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1
Posted on 3/10/09 at 10:26 am to TortiousTiger
No some of us don't rely on anectdotal evidence to make ridiculous claims.
I never claimed the two examples were the norm, I simply illustrated certain situations where renting would be better.
You on the other hand have been arguing this 33% premium as representative of an entire market.
I would love you to provide any evidence of any market that garners 33% rental premiums over cost of ownership... any one.
The world is full of examples that support otherwise
I never claimed the two examples were the norm, I simply illustrated certain situations where renting would be better.
You on the other hand have been arguing this 33% premium as representative of an entire market.
I would love you to provide any evidence of any market that garners 33% rental premiums over cost of ownership... any one.
The world is full of examples that support otherwise
Posted on 3/10/09 at 10:28 am to igoringa
God this is a frustrating thread. 
If you live in a state that only has property taxes and no state income taxes, renting is by FAR the best way to go. Rent until you could afford to pay cash for a house.
If you live in a state that only has property taxes and no state income taxes, renting is by FAR the best way to go. Rent until you could afford to pay cash for a house.
Posted on 3/10/09 at 10:28 am to igoringa
quote:
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).
Dude if you can see the future, then tell me what is going to happen in the next 2 years so I can be rich.... Your hypothetical is retarded.
OBVIOUSLY, in hind site the last 2 years it would have been better to rent in most markets. But what about the previous 40 years where houses were appreciating and not depreciating. I'm am saying the TODAY, I think it is still better to buy a house than to rent one. When I'm not paying a note anymore and your rent increases every year, you will still be saying you are better off. Well good luck with your future endeavors.
Posted on 3/10/09 at 10:29 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.
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?
No matter what folksy "wisdom" you trot out, you cannot escape the most relevant fact of all: price matters. It's amazing to me how casually people are willing to throw away hundreds of thousands of dollars to "buy".
Posted on 3/10/09 at 10:31 am to igoringa
quote:
The world is full of examples that support otherwise
keep watching CNBC. I'm sure they'll tell you all about how the sky is falling in Orange County and Atlanta.
Posted on 3/10/09 at 10:31 am to LSU1018
quote:
When I'm not paying a note anymore and your rent increases every year, you will still be saying you are better off. Well good luck with your future endeavors.
Can anyone in this thread provide evidence that they or anyone they know has had year over year increases in rent on a continual basis? GTFO with your ridiculous shite.
Posted on 3/10/09 at 10:34 am to TortiousTiger
quote:
keep watching CNBC. I'm sure they'll tell you all about how the sky is falling in Orange County and Atlanta.
This somehow seems backwards.
Posted on 3/10/09 at 10:35 am to kfizzle85
quote:
Can anyone in this thread provide evidence that they or anyone they know has had year over year increases in rent on a continual basis? GTFO with your ridiculous shite.
Are you saying that rent does not generally go up on a continual basis?
Posted on 3/10/09 at 10:36 am to TortiousTiger
Yes that is exactly what I am saying.
Posted on 3/10/09 at 10:36 am to LSU1018
quote:
Dude if you can see the future, then tell me what is going to happen in the next 2 years so I can be rich.... Your hypothetical is retarded.
Are you telling me you had no idea that housing prices were inflated 2 years ago? LOLOLOL. OK we can stop right there... perhaps you should goodle Robert Shiller and the Case Shiller index and then we can have a more enlightened conversation.
quote:
OBVIOUSLY, in hind site the last 2 years it would have been better to rent in most markets.
And it was impossible to see housing at all time highs while income being stagnant and credit standards non existent that a bubble may exist. Yeah, that was a real toughie.
quote:
But what about the previous 40 years where houses were appreciating and not depreciating.
They appreciate at best .5% above inflation... again a little research goes along way.
quote:
I'm am saying the TODAY, I think it is still better to buy a house than to rent one.
And all I said is it depends on the individual facts and circumstances... where apparently you believe real estate always goes up. Agree to disagree.
quote:
When I'm not paying a note anymore and your rent increases every year, you will still be saying you are better off. Well good luck with your future endeavors.
LOL Yes the economic genius you have demonstrated leaves me oh so worried what my financial position is/will be compared to yours. I hope I can sleep tonight (and I also like how you assume I am currently a renter).
Posted on 3/10/09 at 10:36 am to TortiousTiger
quote:are you saying that increases in rent outpace inflation by a statistically significantly percentage?
Are you saying that rent does not generally go up on a continual basis?
Posted on 3/10/09 at 10:37 am to Cold Cous Cous
quote:
are you saying that increases in rent outpace inflation by a statistically significantly percentage?
They have to, how else can you get those monster 33% returns every year
Posted on 3/10/09 at 10:39 am to igoringa
quote:
They have to, how else can you get those monster 33% returns every year
there might be an example of your point for a million bucks in orange county or atlanta.
because everyone knows, 800k house in orange county = 150k house in louisiana
Posted on 3/10/09 at 10:40 am to Cold Cous Cous
No but your house note does not go up with inflation.
Oh and FYI, I live in Baton Rouge. I bought a house 2 years ago for 123,000 and it appraised last month at 145,000 (I had to get PMI removed)
No I'm not saying this is everywhere but there is hope out there.
Oh and FYI, I live in Baton Rouge. I bought a house 2 years ago for 123,000 and it appraised last month at 145,000 (I had to get PMI removed)
No I'm not saying this is everywhere but there is hope out there.
Posted on 3/10/09 at 10:41 am to LSU1018
This thread is misaligned on so many different levels.
Posted on 3/10/09 at 10:42 am to igoringa
quote:
They have to, how else can you get those monster 33% returns every year
Just think how awesome guaranteed annual rent increases are in light of the fact that rents are ALREADY at a 33% premium to buying. Talk about a landlord's wet dream!
Posted on 3/10/09 at 10:44 am to Tiger JJ
morris.marginalq.com/DLM_fullpaper.pdf
For those who actually would like some information on the topic... I am searching for the 33% premium now.
For those who actually would like some information on the topic... I am searching for the 33% premium now.
Posted on 3/10/09 at 10:45 am to LSU1018
quote:
No but your house note does not go up with inflation.
Very true. But your tax, insurance, and maintenance costs will. And in the meantime all your money is tied up in the house, while the renter is investing it in securities whose returns are tied to inflation.
quote:
I bought a house 2 years ago for 123,000 and it appraised last month at 145,000
The correlation between appraised value and actual market value is almost, but not quite, zero.
Posted on 3/10/09 at 10:45 am to Cold Cous Cous
quote:
The correlation between appraised value and actual market value is almost, but not quite, zero.
do you have any clue of how appraisals work?
ETA: I dont think you understand a correlation either.
This post was edited on 3/10/09 at 10:48 am
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