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Old 08-11-2019, 12:08 AM
 
Location: Edina, MN, USA
6,965 posts, read 7,432,137 times
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Quote:
Originally Posted by AlaskaErik View Post
I don't think I'll ever understand where you're coming from. My PITI is hundreds of dollars cheaper than what the same house would rent for. As a renter, I would still have the same expenses for utilities and routine maintenance, such as yard work and snow removal. And now that I'm 65, my property taxes will go down significantly, a benefit a landlord wouldn't get. At the end of 30 years, I'll have a paid off house worth hundreds of thousands while a renter would have a pile of receipts. If I want to invest, I have more money to invest vs a renter. Yes, I could rent a dump for a few hundred a month less than I pay for my house, but that's an apples/oranges comparison. I don't want a lower standard of living, so I'm going to compare buying vs renting the same home. So to me, I'm money ahead by buying, because I am putting out less money over the years, especially when you figure my monthly payment will remain pretty much the same vs steadily increasing rent rates. I would say this applies to almost every one in the US.
I totally agree. My house has been paid for since 2014. If I were renting those monthly payments would not only be on the rise but would last forever. At the end you have nothing. Bad neighbors can happen anywhere whether you're renting or a home owner. I've had a home since the late 70s and have been lucky but a lot of that luck has to do with where you end up living.
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Old 08-11-2019, 02:32 AM
 
72,638 posts, read 72,508,687 times
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another one with the at the end you have nothing ...

that is false if the money is invested elsewhere and generating far more money then the housing costs plus /appreciation on the house are .

i always resent these general statements since we sold our house , invested elsewhere while renting and generate far far more then the house would have saved us or appreciated .

can every renter do that ? no , but as long as some do this belief that you end up with nothing or the rent consumes you is a fallacy .

we sold pre retirement , invested the money in a real estate business and today that house money grew in to multiple 7 figures . we can pay rent forever while generating far more income then had we had the money still sitting in the house.

so yeah , i take it personally when people say renters get nothing or they are idiots throwing money out the window ... because i would gladly be that idiot over and over. so you can't classify renting that way or you would be very short sighted and wrong about quite a few renters who choose to buy business's or invest elsewhere in far more lucrative places then tie the money up in a house
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Old 08-11-2019, 05:34 AM
 
Location: Miami, The Magic City
2,963 posts, read 2,062,254 times
Reputation: 1974
Brickell...nice, clean, modern, walkable, urban neighborhood in Miami that is 15-20 minutes from the beach.

I evacuated for Irma 2 years ago—stayed with a friend in San Diego. No damage, was away for 7-8 days until American scheduled flights back and businesses/restaurants were back up and running.

Quote:
Originally Posted by olderandwiser456 View Post
Love your post. I'm also down to about 10 boxes, and hope to reduce it further! LOL I totally agree with your assessment of renting vs owning given all that you mentioned.

I'm also single and retired and at the moment, looking to move out of the frozen north country (Michigan). I'm researching various areas, and I've looked at the southwest side of Florida. I haven't found any good rentals online and will need to visit there to make a decision. However, I have friends that retired north of the Miami area, though they are homeowners.

What part of Miami are you in? I'm also looking to rent furnished. I have no interest in lugging/moving furniture around the country when I move my 10 boxes....or maybe fewer.

Oh, just a question about hurricanes. Did you end up evacuating for Florence or Michael? I may have those names wrong, but there was one hurricane that caused a mass evacuation out of Miami in the last couple years. Maybe it was Irma.
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Old 08-11-2019, 06:35 AM
 
Location: NC Piedmont
4,018 posts, read 2,933,399 times
Reputation: 6508
A lot of listings I have looked at are advertised as investment properties as rent is more than mortgage. In many locations, the "invest the difference" strategy doesn't hold water. I am mulling renting just the same though; I am looking at areas that are prone to hurricanes and until I spend some time living in a location I get really be sure I will want to settle there. Home prices go up and down. Even with inspections there are often surprises that cost big money. I have also added condos to my shopping list as they are almost straddling the fence and you can get amenities with a low priced, solid and reasonable to insure home and they seem to move okay where I am looking. Townhouses are out; knees and hips complain too much. I think I can avoid any replacement for a long time, maybe forever, if I live on a single floor. One advantage of a house is that my current outdoor toy of choice - paddle board - is easier to store.
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Old 08-11-2019, 06:44 AM
 
