Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you look at a home as nothing more than a place to live, then your decision to buy or rent will be a lot easier to determine...no matter what is the current condition of your particular RE marketplace.
If you look at a home as nothing more than a place to live, then your decision to buy or rent will be a lot easier to determine...no matter what is the current condition of your particular RE marketplace.
i keep saying there is no way to compare accuretly... no one can predict future home values, future expenses for the privledge of owning a home, even where your real estate taxes will be in a decade.. we saw taxes alone
in long island jump from 3-4,000 to 12,000-18,000 in a decade... 140 a barrell oil and huge jumps in everything.....
just buy a place to live if thats what you want and call it a day... your all trying to predict something you cant.....
10 years ago the dow stood at 10,000... 5 years ago it stood at 10,000 , today its 10,000 ..... if you told me to predict to base returns id have said 20,000..... forget this stuff, either do it or dont do it but stop the crystal ball crap.
i keep saying there is no way to compare accuretly... no one can predict future home values, future expenses for the privledge of owning a home, even where your real estate taxes will be in a decade.. we saw taxes alone
in long island jump from 3-4,000 to 12,000-18,000 in a decade... 140 a barrell oil and huge jumps in everything.....
just buy a place to live if thats what you want and call it a day... your all trying to predict something you cant.....
10 years ago the dow stood at 10,000... 5 years ago it stood at 10,000 , today its 10,000 ..... if you told me to predict to base returns id have said 20,000..... forget this stuff, either do it or dont do it but stop the crystal ball crap.
But if you adjust it today based on the value of the dollar, then it really is at 7500...
But if you adjust it today based on the value of the dollar, then it really is at 7500...
just for the information aspect of it , most index's like the s&p 500 dont count dividends and dividends account for about 1/3 of all the gains. the dow tries to compensate for dividends and stock splits but because its measured in points and not dollars it dosnt do it very well..
we probley are really about the same now at 10,000 as we were back then as those dividends and splits probley covered inflation.
now back to our regularly scheduled arguments about housing ha ha ha
id hardly call an 1100% gain in 20 years in other asset classes vs less then 300% for my house walking away with nothing. if anything i could have walked away with 2 houses today and thats after subtracting out 2 decades of rent in new york city. AND IM NO FINANCIAL GENIUS . thats just simple unmanaged index funds.
becareful about being short sighted and thinking because you bought a house your the winner .
Right, but keep in mind I said weigh options and make the decision that's right for them.
1-In my market for a 1250 sf home, 1 car garage you can have a FHA loan and pay ~700/mo. For that same rental it would be ~900/mo to rent. Owner saves 200/mo + the amortization schedule paying down the principal. No brainer to me if you'll own the home at least 3 years.
2-In markets where it is cheaper to rent, most renters aren't going to think "Gee I'm saving $/mo by renting so I think I'll invest the difference. If they do, there is no more guarantee they'll make good investments that net more than eventually owning a house. I think the house is the safe investment.
3-How much did you net in your other investments? How much would those 2 houses be worth today (and how much would have saved per month by renting)?
BRANDON you hit the problem right on the head. most people left to their own devices wont have the discipline to invest on their own. they would probley buy a more expensive car or upgrade to a more expensive rental..
its not that the home is a good investment, its that for most people they lack discipline so if they bought a home it may very well be the only thing they walk away with. for them anything is better then nothing
another thing is most of those who rent and have the money to buy a home usually think that in the back of their mind they will one day make the move and buy a home but they would prefer to wait for better rates or cheaper prices
well all that money they saved for the home kind of stays short term money because they always think they will need it and so it rarly finds its way into any long term investments that generate those substantial gains.
end result is they end up either renting forever because once rates rise or prices go up they are waiting for a roll back and never buy or they go years with that money sitting in cd's or a money markets as the different asset classes they should have been in soar without them.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
