Are you okay with renting or do you get sad about it sometimes? (renters insurance, deposits)
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there are homes you can buy every where that are cheaper then the desirable areas . but these are no where i would ever want to live just so i could buy . personally i can't even stand the drive visiting new jersey and my kids live there . i dislike everything about new jersey . they charge those big tolls when you take any of the bridges and tunnells to leave nj because it is worth it lol . real estate taxes in good school districts can be high too in nj . i think our kids pay close to 10k .
we have cheap places in nyc , we have cheaper places in long island but again , if you want a nice area you will pay the price . even our area in queens starts at a million or so for a small home .
and I would hate to live in NY much more than NJ. When you live in NY you are trapped no way to get out in case of a major emergency other than bridges or tunnels which may close, at least NJ you can drive away on roads and go south or cross into Pennsylvania.
As others said, and you actually inferred yourself... mortgage does not go up.
Some people have a rental property with the mortgage paid off or perhaps have one from 1995.
So, they bring down the competitive rate of rentals.
Meanwhile, you're trying to rent out the same apartment from a loan that you just purchased in almost 2019.
Will it pay off if you're alive 30 years from now?
Probably yes, but I was never arguing that point.
But that is far from all landlords. So short of people finding some old lady who doesn't raise her rent to market value, this would require landlords to not charge market value in order to offer these long-term renters a rent that is cheaper than owning. Again, that's an exception, not the rule.
it really depends on how "under funded they are " and where they live .
it is like when my daughter got married they could rent in the "best " area where we are . or they could buy a co-op in a good area for the same money , except for the needed down payment as 25% is required in most co-ops . so while co-ops are cheaper then homes , you do need as much as 25% down .
it made more sense to buy the co-op in the good area . however if they could not afford that co-op in the good area yet , i would sooner see them rent in the good area then buy in an area i would not want to see them living.
there are always cheaper homes , but you reach a point where once it no longer meets your standards or is safe then the cards are off the table as far as buying yet .
But again, that's an exception, not the rule. The majority of people would be better off owning long-term, not renting. Yet again, yes, there are exceptions, but they are only exceptions.
This is also getting dangerously close to renting in an area you can't afford to live in. You might be able to get by with the higher rent in the nicer area, but that doesn't mean it is an actual healthy financial decision that is beneficial or even sustainable long-term.
well we have to disagree here . i would not recommend buying in an area you don't feel safe , fit in ethnically or care to live in just to buy something where you can afford a house . there needs to be a balance between what you want and want you will settle for , anything below is off the table
well we have to disagree here . i would not recommend buying in an area you don't feel safe , fit in ethnically or care to live in just to buy something where you can afford a house . there needs to be a balance between what you want and want you will settle for , anything below is off the table
Actually, I agree 100%. I'm not saying THAT person should buy. In that situation, I think the reality is that they can't afford to live in that area. They need to either figure out a reasonable way to increase their income or find an area where their income better matches the cost of housing. That person should be renting for a year or a few years while they get that figured out. During that time, they need to either increase their income or figure out an area they can move to where they can afford to be in the type of area they want.
That's what we had to do. We lived in Northern VA, one of the most expensive areas in the country. But that didn't mean we should live in a bad area or struggle to rent or even buy in an area we really couldn't afford. The reality was that we needed to move to a less expensive area, and we did.
The most thing about renting at my age (30s) is the incredulous looks and unsolicited advise to "stop throwing away my money and rent".
I'm not in a double income situation, and don't really care to get a 0-5% down 30 year loan. The good folks who give the incredulous looks and the unsolicited advice always compare just the rent payment and the mortgage. The down payment is never part of the equation.
Second and more important, it's not only a financial decision for me anyway. It's also a lifestyle decision. In my city, for the area I want to live in and for the proximity to work that I want to be, I can afford to rent higher than I can afford to buy. 2 bedroom condos start are $500K at the lowest, so you can imagine what a 3 bedroom house would be. You can rent much cheaper than what a monthly mortgage would be.
I don't want to inflict 1.5 stop-and-go traffic each way to work every day and far away from the city center, which I like, just for the ego boost of owning. Maybe it's a stupid financial decision, but also I love the convenience of this life every day. What's the price on that? It's intangible...
