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They take the lump sum from sales in high cost of living areas , invest the lump sum and move to cheaper areas and rent .
That lump sum may not only pay the rent , but most of their living expenses ,all while the investment is still growing.
We did ..
Except we took the money no longer in the house , rented and bought a very lucrative real estate business ....we sold everything off , retired and have a nice comfortable retirement and are able to buy multiple homes today with the money we made ...
So it isn’t about renting as much as what you do with the money
Or they're in transition or on a long vacation. Best thing about buying a house is eventually paying it off. Then, no rent!!
No rent (and no mortgage payment), but plenty of other expenses. Property taxes, homeowner's insurance, utilities, lawn care, repairs and maintenance, HOA fees, if applicable. Rent is often cheaper and considerably less stressful.
No rent (and no mortgage payment), but plenty of other expenses. Property taxes, homeowner's insurance, utilities, lawn care, repairs and maintenance, HOA fees, if applicable. Rent is often cheaper and considerably less stressful.
Rent includes all of those things...or do you think landlords lose money each month, and are renting out homes because they are so generous?
Many landlords , especially early on do count on depreciation to make things work just because markets don’t care what your expenses are just like a stock does not care what you paid for it.
Markets don’t care if you have a mortgage and other rentals don’t , they don’t care if you spent thousands on a roof or a furnace ....
Markets only allow what they allow even if it takes you years to be able to get the rent to a point your profitable ..
Sure you could wait for a sucker to come to pay more than those around you but you will likely give up more rent waiting then you end up in the difference between what you wanted and what the market was at .
I only wish as a landlord I could just pass my costs on
It will be nice here in a few years when my home is paid off, I will have all that money to do whatever with. If I was renting, that rent would be continuing forever. Aside from having the home with no mortgage, I have the equity in it, over double from what I paid, sitting around $2.2 million now. If I was renting, the owner would not only be paying off the mortgage with the rent, but also have all the equity, and I would still be having to make the rent.
Have you ever heard of a concept call opportunity cost? Base on your post, you don't seem to understand this concept. And anyone who don't understand this concept has no business discussing buy vs rent.
Have you ever heard of a concept call opportunity cost? Base on your post, you don't seem to understand this concept. And anyone who don't understand this concept has no business discussing buy vs rent.
Obviously not since it is just another myopic view.
We sold our house, rented and put the money no longer tied up in that house in to a commercial real estate venture that returned enough to support us for life and buy multiple homes like we had after subtracting rent and taxes .
Today the money we made pays not only our rent but all our living expenses each year while still growing itself . The amount that money grew to that was no longer in a house was many times where we would be if we simply kept the house because housing costs were less .
The problem is that the investing portion can blow away any saving in housing costs and even whatever appreciation the house can see ....
So blanket statements are usually wrong as general statements .
Yeah , I will gladly rent over and over and do that again
Rent includes all of those things...or do you think landlords lose money each month, and are renting out homes because they are so generous?
I've owned multiple properties at one time and BEEN a landlord.
So no.
I'm simply saying that owning a home "free and clear" isn't free.
And sometimes it's less work and worry to pay rent than to have to oversee all these expenses and end up paying the same amount by dribs and drabs on your own home.
At least that's what I keep trying to tell myself (I'd like to become okay with renting rather than owning...).
Last edited by otterhere; 04-11-2021 at 02:58 PM..
Rent includes all of those things...or do you think landlords lose money each month, and are renting out homes because they are so generous?
Exactly. Rent includes all those things but your mortgage doesn’t! Landlords might make money but most of the rent they receive goes towards expenses and the money tied up in the rental units can’t be used towards other investments.
We know quite a few people who just their homes fall into disrepair.
Sometimes, this makes excellent financial sense.
If the property is going to be sold for the land value, then not spending for upkeep is smart.
In my neighborhood, a 1000 sqft 1910 single family house in our duplex zone is going to sell for $600K+. Whether it is about to fall down or whether it is in immaculate shape. Young couples don't want the small [old] house and developers just want the land.
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