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The problem with rent is that it is renegotiated frequently. Rent can be raised annually, or in some cases even more often. A house payment is set on the sale date, assuming you don't get suckered into an ARM. It may cost you more than rent, and typically is does, but rising rents will pass you by until your mortgage looks like an incredible bargain.
Funny how everything is cured in a positive way for owners and a negative way for renters.
When I was younger (before the sky high interest rates) I rented with a roommate. If I had it to do over again I would buy and rent a room to a roommate. I was fortunate to have 2 good roommates I would have even gone together and bought then bought them out or let them buy me out.
When I was younger (before the sky high interest rates) I rented with a roommate. If I had it to do over again I would buy and rent a room to a roommate. I was fortunate to have 2 good roommates I would have even gone together and bought then bought them out or let them buy me out.
Ah but many of us can't buy and thus never get to be the decider.
Certainly if I had a choice I would buy and rent out rooms. World of difference between being the decider and the decidee or the rent collector and the rent collectee.
Ah but many of us can't buy and thus never get to be the decider.
Certainly if I had a choice I would buy and rent out rooms. World of difference between being the decider and the decidee or the rent collector and the rent collectee.
Why don't you partner with someone and purchase a rental together? Besides your rent payment, what else could you offer a partner? Are you handy with home repairs? Would you screen tenants and collect rents?
There is no fixed value for real estate, though construction costs put a price floor under new structures. Generally, "The more you pay the more it's worth." Sale price sets the appraisal price, not the other way around. It's not uncommon to find assets that are undervalued. Part of the trick of home ownership within a budget is identifying when a home is priced too low.
The problem with rent is that it is renegotiated frequently. Rent can be raised annually, or in some cases even more often. A house payment is set on the sale date, assuming you don't get suckered into an ARM. It may cost you more than rent, and typically is does, but rising rents will pass you by until your mortgage looks like an incredible bargain.
You also have the option of fixing the place to match your needs and desires. We all trade money for lifestyle, and home ownership is, in some ways, more flexible than renting a place that belongs to somebody else. In other ways, it's much less flexible. If you are a gypsy, buy a caravan.
By the time that rent payment caught up, if the house is sufficiently expensive, the renter's investment portfolio, if he/she invested the excess cash flow aggressively, might be worth so much and be throwing off so much income that the owner will never, ever catch up.
In places like San Francisco, this appears very likely the case right now.
There is simply no substitute for running the numbers.
Originally Posted by petch751 View Post
What, you want someone to hold your hand? Do like they do, do the research, the math and use common sense.
Quote:
Originally Posted by SportyandMisty
For some people it is ever so much fun to be an internet troll.
wow, who would have thunk that telling people to do the research, the math and use common sense would be considered a troll.
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