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Renters pay more, because they pay a premium for temporary, impaired use of property, and in the end, have nothing to show for their greater expenditure.
Then work hard, save money, and buy a house. First of all, you need to move out of your parents' house and probably rent for awhile though - like most people. Then you will truly appreciate the joys (and challenges) of home ownership.
Many people complain about high rents and greedy landlords but they could move elsewhere and own .
They are paying for a service use of someone else’s property for a certain period of time .
Landlords aren’t forcing people to rent their places .
Right.
Hey, if you have mediocre credit, you pay a higher interest rate.
If you buy milk at a convenience store, you pay more than if you buy it at WalMart.
If you are in your probationary period at work, you don't get a raise till you've proven your worth and are past that probationary period.
If you can't afford to buy a home, you rent a place.
Life. It sucks to be young and poor but one day you realize you're no longer young - and no longer poor - if you do the right thing, work hard, and make sacrifices while you've got more flexibility. Generally speaking, it works. There are exceptions at both ends of the spectrum but this is good general advice.
Why rent? Maybe because a 20% downpayment is out of reach for most renters
If your credit is good enough, you don't have to put down 20 percent to get a good interest rate.
You can go FHA. You can get a VA loan if you're a veteran. You can get a great interest rate with just a few thousand down if you have excellent credit.
Some people have credit issues they cannot resolve and their down payment is irrelevant.
The vast majority of credit problems can eventually be resolved. My credit sucked after I went through a divorce. I even had a judgment against me. Within three years I had managed to clean it all up - completely on my own. Now my credit score is about 830. But it took time, hard work, and sacrifice to get it cleaned up.
A 3.5% down payment on a $400,000 house is $14,000. That is still unattainable by large number of renters
The only no down loans are for for Veterans and USDA loans for rural and suburban areas. The USDA loans while being zero down require a 1-3.5 non refundable fee to be paid up front, and .35% - .50% annual fees. And there is a maximum loan amount, for 2018 in Los Angeles and Orange Counties, the loan limit was $198, 441 . It might be hard to find an empty lot for under $200,000 in either county, dontcha think?
There's no such thing as a free lunch jm and many renters struggle to make it from month to month and pay for car repairs and their kids orthodontist bills, home ownership for them is something to dream about but it's not something that will happen any time soon.
Then don't buy a $400,000 home. Heck my husband and I qualify for about a $600,000 home but guess what we bought? Now it was a deal, and we have put $100k into it over four years, but we bought a house for $193,000. Yes, our realtor was shocked (and probably dismayed) but now it's worth about $300,000. We could STILL sell it and go buy a house for $600k but why?
Homeownership IS a goal - it's not a given and it's not something that becomes possible overnight or even in a few years. I was 30 years old when I bought my first house - and it was 1300 square feet. I thought it was FABULOUS. It was small, and I was paying 7 percent interest which was actually a pretty good rate at that time believe it or not - a few years earlier interest rates had been up around 15 percent.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by mysticaltyger
He is actually correct about the NIMBY issue in many areas, especially on the coasts. At the same time, it is what it is. Making 33,000 posts about it on CD will not make it better.
But I think he thinks when he gets to 35,000 posts he will reach critical mass and all the ways of the world will change in his favor
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by Cloudy Dayz
Obviously if they had the money, they wouldn't be renting to begin with.
Not really. I have rentals I bought for 30 k. I have tenants paying me $1,000 a month to rent them.
With those kind of numbers I would get a minimum wage job and work as many hours as needed to buy a place for that amount rather than pay thAt much rent.
I have no idea what their mindset is.
Not really. I have rentals I bought for 30 k. I have tenants paying me $1,000 a month to rent them.
With those kind of numbers I would get a minimum wage job and work as many hours as needed to buy a place for that amount rather than pay thAt much rent.
I have no idea what their mindset is.
57% of Americans have less than $1,000 of savings. That wouldn't be enough to buy a $5,000 house. Obviously you have never worked for minimum wage. It's not that easy, especially when you are spending $1,000 a month for rent. There are not enough hours in week to earn enough at minimum wage to buy a $30,000 house.
57% of Americans have less than $1,000 of savings. That wouldn't be enough to buy a $5,000 house. Obviously you have never worked for minimum wage. It's not that easy, especially when you are spending $1,000 a month for rent. There are not enough hours in week to earn enough at minimum wage to buy a $30,000 house.
No one who is only qualified to make minimum wage has any business buying a house. Sorry, but that's just the truth. That was part of the whole housing crisis a few years ago - loans were extended to people who should never have been approved for a loan of that size.
Heck when the housing crisis hit, I was one of those people paying a higher interest rate than the new rates - significantly higher in fact. But I had no problem selling my house (for not nearly what I could have a few months earlier - but then I could buy a house for less now too) and finding another one, and getting a loan at a very, very low interest rate.
Whew - that was stressful but it's behind all of us now.
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