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Old 04-11-2024, 09:46 AM
 
106,578 posts, read 108,713,667 times
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no one said anything different , about owning is best for most people .

it’s a forced savings and at some point may be the biggest asset they own .

but my point is housing costs are one aspect and depending what is being compared owning or renting can be better from a financial standpoint.

then the other aspect is the investment side .

a home can appreciate more then someone’s investments as well . or the reverse .

but the point is there is nothing guaranteed that a homeowner is going to be ahead of a renter who is investing elsewhere.

in fact the renter may have higher housing costs but an even higher return offsetting that .

my sons housing costs even if his home was paid off would exceed our rent by a lot

so , again for the masses , owning is likely their best path as most are not good investors, nor good at spotting opportunities or being creative at growing their money.

stages of life matter too .

someone starting out may have nothing to invest if they rent . on the other hand a retiree selling a house has a load of options as far as renting and investing.

we had no choice early on when we bought. after our rental went coop .

it was buy and own something or rent and have nothing .

but over the decades that equation changed so by the time i hit 50 i sold our house and had a lot of capital for investing elsewhere.

today what we made can buy many homes like we had sold and that’s after us subtracting out taxes and rent .

so i don’t want to hear how renting leaves you with nothing because that is false. whether that is going to be the case depends on quite a few other things .

our building is filled with professionals who are renting and buying law and medical practices of business that are far more lucrative then putting that money in a house

Last edited by mathjak107; 04-11-2024 at 10:41 AM..
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Old 04-11-2024, 04:36 PM
 
Location: Salem, OR
15,572 posts, read 40,409,288 times
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Quote:
Originally Posted by mathjak107 View Post

our building is filled with professionals who are renting and buying law and medical practices of business that are far more lucrative then putting that money in a house
Having some type of wealth-generating investment is important. Most people can't afford to put a lot into a 401K or don't have a business opportunity like this. The house they live in is their wealth-generating opportunity.

The agents on here just want to see consumers doing something to build wealth and we know from experience that for most people, homeownership can do that for them.

NYC is a whole beast of real estate that is all sorts of crazy for the people who don't live there, but I agree that there are opportunities everywhere.

I would never rent from my age on (mid-50s now) as I'm not interested in my housing being at the whim of the landlord. You can't control everything in life, but for me, controlling my housing situation is of utmost importance. I know other people are totally fine being given a notice to move. I'm not so I don't rent.
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Old 04-11-2024, 04:54 PM
 
Location: Sydney Australia
2,290 posts, read 1,511,895 times
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Quote:
Originally Posted by Igor Blevin View Post
Everything cycles. This market can't last forever. It only seems like it.

Patience is always taxing, but necessary.

Buyers remorse must suck for home buyers but it is very high righ now with so many people buying a home the wrong way -- sight unseen or without inspections or without thinking through all of the associated costs beyond only the mortgage, or just flat overpaying.

My only issue is age. I want a yard for my German Shepherd dog, and I don't have 10 years to wait. I could be in a care home. Or dead.
I agree that everything cycles but it is hard to ignore population growth as a factor which may stop slowdowns in the market.

The population of the US has doubled since 1950, that of Canada has nearly tripled and that of Australia has more than tripled. Whereas the population of Italy is only about 10% higher than then.

Definitely in Canada and here there is increasing opposition to the levels of legal immigration. From what I can see in the US there is more concern about illegal immigration. Correct me if I am wrong.

When you have the situation eg China lifting 800 million people out of extreme poverty in the past forty years (and I have been there several times since 1988 and cannot believe the difference) it seems inevitable that there will be worldwide but uneven pressure on housing.

So very difficult to predict how the cycles will evolve.
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Old 04-11-2024, 05:30 PM
 
106,578 posts, read 108,713,667 times
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Quote:
Originally Posted by Silverfall View Post
Having some type of wealth-generating investment is important. Most people can't afford to put a lot into a 401K or don't have a business opportunity like this. The house they live in is their wealth-generating opportunity.

The agents on here just want to see consumers doing something to build wealth and we know from experience that for most people, homeownership can do that for them.

NYC is a whole beast of real estate that is all sorts of crazy for the people who don't live there, but I agree that there are opportunities everywhere.

I would never rent from my age on (mid-50s now) as I'm not interested in my housing being at the whim of the landlord. You can't control everything in life, but for me, controlling my housing situation is of utmost importance. I know other people are totally fine being given a notice to move. I'm not so I don't rent.
without guaranteed renewal which is what half of all rentals in nyc offers , renting would not be something we would do .

i wouldn’t want to be at the whims of a small 2 bit landlord
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Old 04-11-2024, 05:57 PM
 
Location: State of Transition
102,188 posts, read 107,790,902 times
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Quote:
Originally Posted by RunD1987 View Post
Reading the local article how the average family needs to make $100 Thousand a year to purchase a home in our area. With down-payments ranging from $50 thousand or more I am okay with renting.

Any renters love renting??? Be great if more rent to own took off across the US. You live at a place for 5 years then own it I be game.

We are contemplating renting a house next year or year after for almost $2,100 average home mortgage payment in our area. Then looking to buy in 5 more years is the goal.