I think even if I had $50K in the bank, I wouldn't buy. I'd do something else with the money.
This is also why whenever I'd drive, I'd lease new. I don't care about the "owning" I still got to enjoy German wheels for 8 years ,and plan to do so again in the future when I have the means and desire to have a car again.
It depends on the person. As a general rule, everyone should aim to own. It is cheaper in the long-term. But there are certainly reasons why people have to or should rent, at least during certain time periods (very young and don't have long-term plans set yet, new to an area (rent for a year to learn the area), newly married (it's usually good to rent while so many things are changing in your life), older, etc.).
However, a lot of people don't rent because they set rules for themselves that aren't real. I'm talking about people who have to be in a certain state, city, or area and simply choose not to live where it's more affordable, and in their mind, it's set in stone. People who choose to spend on their disposable income rather than saving up a down payment. Without knowing your details, we have no idea if you fall into this group at all, but all too many people do and they are just doing themselves a disservice.
If "cheaper in the long-term" is your only calculation sure, but that's not necessarily the only legitimate consideration.
Like there are plenty of things someone could do with disposable income beyond saving for a down payment.
This is so funny. I grew up in NYC, renting was pretty much all people did. I rent now and have all my life. Feel sad? Too funny.
I think NYC, SF and maybe DC are just a totally different situation from the rest of the country. For one the cost of real estate in these cities is off the charts, so when people casually say, "stop throwing away your money and buy", you have to take the cost of real estate in these cities into account.
Actually, I agree 100%. I'm not saying THAT person should buy. In that situation, I think the reality is that they can't afford to live in that area. They need to either figure out a reasonable way to increase their income or find an area where their income better matches the cost of housing. That person should be renting for a year or a few years while they get that figured out. During that time, they need to either increase their income or figure out an area they can move to where they can afford to be in the type of area they want.
That's what we had to do. We lived in Northern VA, one of the most expensive areas in the country. But that didn't mean we should live in a bad area or struggle to rent or even buy in an area we really couldn't afford. The reality was that we needed to move to a less expensive area, and we did.
Why is renting in an an are they like and want such an offensive option?
Say someone lives in Washington DC area. And they like it. And they can afford their rent. And they have a stable job. They are not super wealthy or rich, but they are not hungry either. They're ok. Why must they figure out a way to move out of DC and head to Richmond or Pittsburgh just so they can buy?
What if they like DC? I think it's perfectly reasonable for them to just rent.
Not everything in life is about a future 30 years from now where you marginally "come out ahead". There's also quality of life considerations today to factor in. And I don't think that's irresponsible or "throwing away your money".
It's just a different viewpoint, and believe me I get the pros of buying ,there's pros and cons to both.
Actually, I agree 100%. I'm not saying THAT person should buy. In that situation, I think the reality is that they can't afford to live in that area. They need to either figure out a reasonable way to increase their income or find an area where their income better matches the cost of housing. That person should be renting for a year or a few years while they get that figured out. During that time, they need to either increase their income or figure out an area they can move to where they can afford to be in the type of area they want.
That's what we had to do. We lived in Northern VA, one of the most expensive areas in the country. But that didn't mean we should live in a bad area or struggle to rent or even buy in an area we really couldn't afford. The reality was that we needed to move to a less expensive area, and we did.
Can’t afford to live there, or can’t afford to buy there?
Hey, we wanted to move to a cheaper area 10 years ago, but our aging parents needed us more and more, and our developmentally disabled child simply would not get the autism services he is able to get through the public school system here. So, we made the intentional choice to stay put. Now we have good jobs that tie us here; while we are unlikely to want to spend the amount of money required to buy here, renting enables us to live comfortably and bank enough money to create a nice nest egg to buy elsewhere when we retire.
I know renters are viewed by some as hapless fools, but the fact is that we are both professionals (he’s a teacher, I’m an accountant), living in a building populated by professionals (mostly scientists and engineers, here for as long as their contracts require of them). Not everyone can, or desires home ownerships enough to, pick up stakes and move to a cheaper area.
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