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Message
re: 5 Reasons Renting Still Beats Buying
Posted on 3/10/09 at 9:32 am to Martavius
Posted on 3/10/09 at 9:32 am to Martavius
quote:
Actually it is. All one needs is the street address and county and it is available on the county tax assessors website.
Dallas CAD doesn't list the sales prices, only the appraisal value history. Is there some other website I'm missing?
1
Posted on 3/10/09 at 9:34 am to TortiousTiger
quote:
After seeing my landlord in BR's rental list, I believe it.
If you believe that, why havent you bought 100 homes, using the guaranteed 33% premium rental stream as your underlying asset to get appropriate loans from the banks (they only discount about 25% so you can clearly show you would still be in the green).
You have sold the whole housing mess.... all we have to do is buy up all the houses and then turn and rent them for a 33% premium.
Gosh that was easy
Posted on 3/10/09 at 9:42 am to igoringa
quote:
If you believe that, why havent you bought 100 homes, using the guaranteed 33% premium rental stream as your underlying asset to get appropriate loans from the banks (they only discount about 25% so you can clearly show you would still be in the green).
actually smart guy, that's exactly what he's done. He lives pretty comfortably, only having to deal with tenants random bitching as his job.
Posted on 3/10/09 at 9:43 am to igoringa
I'm pretty sure getting financed on buying 100 homes wouldn't be that easy.
Anyways... I always was and still am a firm believer in buying homes rather than renting. My house note does not increase every year and I will pay my house off and not have a note. I signed a 15 year note and I only have 13 years left to pay on it if I don't put any extra down. In my opinion, It's hard to beat the advantage of knowing that eventually you won't have a note.
Anyways... I always was and still am a firm believer in buying homes rather than renting. My house note does not increase every year and I will pay my house off and not have a note. I signed a 15 year note and I only have 13 years left to pay on it if I don't put any extra down. In my opinion, It's hard to beat the advantage of knowing that eventually you won't have a note.
Posted on 3/10/09 at 9:43 am to igoringa
Nice guy to let you know what his mortgage is on all those properties.
Posted on 3/10/09 at 9:46 am to TortiousTiger
Now if we can only get more people to do that, the entire housing crisis would end.... in fact we would have a shortage of houses.... as why wouldnt want a lock 33% return.
Man we are silly for letting this once in a lifetime opportunity go.
Man we are silly for letting this once in a lifetime opportunity go.
Posted on 3/10/09 at 9:47 am to Thomas Hudson
quote:
Dallas CAD doesn't list the sales prices, only the appraisal value history. Is there some other website I'm missing?
Dallas County Clerk Public Records Search
Posted on 3/10/09 at 9:50 am to LSU1018
quote:
I'm pretty sure getting financed on buying 100 homes wouldn't be that easy.
A) Apparently this guy did it (we have now found out)
B) Why? I mean there is a guaranteed 33% return... who would not fund that?
quote:
Anyways... I always was and still am a firm believer in buying homes rather than renting. My house note does not increase every year and I will pay my house off and not have a note. I signed a 15 year note and I only have 13 years left to pay on it if I don't put any extra down. In my opinion, It's hard to beat the advantage of knowing that eventually you won't have a note.
My buddy bought a $600K condo in orange County, CA in 2005. It is now worth about $400K. Should he be a firm believer that it was the right thing to do (buying - as oppose to renting for about 80% of the price, and then buying after the plummet?).
In other words, does it not truly depend on the individual facts and circumstances?
This post was edited on 3/10/09 at 9:51 am
Posted on 3/10/09 at 9:54 am to Martavius
quote:
Martavius
Thanks for the link, that's actually a great website and could prove helpful for me for number of reason.
In any event, as I said, from the recent sales in my area the value of my place is right about what I paid.
Now, that's not to say it hasn't gone down from its peak.
Posted on 3/10/09 at 9:55 am to igoringa
quote:
My buddy bought a $600K condo in orange County, CA in 2005. It is now worth about $400K
look smartass, I said LOUISIANA, and a much smaller price range.
Quit distorting things.
Posted on 3/10/09 at 9:56 am to igoringa
quote:
My buddy bought a $600K condo in orange County, CA in 2005. It is now worth about $400K. Should he be a firm believer that it was the right thing to do (buying - as oppose to renting for about 80% of the price, and then buying after the plummet?)
If he did not buy a house that was outside of his budget, meaning 20% of his net income shouldn't be going to his house note which means this guy makes bank. If he signed a 15 year note, then yes he still should be a firm believer b/c that note will still be gone within 11 years whereas the rent will NEVER go away.
