- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Is it better to rent or buy a house
Posted on 7/9/19 at 9:38 am to Hammertime
Posted on 7/9/19 at 9:38 am to Hammertime
quote:
I'd have to have a pretty shitty loan to not beat that
Or a natural disaster, or a crack in your foundation, or a busted pipe, or a tree falling on your house, etc, etc
1
Posted on 7/9/19 at 9:39 am to Kujo
quote:
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
Congrats on bitching about your daddy not buying you a house.
Posted on 7/9/19 at 9:39 am to PearlJam
quote:
This just isn't true.
I would love to see data to back up your claim.
As with the other poster, I dont know anyone that has made money on a primary residence except for one.
That person bought a house in Irvine california back in the late 1990s. Lived in it for 2 years. This means they spent very little holding and maintaining the house. The housing values increased by almost a full 100% in that time frame. Those sold for a profit.
Every other instance of my immediate friends and family lost money on house purchases. Does that make it worse than renting? No. Renting loses more money in many situations and locations. What it does mean though is housing is typically a cost, not an "investment." Investments are meant to grow over time, not reduce.
My first house went up in price by 15% over 10 years. I still lost about $10k on the house over that time. I could provide many examples showing this over and over. The examples of people making money off of buying their house is few and far between.
Posted on 7/9/19 at 9:40 am to lsu13lsu
quote:lol, that doesn't make sense. Landlords aren't mythical creatures. They are simply purchasers of real estate.
A landlord is going to be paying better rates on both than you would be as a homeowner.
quote:I think we can all agree that over paying for a house isn't a good financial move.
Many times homeowners over pay for a house and what does Municipality use to charge property taxes?
quote:They are not getting any different tax rates. If they finance, they are likely getting worse rates as primary residence rates are typically cheaper than noon primary residence mortgage rates.
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 9:41 am to lsu13lsu
quote:this. I could buy a house tomorrow but I don’t think I’ll be here in 6 months, much less 6 years.
You actually hold a lot of cards. You are essentially buying an option. You can move when and wherever you want.
There’s value in flexibility
Posted on 7/9/19 at 9:41 am to Hammertime
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
You have a unique situation as you have said. The value of the S&P 500 has gone up over 50% in that time. If someone's money wasn't tied up in a home they could have got that and that isn't unique...anyone could get that just by renting and investing the principle.
I am just making the point that home ownership isn't some slamdunk that people make it out to be unless you plan on being in an area for a long time.
Posted on 7/9/19 at 9:42 am to Mingo Was His NameO
That's why I have insurance, a home warranty, and myself to fix things. Insurance and home warranty have saved me A LOT of money
quote:I had no idea the value would go up, but like I said, it is making me money sitting here. The housing prices here are still climbing, while all of my costs stay the same
You have a unique situation as you have said
This post was edited on 7/9/19 at 9:45 am
Posted on 7/9/19 at 9:42 am to notsince98
quote:
My first house went up in price by 15% over 10 years. I still lost about $10k on the house over that time. I could provide many examples showing this over and over. The examples of people making money off of buying their house is few and far
So you rent now?
Posted on 7/9/19 at 9:43 am to notsince98
quote:
As with the other poster, I dont know anyone that has made money on a primary residence except for one.
my personal longest "home run" was a house I bought on the water in Palm Beach County, as a personal residence, in a small developing town, bought it for $350k in '97, sold it for $1.6mm in '01, had a couple of others like that. but that was the best deal for a "primary residence" for me
Posted on 7/9/19 at 9:45 am to LCA131
quote:
So you rent now?
No. Renting is more expensive in my area than owning. It "costs" me less to own a house.
Owning a house is a cost for me like utilities, transportation, etc. None of which I would ever call an investment.
Posted on 7/9/19 at 9:45 am to LCA131
quote:
Y'all thought about keeping it for a few years and renting it out? Let it hopefully appreciate and get someone to pay a huge portion of the house payment for you?
We did, but we knew if we allowed renters, it would be impossible to sell while renting, and in the end, didn't want to deal with the problems that go with renters. But it probably would have been a financially beneficial option.
Good news is we have a purchase agreement that looks really solid, and scheduled to close before the end of this month. Thank God.
Posted on 7/9/19 at 9:45 am to notsince98
quote:correct
Renting loses more money in many situations
quote:It can be both.
housing is typically a cost, not an "investment."
quote:Real estate generally appreciates, so your housing cost (which you are going to incur regardless) comes with the benefit of owning an appreciating asset.
Investments are meant to grow over time, not reduce.
Posted on 7/9/19 at 9:46 am to notsince98
quote:Good luck selling your electricity for more than you paid for it.
Owning a house is a cost for me like utilities, transportation, etc. None of which I would ever call an investment.
Posted on 7/9/19 at 9:47 am to notsince98
quote:
Renting is more expensive in my area than owning. It "costs" me less to own a house.
I don't know how this is such a hard concept to understand
Posted on 7/9/19 at 9:48 am to PearlJam
quote:
Real estate generally appreciates, so your housing cost (which you are going to incur regardless) comes with the benefit of owning an appreciating asset.
as discussed already. Rarely does the loss of $ from owning a house come from the purchase price or sale price. Generally a house will sell for more than it was purchased for. I think we can all agree on that. It is the lesser of two evils.
The issue is rarely does that appreciation cover all the costs associated with owning the house. Interest, property taxes, insurance, realtor fees, etc. will end up costing more than the appreciation of the house. While the house went up in value, it ends up costing people money and not growing money.
This post was edited on 7/9/19 at 9:52 am
Posted on 7/9/19 at 9:48 am to notsince98
quote:Right place, right time. Hell, contractors flip houses and make money all of the time
The examples of people making money off of buying their house is few and far between
Posted on 7/9/19 at 9:48 am to Mingo Was His NameO
It's not. You all simply want to argue against some traditional view of home ownership so much that you vastly over stated the case.
Posted on 7/9/19 at 9:49 am to 777Tiger
quote:
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
Real estate investment can be a nice retirement income. But my FIL did this. I think he had 10-12 properties, very low income areas, mostly section 8. Every single one flooded in the big flood. You wanna talk about a nightmare.
He ended up selling all of them after the flood. He made out pretty good after getting his flood settlements, but still, it was a nightmare. And they were producing no income when they were flooded.
Posted on 7/9/19 at 9:50 am to PearlJam
quote:
Good luck selling your electricity for more than you paid for it.
I could easily rent out a house, include utilities and force a renter to pay more than I pay for the electricity. That is much easier than trying to make money owning a home without fixing up said home.
Posted on 7/9/19 at 9:51 am to lsu13lsu
quote:
I am just making the point that home ownership isn't some slamdunk that people make it out to be unless you plan on being in an area for a long time.
Yeah, and what if you're in a place with rent control, and a bunch of 3rd world people who think that buying a home is "making it".
I'm now looking at 5k a month mortgage in a less than perfect area, or renting a 3,500/month place in a decent area.
I've tried to show my girl the math, but she's 3rd world as well. She wants to buy and convert the garage into an in-law studio for 1,500 to make up the difference.
But we aren't moving until January, so I still have time to try to convince her.
Page 4 of 8
Popular
Back to top
Follow TigerDroppings for LSU Football News