Here's why renting is better than buying in LA. (Los Alamitos: for sale, rent)

[JJonesIII]

Originally Posted by aslowdodge

More than likely he put 20 percent down or less
Using leverage he could make Money on a 500k house with less invested than the 500k needed for the stocks
While the sf market has gone up a lot, the Los Angeles market has done so too.
As far as middle class, they are buying homes. Then again how many middle class people can plunk down 500k cash to put in the market?

Dodge, you're wasting your time. Please note his comment..."I'm not reading super long post". I think your post is only a few words less than mine so it probably doesn't qualify either (I think it needs to be less than 280 characters or it's beyond capacity).

[Mister 7]

Renting is never smarter than buying. It's so expensive out there the sad thing is people just can't afford to buy.

We counted up $55,000 in rent in 2 years in our time in LA. After our eyes popping out of our heads, we decided that was enough.

I just see it as literally flushing our livelihoods down the toilet, and answering to freakin landlords and leasing offices run by 20 something twits.

OP-- many, MANY homes do not have HOAs, let alone ones that cost that much. I avoided a house in one of those like the plague. Maintenance and upkeep? It's a pain sometimes but it doesn't cost a fortune either. I bought a riding lawn mower from my neighbor for $250 and spend $5 in gas to fill it up.

Homeownership is also like a previous poster said, a lifestyle. I know many who love to clean, make your house nice (DH is better at that than me lol.), it can be very therapeutic. And it's YOURS, NOBODY ELSE'S. NOBODY CAN TELL YOU TO DO JACK.

It's silly to trash on buying...instead pay rent for 30 years, spend all that money, to end up with walls you don't own? I bought my house kind of late, age 35, but it will be paid for by retirement if not sooner. I've been gone from LA for a while but I really don't imagine for your average LA millennial spending $2500 on rent, that they have an extra couple of grand to invest that would make them better off than owning a home outright eventually, especially there. Just my .02.

[HB2HSV]

Originally Posted by Electrician4you

Lol
I raise rents yearly now. Have a new tenant on their second year. This year they are getting a raise in rent. You’re right about the LL raising rent $200 in 10 years is a dumb landlord. His numbers are comparing watermelons to grapes

Where did you get that idea? You better add 10% minimum on top of your monthly nut.

I would never use my house or rentals in such manner. My rentals provide steady cash flow. I save and invest that money. I could leverage but I choose not to do that.

My property manager called today, my renter just gave a 30 day notice. They did a comp on my rental and they're bumping the rent up by $600 a month.

I said go for it.

[Mister 7]

Originally Posted by HB2HSV

My property manager called today, my renter just gave a 30 day notice. They did a comp on my rental and they're bumping the rent up by $600 a month.

I said go for it.

Mind if I ask what area you live in?

We were right by Runyon, and the rent for the same apartment we had is $500 more, and the studios are going for more than our old apartment, which was a decent sized 1br.

See another thing about a mortgage that's great is that XXXX dollars won't be as expensive 15-20 years later, whereas rent will always increase.

[HB2HSV]

Originally Posted by Mister 7

Mind if I ask what area you live in?

We were right by Runyon, and the rent for the same apartment we had is $500 more, and the studios are going for more than our old apartment, which was a decent sized 1br.

See another thing about a mortgage that's great is that XXXX dollars won't be as expensive 15-20 years later, whereas rent will always increase.

My rental is in Los Alamitos, OC.

Runyon? In top of Hollywood Hills? If so, that's a nice area. I can see why rent went up every year.

Agreed on rent goes up every year while a fixed rate mortgage stays the same for 30 years. I remembered my very first mortgage, a whopping $850 a month for a 3 bedroom, I had stomach aches for a week thinking paying THIS MUCH for the next 30 years! That was the era of high interest rate too. I remember congratulating myself getting a low interest rate of "only" at 9.5%

[TexasBound19]

Originally Posted by HB2HSV

My rental is in Los Alamitos, OC.

Runyon? In top of Hollywood Hills? If so, that's a nice area. I can see why rent went up every year.

Agreed on rent goes up every year while a fixed rate mortgage stays the same for 30 years. I remembered my very first mortgage, a whopping $850 a month for a 3 bedroom, I had stomach aches for a week thinking paying THIS MUCH for the next 30 years! That was the era of high interest rate too. I remember congratulating myself getting a low interest rate of "only" at 9.5%

Lol, are you implying property taxes don't go up over time?

Same with HOAs. Always go up.

[Vic Romano]

Originally Posted by TexasBound19

Lol, are you implying property taxes don't go up over time?

Same with HOAs. Always go up.

Don't you pay HOAs for your condos in Maui and Florida? Your property taxes there don't go up? Your HOA fees didn't increase either? LOL

//www.city-data.com/forum/hawai...dont-live.html

//www.city-data.com/forum/flori...lorida-do.html

[aslowdodge]

Originally Posted by TexasBound19

Lol, are you implying property taxes don't go up over time?

Same with HOAs. Always go up.

Keep in mind we’re talking California. Prop 13 minimizes property taxes to almost ridiculously low increases. A landlord is going to factor in those small increases into rent raises. A homeowner could well see smaller increases versus rent increases.

[Mr_Geek]

There's equal parts argument to both sides. This argument is pretty pointless.

Houses have fixed mortgage payments but you pay for new roofs, appliances, HVAC etc.. Rents go up but you don't pay directly for a new roof every X years.

[HB2HSV]

Originally Posted by TexasBound19

Lol, are you implying property taxes don't go up over time?

Same with HOAs. Always go up.

LOL. You're clearly in denial.

Yes they do go up, except they go up at a much slower rate than rent. If they go up, then rent goes up even more. The cost of doing business.