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Posted: 2/17/2012 5:45:17 AM EDT
[#1]
Ask the renters who had to move out of their residences because the mortgage company foreclosed on the owner. |
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Posted: 2/17/2012 5:45:50 AM EDT
[#2]
Living with in your means is the key no matter what you do.
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Posted: 2/17/2012 5:46:18 AM EDT
[#3]
I love my paid for home. Fuck renting.
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Posted: 2/17/2012 5:46:32 AM EDT
[#4]
lol
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Posted: 2/17/2012 5:46:54 AM EDT
[#5]
Quoted:
Living with in your means is the key no matter what you do. This...but I don't agree with the always better to rent thing. In my instance it has been best to rent for the better part of my life. However now, it makes no financial sense and it is better for me to own. |
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Posted: 2/17/2012 5:47:35 AM EDT
[#6]
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. |
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Posted: 2/17/2012 5:48:14 AM EDT
[#7]
Let's just presume that everyone rents because it is better for them financially. Who would own all the houses that everyone rents?
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Posted: 2/17/2012 5:48:56 AM EDT
[#8]
In some areas, rent is much higher than owning, and in some areas it's the oposite.
In my town I can buy a decent single family home in a working class area for $40k and rent it out for $750/mo. The mortgage will be around $350. |
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Posted: 2/17/2012 5:49:06 AM EDT
[#9]
Quoted:
Living with in your means is the key no matter what you do. This. But I hate renting. I will sell my soul to pay for my property |
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Posted: 2/17/2012 5:50:22 AM EDT
[#10]
Depends on the cost, but maybe I'm willing to pay more to own.
I like to do whatever I want to my property. I like to make home improvements. I don't want to have to answer to a landlord that "owns" the space I live in. The bank may own my mortgage, but they can't say a damn thing about what I do to my property or on my property. |
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Posted: 2/17/2012 5:51:17 AM EDT
[#11]
A simple question would be if it is better 100% of the time how are people making a living owning rent houses?
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Posted: 2/17/2012 5:51:25 AM EDT
[#12]
Quoted:
I love my paid for home. Fuck renting. I lived in apartments until age 41 because I lived as a gypsy. Ten years ago this month I bought my home ... and have never been so happy. I'll own it out-right in three more years ... and then I'll stay here mortgage and rent free. My mortgage is $800 - $1150 with taxes, insurance, and fees. The homes on either side of me rent for $1600 and $1650. |
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Posted: 2/17/2012 5:52:26 AM EDT
[#13]
To rent a house equivalent to the one I purchased, my rent would be about 25% more than my mortgage, insurance and taxes. Forever. My mortgage only lasts for 15 years.
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Posted: 2/17/2012 5:52:41 AM EDT
[#14]
Quoted: Let's just presume that everyone rents because it is better for them financially. Who would own all the houses that everyone rents? The guys pimping financial advice and saying renting is the way to go.  |
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Posted: 2/17/2012 5:52:44 AM EDT
[#15]
I could have already paid for half a house with the money I pissed away on rent.
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Posted: 2/17/2012 5:54:31 AM EDT
[#16]
I will never go back to renting again, but we have a condo and a house and when we get older the house will go and we'll keep the condo.
Zero maintenance concerns, gated, pool, tennis, etc.... Own it like a regular home, little worry like an apartment. |
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Posted: 2/17/2012 5:55:47 AM EDT
[#17]
It's probably correct that at the moment in most markets it's financially better to rent, but that's due to the glut of housing on the market and all the effort that's gone into keeping housing prices from correcting.
In my area there are significant tax advantages for primary residences, the rental market here is about 50% more than you'd pay to own the same house. You'd be nuts to rent here for more than two years. It does help keep the riffraff out. |
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Posted: 2/17/2012 5:56:28 AM EDT
[#18]
Quoted:
Let's just presume that everyone rents because it is better for them financially. Who would own all the houses that everyone rents? uhmmm...the man.... |
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Posted: 2/17/2012 5:58:24 AM EDT
[#19]
Quoted:
Depends on the cost, but maybe I'm willing to pay more to own. I like to do whatever I want to my property. I like to make home improvements. I don't want to have to answer to a landlord that "owns" the space I live in. The bank may own my mortgage, but they can't say a damn thing about what I do to my property or on my property. Actually, depending on the "home improvement" the bank can have say. 
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Posted: 2/17/2012 5:59:01 AM EDT
[#20]
He put 500K in upgrades in it but doesn't own it. Pure Genius.  |
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Posted: 2/17/2012 5:59:58 AM EDT
[#21]
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.
