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re: CNBC: Renting can make you wealthier than owning a home
Posted on 5/3/23 at 2:21 pm to tiggerthetooth
Posted on 5/3/23 at 2:21 pm to tiggerthetooth
quote:show me where they wrong?
Homeownership is an expensive investment that shouldn’t be taken lightly
Homeownership and the avenue as a financial investment isn't for everyone.
0
Posted on 5/3/23 at 2:26 pm to tiggerthetooth
Reading this reminds me of a passage from a book I once read:
quote:
It was absolutely necessary, he said, that the pigs, who were the brains of the farm, should have a quiet place to work in. It was also more suited to the dignity of the Leader (for of late he had taken to speaking of Napoleon under the title of "Leader") to live in a house than in a mere sty.
Posted on 5/3/23 at 2:28 pm to tiggerthetooth
Owning property is the best investment you will ever make ,because it is the greatest hedge against inflation and it is tied to currency. He is using Manhattan as an example some markets like that are definitely not the norm. If you are not in the financial position, in a short term job where you know you will not be in the area that long, or don't want the sometimes headache of owning a home than renting is an option ,but you are paying more if you rent in most areas. Me personally I rather own properties which my wife and I do.
This post was edited on 5/3/23 at 2:30 pm
Posted on 5/3/23 at 2:33 pm to tiggerthetooth
quote:
yet the idea that property is always a great investment has become a “religion” in the U.S., he says.
pretty sure property values in general always increase over long periods of tine except in maybe areas that are crime ridden like inner cities
Posted on 5/3/23 at 2:33 pm to Paul Allen
quote:
Of course renting is better. Your home isn’t an asset. It’s not making you any money.
Posted on 5/3/23 at 2:34 pm to Paul Allen
quote:
Of course renting is better. Your home isn’t an asset. It’s not making you any money.
Keep preaching the good word so I can always have tenants paying me to not make any money
Posted on 5/3/23 at 2:35 pm to tiggerthetooth
Buying a house is not an investment...it is a living expense. If you make a buck on it thats fine but interest and maintenance will seriously diminish those returns.
Buying a home to live in is a vastly different undertaking than investing in real estate. Owning property is also a HUGE anchor...which is fine until your job moves or you get an offer somewhere else.
Buying a home to live in is a vastly different undertaking than investing in real estate. Owning property is also a HUGE anchor...which is fine until your job moves or you get an offer somewhere else.
Posted on 5/3/23 at 2:38 pm to CocomoLSU
quote:
So are they arguing that you "have more money" or something like that? Because having more money but no equity in a home doesn't make much sense, especially when renting is generally more expensive than owning.
When you factor in mortgage interest, maintenance and lost opportunities to advance your career the value of equity can evaporate quickly. Owning is not always the best idea...
Posted on 5/3/23 at 2:43 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.
I bought my first home in my early 20s. I was single at the time and had some cash I had saved and found a bargain. It was the right choice for me...and I have owned at least one home ever since except for 3 - 2 month periods when I transferred and rented until settling on a purchase. We have been lucky and have made some money every time we have sold but in all honesty between interest, maintenance and lost opportunity I would hazard to suggest that we'd been about as well off putting the money in a passbook savings account. It is not always the best choice and is dependent on individual expectations and situations.
Posted on 5/3/23 at 2:43 pm to tiggerthetooth
quote:
Renting can make you wealthier than owning a home
Economics is considered a "social science". So I guess we should all "follow the science" again and sell our homes baws.
Posted on 5/3/23 at 2:44 pm to JohnnyKilroy
quote:
Most baws on here cream themselves over parties where the boil and eat bugs by the pound.
Those aren't bugs bro, they are miniature lobsters.
Posted on 5/3/23 at 2:46 pm to UtahCajun
quote:
Rent = mortgage+profit
Rent is determined by the market. There are a lot of markets where homes that have a $4000 mortgage payment with 20% down would only rent for $3000.
In that situation, the value proposition of owning gets muddy at best.
Posted on 5/3/23 at 2:46 pm to Jcorye1
quote:
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.
Piece of mind in owning your place is the major benefit to owning over renting...if you make money in the process it is lagniappe...but buying to live in simply to make money is a BAD idea most times...
Posted on 5/3/23 at 2:47 pm to Paul Allen
Woah, really? I've owned three homes since getting married. Each has doubled its value in less than 10 years. Even after taxes, upkeep, and real estate fees, I've made plenty of money (which I reinvested in real estate). I prefer to maintain healthy equity, but much more risk tolerant individuals will borrow against their homes (aka, asset) and invest it too...
Your inability to understand the concept is why the rich get richer and others fall behind.
Your inability to understand the concept is why the rich get richer and others fall behind.
Posted on 5/3/23 at 2:48 pm to jamboybarry
quote:
You planning on giving away your home?
On average you have to put in 1-2% or so of the homes value annually to maintain the homes value.
And a lot of times people who think they made money were actually looking at effect of inflation over time.
Not uncommon once you remove those two you have a flat or even negative value over time.
Owning is the ideal, under ideal circumstances. But it can also ruin family finances depending on market timing.
Posted on 5/3/23 at 2:48 pm to AUFANATL
quote:
they are miniature lobsters.
Considered prison food up until recently.
Posted on 5/3/23 at 2:49 pm to Tiger Prawn
quote:
The house I'm in now cost me $350k in 2019 and appraised for $470k last summer. So how is my home not an asset or making me any money?
Your primary reason for buying it was to have a place to live. It is not an investment it is an expense. If you make money thats great...most do, some do not. It is not always the best answer, especially if you intend to move to advance your career...it can be a huge burden in that case.
Posted on 5/3/23 at 2:50 pm to CocomoLSU
quote:
especially when renting is generally more expensive than owning.
10-15 years ago (hell maybe even 5 years ago), you could say this blindly and 9 times out of 10 it would be true. That's not the case anymore.
With housing prices at these interest rates, and increasing home owner's insurance costs, a mortgage is typically more expensive. That's also not including all of the maintenance costs that are higher than in the past because of inflation.
Where I am, unless I want to live in a very low end neighborhood, renting is way cheaper than owning.
Now, I'm obviously not building any equity. But if we're talking mortgage/renting as a monthly expense, I don't see how there's a comparison anymore with the housing market as it is today.
This post was edited on 5/3/23 at 2:53 pm
Posted on 5/3/23 at 2:51 pm to Paul Allen
quote:
Your home isn’t an asset.
Uhhhh… yea it is. By every definition.
Let’s look at renting vs buying for me.
We bought this newly constructed house in 09 during the recession. It has appreciated around 100k according to comparable sales. Base Payments with our rate we refinanced in 11 or 12 are much less than current rent on comparable homes.
So we pay less for the mortgage vs rent and have gained approx 100k in value. Gain If we rented this whole time? Zilch.
Now if I could go back in time and rent… should I?
Posted on 5/3/23 at 2:51 pm to AwgustaDawg
People buy and sell homes all the time. It isn't a burden. If you keep your home up and were wise enough to purchase in a good area
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