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First, they can if they live there and they are not destitute, they can afford it. Owning is not a pre-requisite to afford a lifestyle, unless you decide ahead of time that "owning a house" is the only legitimate financial goal, or status marker. It is their choice to live in the area they want.
Second, I'm detecting a value judgement here, and condescending vibe--you seem to think renting is inherently illegitimate or that renters are by definition irresponsible, that they've never ever considered that buying is an option and that they've chosen not to. I mean I'm not even arguing the finances (which others here have--but that's not my battle)--I'm simply saying there are other lifestyle considerations. That there are so many variables to consider in this whole buying vs. renting thing, so either could be a better fit depending on one's situation.
We'll just have to agree to disagree, not much to add really.
If you can "afford" to rent, but can't afford to buy, you probably can't really afford to rent. You are probably spending too much of your income on your rent when there are other things that would be better for you long term. It's nice, it's fun now, but in five years when they want to buy and don't have a down payment saved up because they spent it all on rent for more expensive places in nicer areas that were more fun to live in, they'll regret it.
I do think it is irresponsible to rent endlessly, which is what this thread is about. I'm not talking about a bachelor, someone in a stepping stone job, someone in an area for now that they plan to move away from, someone who moves every couple years for work, etc. Obviously, all of those are great examples of people who should be renting. Renting is a legitimate and worthwhile option for people in certain circumstances. Thinking it's cheaper for 40 years isn't one of those circumstances.
I'm talking about the people who choose not to buy under the false idea (or self-delusion) that it's cheaper. I think some have been misinformed. I think some are making themselves feel better about not buckling down and being financially responsible enough to get to the point where buying is an option. There are a lot of people on here claiming that the math proves that renting is cheaper, and they are wrong. I just don't want them to keep on going wrong longer than necessary.
If the choice is to rent house A for 10+ years, or buy house A, then you are likely correct. If you are saying you cannot find a rental that is cheaper than owning a home, you are dead wrong.
That is because you do not look at the many intangibles. If a renter only bought (i.e. rented) what they needed, when they needed it, where they needed it, it would be WAY cheaper to rent. Rent a studio apartment close to work when you are single. If you get a roommate in a few years, then get a 2-BR. If you have kids later, then get a 3-BR apartment.
Instead of doing yard work, a renter can take a part time job or work overtime at their real job. Put that money in the bank. Instead of a 45-minute commute, live closer in a rental and take a 5-minute commute and put the transportation money in the bank.
The ability to move and be flexible on housing needs is very much in the renters favor.
I agree. I never once said that no one should ever rent. I agree that renting is absolutely the right option for many people. However, many people on here are not in those circumstances and instead just rent endlessly thinking they are saving money. They are wrong.
Bingo. Plus, so many added fees in renting. In two years, I have paid $1,080.00 just in PET RENTS. That is not counting my NON-REFUNDABLE pet deposit which was over $1,000.00 ($ 350.00 per pet which is pretty standard, at least here).
Yeah, this always ticks me off... charge EITHER a pet deposit or pet rent if you must, but there is no justification for charging BOTH. Unless you have the worst-behaved and dirtiest pets ever, they simply cannot do that much damage to an apartment. Mine have never done any damage beyond maybe a few carpet stains (cats puke sometimes), and yet I've thrown away thousands of dollars on these fees over the years.
So glad my current and most recent landlords didn't charge either, because it really was getting excessive.
If you can "afford" to rent, but can't afford to buy, you probably can't really afford to rent.
So what should those people do? Live in a van down by the river? For most of us it's either one or the other, and living with family (or even roommates) isn't really an option... so you do what you must, and scrimp on other expenses if rent isn't flexible. Where I live, there's no such thing as "affordable" rent OR real estate, so those of us not making huge money have no other choice. It's not like I can just politely ask the landlords to charge me only $1000/mo, when the median rents are well over $2000/mo.
And I'm not living here because it's "fun," as you suggested; I live here because it's where I grew up, where most of my friends and family live, and where I can earn 2-3x the salary for what I do. Also, relocating is expensive and risky. If not sooner I'll buy a place somewhere else when I retire, with the healthy pension I've vested by working in a high-COL region for 20+ years. At that point I'll be able to go wherever I want, without having to worry about finding work once I get there.
I am "older" and I don't make much money; most likely will never be able to purchase a home. I don't like renting only because I am hypersensitive to noise and like many of you, have a tough time with neighbors noise and general lack of privacy (workers coming in, etc.).
Are you okay with renting? Are there any other "long term renters" here? How do you make peace with it? Plus, these days (with the exception of a few major cities), a mortage is cheaper than rent (assuming you make enough money to get one). So I am not even saving money by renting.
I'm selling my house as soon as I retire. I've been an owner and while it was nice when I had kids living at home, I'm over it.
