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Message
re: CNBC: Renting can make you wealthier than owning a home
Posted on 5/3/23 at 6:28 pm to LSUFanHouston
Posted on 5/3/23 at 6:28 pm to LSUFanHouston
I pay a mortgage so that later in life I do not have the expense of a mortgage or rent when my retirement money will not be worth as much today.
2
Posted on 5/3/23 at 6:35 pm to tiggerthetooth
I had NOTHING as a chef 12 years ago , my mom basically forced me to buy a house. Now I pick flowers out of the garden for 6 mo out of the year and have 250,000 in equity
Posted on 5/3/23 at 7:23 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.
And have flexibility to be bumble in changing employment, changing economies, changing family structure etc…
Renting can easily be the right option for plenty of folks at plenty of times. It’s far from a singular solution to housing as a financial tool.
Posted on 5/3/23 at 7:28 pm to elit4ce05
quote:
Yes, but rent money paid can never be gotten back, it gone. Mortgage money can be gotten back.
Unless the house goes down in value,
Or you get stuck with a major repair or two during a not terribly lengthy ownership
Or you find out you have an opportunity elsewhere shortly after closing and have little equity but lots of cost
Posted on 5/3/23 at 8:11 pm to NoSaint
quote:
Unless the house goes down in value, Or you get stuck with a major repair or two during a not terribly lengthy ownership Or you find out you have an opportunity elsewhere shortly after closing and have little equity but lots of cost
Live in fear.
Or an asteroid could crush your house.
Or your woman could leave and take your house.
Or a herd of elephants will hurl Chiquita banana trailers at your house…
Posted on 5/3/23 at 8:27 pm to tiggerthetooth
quote:
Ramit Sethi
100% guarantee this shithead is peddling that crap b/c he has a frick ton of money invested in rental apartments and homes.
Posted on 5/3/23 at 8:44 pm to Dr RC
Posted on 5/3/23 at 9:04 pm to FreddieMac
quote:
I pay a mortgage so that later in life I do not have the expense of a mortgage or rent when my retirement money will not be worth as much today
This is what the rent idiots don't get. When we bought our first house and started paying what seemed like it would never end, I told my wife we're not just buying this one, we're buying all the houses we'll ever live in. The equity we have now is about 3x that first house.
Posted on 5/4/23 at 5:36 am to TigerBaitOohHaHa
quote:
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
Talk to folks who move on a regular basis in their career and you will find that universally they all have multiple stories of paying 2 mortgages for several months...in some cases owning a home is a burden. It is not universally the only answer...
Posted on 5/4/23 at 6:26 am to AwgustaDawg
quote:
Talk to folks who move on a regular basis in their career and you will find that universally they all have multiple stories of paying 2 mortgages for several months...in some cases owning a home is a burden. It is not universally the only answer...
Or on a receding coast that’s getting harder to find insurance… depending on your location and horizon, maybe not worth the risk. Insurance sky tickets, sales price plummets and you could be in a real pickle.
Generally buying is good. Pretending it’s the only successful option and anyone renting is blowing all their funds on Starbucks and avocado toast is silly. It can be the right choice for various life stages. Im going to live 6 miles from the plant for the rest of my life? Get to building equity asap. I don’t know what city my career is going to be in 18 months from now? Consider staying nimble and throw funds into other investments. Nothing wrong with being a big world and not having a single one size fits all solution for financial tools.
Posted on 5/4/23 at 6:28 am to dewster
Ironic that those progressive/communist counts even still use the term 'redneck' which is a classist insult.
But if they didn't have double standards they'd have no standards at all.
But if they didn't have double standards they'd have no standards at all.
Posted on 5/4/23 at 6:36 am to Sao
quote:
If this were true, section 8 recipients could work their way out of... section 8.
I had a unique but probably unpopular thought.
Instead of just using section 8 housing vouchers to pay landlords like Blackrock, why not allow the homeowner to get a mortgage and use the voucher to pay the mortgage with it. That way they have an ownership incentive in the property for maintenance.
Posted on 5/4/23 at 6:42 am to CR4090
quote:
when has it ever been easy?
Many time periods between about 1950 and 2009.
Go compare real wage growth to housing cost over that time.
The stratification of American living has also completely changed the dynamic of where buying is appropriate (with a corresponding spike in price). For a local example, plenty of cheap homes in NBR to buy.
Posted on 5/4/23 at 6:45 am to Philzilla
quote:
Live in fear.
I love how a reasonable response to the purported low cost of home ownership gets a "live in fear" response.
The entire point, that obviously went over your head, is that the long-term nature of a mortgage increases the risk of these expensive events negatively impacting your life financially, which decreases the EV of owning a home.
Go read any thread on here about home repairs and you'll see one homeowner after another say that owning a home is just a series of expensive repairs over and over again. Somehow that same conversation is off limits in a thread talking about how finances and economic opportunities for younger people have a bad outlook today.
Posted on 5/4/23 at 6:48 am to NoSaint
quote:
Or on a receding coast that’s getting harder to find insurance… depending on your location and horizon, maybe not worth the risk. Insurance sky tickets, sales price plummets and you could be in a real pickle.
This is a poignant local example. Plenty of "good areas" in the geographical region this board is focused on are about to get WRECKED by insurance costs. If the NFIP is ever scaled back a bit, I can only imagine the cost to homeowners in lost equity.
Posted on 5/4/23 at 7:05 am to Stonehog
quote:
Renting is fine and the right option for a lot of people.
quote:
rent a big house in a nice area where we could never afford to buy.
There it is. This is the problem with you and most of America staying poor and never building wealth. Instant gratification. Instead of keeping some of that payment you could afford as equity or future appreciation in home value upon sale, you gave it all away to a landlord just to live in something nicer in the short run. In the long run people who do this will retire later and later and never be wealthy. They will work their entire lives, slaves to the idea that they need to keep paying monthly for a roof over their head.
Posted on 5/4/23 at 7:09 am to tiggerthetooth
$250,000 loan. $82 K in a interest over 15 years, $180 K in interest over 30 years and that’s at 4%. $289,000 in interest alone at 6% for 30 years /$130K at 15 years. These numbers don’t include interest or maintenance.
Posted on 5/4/23 at 7:09 am to dcrews
quote:
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.
Right, but that's exactly my point though. While renting, you aren't building any equity. So even if your monthly expenses are cheaper, you're essentially paying for someone else's mortgage instead of creating wealth (or assets) for yourself.
However, I do understand not everyone cares about equity and owning a home, and ultimately that's not a bad thing (especially for younger people who may not stick around an area).
Posted on 5/4/23 at 7:12 am to tiggerthetooth
Damn I wish CNBC would have told me sooner.
Posted on 5/4/23 at 7:14 am to FreddieMac
quote:
I pay a mortgage so that later in life I do not have the expense of a mortgage or rent when my retirement money will not be worth as much today.
THIS is why renting for more than the first few years of life, while one figures out a career or where to settle is a poor decision.
Or just keep renting if you want to work 40 hrs a week until you die.
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