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Started By
Message
2
Posted on 7/9/19 at 9:25 am to Fat and Happy
quote:
My dad has always had a saying that if it flies, fricks, goes fast, or floats,
RENT IT
Damn your dad made that up? Pretty cool that your dad created something that everyone over the age of 12 had heard before
Posted on 7/9/19 at 9:26 am to Festus
quote:
True, and good points.
the only thing I've never lost a dime in is real estate, but the traditional view of purchasing a home as an investment due to mortgage interest/property tax being deductible, and building equity over time is negligible to non-existent anymore, the situation of the need should be what determines rent v. purchase, plus, once your income gets beyond a certain level, there is zero tax benefit from it anymore, I still own a few places, and as they are paid off and generating "income," which is really a subsidy of the maintenance of the properties, I suppose you can consider them investments because I've kept them through good and bad economies, and now that I'm nearing retirement age I sort of look at each one as a separate retirement account that I can cash in if needed, but don't have to I don't want to, or possibly something to leave the kids if they don't piss me off right before I kick the bucket
Posted on 7/9/19 at 9:27 am to OysterPoBoy
quote:
Even if you buy it you're still renting it from the govt.
Yep, even when it's paid for, you still don't own it... Government collects rent every year...
Posted on 7/9/19 at 9:28 am to Centinel
quote:
Please explain why a house is never an investment, since this seems to be the blanket statement you're making.
I won't say never. But, when the majority of people show me a home they have lived in and sold they lost money.
After you pay closing attorney, realtor, interest, keeping up with market in maintenance and remodel, and on and on you lose money on houses.
You may be paying more in property taxes and insurance than a landlord would be paying to so in comparison to renting your taxes and insurance could be higher. No telling the values a landlord is using for these but they are probably much lower than what you are using.
Posted on 7/9/19 at 9:28 am to Bossbailey34
quote:
Is it better to rent or buy a house
Buy a house, then rent it out.
Boom. You get to do both with one house.
Posted on 7/9/19 at 9:29 am to notsince98
quote:
Primary residences are not investments. Is that a more accurate statement?
This. Are they charging their kids rent?
Posted on 7/9/19 at 9:30 am to Hangover Haven
quote:
Yep, even when it's paid for, you still don't own it... Government collects rent every year...
yep, the house I live in is paid off but I pay the gov't. about $14k/yr. for the privilege of living in it
Posted on 7/9/19 at 9:31 am to Bossbailey34
Short term, need to save up, etc? Rent.
Established, long term, not plans to move? Buy.
Buy/rent within your means. Keep it simple.
Established, long term, not plans to move? Buy.
Buy/rent within your means. Keep it simple.
Posted on 7/9/19 at 9:31 am to notsince98
quote:All of these expenses are built into your rent payments as well.
Interest, property taxes, insurance, maintenance, repairs, upgrades, sales fees, etc. It all adds up to a LOT.
quote:This just isn't true.
Very hard to really break even unless you sell a house rather quickly after purchase because the area shot up in value extremely quick
Posted on 7/9/19 at 9:33 am to TheDeathValley
quote:
Buy/rent within your means. Keep it simple.
that is a key factor that is often forgotten about, there was a thread yesterday about "how much house could/should I get with X amount of combined income?" wrong way to approach it, imo
Posted on 7/9/19 at 9:34 am to MrJimBeam
quote:You forgot timing too.
Every location, situation is different. What an asinine blanketed statement.
It depends on the year, the decade, etc.,... Interest rates, terms, market conditions, trends, ...
To answer the OP: Sometimes, sometimes not.
Posted on 7/9/19 at 9:34 am to BabyTac
quote:
Renting is a smart option if you’re young regardless of what anyone says. Most likely your life situation will change (family, job, desires) and a house can really become a burden.
I asked my parents for help 3 times looking to buy houses when I was 19 through 24.
at 19 the house was 95k, today that house lists for 950k
at 21 another house was 45k, today that house is 350k
at 24 another house was 185k, today that house is 675k
Dad's house is over 2M, and he makes 300k/year, and each time said exactly "you're too young to buy now, you don't know where youll be after college"
Yeah, thanks a-hole
Posted on 7/9/19 at 9:34 am to Auslander
quote:
When you rent, you hold no cards and are just making someone else rich.
You actually hold a lot of cards. You are essentially buying an option. You can move when and wherever you want.
Also, if you don't have $300+ thousand in home equity it could be invested in the stock market or somewhere else. So you have the "equity" in both situations. Except in your's it is completely locked into your house and dependent on the values of your neighbors and schools.
Posted on 7/9/19 at 9:34 am to lsu13lsu
quote:Value of my house has gone up about 65% over five years. I didn't plan on it, but the area has seen a huge increase in $/sqft, and my house is unique and I could sell it in a week. I'd have to have a pretty shitty loan to not beat that
I love when people say I made money on my house
Posted on 7/9/19 at 9:34 am to notsince98
quote:Not really. I mean, it isn't only an investment, so it is treated differently than an income property or an investment in the market. However, unless you have the option to live for free somewhere, purchasing your primary residence should be approached with a mindset of it being an investment with both risk and opportunity for growth.
Primary residences are not investments. Is that a more accurate statement?
This post was edited on 7/9/19 at 9:36 am
Posted on 7/9/19 at 9:34 am to PearlJam
quote:
All of these expenses are built into your rent payments as well.
In theory, but just like the value of your home it's going to fluctuate with the market. If it were as simple as you made it there would be more people in real estate.
Posted on 7/9/19 at 9:35 am to lsu13lsu
quote:Much of that equity is built from appreciation, not cash payment.
if you don't have $300+ thousand in home equity it could be invested in the stock market or somewhere else
Posted on 7/9/19 at 9:36 am to PearlJam
quote:
All of these expenses are built into your rent payments as well.
A landlord is going to be paying better rates on both than you would be as a homeowner.
Many times homeowners over pay for a house and what does Municipality use to charge property taxes? A landlord may not have had their property updated for years by municipality and even then it may not be as high as a homeowner. Same for insurance. Landlords are gonna get the cheapest rates possible.
Posted on 7/9/19 at 9:36 am to Kujo
quote:
Yeah, thanks a-hole
you're blaming your dad because you didn't have the wits/balls to go get it yourself? thanks millennial
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