I mean if you are 60 years old and don't own anything then I guess I would agree to go and rent b/c by the time you own the house, you will likely be dead. But if you are under 30, I can't see how you wouldn't like to actually own you house by the time you are 40. This is really the problem in the world today, too many people live by notes, Car notes, house notes..... "What is my note going to be" Who gives a shite what your note is going to be, my question is always, how much am I going to pay overall?
Posted on 3/10/09 at 10:00 am to Thomas Hudson
quote:
In any event, as I said, from the recent sales in my area the value of my place is right about what I paid.
And I'm in no way hoping you do see some huge price decrease. But this so-called second wave of defaults that is supposedly coming later this year could be ugly for everyone.
Posted on 3/10/09 at 10:04 am to Martavius
quote:
And I'm in no way hoping you do see some huge price decrease. But this so-called second wave of defaults that is supposedly coming later this year could be ugly for everyone.
Yeah, I hear you. I still think the risk of a further 20% drop in Dallas is low, but I know it's there.
All that aside, I DO agree that for most people, in this economy, renting is better than buying. And I wish I would've rented instead of buying, if solely for the flexibility it would offer in case something goes wrong.
Posted on 3/10/09 at 10:07 am to LSU1018
quote:This is exactly backwards. People under 30 are the last folks who should be buying a home.
But if you are under 30, I can't see how you wouldn't like to actually own you house by the time you are 40.
Posted on 3/10/09 at 10:09 am to Cold Cous Cous
quote:
This is exactly backwards. People under 30 are the last folks who should be buying a home.
and what is the logic?
Better returns on money elsewhere?
Posted on 3/10/09 at 10:10 am to Cold Cous Cous
quote:
This is exactly backwards. People under 30 are the last folks who should be buying a home.
And that is your opinion which you are entitled to. I'm just looking at it from my perspective. I am married and have a kid on the way. I do not want to be paying for college and still have the same note and know that I will never get rid of it.
Posted on 3/10/09 at 10:14 am to LSU1018
quote:It's not really an "opinion" as much as it is a "probability." Obviously it's not true that 100% of people who buy a house under 30 are making a mistake. But I am confident that more often than not the smart thing to do is to wait, rent, and continue building up a down payment. ymmv
And that is your opinion which you are entitled to.
Posted on 3/10/09 at 10:15 am to LSU1018
quote:
If he did not buy a house that was outside of his budget, meaning 20% of his net income shouldn't be going to his house note which means this guy makes bank. If he signed a 15 year note, then yes he still should be a firm believer b/c that note will still be gone within 11 years whereas the rent will NEVER go away.
Wouldnt he have been better off to rent for 2 years then buy? It is not like once you make a choice to rent you are stuck forever. SHort term he made the wrong choice (as he could buy now for $200K less... pure and simple).
2 - I understand the never pay rent again, but he effectively is paying several hundred thousand up front for that... so it really depends on what NPV factor you use.
At the end of the day, he would have been much better off to rent and then buy when the ratios were not so out of whack.... delaying a purchase for 2 years or so would still get the benefit of your argument except he traded $200K of depreciation and interest on such depreciation for 2 years of rent. Pretty clear he made the wrong decision. Ofcourse as facts and circumstances change....
quote:
But if you are under 30, I can't see how you wouldn't like to actually own you house by the time you are 40. This is really the problem in the world today, too many people live by notes,
But you are telling people they need to get notes. If you can rent for several hundred dollars under ownership... if you appropriately invest that money (big if), you have the potential to create a liquid cash investment that exceeds the value of the house which may or not have have depreciated.
quote:
Car notes, house notes..... "What is my note going to be" Who gives a shite what your note is going to be, my question is always, how much am I going to pay overall?
SOunds like an argument for renting and saving the delta between rent and ownership to me.
Unless you live in Lafayette where apparently you will pay a 33% premium for the privilege of renting.
I know in the Atlanta suburbs, the cost of ownership vs rent difference can be up to 1500 a month (based on a 30 year note)... even bigger on a 15 year.
So if you can save that 1500 a month and not have a depreciating asset (yes I know the tax savings), then I personally think you would be crazy not to rent (I am an owner and yes just called myself crazy)
Posted on 3/10/09 at 10:18 am to igoringa
quote:
I know in the Atlanta suburbs, the cost of ownership vs rent difference can be up to 1500 a month (based on a 30 year note)... even bigger on a 15 year.
Man, I was going to buy an 800k house here in LAFAYETTE louisiana until you informed me renting is cheaper. Thanks for the heads up!
Posted on 3/10/09 at 10:20 am to TortiousTiger
No man I already agreed with you... I am 1000% sure renting in Lafayette is 33% more expensive then buying a house.
Markets always do that, they always settle to provide 33% returns... that is just how things work.
Markets always do that, they always settle to provide 33% returns... that is just how things work.
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