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Posted: 2/17/2012 6:00:35 AM EDT
[#22]
"In a rental situation, the landlord covers those costs, leaving the occupant free to invest revenue in other areas."
So every one of my 401ks, IRA, 403bs, kids 529c that has been created between Jan 2001 and Dec 31, 2011 is in the red. For a time they made money but for the course of they have all lost money. Every single one. So what can someone invest in gold? |
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Posted: 2/17/2012 6:00:35 AM EDT
[#23]
Thats a slave mentality
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Posted: 2/17/2012 6:02:14 AM EDT
[#24]
Quoted: It's probably correct that at the moment in most markets it's financially better to rent, but that's due to the glut of housing on the market and all the effort that's gone into keeping housing prices from correcting. In my area there are significant tax advantages for primary residences, the rental market here is about 50% more than you'd pay to own the same house. You'd be nuts to rent here for more than two years. It does help keep the riffraff out. I agree in a lot of markets. The primary argument for buying was your payments was building equity. With home values dropping over the last few years, if you were the sucker responsible person that put 20% down payment, you most likely saw most of that disappear as well. If it flies, floats or fucks, its always better to rent. Just ask Paul McCarthy. |
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Posted: 2/17/2012 6:06:00 AM EDT
[#25]
Don't let your yearnings get ahead of your earnings.
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Posted: 2/17/2012 6:07:04 AM EDT
[#26]
Quoted: I love my paid for home. Fuck renting. Yep. |
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Posted: 2/17/2012 6:07:14 AM EDT
[#27]
If EVERYBODY sold their homes and opted to rent...
Wait a minute.  |
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Posted: 2/17/2012 6:10:38 AM EDT
[#28]
Nothing is ever that absolute.
(from someone who owns a home, but wishes i was renting) i'll buy again- i'll just be a LOT more careful with the $$$.
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Posted: 2/17/2012 6:14:37 AM EDT
[#29]
Quoted:
Quoted:
I love my paid for home. Fuck renting. I lived in apartments until age 41 because I lived as a gypsy. Ten years ago this month I bought my home ... and have never been so happy. I'll own it out-right in three more years ... and then I'll stay here mortgage and rent free. My mortgage is $800 - $1150 with taxes, insurance, and fees. The homes on either side of me rent for $1600 and $1650. this, my friend is renting out one of his houses for $1200 utilities not included, my mortgage on a slightly nicer house is $715 including our outrageous property taxes |
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Posted: 2/17/2012 6:21:11 AM EDT
[#30]
Quoted:
He put 500K in upgrades in it but doesn't own it. Pure Genius.
Pure genius? The first two lines of the article... "Rich Arzaga owns a luxury home in San Ramon, California, but he's not betting on it as an investment.
The founder and CEO of Cornerstone Wealth Management, who bought the 5,000 sq. ft. property in 2005 for $1.8 million and has spent $500,000 improving it, considers the abode a wonderful place for his family." |
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Posted: 2/17/2012 6:25:59 AM EDT
[#31]
I could buy the house I'm renting... but the mortgage and property taxes would be double what I'm paying for rent.
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Posted: 2/17/2012 6:28:20 AM EDT
[#32]
I think the reality lies somewhere between what this guy is saying and the conventional ARFCOM theory on home ownership. Sometimes it's better to rent, sometimes it's better to own. Depends on the market and one's life situation. I think one thing this guy does highlight that is a common problem is people blowing their entire life savings on buying a home. One shouldn't exchange having an emergency fund for owning a home.
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Posted: 2/17/2012 6:28:21 AM EDT
[#33]
Rent is a waste money until you move around every year. I have never failed to make at least a small profit on a home sale, usually more than that. My house payment is less than rentals in my area because of accumulated equity. Acumen is important, if you don't have that, maybe you are a lifelong renter. |
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Posted: 2/17/2012 6:29:02 AM EDT
[#34]
A lot of times the cost is being spread out among many renters though.
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. |
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Posted: 2/17/2012 6:30:19 AM EDT
[#35]
Rich Arzaga owns a luxury home in San Ramon, California
Yeh, I could see where that might be a problem, finance-wise... |
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Posted: 2/17/2012 6:31:22 AM EDT
[#36]
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. |
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Posted: 2/17/2012 6:35:21 AM EDT
[#37]
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. At certain periods in my life I was in your boat. Later it made more sense to own. In the future, after I retire I may wish we were renting again as it's a bitch to sell a house in this area. I think my wife would like to relocate closer to or on the coast and the real estate market is going to have to bounce back before that's an option. In the meantime our house is paid for and our property tax is $720 a year. Of course, the new roof was 12k, the new gutters a thou........ 
