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Eh, not really. The Renter DOES pay for that roof replacement, just not all at once.
A Landlord who doesn't charge enough in rent to cover ALL expenses by the property, with some left over is renting at a net loss, and working as a landlord for free, which is a huge mistake. Not saying it doesn't happen, but it is the exception, not the rule.
Yes, this is true, but the previous poster's point was that your property taxes and maintenance costs go up over time, so owning your home isn't quite as good a deal as some make it out to be.
Yes, this is true, but the previous poster's point was that your property taxes and maintenance costs go up over time, so owning your home isn't quite as good a deal as some make it out to be.
owning your own home at least gives you potential for equity, while renting never does.
same for commercial property.
now if you can make a good living while renting and invest advantageously that's good too-but tell me, in this environment, what really is a safe investment anymore?
look at the fed balance sheet-how long do we expect this to keep growing without repercussions?:
The Fed's balance sheet, which is a broad gauge of its lending to the financial system, stood at $3.367 trillion on June 12, compared to $3.357 trillion on June 5.
The Fed's holdings of Treasuries rose to $1.906 trillion as of Wednesday, June 12, from $1.898 trillion the previous week.
we have a lot of ostriches out there with their heads in the sand, but that leaves other parts exposed.
we have a lot of ostriches out there with their heads in the sand, but that leaves other parts exposed.
We also have a lot of whacko-inspired Chicken Little alarmists who don't understand the economy or the Fed's role within it.
Meanwhile, the maturity of car loans has expanded as the life expectancy of cars has. You don't expect a car to rust out or drop an engine in three years anymore. That was once commonplace. A seven-year loan matches about the minimum life expectancy one might have for that underlying asset these days. Sort of like a 30-year mortgage, although those likely fall short of the minimum now and actually ought to go more and more to 40 years as time goes by.
Last edited by oaktonite; 06-15-2013 at 09:31 AM..
My general philosophy on car payments is to never be stuck with one past the warranty period. Too risky, especially with today's fancy/pricey stuff you see every day out on the road. Something breaks and it's a $1000 bill if it's a cent. I've seen it happen too many times with older foreign luxury stuff. Those cars (Porsche's, Mercedes, BMW, Audi, Rover, etc) require a certain level of commitment and financial suicide to keep on the road in top shape once they pass into a certain age bracket. That's why their value drops so precipitously after the 4-5 year mark.
I'm very black or white with cars these days (no pun intended). Either go the cheap route by owning a beater/living without one entirely (ideal), or go for the brand new one with the warranty with payments that don't exceed that warranty length. Everything else is no-man's land IMO.
Now if you can make a good living while renting and invest advantageously that's good too-but tell me, in this environment, what really is a safe investment anymore?
look at the fed balance sheet-how long do we expect this to keep growing without repercussions?:
The Fed's balance sheet, which is a broad gauge of its lending to the financial system, stood at $3.367 trillion on June 12, compared to $3.357 trillion on June 5.
The Fed's holdings of Treasuries rose to $1.906 trillion as of Wednesday, June 12, from $1.898 trillion the previous week.
we have a lot of ostriches out there with their heads in the sand, but that leaves other parts exposed.
I'm totally with you here. I rent because I am priced out of the local real estate market and/or don't want to be house poor (not contribute to retirement) just so I can say I own a house/condo (and for me it would be a small condo, not a house). I'd rather have the flexibility renting offers.
That said, I am not one of those ostriches you mention. I am very worried about the financial system. If things come crashing down, I just don't think being a homeowner is a guarantee of anything. It might give some people a leg up, but in a disaster scenario, all bets are off.
renting may offer flexibility but rents are skyrocketing and you are totally at the mercy of landlords many of them who are excessively greedy... buying means a constant payment which can buy peace of mind.
Yes, this is true, but the previous poster's point was that your property taxes and maintenance costs go up over time, so owning your home isn't quite as good a deal as some make it out to be.
Unless you're like me. We bought in 1987, a house we could well afford -- and our payment was in the 500-600 range.
I will always think buying is a better deal because even now -- after we took a HELOC to do some much needed work and rehabbing on our home and then refi-ed it back in, our mortgage is still less than 500 bucks. Can't rent ANYTHING in the Bay Area for 500 bucks a month
.
If you want to add in taxes and insurance our monthly liability is about 750 dollars a month. By doing our own maintenance, we can keep those costs to a minimum. Labor is almost always the most expensive part of maintenance.
My house would rent for twice that. So if we have to move, we very probably won't sell, we'll rent it out and make a profit. And if we can hit our price point -- we'll sell.
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