Are you okay with renting or do you get sad about it sometimes? (scenery, management)
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I will say though some people just aren’t meant to be homeowners. Some aren’t smart enough to know when something needs maintenance or repair, and those people need a landlord to take care of things for them. I don’t understand it, but I see a lot of it.
Why do you assume they aren't smart enough?? Maybe they're just too busy, or lazy (when it comes to these things), or not the handy types? I'm certainly not stupid, and know when something needs repairing in my homes... I just like being able to call on someone else to do it for me, because I'm a single woman who works full-time, and have other things I prefer to spend my time doing. If and when I ever do own a home, I'll either figure out how to do stuff as it's needed, or hire a contractor if I have the money. I'm not dumb, though.
Why do you assume they aren't smart enough?? Maybe they're just too busy, or lazy (when it comes to these things), or not the handy types? I'm certainly not stupid, and know when something needs repairing in my homes... I just like being able to call on someone else to do it for me, because I'm a single woman who works full-time, and have other things I prefer to spend my time doing. If and when I ever do own a home, I'll either figure out how to do stuff as it's needed, or hire a contractor if I have the money. I'm not dumb, though.
If someone buys a house and is too lazy to maintain it, then yeah, I’d call them dumb.
Yes, see? Your ability to start all that was very circumstantial. You benefited by being at the right place at the right time. Some of us may never get that type of opportunity.
Imagine trying to do all of what you did on $50k/yr when housing prices are more like $300k, and your average 1BR is $1200/mo. And that's cheap, compared to NYC.
my ability to start out with some dough was because of fear of going back to the projects so i never found the money to invest starting out , i created the money to invest .
i was working 3 gigs at one time making sure i always was investing something day 1 and i made sure i always stayed a head of what i call the earning curve where you keep morphing to where the money is .
it was tough making ends meet . remember i grew up in the 1970's . i got dumped out of school in to hell , right in to Vietnam , the draft , HIGH INFLATION , soaring unemployment , gas lines , etc .
it was an awful time for us ...
i was a pro drummer back in the 1970's. dee-jays were coming on the scene and i saw the hand writing on the wall . i would eventually be obsoleted so i had to find another career .
i ran through every thing i thought i might do that stood a chance of not being obsoleted . i came up with nothing .
then one day i see a commercial for a new school . apex technical school and they did hvac .
i said to myself , self i says , i don't know a thing about this stuff but i know people will rebuild car engines or build their own homes but i don't know anyone who would go in to a sealed system of an ac unit .
so i borrowed more money than i ever thought i would owe and gave it a shot .
40 years later i retired from a pretty good career . today i work one day a week in retirement teaching motor controls and variable frequency drives at a distributor .
havac provided the basis to go off in so many lucrative directions because the public stays away .
making money is all about doing the things others can't or won't do for themselves.
but i made sure from day 1 i always had money being invested right from my first day of work . at times i had 3 gigs going on . my regular job , i started my own hvac service company and did side work and i did gigs as a drummer .
so i made sure even before i got married that i had money for opportunity . it was not a lot but it was enough to have options later on .
even at an insider price those were huge sums in those days . rent was 200 bucks a month so to buy a 25k apartment was a lot of money with the maintenance fee .
nothing is ever easy .
Last edited by mathjak107; 01-09-2019 at 02:58 AM..
Why do you assume they aren't smart enough?? Maybe they're just too busy, or lazy (when it comes to these things), or not the handy types? I'm certainly not stupid, and know when something needs repairing in my homes... I just like being able to call on someone else to do it for me, because I'm a single woman who works full-time, and have other things I prefer to spend my time doing. If and when I ever do own a home, I'll either figure out how to do stuff as it's needed, or hire a contractor if I have the money. I'm not dumb, though.
i hate working on a house . oh i know when something needs to be done but i am smart enough not to do it myself . it ends up costing double because they have to undo what i did .
not only ain't i handy but i dislike chores and devoting anytime to things i don't like doing like painting , grass cutting shoveling snow , etc . if i can farm them out then that is what i do .
where we live is transparent to us now . we rent and have a pool , tennis courts and no house maintenance . i take the garbage out to the compactor room and that is the extent of my housing chores . the building is fully maintained and we can just live our lives as happy lil morons isolated from all the things we did at one time tied to a house .
Last edited by mathjak107; 01-09-2019 at 03:05 AM..
Yes, see? Your ability to start all that was very circumstantial. You benefited by being at the right place at the right time. Some of us may never get that type of opportunity.
