexes own the land that it's on.

And a 2700 square foot home on 12,000 square feet of property isn't a 1400 square foot apartment?

Posted: 2/17/2012 1:46:57 PM EDT

[#46]

Quoted:
I dunno, maybe if you're older I could see owning being a viable option, but for me, right now, there's no way I'd want to own a house and be tied down like that. For one, my job is out of town, so I'm gone two or three days a week. Second, even when I'm off work, I'm only home to sleep, cook, or surf Arfcom. Otherwise, I'm outside doing stuff. Or I'm camping, which is even less time home. Why buy a house if you're never there? Why tie yourself down to one location? I'm pretty happy where I'm at right now, but if I ever wanted to go somewhere else, I'd just give my landlord a couple, three months notice, pack my shit, and be gone. Having that freedom and latitude is worth it for me.

Some people dont get that. Hell, I live in nice condo that I pay 1/2 of what the owners pay(not including maint fees)don't have to worry about insurance. If I have to move for a job, no problem. It's nice.

Posted: 2/17/2012 1:49:15 PM EDT

[#47]

It's cheaper to buy than rent here in Minot, ND. The oil boom/flood has made rent skyrocket. The same apartment I rented in 2003 for $420/mo almost doubled in price and is now owned by section 8.

It's hard to find a decent place to rent for less than $1300/mo. My house payment was $927/mo for a double lot, 1500 sq ft and a HUGE detached, double garage.

Posted: 2/17/2012 2:00:27 PM EDT

[#48]

Quoted:

You're flushing your money down the toilet.

Renting:

Pay $950 a month and never see it again.

Owning:

Pay $1200 a month.

Get $100 in equity

Pay $1100 in interest

Pay for heat

Pay for property tax

Pay for insurance

Pay for repairs.

Wait, wut? Someone help me with this math.

Oh wait I got it:

Net worth after 30 years: $175,000 equity,

Renting Equity = zero, but your E*Trade account is at $450,000 beause of the money you put away.

Nope, still not getting the math.

Your math is terrible

The wife and I just bought a house. Prior to that we lived in an apartment.

We paid ~$800/mo in rent, plus about $200-$250 in utilities all said and done (electric is expensive in TX)

We now pay ~$1080 for mortgage (including HOA + property tax), and just about the same or slightly more for utilities (although summer will probably see a big jump)

So figure about $250 a month difference in direct costs for buying the house.

Now you get all sorts of long-term responsibilities with a house that you don't with an apartment roof/fence/etc, but I also get tax benefits and a few other things.

Additionally, if we were to rent a house like the one we bought, we would pay ~$1500/mo to rent, plus the same utilities.

HOWEVER, for us the house is not a financial investment, it is an investment in our happiness and in the family we are planning to have. I enjoy the freedom to work on my car in the driveway, to grill on the back porch, work on stuff in the garage, etc. I don't have to listen to the neighbors loud indian music through the paper thin walls, or the loud kids running up and down the stairs. Nor do I have to carry the groceries up three flights of stairs. I have room for a beer fridge. I have a man cave. My wife is excited to decorate a nursery when we have kids.

And so forth and so on. People who consider their home an investment for financial reasons are probably fools. We could probably save up more money if we stayed in our small apartment, but whats the point of making money if all it is is watching numbers go up. I can't take any of it with me when I kick the bucket, so as long as we are financially secure, I will spend it in the pursuit of happiness.

Posted: 2/17/2012 2:09:21 PM EDT

[#49]

Quoted:

The reason is simple. While a home is the main repository of wealth for many Americans, it comes with numerous hefty expenses. The carrying costs - what's needed to hold and maintain the asset - range from property taxes and home insurance to emergency repairs and renovations. In a rental situation, the landlord covers those costs, leaving the occupant free to invest revenue in other areas.

That's stupid. All those costs are figured into the rent. The renter is paying all that and more.

The owner just has the burden of having the money for an unexpected costly repair.

Yup; before I paid off my home, I think my mortgage, insurance, and property taxes came out to about $1k per month. The family renting the house next door to me pays $1300-$1400mo, who's coming out better? Sure, I'll have to replace the roof someday, appliances go bad, etc. but this place is mine (as long as I pay the taxes).

Renting makes good sense if you move ever so often, want a nice place and cannot afford the down payment, or like living in a condo (I would never own a condo, fuck that).

I will say that in some areas, can make really good sense. There are, or were, plenty of condos around here that were empty or were not selling at all, the owners were taking a bath and it was at least something to get a renter in there even if it didn't cover all the bills. I had a friend living in a 3bd 3bth, nice ass modern condo on the water for $750 a month... It was a DEAL!

Posted: 2/17/2012 2:11:29 PM EDT

[#50]

Quoted:
Let's just presume that everyone rents because it is better for them financially. Who would own all the houses that everyone rents?

same one who owns them now banks

[ARCHIVED THREAD] - Better to rent "100 percent of the time." (Page 2 of 3)

General » General Discussion

Warning

Confirm Action

About AR15.COM

Stay Connected

Newsletter

Contact Us