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I've never been into "name brands", especially not clothing or accessories. Everything I purchase, since I first started making my own money, I purchase based on function. I don't spend a second thinking about other peoples' opinions of me and I've never sought to impress anyone. If I buy a specific name brand it is because that name stands for quality and performance. No other reason would make me spend my money.
I may actually have to buy some new clothes, i notice my wardrobe smells like lemon pledge lately. Ha ha ha .
85Dumbo...if you own your own condo then you are correct, you are not "throwing away" your money on rent. You are "throwing away" your money on interest, taxes, insurance, condo fees and periodic assessments, not to mention any "upgrades" and maintenance inside your unit.
As well as lost the use of the money in higher return investments that is tied up in the property.
I rent and i can tell you our other investments easily pay our rent as well as their growth outpaces any rent increases.
Any time i see someone use the term throw money away on rent i see someone who does not understand it does not matter if you rent. It only matters that you own other assets instead.
We own rental properties and a host of other investments. We no longer want to own and prefer renting.
Just the income and gains on the money we would have to spend to buy a place like ours covers our rent invested in our portfolio. We would still have to pay another 1k a month in maintaince so the economics of buying do not pay in our situation.
Every situation will be different so a general statement like renting is throwing away money is not true at all.
Last edited by mathjak107; 09-18-2013 at 06:53 PM..
As well as lost the use of the money in higher return investments that is tied up in the property.
I rent and i can tell you our other investments easily pay our rent as well as their growth outpaces any rent increases.
Any time i see someone use the term throw money away on rent i see someone who does not understand it does not matter if you rent. It only matters that you own other assets instead.
We own rental properties and a host of other investments. We no longer want to own and prefer renting.
Just the money we would have to spend to buy a place like ours covers our rent invested in our portfolio. We would still have to pay another 1k a month in maintaince so the economics of buying do not pay in our situation.
Every situation will be different so a general statement like renting is throwing away money is not true at all.
I think its safe to say you probably don't represent the majority of renters in NYC.
I doubt most renters have your host of investments. An you yourself state you own rental property, so you are not a typical renter.
Bash me for owning a condo, but with a 3.5% mortgage rate after I refinanced last year, its way cheaper than renting and thats including the common charges. Mortgage interest is tax deducted. Property taxes are abated for another decade.
Also, my condo in dumbo has appreciated 20% since I purchased it. None of my other investments can beat that. I don't even plan on selling my condo when I upgrade... I plan on renting it to some trust fund transplant sucker... Dumbo market rate rents have become absurd.
You can't say to much about renters as a group because while owners have money and can afford to buy renters are all lumped together.
You have renters who have no money and so they have no options. You then have many many renters who are very successful financially and do not want to own so they invest elsewhere.
What that mix is has never been studied so you really can't use terms like most renters as we don't know.
But in any case it goes back to what i said, it will be different in each persons scenerio.
While you may be up 20% others who have bought may be down 25%.
In fact historically long term residential real estate has averaged just a tad more than inflation. long term the s&p 500 has surpassed it by almost 3x.
I would refrain from using terms like renters pay money for nothing. Many homeowners today wish they had been renters instead.
You can't say to much about renters as a group because while owners have money and can afford to buy renters are all lumped together.
You have renters who have no money and so they have no options. You then have many many renters who are very successful financially and do not want to own so they invest elsewhere.
What that mix is has never been studied so you really can't use terms like most renters as we don't know.
But in any case it goes back to what i said, it will be different in each persons scenerio.
While you may be up 20% others who have bought may be down 25%.
In fact historically long term residential real estate has averaged just a tad more than inflation. long term the s&p 500 has surpassed it by almost 3x.
I would refrain from using terms like renters pay money for nothing. Many homeowners today wish they had been renters instead.
I don't disagree with anything you have said.
I think your stat of the S&P surpassing real estate is for national real estate...Prime NYC real estate is an entirely different animal.
I didn't mean to make this a rent vs own debate. I'm glad you are coming out ahead financially, and the whole point of the OP was being financially responsible.
Most people in NYC are trying to keep with the Joneses and when its all said and done, they end up old and broke. I'm glad the OP is starting the realize the importance of fiscal responsibility.
I was around it yet again today at work. Every woman nearly dripping in designer logos lol. Tory Burch flats, Chanel pearl necklaces, Birkin bags, this-season Prada and Gucci. We wrap their bags in plastic because of the liability of getting color onto a $30,000 handbag (has happened before, not at our salon). I left work and went to Saks. Picked up those $420 shades I want. I looked amazing in them but couldn't bring myself to purchase them. It is very difficult to leave the money sitting there in the bank. Does anyone else suffer from this kind of temptation, knowing full well how easy it would be? I am finding it hard to discipline myself and let the money stack up. Being middle class sucks. I'd rather be on Prozac and rich any day of the week.
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