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Old 04-09-2021, 02:00 PM
 
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Quote:
Originally Posted by k350 View Post
That is different than. When doing the "rent vs own" thing, for financial basis, it is suppose to be apples to apples, two equivalent homes.

I can easily make an argument leasing is better than buying a car, when my comparison is leasing a Corolla, and my buying is an Audi A3.

Of course I can find a place to rent at a lower cost than my mortgage, I can even live rent free under a bridge, lol.
Which is why it is silly when people make blanket statements and assume every one is renting or buying the same house ..

Here in nyc we have more renters than owners ...68 % rent .

plus most rentals are in multi story buildings ...so 2/3s rent and only one third owns a place in the five boroughs. So those who buy may own single family homes , coops or condos but most who rent are in apartment style housing .

So comparisons are very inaccurate to make as general statements

Owning is a lot more than renting here from the median numbers.

https://www.valuepenguin.com/new-yor...ers-statistics
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Old 04-09-2021, 02:12 PM
 
Location: East Coast of the United States
21,479 posts, read 22,638,466 times
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Quote:
Originally Posted by k350 View Post
A lot of people rent for various reasons, a lot has zero to do with finances. Even millionaires rent.
My experience is that the rich tend to buy condos, coops or something analogous in the high end of major cities. I'm not sure how common it is for them to rent apartments.

Maybe it's a matter of convenience. People often stay in hotels for lengthy periods as well. Check in and check out any time you want.
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Old 04-09-2021, 02:18 PM
 
7,275 posts, read 5,522,633 times
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Quote:
Originally Posted by mathjak107 View Post
Which is why it is silly when people make blanket statements and assume every one is renting or buying the same house ..

Here in nyc we have more renters than owners ...68 % rent .

plus most rentals are in multi story buildings ...so 2/3s rent and only one third owns a place in the five boroughs. So those who buy may own single family homes , coops or condos but most who rent are in apartment style housing .

So comparisons are very inaccurate to make as general statements

Owning is a lot more than renting here from the median numbers.

https://www.valuepenguin.com/new-yor...ers-statistics
But when discussing any financial comparisons, it is always assumed talking about apples and apples. That is why I gave the car comparison, if someone is discussing leasing versus buying, it is assumed they are talking about the same car, not that they are talking leasing a Corolla or buying a Lexis. It would not even make sense to discuss the financial difference between the two if the financial aspect of it is the primary factor.

So it is easy to say "I win" if you are comparing a one bedroom apartment rental to a place that is double or triple in price if to buy. That is like me saying "I win" in this regards because there is a condo that rents for $10k/mth, so obviously owning is a much better deal.

Someone owns those places the renters are renting in...Just as I own the condo someone is renting from me. If there was no money in owning to rent out, no one would be doing it. But fact is, the rent coming in is exceeding the cost of ownership for that rental.
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Old 04-09-2021, 02:18 PM
 
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Quote:
Originally Posted by BigCityDreamer View Post
My experience is that the rich tend to buy condos, coops or something analogous in the high end of major cities. I'm not sure how common it is for them to rent apartments.

Maybe it's a matter of convenience. People often stay in hotels for lengthy periods as well. Check in and check out any time you want.
At 5 to 6k a month for a two bedroom the rentals here are being rented by wealthy people ...we have so many new rentals that were put up and all are high end ...the market is actually saturated with them.

If money was not an object I would rent in a building like the chrystie as opposed to buying a place
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Old 04-09-2021, 03:09 PM
 
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my older sibling has always rented. She is just not a person that ever wanted to own a home. Her husband feels the same way. And they could afford to buy but don't want to bother with the responsibility. They are in their 70s
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Old 04-09-2021, 03:41 PM
 
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Quote:
Originally Posted by k350 View Post
But when discussing any financial comparisons, it is always assumed talking about apples and apples. That is why I gave the car comparison, if someone is discussing leasing versus buying, it is assumed they are talking about the same car, not that they are talking leasing a Corolla or buying a Lexis. It would not even make sense to discuss the financial difference between the two if the financial aspect of it is the primary factor.

So it is easy to say "I win" if you are comparing a one bedroom apartment rental to a place that is double or triple in price if to buy. That is like me saying "I win" in this regards because there is a condo that rents for $10k/mth, so obviously owning is a much better deal.

Someone owns those places the renters are renting in...Just as I own the condo someone is renting from me. If there was no money in owning to rent out, no one would be doing it. But fact is, the rent coming in is exceeding the cost of ownership for that rental.
Depending where you are and how much you put down and when you bought , it can take years for rent to exceed the cost of buying .

My first rental I bought was in 1987 ..maintaince and mortgage were 1200 ..best rent was 850 ...with depreciation it was about break even ..it took quite a few years to be able to get profitable ....

The ere are few homes if any around here where you are going to make a profit day one

Day one if you buy in a decent in demand area without depreciation odds are you are not turning a profit yet
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Old 04-09-2021, 04:13 PM
 
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Growing up home ownership was a dream for me. Now that I'm an adult with a steady income it seems less and less appealing. Maybe the condo route could work. Prices are extreme and the "sweat equity" thing doesn't seem worth the time that could be spent working more hours or learning other more valuable skills.
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Old 04-09-2021, 04:48 PM
 
Location: OC
8,956 posts, read 5,172,970 times
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Quote:
Originally Posted by BigCityDreamer View Post
My experience is that the rich tend to buy condos, coops or something analogous in the high end of major cities. I'm not sure how common it is for them to rent apartments.

Maybe it's a matter of convenience. People often stay in hotels for lengthy periods as well. Check in and check out any time you want.
Or they're in transition or on a long vacation. Best thing about buying a house is eventually paying it off. Then, no rent!!
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Old 04-10-2021, 04:07 AM
 
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Quote:
Originally Posted by Gaylord_Focker View Post
Or they're in transition or on a long vacation. Best thing about buying a house is eventually paying it off. Then, no rent!!
Except it all depends how long Ago you bought and where ...my first house was 35k in the 1970s ....big deal paying that off , that mortgage amount does not cover utilities today as far as affordability and taxes are 9-15k ..

In westchester things can be worse as taxes are even higher ...,my son pays as much in taxes a year as my first house cost.

So the mortgage being paid off may or may not count much in the scheme of things ..in fact renovating my old house so it was not an old hobble would cost 2x what I paid at the least and likely I would have done it a few times since the 1970’s.

So paying off a mortgage can be good depending on how much that mortgage was and how much everything went up .

A 200 dollar a month mortgage on an older house that is paid off may mean nothing and one maybe forced to leave family and friends and leave for cheaper areas like my dad and my wife’s mom had to do ...

Our kids barely knew them they got to see them so infrequently..

As you see here there is no such thing as general answers that fit all , there are only individual personal situations..no one can say what is better for anyone else

Last edited by mathjak107; 04-10-2021 at 04:40 AM..
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Old 04-10-2021, 05:59 AM
 
Location: East Coast of the United States
21,479 posts, read 22,638,466 times
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Quote:
Originally Posted by Gaylord_Focker View Post
Or they're in transition or on a long vacation. Best thing about buying a house is eventually paying it off. Then, no rent!!
I think I read somewhere that one of the Kennedy family lived in a suite in the Carlyle Hotel in Manhattan for 10 years.

When you are that rich, I guess you can stay wherever the hell you want.
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