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re: CNBC: Renting can make you wealthier than owning a home
Posted on 5/3/23 at 12:31 pm to Paul Allen
Posted on 5/3/23 at 12:31 pm to Paul Allen
I bought a home, then got married and moved to a new place, rented the old home I was in. I’ve made more on renting the home than I paid for it and it’s appreciated over 100k.
0
Posted on 5/3/23 at 12:32 pm to Stonehog
quote:
That’s true, the obsession with home ownership is driven by banks. Renting is fine and the right option for a lot of people.
Banks like to say you’re “throwing money away” on rent but that’s not true either. I own a home now but never felt like I was wasting money when I rented, we were able to rent a big house in a nice area where we could never afford to buy
Renting also makes you more mobile, which is important.
Posted on 5/3/23 at 12:32 pm to Stonehog
quote:
That’s true, the obsession with home ownership is driven by banks. Renting is fine and the right option for a lot of people.
Oh frick off. I want to own a home because I want something that is actually mine. I can paint walls, build a fire pit, hell I can demo the incident because I want to.
Posted on 5/3/23 at 12:34 pm to Stonehog
quote:
we were able to rent a big house in a nice area where we could never afford to buy.
i don't disagree with your main point, but how is the landlord making money in that scenario?
it could be a unique situation like your credit wouldn't afford you a lower mortgage than renting the place, but unless the house was paid off and pure income, most renters are going to have an upcharge for profit.
Posted on 5/3/23 at 12:35 pm to tiggerthetooth
Well as someone who has a paid off home I can tell this goober that not having that expense at this stage of my life gives me great happiness. I live in an an area where homes hold their value and it will benefit my future generations greatly. This is the American dream. You want best for the next generation. Also it’s not like these apartments and condos are providing some Benevolent service. You live under their heavy hand and give them cash for such. They can also roll you out any time they want once your contract is done. Also there is the little fact that I don’t want neighbors shoved up my arse from above, below and on each side.
Posted on 5/3/23 at 12:39 pm to tiggerthetooth
This needs more context.
If you are living somewhere 5 years or less, renting probably is cheaper since the amount you pay to the bank in amoritized interest is essentially like rent, not to mention the other fees. Also, that 20% cash down payment is not making the 4.5-5% interest it could be right now, and if you need to make a big purchase and are cash poor, you are then paying 7-20% premium on credit card or other debt you take out to make that big purchase. Also, if you are talking about ultra high real estate prices like he describes in the article, the math might also make sense, especially the cost of ownership with repairs/maintence/property taxes (20-30k/year) that also is essentially the same as rent as you never get that back even when you sell.
So yes, for young, up and coming folks in the workforce where mobility is an asset, renting probably is way more cost-effective
If you are living somewhere 5 years or less, renting probably is cheaper since the amount you pay to the bank in amoritized interest is essentially like rent, not to mention the other fees. Also, that 20% cash down payment is not making the 4.5-5% interest it could be right now, and if you need to make a big purchase and are cash poor, you are then paying 7-20% premium on credit card or other debt you take out to make that big purchase. Also, if you are talking about ultra high real estate prices like he describes in the article, the math might also make sense, especially the cost of ownership with repairs/maintence/property taxes (20-30k/year) that also is essentially the same as rent as you never get that back even when you sell.
So yes, for young, up and coming folks in the workforce where mobility is an asset, renting probably is way more cost-effective
Posted on 5/3/23 at 12:39 pm to Paul Allen
The Dumb arse board is next door.
Lots of people build their wealth around their homes.
Debatable if right or wrong but it works for some.
Lots of people build their wealth around their homes.
Debatable if right or wrong but it works for some.
Posted on 5/3/23 at 12:39 pm to tiggerthetooth
If this were true, section 8 recipients could work their way out of... section 8.
Posted on 5/3/23 at 12:44 pm to tiggerthetooth
Lessons in rationale:
Lesson #1 -
"While being pretty and attractive is nice, it's hard work to make a face and body look like that. So, being unattractive is underrated, as it is much less expensive to not purchase nice clothing, manicures and salon treatments and you will be wealthier for it."
Lesson #1 -
"While being pretty and attractive is nice, it's hard work to make a face and body look like that. So, being unattractive is underrated, as it is much less expensive to not purchase nice clothing, manicures and salon treatments and you will be wealthier for it."
Posted on 5/3/23 at 12:44 pm to Stonehog
quote:
never felt like I was wasting money when I rented, we were able to rent a big house in a nice area where we could never afford to buy.
so you were living beyond your means, essentially?
Posted on 5/3/23 at 12:45 pm to tiggerthetooth
I got married in 2019 and moved into her house. Instead of selling mine, I rented it out. Two years later when I got divorced, I had to get an apartment for 6 months until the renters moved out. The rent for a decent two bedroom apartment (900 sf) was $300 a month more than my 2,000 sf home. Not to mention I have $150k of equity after owning it for 11 years. Renting doesn't make financial sense unless it is very short term.
But, to each his own.
But, to each his own.
Posted on 5/3/23 at 12:46 pm to tiggerthetooth
quote:
When Sethi himself rented an apartment in Manhattan, he also looked at one that was for sale next door. It had the same view, square footage and the same number of bedrooms, he says.
But when he calculated the costs plus maintenance, the monthly expenses of ownership worked out to roughly double the amount he was already paying for rent. Instead of spending thousands on home ownership, he put that money into other investments.
Can we see the math on how owning costs double what the rent is? Or are we just going off of "trust me bro it was double". Because I have a hard time believing that. My mortgage note is about $900 per month. The house next to me is pretty similar and the owner rents it out, neighbors say they pay $1400 per month in rent. I don't pay an extra $500/month for upkeep, much less $1900/month which is what it would have to be in order to be double what they pay.
Posted on 5/3/23 at 12:46 pm to tiggerthetooth
quote:
Renting can make you wealthier than owning a home
There are instances where this can be true. There is no singular correct answer.
Posted on 5/3/23 at 12:46 pm to tiggerthetooth
It’s wild how they spoon feed this garbage to the masses slowly enough not to cause alarm
Agenda 2030 is well on its way
Agenda 2030 is well on its way
Posted on 5/3/23 at 12:48 pm to tiggerthetooth
Most people that own a home will joke that it is a money pit.
It is no joke.
It is no joke.
Posted on 5/3/23 at 12:48 pm to tiggerthetooth
I don’t know who Ramit Sethi is, but he seems like a racist
Posted on 5/3/23 at 12:48 pm to Stonehog
quote:
I own a home now but never felt like I was wasting money when I rented, we were able to rent a big house in a nice area where we could never afford to buy.
If I'm renting, I'm going lean on the living space. It's something that I'll never own, so I'd want to throw as little money on it as possible.
Posted on 5/3/23 at 12:49 pm to Jcorye1
quote:
I can paint walls, build a fire pit, hell I can demo the incident because I want to.
"The frick you will"
- The local NIMBY HOA
Posted on 5/3/23 at 12:50 pm to HoustonGumbeauxGuy
quote:
Most people that own a home will joke that it is a money pit.
It is no joke.
Once it gets a little age on it for sure. I still wouldn't want to rent for any long period of time at this point in life. I might do it for 6 months while looking for another house.
Posted on 5/3/23 at 12:50 pm to Paul Allen
quote:
Of course renting is better. Your home isn’t an asset. It’s not making you any money.
That's a lot of tard for three sentences. Yes your lease is a store of value, let's teach the kids that Paul. You sound like one of those #childfreelife idiot advocates.
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