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Old 08-14-2014, 11:01 PM
 
6,719 posts, read 5,539,875 times
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I've lost my appetite for long term debt. If I can't pay cash, I don't want it. Unless the mortgage is 100% paid off, the bank actually owns the home. I've seen people who paid their mortgage for 20 years, ran into a little financial trouble, and faced foreclosure. It was the same as renting for 20+ years.
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Old 08-14-2014, 11:11 PM
 
5,102 posts, read 4,519,545 times
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I have always been a renter. i love calling my landlord and having a maintenance person come by and fix whatever. I love not having to spend money on boring things like gutter cleanout, new plumbing, new toilet, fixing leaky pipes, mowing the lawn, i dont even like doing more than changing the light bulb, i am not handy, only basic picture hanging maybe. no need for me to be handy. i dont want the financial responsibillity but mostly i think i would feel trapped, into a 30 year mortgage, having to stay put, what if no one wants to buy my house? now im stuck. so i am too much of a free bird to be stuck with the discipline and responsibilities of home ownership.

and forget about being a landlord!! too many horror stories about how tenants can royally screw up everything. not worth taking the chance.
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Old 08-15-2014, 04:19 AM
 
727 posts, read 455,572 times
Reputation: 1031
There are pros and cons either way.

The biggest pro, I guess, is that you can get a stabile loan that doesn't go up with a mortgage, whereas rents will always be increasing.

Also, you slowly build equity with a mortgage, whereas you don't have this with rent.
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Old 08-15-2014, 04:20 AM
 
54,884 posts, read 57,241,554 times
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Renting and investing that money i had tied up in the house elsewhere at far greater returns enabled me to grow enough money to buy multiple houses today instead of just the one.
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Old 08-15-2014, 04:32 AM
 
42 posts, read 54,254 times
Reputation: 111
Default Own vs Rent

Quote:
Originally Posted by 04blackmaxx View Post
Burden them with selling the house and keeping the profit? That's not a burden that's called an estate. Now you leave them with nothing.

Oh untrue, my husband and I both have life insurance. They will receive a nice sum. The children live in different states and are happy they don't have to deal with selling this house. Our children want our happiness first. Unlike many they don't look to our passing as a money moment. Please don't judge people unless you have all the information.
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Old 08-15-2014, 04:38 AM
 
54,884 posts, read 57,241,554 times
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Our kids hopefully will be left with far more just because we didn't own a house and were able to take part in some excellent investments elsewhere.

As an example one of our investments we made was in some commercial lease rights in a prestigious building over looking central park. We were able to enter into a partnership with one of the most famous real estate mogals in the country.

The sale made headlines in march when an investor group bought not the property which we didn't own but what was left on the lease rights for 18 million bucks which our family held a 10% stake in.

Had we had the house still could never have invested in that partnership.

That wasn't our only deal either. We bought rent stabilized leases out from origonal tenants in co-ops by central park offering 100k per lease buy out.

We then sold the apartments at market rates in the 7 flgures.

If you are creative,have the pucker factor and a plan you can do very well renting and investing elsewhere.

I sold our house in 2003 . I paid 169k in 1987 and today the house is worth 450-475k. That same 169k in a bunch of nothing special fidelity funds is worth 2.7 million today.

That is enough to subtract out taxes ,decades of rent and still by a few homes today.

Never underestimate the power of renting and investing elsewhere.

Last edited by mathjak107; 08-15-2014 at 05:26 AM..
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Old 08-15-2014, 07:38 AM
 
Location: Bretagne, FRANCE
193 posts, read 191,200 times
Reputation: 484
Quote:
Originally Posted by azoria View Post
I will never own taxhog again. Ownership implies taxation/seizure/insurance/ to protect the owner from potential insurgents. Never.again.

I owned a farmette in Texas. The property was homesteaded. A new law was passed by the state legislature in approximately yr. 2000 allowing small self-incorporated municipalities to forcibly annex adjacent property if certain criteria were present. Mine was, and it was forcibly annexed against my will and without my consent. The city then told me what I could do with my land, how I could live there, sent me a bill, and raised the taxes sky high. I sold it.