Taxes? when I started my taxes were 1,700 annually. 2019? 15K, that's 1300 bucks a month. Now my home is an older home and when my husband was alive maintenance was a little easier but now I'm a widow. I'm sick of every time I turn around some thing needs to be fix.
New roof this year? 13K. now don't get me wrong, after 18 years (actually roof is about 22years old) it was not unexpected and I budgeted for it but I still hated writing that check.
I know quite a number of retirees in their 70's that sold their homes, banked the assets and are now renting.
Now I could absolutely sell and buy a condo but I simply don't want to be bothered.
My goal? sell my house, get a small condo in a beach town to be a snowbird then rent here in Philly
I'm renting right now but have owned homes in the past and much prefer to own a house.
In my current location it would actually cost me LESS to own rather than rent in most cases, lol.
We ended up renting when we first got here since we were new to the area and didn't really know where to settle then had to stay put for DD to finish up high school. She finished this past year so now we are free to start looking. Our lease expires this coming July so we are going to start looking around soon. We have general ideas of where we want to live though 'what' in terms of square footage, etc. is more important.
Our neighbors are good, the area is great and so on but I don't like living under landlord restrictions. I also like to work on the house so I'm looking forward to getting a place of our own!
I am "older" and I don't make much money; most likely will never be able to purchase a home. I don't like renting only because I am hypersensitive to noise and like many of you, have a tough time with neighbors noise and general lack of privacy (workers coming in, etc.).
Are you okay with renting? Are there any other "long term renters" here? How do you make peace with it? Plus, these days (with the exception of a few major cities), a mortage is cheaper than rent (assuming you make enough money to get one). So I am not even saving money by renting.
I am older and renting. I don't like it.
I am broke but looking for my OWN place. I am so done with dishonest management/landlords.
So what should those people do? Live in a van down by the river? For most of us it's either one or the other, and living with family (or even roommates) isn't really an option... so you do what you must, and scrimp on other expenses if rent isn't flexible. Where I live, there's no such thing as "affordable" rent OR real estate, so those of us not making huge money have no other choice. It's not like I can just politely ask the landlords to charge me only $1000/mo, when the median rents are well over $2000/mo.
And I'm not living here because it's "fun," as you suggested; I live here because it's where I grew up, where most of my friends and family live, and where I can earn 2-3x the salary for what I do. Also, relocating is expensive and risky. If not sooner I'll buy a place somewhere else when I retire, with the healthy pension I've vested by working in a high-COL region for 20+ years. At that point I'll be able to go wherever I want, without having to worry about finding work once I get there.
But if someone can't afford to live where they're living, then they can't afford to live where they're living. That doesn't mean they should throw their hands up, give up, and just rent endlessly. It is still a choice. The government didn't assign them their job and housing, they make choices, and they make choices to stay. You may stay because that's where you know people. But maybe someone could move 30 minutes away so they are still accessible, but not paying nearly as much in rent. Just because things aren't easy and can't be changed today, doesn't mean they shouldn't be changed.
I didn't suggest you are there because it's fun (although you just said that's where your friends are). Some people like certain areas because they enjoy living there. Just because they enjoy the area doesn't mean they should rent where it is too much of their income.
Don't bank on a pension. That isn't your money and if that company goes out of business, it's gone and you have nothing. And no, your company isn't the exception that will outlast all sorts of other companies that seemed just as unlikely to die, yet they did, and the people who banked on that pension are left with nothing.
Owning would help you actually have a nest egg to move anywhere you want and buy with when you retire.
I am older and renting. I don't like it.
I am broke but looking for my OWN place. I am so done with dishonest management/landlords.
You need to find an area with low cost housing and low taxes. There are places where you can still buy a home on a lower income, even some homes that you can buy with minimum wage jobs, or just with Social Security, and you can buy a small older, but in good shape home for less than renting a one bedroom apartment.
The most important thing is to keep your credit score high, and ask around about programs for first time buyers. If not perhaps you have a relative that can help with closing costs. There are FHA loans of even USDA rural loan, some in areas near cities where you can buy with first time home buyer assistance and get in with about the same money that it would cost to rent and pay for the security deposit. Honestly I would rather live in an older mobile home on my own property than rent again, but never a MH on a rented lot. I might consider a 55 plus mobile home where you own the lot and pay a modest HOA fee of under $100 a month but you still are partially under someone else rules. Even and a condo with low HOA fees is better than renting for me.
Don't bank on a pension. That isn't your money and if that company goes out of business, it's gone and you have nothing. And no, your company isn't the exception that will outlast all sorts of other companies that seemed just as unlikely to die, yet they did, and the people who banked on that pension are left with nothing.
.
I'm banking on mine not going out of business. It's called the State of Florida.
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