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Old 04-07-2021, 01:02 PM
 
1,034 posts, read 551,417 times
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Quote:
Originally Posted by mathjak107 View Post
I could never live like that in a dump , Just so I can say I own my home.

I could probably never "throw away" money on rent just to say I lived in a nice place LOL.
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Old 04-07-2021, 01:12 PM
 
87,940 posts, read 85,664,894 times
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Quote:
Originally Posted by ihatetodust View Post
I could probably never "throw away" money on rent just to say I lived in a nice place LOL.
I gladly rent in a nice place with zero headaches and maintenance while my money generates more than my house ever could save us had I kept it
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Old 04-07-2021, 01:30 PM
 
Location: OC
8,956 posts, read 5,172,970 times
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Quote:
Originally Posted by mathjak107 View Post
I gladly rent in a nice place with zero headaches and maintenance while my money generates more than my house ever could save us had I kept it
I get it and I understand you have a lot of financial acumen. But, often times a mortgage is less than rent right?
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Old 04-07-2021, 01:40 PM
 
87,940 posts, read 85,664,894 times
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Quote:
Originally Posted by Gaylord_Focker View Post
I get it and I understand you have a lot of financial acumen. But, often times a mortgage is less than rent right?
Sure it can be , or not depending on what you buy .

But it isn’t only about a mortgage vs rent .

It is about a comparison of housing costs as well as investment components .. as an example in our case a single family home starts at 7 figures here ...plus taxes and expenses ...rent in a high rise is way way cheaper and is a fraction of those costs ,since it isn’t apples to apples ..

Also very important is the investment comparison..

The equity I had in my house was freed up 15 years ago because we did not buy another house ...we rented allowing us to deploy that money in a real estate investment that grew to quite a few multiple 7 figures as well as we got a 25k income a year from it for ten years .

So the final comparison now that we liquidated all the real estate is the multiple 7 figures we grew it to , which generates enough income to pay not only our rent but all our living expenses while still growing itself .

So there are two components to the comparison.

There is the actual housing cost comparison and then there is the investment component and what that grew to over time.

We have people here in our building renting and buying medical and law practices instead of a house ...they will generate far more with those practices then a house will save them or likely even be worth ..

My son did the same ...he is an attorney .... he rented , and instead of plunking down a few hundred thousand in a house in westchester he bought his partnership in one of the countries largest labor law firms .

His income in two years is worth more than any house he could have bought .

Today he can buy multiple homes ,so there is always an opportunity cost to money tied up in a house vs much much better investments or uses for it .

Comparing only one part , housing costs means little without considering opportunity costs.

So yeah there are Very poor renters , but there are also very wealthy renters who grew that money not laying in the house anymore to far greater wealth .

Now they have choices in life as to buying multiple homes or simply renting , but in any case they developed far greater wealth than had they just bought a house and never did those wealth generating alternatives that renting allowed them to do.

So people with resources and choices are not in the same category as people without resources and no choices in other opportunities when it comes to renting

Last edited by mathjak107; 04-07-2021 at 02:26 PM..
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Old 04-07-2021, 04:06 PM
Status: "Finally out" (set 10 days ago)
 
Location: New Jersey!!!!
12,599 posts, read 9,192,263 times
Reputation: 13024
You have a very unique situation and desires which most people don't ascribe to. For the majority of people, smart homeownership (ie, not overspending and buying at the right time) is the better choice.

There's no shot you could rent my current home for anywhere near what my monthly all-in is. Now obviously you wouldn't want to live here, and I get that, but all things considered someone who chooses to rent in my neighborhood is not going to come out ahead of me, strictly by the numbers.
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Old 04-07-2021, 04:36 PM
 
87,940 posts, read 85,664,894 times
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Quote:
Originally Posted by Airborneguy View Post
You have a very unique situation and desires which most people don't ascribe to. For the majority of people, smart homeownership (ie, not overspending and buying at the right time) is the better choice.

There's no shot you could rent my current home for anywhere near what my monthly all-in is. Now obviously you wouldn't want to live here, and I get that, but all things considered someone who chooses to rent in my neighborhood is not going to come out ahead of me, strictly by the numbers.
What it cost for Housing costs can depend on how long ago you bought ....my old house would cost 900k today plus all the other expenses and taxes for a new buyer ....

So if I still owned it based on my 169k price of course no one can match what it would cost me .

But a couple who has a choice of buying my old 900k house today certainly has cheaper renting options in an apartment house which is the bulk of rentals in nyc.

