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If you're going to quote me, don't completely make up what I've said. I didn't say that ANYWHERE in my post, and I'm not sure why you'd even quote me at all if you're going to say what you said.
I was wondering why the source of my quote had been deleted by the moderator. I did not intend to attribute the title of this thread to you, if that's what happened. I quoted the OP's original post and then copied and pasted the title into the quote--since it was the OP who wrote the title. Per usual, I then deleted most of the OP's post, leaving only the title to be within the quote. Somehow, unbeknownst to me, your screen name apparently showed up as the quote source and I did not notice that it had. I suspect that multiple posts mistakenly got quoted and I didn't notice the error. I had no intention of attributing the title of this thread to you. Like you said, in the context of my reply, that would make absolutely no sense. Sorry, but it was simply an error.
EDIT: Now I understand what happened. I had originally quoted your post #88 because I was going to relate my own experience which agreed with you. I got busy with some other matters and decided not to write about that. I came back to CD an hour later and then quoted the OP to make the comment that I made. When I quoted the OP, your quote must have also popped into my reply screen and I didn't notice it. I must have copied the OPs title into the wrong quote and erased the rest. Gosh, I hate when that happens.
Last edited by jackmichigan; 04-18-2015 at 05:06 AM..
This thread could just as easily be titled: A single person renting a home doesn't make financial sense
Everyone's experiences and needs are different. However, if you understand that landlords need to cover all of their expenses through the rent they receive (unless they're destined to go out of business), then it's pretty obvious that renting a like property is going to cost more than owning it over the long haul (with few exceptions).
Why would a landlord be driven out of business due to opportunity cost?
you buy your house young, when you turn 55 its paid off, think of the extra income at retirement age.
You can sometimes come out ahead renting in some areas. If rent is cheap enough, you could rent and invest the difference and have a pile of $$$ by age 55 larger than the house value.
It depends on area and moving frequency, among other things.
In the cores of major cities, most residences are highrises or similar multi-family structures; think Singapore or Moscow. Buying a detached house is impractical for anyone, and thus the remaining choice is whether to rent or to buy an apartment. In fact the American term "condo" is unknown in such places. One simply either rents and apartment, or buys one. In either case it's an "apartment".
Outside of major cities, and nearly anywhere in America, there is a prevailing culture extolling the single-family house, the detached house. Land is available to support such housing, and the automobile connects residential and commercial districts. "Ownership" means in some sense a badge of maturity and arrival. To own anything less than a detached house on its own land, is a half-measure and an intermediate step. Culturally it is inferior.
Then there's the question of peer-pressure. In the typical American office-park - the workplace of upper-middle-class professionals - how many people don't own a detached house? And those who rent such a house would likely be regarded by their neighbors as being inferior, as an unwelcome interloper in an otherwise stable community of owners.
Pick your neighborhood wisely. You can be perfectly socially normal renting a house by....living in a neighborhood with lots of rented houses. Similarly, you can "fit in" to apartment/condo ownership by living in a condo with mostly owner-occupied units.
Socialize with the people in the neighborhood, then you won't have such an issue with conformity or peer pressure, because you'll be doing what everyone else is anyway!
It seems to me that throughout the great majority of America, we have two options for residences: seemingly infinite expanses of single-family houses, with lawns and garages and so forth; or apartment-complex buildings. So the choice really is between renting a 600 square-foot apartment, with no garage, no yard, no privacy; or a sprawling and gargantuan structure, complete with the traditional trappings of ownership.
False. It is only in areas dominated by affluent populations that you see true "McMansions" as it were. Most new builds are extremely tiny lots and basic house sizes. IN places where there is no population and they're just building, you often have a choice: larger lot vs. smaller lot.
Quote:
Originally Posted by ohio_peasant
I went almost directly from renting in a university dormitory, to buying an outright country estate. I went from zero worries about maintenance or chores, to wondering how to plow a 400' driveway and how to mow acreage that dwarfs a suburban public park.
