U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-25-2018, 03:06 PM
 
Location: Aurora Denveralis
2,978 posts, read 1,012,279 times
Reputation: 3796

Advertisements

Quote:
Originally Posted by Threestep View Post
All I can say is "dream on".
Unless you own your house outright - the bank owns it. You are making payments
Unimpaired use of the property within federal, state, municipal and HOA laws/rules/covenants
Indefinite use of property - please see "bank"
Choosing who else lives with me - see unimpaired use
Raise the rent - I do not recall when our real estate taxes did not go up in TX/OK
Kick me out - google 'eminent domain'
And asteroids. Don't forget asteroids. One could hit "your" house any time.

Reply With Quote Quick reply to this message

 
Old 01-25-2018, 03:25 PM
 
Location: The North
4,962 posts, read 8,675,201 times
Reputation: 3831
And no one seems to mention that income in Vancouver and Toronto is actually not that high. Median household income in Vancouver and Toronto are just under $70,000 (CAD). Of course a lot of money spent on real estate in these markets is not earned in these areas, or Canada for that matter, and its completely skewed the housing and rental markets.
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 04:20 PM
 
8,504 posts, read 2,387,119 times
Reputation: 8123
Quote:
Originally Posted by saibot View Post
The question is, why would you put so much money into buying two expensive rentals for which the rental income was no more than the mortgage payment? What was the point? There has to be more to this story as no sensible person would do such thing.
Depreciation.
Deduction of massive amounts of other costs.

Example: Your mansion needs a new roof. $50K
Your rental property is fine.
You ask Joe Roofer to bill the roof to the rental property.

How about this one? You collect rent in cash and lose even more........

Dang, with Trump for POTUS you'd think this stuff would be common knowledge. Real Estate investment is generally not for the honorable who can face themselves in the mirror each morning. It's for those people who think the idea of the tax code is to see what you can get away with......

No, the IRS is unlikely to ever look at your roof.
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 04:29 PM
 
1,789 posts, read 1,345,713 times
Reputation: 3655
Quote:
Originally Posted by freemkt View Post
Home ownership is the escape velocity required to escape rent inflation. It is the stabilization of housing costs and the capture of future value appreciation.

Try doing THAT with rent.

Renters pay for new roofs as well, PLUS a premium for profit.
I think you don't have a good grasp on what it really costs to own a home and what inflation does to your supposed escape velocity.

Do rent prices increase? sure they do. Its called inflation, and home owners get to experience the same rate of decay on their home appreciation.

There is no long term gain on owning a home for the majority of people in this country. By the time you account for inflation, repairs, taxes and insurance costs you are already probably not breaking even. That doesn't even include paying the bank enough interest to pay for a second house. Add all that up and your escape velocity turns into a crash landing.

Sure, on paper, you would think renters have to pay all that too plus profit for the landlord. Thats not the way it works in the real world and its easy to see you have never owned a couple rentals. For most its about cash flow. They don't pay as much on a mortgage because they put more down. Their insurance is cheaper. They get tax breaks you don't get. They don't need to charge what it would cost the average homeowner to own the same home because they get + cash flow sooner.

Renting is about leverage, tax breaks, cheap repairs and praying your picked the right tenants.

Owning a home purely a lifestyle choice for most.
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 04:30 PM
 
Location: Aurora Denveralis
2,978 posts, read 1,012,279 times
Reputation: 3796
Quote:
Originally Posted by craigiri View Post
You ask Joe Roofer to bill the roof to the rental property.

How about this one? You collect rent in cash and lose even more........
You mean... there's ways to use deceptive, unethical and illegal accounting dodges to make more money, some involving real estate, even rentals? Wow. That's a game changer.
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 04:54 PM
 
11,694 posts, read 16,437,401 times
Reputation: 16335
Quote:
Originally Posted by Quietude View Post
And asteroids. Don't forget asteroids. One could hit "your" house any time.

Be charming - we lost more than one roof in hail or hurricane
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 05:01 PM
 
Location: Aurora Denveralis
2,978 posts, read 1,012,279 times
Reputation: 3796
Quote:
Originally Posted by justanokie View Post
Owning a home purely a lifestyle choice for most.
What family/economic decision isn't?
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 05:03 PM
 
Location: Aurora Denveralis
2,978 posts, read 1,012,279 times
Reputation: 3796
Quote:
Originally Posted by Threestep View Post
Be charming - we lost more than one roof in hail or hurricane
Hail is a big issue here - there are multiple "hail dent repair" places in the automotive strips. And my #2 choice of house had a vast wall of vinyl siding that looked as if it had been attacked by woodpeckers, buckshot or... I dunno, maybe meteorites.
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 05:24 PM
 
4,718 posts, read 2,251,841 times
Reputation: 8709
Quote:
Originally Posted by Threestep View Post
All I can say is "dream on".
freemkt has never owned a home, so when he talks endlessly about the benefits of home ownership he is doing exactly as you recommend while determinedly disregarding any information provided by actual homeowners that is contrary to the unicorns ****ting chocolate fantasies.
Reply With Quote Quick reply to this message
 
Old 01-25-2018, 05:33 PM
 
Location: Aurora Denveralis
2,978 posts, read 1,012,279 times
Reputation: 3796
Quote:
Originally Posted by lieqiang View Post
freemkt has never owned a home, so when he talks endlessly about the benefits of home ownership he is doing exactly as you recommend while determinedly disregarding any information provided by actual homeowners that is contrary to the unicorns ****ting chocolate fantasies.
I've owned four, three outright. Wanna pet my unicorn?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top