If I was the one selling that house And getting 900k today unless you are a worst case scenario , that has spun off 36k a year inflation adjusted and still ended with more than you started 30 years later in a simple balanced portfolio ......that is almost 2x what a one bedroom apartment would cost to rent if I choose to sell my 900k home and rent.

Last edited by mathjak107; 04-07-2021 at 04:50 PM..
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Old 04-07-2021, 08:38 PM
 
Location: DC-Baltimore area
261 posts, read 991,904 times
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Just one senior lady’s take who has not owned and who presently rents a 2-BR condo in an elevator building of 25 units…My previous place was a 2-level condo with neighbors on both sides and an apartment underneath (separate entrance). I had stairs to my second floor. At age 67, still working, I am pretty fit except for a couple of medical issues that affect my stamina. In my rental, I like having an elevator available though it’s kind of small. I am so glad to be rid of the stairs. I like having no yardwork. But I miss being able to walk directly into my home from a reserved spot at street level. It’s a hassle to get things to my unit now or have anything delivered or picked up.

Neighbors in apt/condo buildings can be difficult, eccentric, needy, or push themselves on you. You lack privacy, everyone can see and often hear your business and will talk about it. My next-door neighbor cooks bad-smelling food (luckily it doesn't come inside but if I step out my door at certain times I get it in spades) and lives with an adult child with mental issues who picks arguments. I rent a condo and its owner doesn’t want to spend a dime on anything unless it is an emergency (vs. being able to just call a maintenance office). Repairs involves a bunch of parties—me, the owner, the owner’s agent (a family member), and whoever the agent hires to fix something if needed. Soon noisy exterior work will start on this mid-1970s building. I have a balcony but if it’s nice weather and I sit out there, I hear other people’s conversations and vice versa. I can’t have a pet. I don’t feel comfortable playing a musical instrument. Chitchat with neighbors is expected, ugh. I know people in this "senior" community who have neighbors who basically have the grandchildren over most or all the time and have to live with constant noise and running around.

My dream is to own a small, one-story SFH that would be in very good condition and have no common walls (it won't happen in the high COL area where I am, though). I don't have an HGTV mentality of having to improve a place nonstop. Nice if you are that handy or enjoy it, but I'm easily satisfied with basic, decent shelter. In short, I'm tired of people and landlords. Maybe it is better if one is in a well-managed apartment building and it's not so personal.

Last edited by Tuneful; 04-07-2021 at 08:50 PM..
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Old 04-07-2021, 08:52 PM
 
Location: Henderson, NV
6,964 posts, read 7,213,540 times
Reputation: 9579
You just have to do what works for you, whatever makes sense. Houses can be a lot of work, I know I’ve already pumped a about $150K to $200K into my house and I just bought it in 2019. Probably another $100K or so to go for the upgrades I want. But for me nothing beats the pride of ownership and being able to do whatever I want to the house. That and the fact if you rent an apartment, it won’t be quiet, they’re all built like crap. I can’t sleep through noise and I don’t sleep when other people do (more like 5 am to 1 pm), so renting absolutely doesn’t work for me. It works fine for others though!
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Old 04-07-2021, 08:57 PM
 
Location: Seattle
7,711 posts, read 7,734,314 times
Reputation: 10907
It certainly isn’t for me, at least right now. I had been planning to buy (first time) and am finally in the position to this year, but in these conditions absolutely not. It feels like such an unhealthy market. I don’t really care that interest rates are so low, I’m not about to enter that rat race. I’ve spoken with several realtors who have told me now is not a good time to buy (they’re friends/family, not looking at me as a potential client). Maybe they’re wrong and this is the new normal. If so I don’t want any part of it. I have other avenues for growing wealth.

At any rate - I will wait until it’s a buyer’s market again and I don’t really care when or if that happens.
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Old 04-07-2021, 11:06 PM
 
Location: Houston, TX
143 posts, read 198,361 times
Reputation: 108
Yikes I don’t think anyone here has mentioned the capital gains exemption when you sell your primary residence. So assuming you own for awhile and the home appreciates, and you later wish to sell, up to 500k is tax free unlike if you used your savings to buy other investments.

For me though, I’m currently renting and as an emotional matter just don’t like it!
I don’t feel as committed to the neighborhood, I don’t like that it is not up to me whether someone changes out the crappy linoleum floor, my rent feels like it’s going down the toilet and I have nothing to show for it.

I had wanted to relocate a year ago to move to a lower COLA where we could buy. But then came the pandemic so we stayed put. I’m looking at Zillow etc and the same quality of homes we were exploring 9 months ago or so have increased around 15%. And the inventory seems very low.
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