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In some countries,there is no such thing as 30 years mortgage,either you pay cash or you rent.
Some chose to rent and stash money in bank account.
But then in some places,rent keeps going up and up and all the money you stashed away is not enough .
But your 30 years mortgage monthly payment is the same every month,year after year,so it turns out to be a wise move.
You’re a fool to rent in California if you can buy. I know, I did it way too long, and try not to get suicidal over places I could’ve bought but didn’t because I didn’t want to leave my 1-2 block to the ocean comfort zone.
I may be a fool for many reasons, financial or otherwise. But the buy-rent dilemma is one of the less likely candidates. Simply put, not all of us raise families or have large pets or do gardening. We need a domicile as a place to put a cot, a haversack and an alarm-clock. Maybe a few books. That's it.
The reason to buy, isn't to partake of the ideal of the redoubtable Anglo-American landed gentry, but to make handsome profit from the trouble of ownership. I applaud those smart and prescient Californians who bought during the mid-90s dip, held on, and are now sitting on tidy home-equity. But can their experience be repeated?
Simply put, will today's $1M bungalow fetch $10M in 30 years? Are the persons who disbelieve this... fools?
Simply put, will today's $1M bungalow fetch $10M in 30 years? Are the persons who disbelieve this... fools?
Yep! CA real estate has pretty much doubled every decade. $50,000 in the 70's, $100,000 in the 80's, $200,000 in the 90's, $400,000 in the 00's $800,000 in the 10's. See the pattern?
Real estate may be cyclical, but goes up, almost everywhere. Maybe not Ohio but on the coasts and in the south? yep. What's guaranteed to rise is your rent. Property taxes going up? Hopefully you're not naive enough to think that the landlords just eat it. That cost is passed on to.........the renter.
Now I see there's someone here who lives in subsidized housing. Carry on if you have that.
Except landlords are getting offsetting buy prices , tax abatements and below market financing to compensate them and that makes that housing not subsidized by the landlord ..
I owned 9 stabilized apartments . I paid pennies on the dollar as my compensation .
The problem here is few here understand what they comment on.
My rent is at market so those comments would not even apply to me as being stabilized has nothing to do with whether you are at market or not because landlords had other means to drive up rents over the years other than what was allowed by the stabilization board .
But it did apply to my tenants who were paying way below market rent in the area overlooking Central Park since that area appreciated like crazy .
But I was well compensated for it by the buy prices..that is why I bought those below market coops with stabilized tenants , simply because I was compensated very nicely
So no I didn’t subsidize my tenants at all …in fact it was them being stabilized that created lots of opportunity for us to grow wealth the same as it is doing for developers and landlords taking part in the opportunities today like the 421 or j51 programs and putting up stabilized rentals which are very lucrative today
Last edited by mathjak107; 04-30-2021 at 02:00 PM..
I may be a fool for many reasons, financial or otherwise. But the buy-rent dilemma is one of the less likely candidates. Simply put, not all of us raise families or have large pets or do gardening. We need a domicile as a place to put a cot, a haversack and an alarm-clock. Maybe a few books. That's it.
The reason to buy, isn't to partake of the ideal of the redoubtable Anglo-American landed gentry, but to make handsome profit from the trouble of ownership. I applaud those smart and prescient Californians who bought during the mid-90s dip, held on, and are now sitting on tidy home-equity. But can their experience be repeated?
Simply put, will today's $1M bungalow fetch $10M in 30 years? Are the persons who disbelieve this... fools?
The reason to buy is to, as much as possible, is an attempt to secure long term the cost of housing. I liked my small apartment in the city when I was younger. I didn't like the 7% average rent increases I took. Even the loveseat, table & chairs, dresser, mattress (literally didn't have a box spring or frame) and bookcase.
Now I have the dog and a garden, and I enjoy those things, but more than anything it's nice not knowing I'll be told by the landlord to move out in two months to make room for his Sister-in-law.
If I live to financially benefit from appreciation of the property, that's extra gravy, nothing more.
