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I'm sure the guy who's mortgage you're paying appreciates that sentiment. Renting is throwing money away. At least when you buy there is a return on investment.
Tell that to my friend who bought a home in 2004 for 350k. It's worth 145k today. He rented it out but he's so far down that foreclosure and bankruptcy would have been fine choices. And he did nothing wrong really. He's not a housing expert so how could you know to expect 50% drop in an illiquid market?
Tell that to my friend who bought a home in 2004 for 350k. It's worth 145k today. He rented it out but he's so far down that foreclosure and bankruptcy would have been fine choices. And he did nothing wrong really. He's not a housing expert so how could you know to expect 50% drop in an illiquid market?
And how much in rent would your friend have paid over that time? Things are not as simple as you are making them out to be.
And how much in rent would your friend have paid over that time? Things are not as simple as you are making them out to be.
True, but his rent could not have been the cost of his 350k mortgage plus the depreciation of this house. Millions of Americans are in this same condition. The losses aren't realized yet because people are still living in the homes in many cases. But they know they can't sell.
Tell that to my friend who bought a home in 2004 for 350k. It's worth 145k today. He rented it out but he's so far down that foreclosure and bankruptcy would have been fine choices. And he did nothing wrong really. He's not a housing expert so how could you know to expect 50% drop in an illiquid market?
Everyone who looked could see there was a housing bubble that would have to be corrected. Plus he's renting it out, so there's no loss for him, and eventually the house will regain value.
True, but his rent could not have been the cost of his 350k mortgage plus the depreciation of this house. Millions of Americans are in this same condition. The losses aren't realized yet because people are still living in the homes in many cases. But they know they can't sell.
And millions of people haven't had their house drop like that in prices. You can't just pick out the bad situations and apply it to all of housing.
You also seem to be looking at this from a pure financial view. There are other reasons why someone would choose to buy over rent (or rent over buy) that are not purely financial in nature.
Where I live it cost less to buy than rent... especially if you got in when interest rates were super low.
Even at a 5.5% interest rate my mortgage payment, taxes and ins would still less than my apartment.
Plus I can do whatever I want to the place and have a yard for my dog, and a garage.
Like a previous person posted.. different strokes for different folks.
Come on.. some one has to have a great reason to buy.. We know investment is a lousy reason..
Having the home as an asset (PAID OFF only) seems to be the only one so far.
You can google reasons to hold a mortgage.. youll get good reasons..
google reasons to pay off your mortgage early..youll get good reasons..
google reasons to rent a car, youll get good reasons..
google reasons to buy a car, youll get good reasons..
I think you see what Im getting at.
It all has to do with your family's needs and wants.. and all about trade offs and if they are worth it for you.
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