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I see A LOT of stuff like this article floating around lately...
The conspiracy theorist in me suspects they are subtle attempts to push the cultural patterns of the country away from wanting to own their own little place in 'burbs and adopt a more sustainable urban apartment dwelling lifestyle, probably because we're expecting to add about 10 billion people in the world over the next 40 years and god ain't making any more resources to support them all...
You can't look at your house as strictly an investment, it's a place to live. Providing your going to stay put for a while money is going to rent if its not going to a mortage so your really only saving on property taxes and repairs assuming me and this guy make the same salary he's not saving so much more than me b/c he doesn't own. I pay $860 for my mortgage payment he probably pays $1100 for a place equivalent to mine to rent so I'm ahead a few hundred there though I do have to pay taxes and everything else.
this guy seems to think he doesn't pay property taxes. he pays them he just pays them in the form of rent as the ll rolls it into his rent. People don't rent place out of the kindness of their hearts to provide you a place to live so any costs the owner ie your landlord is paying are passed right along to you
This guy is an idiot who wrote the article as others have said there's no one size fits all answer. Gonna be a total diff scenario if property taxes in your area are 10k a year as opposed to a couple hundred bucks.
Rent is 100% gone. Though homes cost repairs, taxes, etc that is costly but your building some equity instead of losing 100% of the money.
Also, with FHA loans you do have to pay PMI and that's not cheap but your also only putting down 3.5% so this guy saying you buy a house there goes 100k is false
Rent is 100% gone. Though homes cost repairs, taxes, etc that is costly but your building some equity instead of losing 100% of the money.
<snip>
Quote:
Originally Posted by dragontales
You know that nice apartment that you have been renting for years? Yeah somebody owns it and you are paying their mortgage and property tax.
These are incredibly naive and old school thoughts... The idea that the value of RE can only go one way is incorrect and been proven completely false. It continues to collapse overall and the next Case Shiller I'm sure will be even worse. People are flat unable to sell their homes sitting on huge mortgages and debt. If a job loss, divorce, or medical issues are involved it could just be a matter of time until they default.
So debunking the author is fine, but the pure math is not on your side of the argument if you're trying to make a case for "equity" or "making someone's payment". Renters are going to win overall in a landslide in a bad economy.
If the renters were the ones making out financially, no one would be in the rental business.
This is so true!
And personally I don't want to be paying either a mortgage or rent when I am 65. So I believe owning is best, and will be buying within the next few years, on a 20 year repayment.
If you think you may have to move for a job or whatever, just make sure you buy a property you can rent out without too much trouble, just in case.
The article's author seems to forget one
cannot live in their investment portfolio.
I don't get the point of this.
You can't look at your house as strictly an investment, ....
Your post doesn't explain mam's post.
Who has said that one can live in their investment portfolio?
Quote:
Originally Posted by rfr69
People don't rent place out of the kindness of their hearts ... any costs
the owner ie your landlord is paying are passed right along to you ...
This is obvious and exactly what the author assumes.
Quote:
Originally Posted by rfr69
Rent is 100% gone.
This is another obvious point. So is interest. So what?
Guess what? I made payments AFTER putting 20% down in the year 2000, then I made extra principle payments for years.
Now, guess what again? Those are 100% gone. How is that different? Guess what? It's not.
Quote:
Originally Posted by rfr69
... as others have said there's no one size fits all answer ...
Yet, you contradict your own advice,.
Quote:
Originally Posted by arctichomesteader
If the renters were the ones making out financially,
no one would be in the rental business.
No one renting personal family standalone housing is making out financially.
You are comparing renting single family housing with renting multi-unit dwellings.
The author of the article in the OP is talking about single family housing.
Clearly for the near future, he's right and not a moron or an idiot.
Clearly, some day in the farther future, he will be wrong.
Timing is everything. Oh wait ... did I already say that?
If the renters were the ones making out financially, no one would be in the rental business.
That is a complete and utter farce... Substantial numbers of underwater homeowners are being forced to rent out SFHs at a loss because they can't sell. Ask them how profitable the rental business is.
Who has said that one can live in their investment portfolio?
This is obvious and exactly what the author assumes.
This is another obvious point. So is interest. So what?
Guess what? I made payments AFTER putting 20% down in the year 2000, then I made extra principle payments for years.
Now, guess what again? Those are 100% gone. How is that different? Guess what? It's not.
Yet, you contradict your own advice,.
No one renting personal family standalone housing is making out financially.
You are comparing renting single family housing with renting multi-unit dwellings.
The author of the article in the OP is talking about single family housing.
Clearly for the near future, he's right and not a moron or an idiot.
Clearly, some day in the farther future, he will be wrong.
Timing is everything. Oh wait ... did I already say that?
I live in a SFH my mortgage is $860 including everything, rents in my neighorhood go for around $1100-$1250. Someone renting is paying my property taxes, my PMI, and my mortgage plus putting a few hundred bucks a month in my pocket.
Am I responsible for repairs yes, is my money tied up making it a hassle if I wanna move or lose a job, yes but how do you get renters are getting a deal? The writer and some of you guys talk abut how owners have to pay property taxes, the renter is paying mine for me along with all the other stuff that was givenn as reasons not to own.
Like I said before, landlords to rent places out of the kindness of their hearts. Any fees they get hit with are passed along to the renter.
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