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Old 05-20-2011, 01:56 PM
 
Location: West Orange, NJ
12,546 posts, read 21,403,981 times
Reputation: 3730

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Quote:
Originally Posted by mistygrl092 View Post
You're gonna get yourself in trouble here if you're not careful!

I don't know about your hypotheses honestly. I think we wouldn't be in this housing debacle if homeowners had been responsible, so that sort of throws them out the window. Many tried to own, many overbought, so I have a feeling that you might not be right. Of course, many were completely responsible and just lost their jobs. Would I sign up for a 30 year mortgage? I don't think so. I have, but very small ones where I knew I could go to McDonalds and still make payments. However, good luck getting a job at that place these days, but I digress.

I think maybe people who need more security might buy vs. renting or who want more control over their lives. I know for me I just wanted space and quiet and those were the primary drivers for me. That and the security thing.
a much larger percentage of homeowners were responsible than were not. it just so happens that enough were irresponsible to help contribute to the financial disaster that occurred. we still have a lot of homeowners in this country paying their bills monthly and not foreclosing.
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Old 05-20-2011, 01:58 PM
 
Location: West Orange, NJ
12,546 posts, read 21,403,981 times
Reputation: 3730
Quote:
Originally Posted by CaptainNJ View Post
i think the problem with the housing situation was you had renters being given an opportunity to become owners that really werent qualified to be owners. thats why its not good to offer 0% 3.5% or 10% down mortgages. these are people who arent responsible with money being given a lot of responsibility.

but its important to understand that im talking as a generality. i understand that renting can be a sensible financial option for responsible people. even i would prefer to be a renter than an owner (but i was in a unique position to get a lot more benefit from owning than most people). but for most renters, its more of a choice thats based on their abilities not their good senses.
that's part of the problem. the other part of the problem was people who had money that wanted more money and were buying 2nd, 3rd, and 4th properties to fix up and flip. if you look back at the data, the increases in mortgages also included a very large increase in 2nd mortgages. it wasn't all about people with no money taking homes with 0% down. that's only part of the story..
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Old 05-20-2011, 02:00 PM
 
Location: West Orange, NJ
12,546 posts, read 21,403,981 times
Reputation: 3730
Quote:
Originally Posted by user_id View Post
No, as I stated previously I have no idea whether renters are on average more frugal or not. I don't really care either.

You once again seem to infer causation from correlation, in terms of renting vs own the cheaper option is a matter of basic mathematics. Whether or not most renters are less frugal than owners has no barring on the issue. If renting is cheaper than ownership then one will have the ability to build more wealth overtime via renting and investing else where then they would by owning. Its hard to see how owning when renting is cheaper is some how frugal...
actually, you should care. because, just like you like to claim that people are pyschologically predisposed to not being able to handle taking 0% loans from credit cards for more than 30 days, you should also subscribe to the widely available data that shows that renters are pyschologically predisposed to accumulate less wealth than homeowners.

so...it's not cheaper given that homeowners by and large end up far wealthier than renters.




BOOOOOYAAAAA. don't you hate it when you're a hypocrite?
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Old 05-22-2011, 11:28 AM
 
30,896 posts, read 36,958,653 times
Reputation: 34526
Quote:
Originally Posted by mistygrl092 View Post
Hmm, this might support your theory in a way:

» Homeowners Happier Than Renters

Now, this assumes that all you say is true and that not living from paycheck to paycheck makes one happier, etc.
It's not the owning the home that makes them happier per se. It's the values, habits, and attitudes that lead people to become home owners in the first place. Owning a home is just a by product of that value system.
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