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Old 11-19-2017, 01:00 AM
 
2,401 posts, read 1,283,113 times
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Townhouse is the equalizer. The practical size of a TH keeps maintenance costs lower than a SFH. On the other hand, by owning instead of renting, you still get into building equity. Townhouse = Win Win
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Old 11-24-2017, 05:22 PM
 
Location: NYC
10,144 posts, read 6,154,450 times
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Is it crazy to say that RE could crash in the near future and maybe just maybe this time the millennials will get the opportunity they've been waiting for to buy.
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Old 11-27-2017, 09:08 AM
 
4,715 posts, read 4,876,498 times
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“Rent where you reside and own where you rent out”

Multimillionaire investor,

Grant Cardone
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Old 11-27-2017, 09:20 AM
 
4,715 posts, read 4,876,498 times
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I think Americans are obsessed with home ownership. It’s sort of like a status symbol for many to say that they “own”. Unless you buy your home cash, you dont own it. The bank does. Try missing 3 or so mortgage payments and see how much you “own your home”. Better yet, pay off your home and stop paying your property tax and see how much you “own your home”.

My wife and I make a very comfortable income and can easily afford to purchase a home (on a mortgage). I just can’t fathom the thought of paying nearly 500k for a 250k home (not including cost to maintain the home) once you factor in mortgage interest. Sure you can say that by paying rent your lining someone else’s pockets. You can just as easily say that by taking out a 15-30yr mortgage on a home, you’re making these banks even richer. What’s the difference?

At the moment, we rent in a very nice gated community on Florida’s gulf coast. We pay $1100/month for a 2br/2bathroom, 2 car garage, swimming pool, jacuzzi, fitness center, dog park and amazing view of the lake, etc. Rather than plunk down 20% for a quarter million dollar home, we chose to invest that money and are going to continue to rent while saving and investing even more.
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Old 11-27-2017, 09:30 AM
 
Location: North Carolina
233 posts, read 65,527 times
Reputation: 280
Unless it's a condo in a high rise, I'll never own my primary residence.
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Old 11-27-2017, 09:40 PM
 
Location: Holly Springs
3,823 posts, read 8,827,938 times
Reputation: 2905
The main (and common) reasons I own are to not have a housing payment when retired and the fixed payments until it is paid off that do not increase ($1000 bucks bought a LOT more 30 years ago than it does today). Yes, I pay interest which puts it on balance versus investing the money, but I look forward to having no house payment in my late 50s and beyond.
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Old Yesterday, 02:08 AM
 
350 posts, read 68,672 times
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Quote:
Originally Posted by vision33r View Post
Is it crazy to say that RE could crash in the near future and maybe just maybe this time the millennials will get the opportunity they've been waiting for to buy.
There is always a maybe, but I wouldn't expect it.

What I look for is a recession in sales volume, but prices will remain escalated, due to the new GOP tax plan, particularly sec. 1402.
https://waysandmeansforms.house.gov/...ection_hr1.pdf

And to answer the OP's question too, I think it's this sec. 1402 that will cause many people in the future to no longer want to buy a house, and so they will therefor look to rent as simply the better and less risky option.

Nothing will be cheap though, I don't think, as this Plan will encourage a stale market where it's mostly the wealthiest who will be willing to incur the risk to buy.

The foreclosure rate should also escalate as people will no longer be enticed to sell either, which is often the most viable means of avoiding foreclosure for many.

Meanwhile corporate banks will begin to hold more and more of their foreclosed properties, and ask higher prices as at more competitive auctions as rent rates also escalate.

Basically millennials will have a harder and harder time entering the market, IMO, unless they were left a great inheritance early on, and decide to spend wisely now. Again, that's just IMHO of course, and I hope I'm wrong
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Old Yesterday, 01:28 PM
 
Location: Johnson City, TN
17,111 posts, read 11,963,640 times
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I recently bought a small townhome. It's about half of what I could comfortably afford. I'm all-in for a 2BR/2BA "vinyl box" townhome for $525/month. I have stainless appliances, new carpet in bedrooms, etc. It's nothing special, but a little more than half of renting a similar unit in this area.
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Old Today, 11:24 AM
 
501 posts, read 163,948 times
Reputation: 1107
Quote:
Originally Posted by Serious Conversation View Post
I recently bought a small townhome. It's about half of what I could comfortably afford. I'm all-in for a 2BR/2BA "vinyl box" townhome for $525/month. I have stainless appliances, new carpet in bedrooms, etc. It's nothing special, but a little more than half of renting a similar unit in this area.
We just put an offer in Monday on a 70’s ranch in need of updating in a great location, for much the same reason. Even carrying an additional land loan for our build, we are still paying several hundred less per month to own than rent. The rent ratios in this area are very high compared with mortgages, and this is s hot neighborhood. Even if we make no money after updating (unlikely) we still got to live in a place we liked better than our rental and could customize, for significantly less money. Like, 40% less a month, even considering maintenance expenses and the Reno costs.

Buying doesn’t make sense everywhere and for everyone, and a home is a consumer good more than an investment, just going by historic rates of return. But there are markets and situations where buying makes sense. We are in one of them.
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Old Today, 03:23 PM
 
Location: Johnson City, TN
17,111 posts, read 11,963,640 times
Reputation: 18517
Quote:
Originally Posted by Schmooky View Post
We just put an offer in Monday on a 70’s ranch in need of updating in a great location, for much the same reason. Even carrying an additional land loan for our build, we are still paying several hundred less per month to own than rent. The rent ratios in this area are very high compared with mortgages, and this is s hot neighborhood. Even if we make no money after updating (unlikely) we still got to live in a place we liked better than our rental and could customize, for significantly less money. Like, 40% less a month, even considering maintenance expenses and the Reno costs.

Buying doesn’t make sense everywhere and for everyone, and a home is a consumer good more than an investment, just going by historic rates of return. But there are markets and situations where buying makes sense. We are in one of them.
The difference for me to make up the transaction costs between renting and owning is less than two years. I'll probably be here that long. That's not counting into account potential future rent increases, etc.
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