The reason to buy is to, as much as possible, is an attempt to secure long term the cost of housing. I liked my small apartment in the city when I was younger. I didn't like the 7% average rent increases I took. Even the loveseat, table & chairs, dresser, mattress (literally didn't have a box spring or frame) and bookcase.
Now I have the dog and a garden, and I enjoy those things, but more than anything it's nice not knowing I'll be told by the landlord to move out in two months to make room for his Sister-in-law.
If I live to financially benefit from appreciation of the property, that's extra gravy, nothing more.
Yes; although I've never been kicked out of anywhere, it's nice just knowing I can't be kicked out of my own home (short of my not paying the property taxes, which is highly unlikely to happen and would, in any case, take years)...
The reason to buy is to, as much as possible, is an attempt to secure long term the cost of housing. I liked my small apartment in the city when I was younger. I didn't like the 7% average rent increases I took. Even the loveseat, table & chairs, dresser, mattress (literally didn't have a box spring or frame) and bookcase.
Now I have the dog and a garden, and I enjoy those things, but more than anything it's nice not knowing I'll be told by the landlord to move out in two months to make room for his Sister-in-law.
If I live to financially benefit from appreciation of the property, that's extra gravy, nothing more.
Amen to that. This is pretty much what happened to me so I decided to buy. The peace of mind is a major benefit, in addition to the favorable financial situation compared to renting.
I had a surprise visit from a longtime friend yesterday. We've been mostly out of touch since high school, over 30 years ago. So in the process of catching up she told us that she and her husband have never owned a house. They were in the same rental, a small SFH, for 26 years and raised their two kids there. They were paying well below market rate, the rent never went up, and they figured they'd be there "forever."
Unceremoniously, three years ago, the landlady gave them notice that they had to leave. The story was a little confusing here but I gather that the landlady had taken out a second mortgage on the house and was having trouble making the payments, and felt bad about suddenly doubling the rent on her tenants, so she kicked them out instead...or something like that.
My friends scrambled to find another place to live and it was a basically horrible experience. They're only just now, three years later, settled in a decent apartment.
Moral of the story is, even if you're a responsible renter who takes care of the place and makes all your payments on time, it is not your property and if the owner says you have to go, you have to go. And the money you've saved isn't going to help you with that.
Ultimately, few of us have the broadness of mind to overcome the confines of our own personal experience.
My own experience as a long-term homeowner was an unmitigated disaster... personally and financially. In the darkest days, when some overwhelming disaster would occur in the house, such as leaks through the roof and into the basement so severe as if a phantom faucet jutting insolently through the wall was as it were opened wide, the denial was so intense, that I'd decamp to the office, and sleep there, too fearful and dejected for days to even return "home". The eventual sale of the house wasn't merely a relief; it felt like a rescue, a helicopter dropping a rope to my beleaguered splintering raft.
Who cares, how many times a haughty landlord drops on me a sudden eviction notice? I'd rather have my possessions ignominiously scattered curbside, the butt of public mockery, than to endure the gnawing, relentless cancer of a house collapsing in price and structure - despite the supposed security of having it paid off.
Last edited by ohio_peasant; 05-01-2021 at 02:29 PM..
Ultimately, few of us have the broadness of mind to overcome the confines of our own personal experience.
My own experience as a long-term homeowner was an unmitigated disaster... personally and financially. In the darkest days, when some overwhelming disaster would occur in the house, such as leaks through the roof and into the basement so severe as if a phantom faucet jutting insolently through the wall was as it were opened wide, the denial was so intense, that I'd decamp to the office, and sleep there, too fearful and dejected for days to even return "home". The eventual sale of the house wasn't merely a relief; it felt like a rescue, a helicopter dropping a rope to my beleaguered splintering raft.
Who cares, how many times a haughty landlord drops of me a sudden eviction notice? I'd rather have my possessions ignominiously scattered curbside, the butt of public mockery, than to endure the gnawing, relentless cancer of a house collapsing in price and structure - despite the supposed security of having it paid off.
Wow. Have you been reading Proust?
Sorry for your troubles. I don't think your experience is at all typical.
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