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I don't think there is any argument that home ownership is more "work". I also agree it is easier to move, although I am not sure it would be cheaper. It would cost me a few grand just in fees to move into another apartment (1K pet fees, first, last, security).
So you made your money in Real Estate, like many do. Yes, the stats on home sales being cash does not surprise me with so many investors picking up properties.
Your thread sounds as if I have offended somehow. The premise of my thread was simply that it is my dream to own a home as I am unhappy renting, but will never be able to be a homeowner given my age and income (kind of too late to start over). I never once said or meant to imply any stereotypes about renters.
I don't live in a place as expensive as Manhattan. Where I live, it is simply cheaper to buy than rent (with other things being equal such as the neighborhood). It makes me sad that my money is thrown away each month, yet I don't make enough to buy. Sorry, I know that is whining...just venting, I guess.
There are no rent-stable buildings here that I am unaware of. I don't think Florida has such a thing. Maybe in senior communities?
nope not offended at all . but the poor calculations out there and statements made about renting can be frustrating .
take the average home in our parts . if you had a paid off home and are comparing to renting , you would have to really account for that 600k in the house which if you were considering selling , even in a bond today would give you 18k a year towards the rent .
so if they decided to sell and rent that rent would actually be 18k less since that money is free to generate income if comparing to the costs of the house ..
that is why i say , in our case just comparing the cost of our rent to buying a co-op the difference is cheaper buying .
but that 350k now in the co-op would give us 14,000 a year less in income . that is more than we save by buying .
since we are retired cash flow is king . we would have less cash flow buying because the income would be cut more than the savings .. .
So there is more to owning a home than building equity and calling a place yours.
Even if you got all those financial benefits (tax benefits etc), you still are responsible for it and if you do not want to spend time mowing lawn, shoveling, repairing things, calling in service people to service your furnace, etc, and sometimes you just do not want to - neither timewise nor energy-wise.
If you dont want to do all that work, there is no law that says you MUST own a home. Thats the reason for an apartment.
If you need to leave the house/apartment for some reason (job change, undesirable neighbors, etc) in an apartment you have the freedom to leave when your lease is up, but a home is harder to leave.
I guess to see if you would enjoy doing all that work, rent a home where you have to do that as part of your rent.
If i had a family and had to raise kids in the home or apartment, i would feel different perhaps. I'd have help to do that work..and then maybe i'd want a home to raise kids in.
Exactly, but apparently many in this thread feel that basically that's the purpose of life. To own a home.
the reality is most Americans are awful savers , they are even worse investors because most small investors don't have the pucker factor to stay the course in tough times and stick to the plan .
so like any consolation prize, buying a home ends up being a forced savings . it may not generate the wealth that renting and investing in far better investments can, but at least it puts you on the right track savings wise .
like any investing , there is no guarantee you will be a head , it just guarantees you will be investing in something of value or something able to cut your costs potentially .
hey , if you are disciplined and can actually stick to investing in alternative investments , then by all means rent and invest elsewhere . you can do very very well doing that .
but as much as i defend renting as not throwing money away it only applies if you actually follow through saving and investing elsewhere and that may not be easy for many .
already at work , even the forced savings in the 401k's has participants fleeing equities . these people will likely miss the recovery and the growth that follows . i was on the 401k committee when i had a job . ( i am retired ) . so many fled in 2008 and never came back in . they basically had little growth during one of the the greatest bull markets in history .
so for the average american a house can be important in that respect because it forces money in and left to their own devices they will likely do nothing much outside that house because of poor investor behavior . ..
the reality is most Americans are awful savers , they are even worse investors because most small investors don't have the pucker factor to stay the course in tough times and stick to the plan .
So after years of saying it's better to rent and invest the extra money (which is imaginary in most working people's cases) you change your tune.
not at all .. i distinctly said , it depends on your resources , capability and pucker factor .
i also said broad based statements like renters pay for nothing is wrong .
you can make a lot of money renting and investing in assets with greater growth potential with that capital . but again that is up to the individual ... the fact many do exactly that makes those statements false about renters being losers .
but that does not mean everyone is cut out to go that route . if they aren't , well a home can be a CONSOLATION PRIZE. it may not grow as much wealth as other assets but you do get the home and any cost savings ..
It sounds like you all know a lot more about finance than I do, but I know from a lifestyle standpoint, I wish I could be in a single family home. Only last night I was banging on the ceiling with a broom handle due to the noise. I normally don't like to antagonlze the neighbors but I was at my wits end. I am too old for this s***.
I looked into renting a SFH (same price I am paying for my apt), but I did not meet the income requirement (although my credit is great).
yes that is one of the hazards of renting . but then again when we had the house we were attached houses and we had a neighbor who did car repairs on the weekends in his driveway . oh man he was banging and making all kinds of noise year round from 7am on so that sucked too .
nothing like an isolated sfh . even having neighbors and very loud kids can be annoying when homes are close together
yes that is one of the hazards of renting . but then again when we had the house we were attached houses and we had a neighbor who did car repairs on the weekends in his driveway . oh man he was banging and making all kinds of noise year round from 7am on so that sucked too .
nothing like an isolated sfh . even having neighbors and very loud kids can be annoying
Yeah, that would be frustrating.
I do know SFH's are not immune to noise, either. It would still be my preference, though.
Exactly, but apparently many in this thread feel that basically that's the purpose of life. To own a home.
Yep! If that is their goal, then they are welcome to pursue it.
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