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Old 08-11-2019, 07:32 AM
 
1,315 posts, read 595,016 times
Reputation: 2425

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In retirement I do believe I am going to rent. I simply wish an end to the hassle and also, expenses I get nothing out of. For instance, my condo fee is simply a tax. Every time I ask for maintenance... it is ignored so either I get to worry about it all day or I do it myself. In my state the condo statutes are very loose so there is no one to appeal to. Generally rental laws are much more stringent.

Same with property taxes... so many roads in dire straights.

My plan is to take my savings and money I get for my current house, park it in a CD and have about 50% of my rental costs reduced by that money.

Lets assume rent of 1500... less 1000 in interest per month... that is 500. Well right now the cost of my condo fee and my property taxes is 700... so, I will be making out.
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Old 08-11-2019, 07:36 AM
 
Location: Central Florida
2,053 posts, read 2,680,263 times
Reputation: 7914
To people who believe that renters have to pay forever but buyers who pay off their mortgages are done paying, I must ask this question: How did you get out of paying for property taxes, homeowners insurance, and maintenance of your home?

Buyers, just like renters, are NEVER done paying for their homes.

And buyers often overlook the thousands of dollars they paid in interest on their mortgages, which they're never getting back.

And buyers also overlook, as Mathjak argues, the investment gains they're not getting when their money is tied up in their property.

It's a complete falsehood to say that buying is always better than renting, or that renting is always better than buying. Each person has to crunch all of the numbers, and give appropriate weight to the emotional aspects, to decide which is better for them.
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Old 08-11-2019, 07:53 AM
 
12,176 posts, read 5,260,328 times
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To some extent, some of this depends on what or where you are renting. For example, if you are renting a duplex, condo, or single family home, you are pretty much at the mercy of your landlord as far as raising rents, or giving you a 30 day notice (depending on your lease) to move out because they want to move their mother-in-law in or a whoever. Or a landlord may choose not to renew your lease just because you called him too many times about a leaking faucet or complain on a regular basis about your neighbors.
Personally, I hate moving and will do whatever it takes not to be in a situation where I'm told I need to move out, especially when I really like living somewhere. It's expensive and a huge hassle to move as far as I'm concerned.
Yes, property taxes go up, but usually not more than a tiny increment at a time and this is one thing you need to consider when choosing where you move or buy a house. Some counties are notorious for raising taxes on a steady basis, while others might raise property taxes slightly once every five years.
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Old 08-11-2019, 08:00 AM
 
Location: SoCal
13,801 posts, read 6,554,801 times
Reputation: 10375
I’ve rent before, in fact many times, I prefer owning. I can do anything I like to my house, while renting I have to ask permission to change my house. I once want to change the kitchen of a house I rent, even with my own money, but I couldn’t do it. They also keep appliances pretty outdated. I prefer to buy new ones. I dont think I like moving in retirement. I hope to age in space. Yard work is what keeps me fit. I never complain about yard work.
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Old 08-11-2019, 08:06 AM
 
72,641 posts, read 72,508,687 times
Reputation: 50192
Quote:
Originally Posted by Arya Stark View Post
In retirement I do believe I am going to rent. I simply wish an end to the hassle and also, expenses I get nothing out of. For instance, my condo fee is simply a tax. Every time I ask for maintenance... it is ignored so either I get to worry about it all day or I do it myself. In my state the condo statutes are very loose so there is no one to appeal to. Generally rental laws are much more stringent.

Same with property taxes... so many roads in dire straights.

My plan is to take my savings and money I get for my current house, park it in a CD and have about 50% of my rental costs reduced by that money.

Lets assume rent of 1500... less 1000 in interest per month... that is 500. Well right now the cost of my condo fee and my property taxes is 700... so, I will be making out.
usually by retirement the game changed . it is not a case of buy or rent invest the difference ...that rarely works well .

it is a case of i have this big ole pile of money if i sell ... can i invest it , pay the rent and have quite a bit left as well ? it is a different game with different options then rent and invest the difference when lump sums are not involved . .

don't forget a balanced fund can actually support up to a 6-1/2% draw rate from a balanced fund if you rule out the slight 10% chance you will see a worst case scenario ... that can mean a lot of income in retirement from a balanced fund over as long as 30 years in retirement ...
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Old 08-11-2019, 10:30 AM
 
567 posts, read 157,314 times
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We love owning because it’s very important to me that the decorating, paint, etc are pleasing to me. We also have dogs. Plus I don’t want to move when someone says I need to. We did everything low maintenance before retiring and fixed everything. Our property taxes are low.
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Old 08-11-2019, 01:44 PM
 
1,581 posts, read 347,931 times
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Quote:
Originally Posted by elchevere View Post
Greetings:

Moved to Miami a few years ago from San Diego (where I owned) and was gung ho about buying a place as soon as I could when I got here.