Anyone enjoy renting? Starting to like not having to own a property have the ability to move around more in the same area to different properties till finding the right one.

Thoughts???
In whose world do you own a place after only 5 yrs of renting? Wow, that would be a steal!


The problem is, that nearly all the current rent-to-own properties are owned by Real Estate Investment Trusts, and they rig the deal so that the renters never are able to pay off the debt. The "rent" goes up regularly, so the "buyers" end up moving out, and the REIT starts over with new renter-buyers, rinse, repeat. This creates chronic turnover, which brings down the property values of the people in the neighborhood who have standard mortgages or who have paid off their homes.
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Old 04-11-2024, 08:31 PM
 
7,741 posts, read 3,778,838 times
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Rent control is indeed the surest way to destroy a city short of bombing.
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Old 04-12-2024, 12:44 AM
 
106,578 posts, read 108,713,667 times
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well nyc has been one of the top cities in the world and one of the most desirable places for decades yet they have had different housing laws for decades .

rent controlled apartments are basically gone and it isn’t the same as rent stabilization..big difference between them.

developers want to get in on being rent stabilized programs…they shunned the rental market under rent control.

actually rent stabilization ended in the 1970’s .nothing built since 1974 had to be stabilized.

but developers and owners wanted to be because the various programs are very lucrative.

about 5% of all rentals are still rent controlled..most are gone. 50-60% of all rentals are stabilized
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Old 04-12-2024, 03:22 AM
 
106,578 posts, read 108,713,667 times
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Quote:
Originally Posted by mathjak107 View Post
well nyc has been one of the top cities in the world and one of the most desirable places for decades yet they have had different housing laws for decades .

rent controlled apartments are basically gone and it isn’t the same as rent stabilization..big difference between them.

developers want to get in on being rent stabilized programs…they shunned the rental market under rent control.

actually rent stabilization ended in the 1970’s .nothing built since 1974 had to be stabilized.

but developers and owners wanted to be because the various programs are very lucrative.

about 5% of all rentals are still rent controlled..most are gone. 50-60% of all rentals are stabilized
up until the point the various programs were offered as incentives to keep being stabilized, we did not have one pure rental building put up .

only coops and condos were built yet stabilization ended in nyc in 1974 . no rental put up after that had to be stabilized, it was voluntary and still is .

so we were starving for rentals here …finally attractive offers were put in place to put up rentals that were stabilized yet had lucrative perks .

we have had some beautiful stabilized rentals built . some are 6k a month and are luxurious..that is a two bedroom and a 3 bedroom is 8k.

they just agree to be stabilized as long as they continue to get perks.

these perks allow the developers to keep a lot more of what they earn so they remain in the programs.

most outsiders don’t understand the stabilized market place .. they think of dingy , tiny cheap apartments being subsidized.

wrong.

that is true if you are in a nyc housing project where rents are subsidized as part of a welfare program.

but that isn’t what stabilization is overall .

our building we are in is very nice . we pay market rents , we have a pool , tennis courts and 24/7 gated security.so a far cry from the tenement looking buildings outsiders think of when they think rent control, which is very different and applies to only original tenants back in the 1970s and anyone qualified with succession rights living with them.

the rents on those can be crazy low but most are gone and less then 5% of all rentals today are still occupied by a rent controlled tenant .

once a rent controlled apartment is freed up it becomes rent stabilized and rent controlled status ends.

rents rise dramatically and many rights end

so rent controlled apartments are not the same as rent stabilized although outsiders use the term rent controlled as a catch all .but there actually is a big difference between the two

which is why those that don’t understand exactly how things work need to get better educated on it if they are going to pass judgement on it

Last edited by mathjak107; 04-12-2024 at 03:54 AM..
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Old 04-12-2024, 08:58 PM
 
Location: Sandy Eggo's North County
10,292 posts, read 6,813,150 times
Reputation: 16839
Quote:
Originally Posted by RunD1987 View Post
Reading the local article how the average family needs to make $100 Thousand a year to purchase a home in our area. With down-payments ranging from $50 thousand or more I am okay with renting.

Any renters love renting??? Be great if more rent to own took off across the US. You live at a place for 5 years then own it I be game.

We are contemplating renting a house next year or year after for almost $2,100 average home mortgage payment in our area. Then looking to buy in 5 more years is the goal.

Anyone enjoy renting? Starting to like not having to own a property have the ability to move around more in the same area to different properties till finding the right one.

Thoughts???
Renting is a great way to avoid paying property taxes, too!

Ofc, we don't know where "our area" is, so that makes it impossible to assist.

Good luck with whatever you choose.
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Old 04-12-2024, 09:07 PM
 
Location: Union County
6,151 posts, read 10,022,564 times
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It's the housing versus a "home"... I don't think anyone could feel that a 2bed high rise is a home. Not that there's anything wrong with that, it's a choice when you exclusively look at where you live as a financial transaction. Have to admit it's kind of tough to believe in Santa Claus... but, I get it.

Owning a home makes all kinds of sense for someone in my family situation... and that's true of many people.
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