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Old 08-15-2014, 01:06 PM
 
269 posts, read 299,422 times
Reputation: 332

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Quote:
Originally Posted by Rocco Barbosa View Post
Mortgage is Fixed, property taxes are not.
And you don't think that property tax increase is going to hit you as a renter? I promise you that LL will pass the cost on - They are in business to make money, not help you save for other investments.
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Old 08-15-2014, 01:09 PM
 
Location: Atlanta (Finally on 4-1-17)
1,847 posts, read 2,138,925 times
Reputation: 2550
Quote:
Originally Posted by nkull View Post
And you don't think that property tax increase is going to hit you as a renter? I promise you that LL will pass the cost on - They are in business to make money, not help you save for other investments.

I am 100% confident in my last pay I said: The cost of doing business goes up, I expect rents to follow. That includes ALL COSTS of doing business.
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Old 08-15-2014, 01:10 PM
 
269 posts, read 299,422 times
Reputation: 332
Quote:
Originally Posted by Rocco Barbosa View Post
I don't get the " I don't want to deal with landlords" thing.


I pay my rent, they don't bother me. What is "dealing with landlords" all about?

In my current place, I saw the owner of the building once, since 2011. I've not seen him since I signed my lease.

It's been that way with every place in which I've rented. I pay rent, they leave me alone.

As far as rents increasing-----in case the memo wasn't received, the price of milk has increase too, that doesn't mean I'm going to go out a buy a cow so I can say "whew, now I don't have to worry about paying high milk prices anymore, I own the cow".

Over the last 5 years, my rent has gone up---$5-$10 per month, per year. The cost of doing business goes up every year, so I would expect rents to follow.


Some of the logic here as it relates to buying and owning a home doesn't make sense.
Some of us have delt with crappy landlords - They do things half assed because it's cheaper and often times the biggest impact of the half-assed work is your utilities might be higher which is not their problem. Some of us have been in rentals that were sold / foreclosed under us (I have had both) leaving the renter with no option but to go through the hassle of moving.

I also think most people have rent increases that are more than $10/yr.

As far as the cow comment, having a cow would require me to invest in other items, land, and infrastructure to take care of that cow that I currently don't need. I need a roof over my head whether I own it or rent it. By owning it, I don't have the additional middle man trying to profit off of my monthly payment (considering many rentals are also mortgaged, so both have the bank making profit).
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Old 08-15-2014, 03:03 PM
 
54,887 posts, read 57,257,764 times
Reputation: 35099
Quote:
Originally Posted by Rocco Barbosa View Post
I am 100% confident in my last pay I said: The cost of doing business goes up, I expect rents to follow. That includes ALL COSTS of doing business.
I wish that was the case . As a landlord for the last 26 years i can say without a doubt that markets don't care what your expenses are. The fact you spent 10k for a roof or you have a mortgage and the next guy doesn't won't get you 1 dollar more rent then the market allows.

Markets for rentals have a point where if you exceede the market place you may wait and wait for a tenant or lose an existing one.
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Old 08-15-2014, 03:13 PM
 
54,887 posts, read 57,257,764 times
Reputation: 35099
Quote:
Originally Posted by saintmj nyc View Post
Bravo !

Congrats to you .

An exceptional way of using money to make more money rather than sinking it into a house where you get a mortgage/tax rebate , build equity for some years and 'think' this is a sound investment !
All the mortgage/tax rebate means is you spent 4 bucks over the price of the house to get back one. Loose the expense give up the deduction and you are richer for it.

1/2 of homeowners can't even itemize according to the irs.

Tax wise it is usually the renter who has the best deal. Most renters get to fly the empty seats. A renter couple gets over 12k as a standard deduction. Few even spend 1/2 that amount and so they get to take the entire deduction and get money back they never spent.

On the other hand most homeowners just about fill up the standard deduction or exceed it with money they actually spent.

The renter tax wise gets more money back in to piggy,the homeowner has taken money out of piggy to pay those bills and may see one dollar come back for every 4 taken out of piggy.
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Old 08-15-2014, 03:22 PM
 
Location: Clermont Fl
1,714 posts, read 3,667,453 times
Reputation: 1215
Quote:
Originally Posted by mathjak107 View Post
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.
So if you bought funds that means you had 169 in cash why not put 33k on the house and 136 in the market. My point is you need to do both.
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Old 08-15-2014, 03:35 PM
 
54,887 posts, read 57,257,764 times
Reputation: 35099
The point is no i didn't need to do both. Had i not bought the house i would have been well a head.

The fact is i did buy the house but financially it wasn't the best move.

Financially the best move was selling the house in 2003 ,renting and investing elsewhere. I have zero desire for a house.
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Old 08-15-2014, 03:41 PM
 
Location: Dallas TX
13,429 posts, read 18,654,299 times
Reputation: 17578
We took a bath when we moved from PA. I swore I would never own again. However, the renting experience was horrible! It was so bad,,ended the lease early and bought. Honestly I am terrified. I wish we had a good experience and still renting!
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Old 08-15-2014, 03:41 PM
 
Location: Clermont Fl
1,714 posts, read 3,667,453 times
Reputation: 1215
Quote:
Originally Posted by mathjak107 View Post
The point is no i didn't need to do both. Had i not bought the house i would have been well a head.

The fact is i did buy the house but financially it wasn't the best move.
looking back ok but if you start today it might not be better.
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Old 08-15-2014, 03:43 PM
 
34,815 posts, read 33,667,564 times
Reputation: 60482
We have done both and right now prefer to rent simply because we may end up selling everything but the dog, the cats, our clothes, computers, a few personal items and living in our motor home.
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