Then I moved to a different state. I bought a bigger place zoned agricultural, with a 100 year old house and barn and a lovely water well, and set up for happily ever after. Until the county planning and zoning commission rezoned my property without my consent and against my will -again- to some land use they made up, called 'urban reserve'. After that they defined what I could do with my property and how I could use it, raised the taxes sky high, and sent me a bill. This state had no homestead law *protections*. I sold it months later. Buh-bye money pit.

Now I live in a cheap schitzy apartment I do not own. I have no homeowners or renter insurance. If the landlord raises the rent, I'll move. I own nothing that needs to be insured, taxed, or can be seized or rezoned by money hungry government. I'm done allowing my property to be confiscated by these thieving bureaucrats.

We.own.nothing. Not even a car - no car insurance either. Done.

Ownership in America = liability. I own nothing. Tax that azzhats.
That IS nasty. You have my sympathy.

It's far worse here in France, especially wrt inheritance. I'd love to sell my properties (one of which is a manoir that has been in my family since the Middle Ages), rent a property here, and put the money in an investment account abroad that I can leave to anyone I want. (**** Napolianic Law!)
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Old 08-15-2014, 09:35 AM
 
9,659 posts, read 11,805,490 times
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That was me for about 20 years after my house got flooded from the second floor. It was SO MUCH SO MUCH WORK to deal with as a single person AND parent. I fixed it and got RID of it. I wanted to be free and let someone ELSE worry about everything.

HOWEVER, I did end up buying a condo in my 50's when I settled into ONE area and knew I wouldn't be relocating even 10 miles in my corporate world any more.

The key is knowing you will STAY somewhere. And you arent FICKLE.

HOMEOWNERSHIP is for long term living, or for people who don't like dealing with landlords or want to have the place the way THEY want it. Or are willing to commit to a community and want their family to have long term relationships or even a single person wanting to be part of a stable community.

The problem is so many renters throw their money away and need a forced savings like a home. And you just cannot say that renters are the SAME as owners, it's statistically untrue even IF there are great tenants like US LOL.

Also it's a shame to see so many people disparaging home ownership. Home ownership private property rights is the glue that keeps communities together, stable, and healthy. Also forms family formations even IF you don't want to marry you can chose your family without a traditional construct.

Example:

Concord Park, Historical Bensalem PA
A Neighborhood's History Of Hope - Philly.com
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Old 08-15-2014, 09:42 AM
 
Location: Denver CO
13,676 posts, read 7,017,773 times
Reputation: 19177
Quote:
Never underestimate the power of renting and investing elsewhere.
But as previously mentioned, this only works if you can rent for less than owning and therefore have the extra money to invest. That is not the case in some markets. Renting would cost me more out of pocket every month (even factoring in taxes and HOA fees) so there is no money left over to invest. But investing in my home builds equity at the same time as paying for a place to live.

Like most things in life, there is rarely one, and only one, correct answer.
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Old 08-15-2014, 10:48 AM
 
Location: Florida
4,104 posts, read 3,556,335 times
Reputation: 9963
A lot of people that try to do the rent vs owning argument leave big chuncks of data out of their equation. It was mentioned earlier on here that someone "lost" 30k on their house therefore they will rent for now on. That is misleading because you still recovered equity that you would have never had renting. If you buy for 170k and sell for 140k then sure it looks like you "lost 30k." However if you were in this house for 10 years, then a comparible apartment/home rental would have costed you 1000/month or 120k over ten years...not even counting rental increases. So you "spent" 30k by living in this house, as opposed to spending 120k to rent.

Things like this are very important to consider in the rent vs owning argument. Also youre still paying for repairs, property tax, upgrades etc in an apartment/rental. The difference is its hidden in your rent bill.

People are also factoring in the cost of upgrades on a house. i.e. a 40k bathroom reno. These are completely voluntary and the difference between renting and owning is youre ALLOWED to do your own upgrades. If you rent a "newer upgraded" home/apartment then youre going to pay more in rent for the upgrades, they aren't free.
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