There's a guy here who got a promotion that required him to move to Montgomery. Can't get rid of his house here so he lives in an apartment and comes home on the weekends.
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Posted: 2/17/2012 6:36:14 AM EDT
[#38]
Quoted:
Let's just presume that everyone rents because it is better for them financially. Who would own all the houses that everyone rents? Housing authorities set up by the Kremlin. |
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Posted: 2/17/2012 6:38:44 AM EDT
[#39]
I wonder how all those landlords make any money with all those expenses?
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Posted: 2/17/2012 6:41:42 AM EDT
[#40]
"Better to rent" yes I agree, that is my sig line after all.
Oh wait you're talking about homes, my bad. 
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Posted: 2/17/2012 6:41:56 AM EDT
[#41]
It's my considered opinion Yahoo news links are full of leftist bat shit. Fuck Yahoo News and the Bolsheviks at Reuters.
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Posted: 2/17/2012 6:42:07 AM EDT
[#42]
Job market being what it is, and the housing market being what IT is.....renting is probably smarter at the moment.
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Posted: 2/17/2012 6:58:38 AM EDT
[#43]
Quoted: Job market being what it is, and the housing market being what IT is.....renting is probably smarter at the moment. That may be true for a young person or couple just starting out. For a middle-aged divorced empty-nester with six years until his house is paid off (like me) it would make no sense at all unless I really wanted to rent, which I don't. Not having a landlord and not having to worry about the possibility of getting a 30-day eviction notice at any time both provide a lot of peace of mind. |
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Posted: 2/17/2012 7:13:22 AM EDT
[#44]
Rent around here is roughly 150 per month more than my mortgage payment. Fuck renting.
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Posted: 2/17/2012 7:17:19 AM EDT
[#45]
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? |
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Posted: 2/17/2012 7:19:56 AM EDT
[#46]
Quoted:
Quoted:
Job market being what it is, and the housing market being what IT is.....renting is probably smarter at the moment. That may be true for a young person or couple just starting out. For a middle-aged divorced empty-nester with six years until his house is paid off (like me) it would make no sense at all unless I really wanted to rent, which I don't. Not having a landlord and not having to worry about the possibility of getting a 30-day eviction notice at any time both provide a lot of peace of mind. I hear a lot of sob stories about not being able to find a job, and not being able to sell the house to move for a job. THAT scares me more. And for the record, rent around here is much higher than a mortgage on a comparable property. |
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Posted: 2/17/2012 7:22:30 AM EDT
[#47]
I bet you could find an "expert" and a "study" to support just about any opinion imaginable.
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Posted: 2/17/2012 7:30:59 AM EDT
[#48]
Quoted:
A simple question would be if it is better 100% of the time how are people making a living owning rent houses? Exactly. The real answer is that the rent vs. own formula always oscillates around neutral. The two balance each other out naturally as humans are rational beings as a whole even if only subconsciously. When buying a home is the better deal, more people gravitate towards buying which raises prices to the point that it's not. When renting is the better deal, more people gravitate towards renting which raises rents to the point that it's not. It's always going to be a constant tug of war just like any other market. That said, I'd expect that with debt and housing prices as depressed levels and more people renting than before, we are either at or getting to the point where ownership makes more sense. If I sold my house today, the mortgage payment of the would be buyer would be about $1200 including taxes whereas the rent for my house in my local market would easily be $1600 at the bare minimum. Does the $400 per month ($4,800) per year cover upkeep? Yeah, I'd say so. In reality, houses my size are listed for rent in the $2000+ range so I'm being super conservative. Owning makes more sense in my neighborhood today. |
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Posted: 2/17/2012 7:49:29 AM EDT
[#49]
Quoted:
I love my paid for home. Fuck renting. This +1 
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Posted: 2/17/2012 7:51:40 AM EDT
[#50]
Rich Arzaga owns a luxury home in San Ramon, California, but he's not betting on it as an investment.
The founder and CEO of Cornerstone Wealth Management, who bought the 5,000 sq. ft. property in 2005 for $1.8 million and has spent $500,000 improving it, Owning a dream home, he says, creates a drain on other financial priorities, causing homeowners "not to meet their financial goal.
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