Flash forward 2.5 years and Iím still renting and do not have a strong urge to own. I can easily afford a nice modern condo but do I want the hassles of ownership which include maintenance, possible assessments, and in the case of Miami a possible hurricane direct hit and rising sea level. Furthermore, on an $800-900K condo I figure I would need to make $75-100K profit (above what I paid) just to break even after factoring in realtor, attorney plus escrow, furniture costs etc. Will home ownership be as important to todayís teens when it comes time for me to resell the condo in 20 years or so?

If I were 30-35 and in the middle of my working career owning would make more sense. Greater flexibility and investing the dollars (I would otherwise be handing a bank as a down payment) in the stock market seems more financially prudentónot to mention a more liquid investment. Being able to pack up and move seems like a nice option.

Moving sucks, but my life is down to 6-7 boxes and I plan to continue renting furnished so it should not be as big a burden as it once was.

I am also single with no direct heirs, so I would not be leaving my property to someone upon my death.

How many feel the same way as I do and/or are in a similar position?
sounds good - like something I'd do eventually....mind sharing what you pay in rent/utilities/etc for the month:?
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Old 08-11-2019, 11:02 PM
 
Location: Edina, MN, USA
6,965 posts, read 7,433,263 times
Reputation: 16314
Quote:
Originally Posted by mathjak107 View Post
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
Your logic just escapes me. When you leave your rental you will get squat back from your landlord. The money you invest is other money you have. You can't hand over $xxxx.xx every month to a landlord AND invest that same money. Flush - gone. My statement was entirely correct whether you like it or not.

My mortgage stayed the same from 1994 - 2014 when I paid it off. Your rent did not stay the same during that time - it went up up up.

I paid $145,000 for this house and will sell it for $450,000 - maybe more. I bought in an area where the homes are well built - I did not buy a money pit - so my maintenance has been minimal. No HOA. I pay taxes and insurance - but so do you - it's built into your rent.

I stand by my statement.
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Old 08-12-2019, 12:20 AM
 
Location: Colorado
18,850 posts, read 4,974,305 times
Reputation: 5499
No, we don't rent, but do have rentals...
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Old 08-12-2019, 02:01 AM
 
72,641 posts, read 72,508,687 times
Reputation: 50192
Quote:
Originally Posted by Umbria View Post
Your logic just escapes me. When you leave your rental you will get squat back from your landlord. The money you invest is other money you have. You can't hand over $xxxx.xx every month to a landlord AND invest that same money. Flush - gone. My statement was entirely correct whether you like it or not.

My mortgage stayed the same from 1994 - 2014 when I paid it off. Your rent did not stay the same during that time - it went up up up.

I paid $145,000 for this house and will sell it for $450,000 - maybe more. I bought in an area where the homes are well built - I did not buy a money pit - so my maintenance has been minimal. No HOA. I pay taxes and insurance - but so do you - it's built into your rent.

I stand by my statement.
you just don't seem to comprehend the math that's all.. you are thinking in terms of what you pay not others .

if we bought just a co-op apartment , not a house which starts at 7 figures here , that means no income anymore on 350-400k which is pretty much our rent right there , plus we give up the income generated on the additional 1500 a month in carrying costs for a co-op . that includes taxes , the rest of your mortgage the building holds , heat , water , sewer , common charges , insurance on the structure , central air and in this case electricity . only one we pay now is electricity outside the rent .

a similar apartment in a condo would be 2x the price .. just the income on a balanced portfolio alone covers our rent and the portfolio is still growing . then it is another 1k a month in monthly carry costs because a co-op has part of your cost of the apartment in the building mortgage . ...

this is simple math and simply not worth doing . the portfolio appreciates more than the apartment would while spinning off the income paying the rent .

the only problem here is you don't fully comprehend how much of a difference there is between renting in buildings vs trying to buy a co-op , condo or single family home in high cost of living areas . landlords made far far far more money taking their rental buildings co-op then leaving them as rentals .

but not all could take their rentals co-op because to convert you needed at least a certain amount of tenants to buy ....

many renters are renters because they have no money or little money , or they likely would not be renters .. so these buildings could never convert . so rents in rental buildings are far cheaper then trying to buy an apartment in a co-op or condo and they are far cheaper then a single family home ....

in fact we are waiting to see if with the new rent laws that were signed in to effect june 1st which basically hurt landlords big time with all kinds of restrictions , whether after 40 years the owners may either choose or be forced to take the building co-op ....

insiders are always offered a greatly reduced price because now 50% of the building has to buy or else the conversion is dead . if the deal is a good one we would buy ... sell at a nice profit and move to an even nicer building around the corner which i like but is way to costly as is .

Last edited by mathjak107; 08-12-2019 at 02:34 AM..
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