Imagine trying to do all of what you did on $50k/yr when housing prices are more like $300k, and your average 1BR is $1200/mo. And that's cheap, compared to NYC.
for growing wealth there may actually be a curve that may work best if we talk solely from a financial point not lifestyle .
buying makes a lot of sense early on if you have little saved except to come up with what it takes to buy ..
after you get some equity and appreciation down the road , you have options open up .
you may be able to sell , rent for a while and have a healthy sum to invest in far greater potential assets then resi real estate . in fact just something like the s&p 500 has grown a load of money over time .
using my actual numbers i bought my house for 169k in 1987 .. we dumped the money we made from the co-op sale in to the house and added some money i made investing .
so today that house is 950k plus we lived in it . great right ? well not so fast ....
that same money in the fidelity insight growth model which is just plain ole fidelity funds is 4.90 million today with not another penny added . the s&p 500 clocks in at 450k less so it would be something anyone could have invested in .
you could subtract out every penny paid in rent for decades and taxes and buy at least two of those homes today .
by the way that growth has been the average within two percent for every typical 30 year retirement or accumulation time frame since 1871. 118 rolling periods all within spitting distance .
so getting back to the curve , later in life at retirement you have options , you can sell and have a lump sum or use all that money accumulated investing to rent and support you , or buy a house , where you will have a lower income because there is a sum tied up in the house no longer generating anything but you may have lower housing costs .
either way can work as well in retirement.
nothing is ever black and white . there is only the options you have to do something and the path you pick .
Last edited by mathjak107; 01-09-2019 at 03:03 AM..
Why do you assume they aren't smart enough?? Maybe they're just too busy, or lazy (when it comes to these things), or not the handy types? I'm certainly not stupid, and know when something needs repairing in my homes... I just like being able to call on someone else to do it for me, because I'm a single woman who works full-time, and have other things I prefer to spend my time doing. If and when I ever do own a home, I'll either figure out how to do stuff as it's needed, or hire a contractor if I have the money. I'm not dumb, though.
Their point was that some people will let an owned property get into horrible condition through lack of caring, not being able to afford the repairs, or simply not recognizing that it needs work. Those people will ruin the value of an owned property. So even though they could pay someone to do all the handy work, they won't (for whatever reason), and it is not in that person's best interest to own if they are going to ruin the equity.
I don't think the author of this post was talking about you or anyone else in this thread, it was just another example of the type of people who probably should stick to renting.
for growing wealth there may actually be a curve that may work best if we talk solely from a financial point not lifestyle .
buying makes a lot of sense early on if you have little saved except to come up with what it takes to buy ..
after you get some equity and appreciation down the road , you have options open up .
you may be able to sell , rent for a while and have a healthy sum to invest in far greater potential assets then resi real estate . in fact just something like the s&p 500 has grown a load of money over time .
using my actual numbers i bought my house for 169k in 1987 .. we dumped the money we made from the co-op sale in to the house and added some money i made investing .
so today that house is 950k plus we lived in it . great right ? well not so fast ....
that same money in the fidelity insight growth model which is just plain ole fidelity funds is 4.90 million today with not another penny added . the s&p 500 clocks in at 450k less so it would be something anyone could have invested in .
you could subtract out every penny paid in rent for decades and taxes and buy at least two of those homes today .
by the way that growth has been the average within two percent for every typical 30 year retirement or accumulation time frame since 1871. 118 rolling periods all within spitting distance .
so getting back to the curve , later in life at retirement you have options , you can sell and have a lump sum or use all that money accumulated investing to rent and support you , or buy a house , where you will have a lower income because there is a sum tied up in the house no longer generating anything but you may have lower housing costs .
either way can work as well in retirement.
nothing is ever black and white . there is only the options you have to do something and the path you pick .
I agree with you here. We've actually considered using the equity in our home to branch out into the rental arena full time. I think it's always wise to diversify your revenue streams, and not just rely solely on one.
i am not a fan of using home equity loans for rental property .... i would always want the success or failure to be separate from my home . on top of the fact the deals i do have no known time limit going in . last thing i want is to pay interest on an open ended deal .
i am not a fan of using home equity loans for rental property .... i would always want the success or failure to be separate from my home . on top of the fact the deals i do have no known time limit going in . last thing i want is to pay interest on an open ended deal .
What do you suggest then? A sell off, and then use the assets/equity I have built for other investments while I rent?
i can't suggest anything for someone else , sorry .. personally if i wanted the money to pursue other alternatives i would sell , take my money , invest it and rent . that is what we did
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