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Not if you're comparing apples to oranges like in my example. You cannot buy a room.
The way I read what you wrote was that renting out the space you occupied didn't pay for the space. If the owner can't rent out the place at a profit it will correct. Your language wasn't specific enough for me to tell total rent income >,< or = cost of owning the place plus cost of buying it. Sorry.
So can you buy a place in your market and rent it out at a profit?
The way I read what you wrote was that renting out the space you occupied didn't pay for the space. If the owner can't rent out the place at a profit it will correct. Your language wasn't specific enough for me to tell total rent income >,< or = cost of owning the place plus cost of buying it. Sorry.
So can you buy a place in your market and rent it out at a profit?
It's a HCOL area, so it would require significant commitment of time or capital.
Wrong, wrong, wrong. The renter ALWAYS has the option of buying. Granted, it will take commitment, hard work and discipline, but lots of people do it every day.
I rented 5 years ago. Now I own.
My new, young neighbors were in an apartment 3 months ago. Now they own. Single income. Two kids.
We were forced to rent living near NYC. Young couple starting out in that area making less than $100k where apartments cost $500k is not realistic. We got sick of the rent trap and moved a bit further away to deal with a longer commute and keep our costs down, got a little frugal, and saved every time we got a promotion. We were able to put down 10% on a beautiful home we can grow a family in and couldn't be happier. It took a lot of hard work and some sacrifice, but we know it'll be totally worth it.. we walked into instant equity as we got the home below market, and we're building more equity with every payment. We're also getting some amazing tax breaks. All while being cheaper than renting. (We were "kicked out" of 2 apartments we really loved as the owner was looking to sell.. Huge downside to renting)
It can be done.. But its not gonna be fun, gotta sacrifice some stuff.
Wrong, wrong, wrong. The renter ALWAYS has the option of buying. Granted, it will take commitment, hard work and discipline, but lots of people do it every day.
I rented 5 years ago. Now I own.
My new, young neighbors were in an apartment 3 months ago. Now they own. Single income. Two kids.
No, sounds like the majority of first time buyers. Rent first, have a child, go buy a house.
Most people do not live in a high cost of living area which makes that step challenging.
I know we keep telling everyone over and over, but it is not hard to buy a home in most areas of the country. Please browse realtors.com and see for yourself.
As I said earlier, it can be done even in a HCOL area, it just takes much longer to either save the money or manage the job transfer to a LCOL area. In my case, if I stay here after grad school, I could still (eventually) buy property, however, it probably does not make financial sense given that I don't particularly enjoy spending time on DIY stuff. It can happen much faster if I earn the money wherever I can get paid well, and then move to some place where the prices are lower. Even paying full cash could be doable. Staying here, in this HCOL area, I'd take 20-30 years if I wanted to go the cash route. But 20-30 years is not "never".
All I can say is I'm glad I did not listen to the naysayers...
I penciled out my budget and came up with the numbers to make it work...
I did have to sell my prized 1968 Z28 Camaro to a collector... it was not easy but it made it possible to come up with the money... it was as new and a labor of love.
The home I bought had been on the market for sometime... it was a "Rental" and the elderly brother and sister were trying to settle their late brother's estate...
The save real estate broker said I should make an offer... it was a lot less than asking and it worked.
All I can say is I'm glad I did not listen to the naysayers...
I penciled out my budget and came up with the numbers to make it work...
I did have to sell my prized 1968 Z28 Camaro to a collector... it was not easy but it made it possible to come up with the money... it was as new and a labor of love.
The home I bought had been on the market for sometime... it was a "Rental" and the elderly brother and sister were trying to settle their late brother's estate...
The save real estate broker said I should make an offer... it was a lot less than asking and it worked.
In my case it was the lenders, family and friends.
I could not qualify for a loan... turned down... not enough steady work and not long enough with employer.
I bought for cash the shack that was going to be torn down...
Spent my life savings and sold my classic car to make it happen.
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