72,638 posts, read 72,508,687 times
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Quote:
Originally Posted by ReachTheBeach View Post
A lot of listings I have looked at are advertised as investment properties as rent is more than mortgage. In many locations, the "invest the difference" strategy doesn't hold water. I am mulling renting just the same though; I am looking at areas that are prone to hurricanes and until I spend some time living in a location I get really be sure I will want to settle there. Home prices go up and down. Even with inspections there are often surprises that cost big money. I have also added condos to my shopping list as they are almost straddling the fence and you can get amenities with a low priced, solid and reasonable to insure home and they seem to move okay where I am looking. Townhouses are out; knees and hips complain too much. I think I can avoid any replacement for a long time, maybe forever, if I live on a single floor. One advantage of a house is that my current outdoor toy of choice - paddle board - is easier to store.
it is not a case of simply comparing the renting cost to the buying cost ...someone here in another thread tried to tell me i wasted my time because there was a 2k difference between renting and buying .

but they failed to look at tthe whole picture .

we sold our house 15 years before retiring ... that money no longer in the house was invested in a real estate business . that money grew to multiple 7 figures after taxes . that house money we invested now generates 120k a year in income . our rent is 20k plus parking spot ...

that is the big picture .. that house money grew very very nicely and exceeded way beyond what our position would be in today had we simply kept the house , had lower housing costs and appreciation on the house .

it is the years of growth that money saw and the fact that money is now generating 120k a year not counting all the appreciation we have on it yearly too . that is only considering a 4% draw rate off of it . anything more is still growing that money as well.

that is a very different situation then just going buying is 1500 a month and renting is 2000 a month . .

our building is filled with professionals who plowed large lump sums in to buying medical and dental practices or other successful business's as opposed to sinking it in a home ... they are growing huge amounts of wealth with that money as renters . eventually many do go and buy magnificent homes but it is the fact they rented that grew their wealth to that point ...

the economy of scale also makes renting in a high rise far cheaper then owning or renting a single family home here too .... you can't compare rent vs buying a single family home which start at 7 figures here with 5 digits in taxes to renting in a building with a pool and tennis courts ..rent is way way lower then trying to own one of these homes . so the combination of renting and sinking that money in to their business's generates a lot more wealth here .

so this is why i am so resentful of blanket statements about renters throwing money away and having nothing .... there are so many aspects and situations to consider .

so not owning allowed us to really put that money to work leaving us in a great place in retirement .

Last edited by mathjak107; 08-11-2019 at 07:09 AM..
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Old 08-11-2019, 07:09 AM
 
12,176 posts, read 5,260,328 times
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How about the simple notion that some people prefer to own their own homes and others prefer to rent? This doesn't need to be constantly debated. It comes down to personal choice. It's not always about which will give you a greater return for your money when it comes to this issue. Sometimes it's about enjoying where you live and how you live.
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Old 08-11-2019, 07:17 AM
 
72,638 posts, read 72,508,687 times
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Quote:
Originally Posted by marino760 View Post
How about the simple notion that some people prefer to own their own homes and others prefer to rent? This doesn't need to be constantly debated. It comes down to personal choice. It's not always about which will give you a greater return for your money when it comes to this issue. Sometimes it's about enjoying where you live and how you live.
that is a lifestyle choice and different from the financial aspect people are throwing out
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Old 08-11-2019, 07:20 AM
 
12,176 posts, read 5,260,328 times
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Quote:
Originally Posted by mathjak107 View Post
that is a lifestyle choice and different from the financial aspect people are throwing out
Yes and a life style choice is a huge part of it since it's where you live day in and day out, every single day.
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Old 08-11-2019, 07:22 AM
 
29 posts, read 7,236 times
Reputation: 118
I think the real nightmare for me would be to retire, plunk down a huge amount of money for a house and find out I made a mistake. I have thought of renting for a year in my new location when I move (I will be moving after I retire). You really can't know what you are getting into. I have had good neighbors and neighbors from hell. Homes can have expensive problems from furnaces to sewers. And the expensive neighborhoods are no guarantee either. My sister bought a 350k home and found out later her neighbor across the street sits in his garage all afternoon watching the street with a loaded gun in his lap. So you never know what nut jobs or pains in the butt you will be around. Buying a house is like a workplace, a group of random people. Sometimes it is fine and others you want to get the hell out. Renting is good for that, because when the lease is up you are gone gone gone. That can be something priceless if you need it.
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Old 08-11-2019, 07:23 AM
 
72,638 posts, read 72,508,687 times
Reputation: 50192
Quote:
Originally Posted by marino760 View Post
Yes and a life style choice is a huge part of it since it's where you live day in and day out, every single day.
absolutely agree ... i hate chores , maintenance , grass cutting , the snow shoveling ... i don't want to devote 1 second of my life to any of it . i did not enjoy ownership much . we paid to have a lot done ...

so i love the fact i have to do nothing . every repair is handled by a full time staff here . i do miss a backyard and privacy but it goes with the territory of living in a building ...
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