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Just wondering about if anyone has any experience with rent to own homes in NY? Was it a positive experience? Would you recommend going into this lease option. I am paying rent now, but I feel like rent is a waste of money. I'm helping my landlord to pay her mortgage and I want to pay my own mortgage.
renting is not a waste of money. buying has much higher costs associated with it including paying the bank 2- 3x what the house cost in interest alone. if your lucky you will get back 1 buck for every 3 or 4 your spending in taxes. . if you invest in other asset classes the difference as well as the money you would have used for a down payment you will be farther ahead financially.
if you want to buy a home dont buy it as if it was an investment, buy it for all the other reasons you may want a home.
i bought my home in 1987. i sold it a few years ago, i believe we paid around 169k at that time and sold for the mid 300 thousands. the same money in a mix of nothing special fidelity funds are worth over just shy of 2 million. thats enough to buy 2 homes today even after subtracting out all the rent you would have paid .
both renting or buying represent your cost of housing . they are expenses .. the costs of owning a home a lifetime easily eclipse any residual value a home has .
its all about investing elsewhere what you didnt spend on a home. since most renters dont have the discipline to do that they end up loosers as at least the homeowner ends up with a consolation prize at the end.
most folks move every 5 to 7 years as well and end up paying mostly all interest to the bank as well.
while investing and renting will provide you with the largest pile of money over a lifetime ,owning your home will leave you with less assets since your home appreciates at a fraction of other asset classes historically and because of it potentially less income from those assets but cheaper housing costs as rents escalate is the benefit of owning a home long term. of course escalating real estate taxes have made even a paid off home difficult to support in retirement in many areas...
Last edited by mathjak107; 03-20-2011 at 09:01 AM..
This. Too many people nowadays forget what it means to buy a home, and instead want to become mini Donald Trumps.
I'm not trying to get rich off of purchasing a home..But I figure with the cost of rent being so high, wouldnt it make more sense to buy. Plus, I have two boys...I need a bit more room than an apartment can offer.
it does not make good financial sense to buy. its all about what you do with that money your not plowing into a home. typically at 3% rent increases you have a decade of time before rents become more then the costs of ownership.
as long as you invest that downpayment and those years of money your saving by not buying then renting wins by a landslide over long periods of time.
think of it this way, if you bought a home and rented it out while renting a similiar home next door and if you got more rent for your home your renting out then what your paying for rent would you feel renting is dumb?
of course not. sooooo instead of buying another home to rent out picture diversifying that money into all sorts of other asset classes. so if those asset classes generate an income greater then the rent your paying are you dumb for paying rent? of course not. well over time those other asset classes far and away surpassed the 3% typical rent increase blowing away home ownership in many areas by a landslide.
get the idea?
Last edited by mathjak107; 03-20-2011 at 09:31 AM..
I'm not trying to get rich off of purchasing a home..But I figure with the cost of rent being so high, wouldnt it make more sense to buy. Plus, I have two boys...I need a bit more room than an apartment can offer.
Wasn't referring to you personally. Many others have this mentality however.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
I didnt see anyone mention the OP question, how is rent-to-buy in NY?
I do not ever recall seeing any rent-to-buy in NYC...
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