I feel you're exaggerating by a wide margin. If not, I more blame your selection of location. Again, if you choose to shop in an area with large lots, what else do you expect?
Online searches let you search by lot size. If you don't want a large lot, cut the lot size down.
Yes, the price will go up dramatically. Why? Because those homes are built in areas where land is at a premium. You choose to eat that cost all because you refuse to pay some immigrant $30 to mow your yard for you and $20 to plow your driveway.
I'm married (kids grown) so I guess this thread really doesn't apply to us. But...
We absolutely LOVE the idea of having zero debt or rental payment for overhead. Just the idea that no one can take away our primary dwelling is blissful. Yes, there are property taxes, but they are low where we live. Out in a rural area, there are no pressures to mow the lawn, or upgrade the property. This ranch house is new anyway - not quite 2 years old. And since I built it myself, I know how to make any repairs that may be required. No mortgage, no rent, no neighborhood...what more could I ask?
The REAL tragedy is when people think that renting a conventional apartment or house, or purchasing with a mortgage, are the only options. Lower your square footage requirements, move out of the cities, and set up something you can afford, even if just a mobile home. THEN, you can really save!
Thanks so much you have helped me so much without realizing it. We are selling our home in California and took a big hit due to having bought in the bubble. The market is rising like crazy here but we put $60.000 into our home and didn't get our full amount out of it after the sale. We are in our mid-seventies and buying now is probably silly as the prices are way up again as interest rates are so low but rates are expected to rise. I have always had a big thing about owning a home and get very depressed at the thought of renting. You have caused me to rethink buying versus renting..
Christine, I have told about my retired friends before, who were always homeowners until the last few years. They too, were held prisoner by their last house and lost money because of the bubble.
Now, for $1500 a month, they live in a lovely gated community in Sarasota, and they LOVE being renters. No worries about selling, property taxes or HOAs, and no tying up their principle on a down payment. Their landlord is probably not even breaking even, but is happy to have responsible long term renters. We are in our mid 60s and will most likely be renters next time we move.
Why would a landlord be driven out of business due to opportunity cost?
What are you talking about? I simply mentioned that if a landlord doesn't cover his costs, he's destined to go out of business. It's a rather basic business concept.
You can sometimes come out ahead renting in some areas. If rent is cheap enough, you could rent and invest the difference and have a pile of $$$ by age 55 larger than the house value.
It depends on area and moving frequency, among other things.
Sometimes I think that you just enjoy trolling. Yes, people can pay less for rent and save money. People can also buy a cheaper house and save money, too. The bottom line is that people need to live somewhere. If buying is cheaper (which it always has been for me), then why shouldn't someone consider it?
Never fear, though--you do not need to buy a house unless you want to.
It's all going to depend on the location and on personal desires. If rents in a location are low compared to the costs for a comparable purchase, then there is no automatic savings. But everything else is a variable. Invest in a mutual fund rather than real estate? Probably wise. But will that person actually invest in the mutual fund? If not, then the comparison is moot. Does a person have zero cares about having the freedom to decorate, expand, renovate as desired? If so, then renting may be the winner. Is a person not possessed of the desire to "own" rather than "rent?" I think that's much more common today than it was 20 years ago when I was single and looking for my first home. I think 20 years ago, in the South where I lived, owning a home was a pretty standard rite of passage toward being a "grown up" -- whether you were single or not.
My own anecdotal offering: I was renting a 2/1 700 sq. ft. cookie-cutter apartment in a semi-sketchy area for $375 per month (the reason it was so cheap). I purchased a 3/2 1,200 sq. ft. house for a PITI payment of $500 a month ($72,500 home, 10K down, 30 year note) in an historic neighborhood that was making a comeback. The style and setting of the house was important to me. I got a 1929 brick tudor with hardwoods and tons of character on 1/2 acre. I sold that house seven years later for $125K.
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