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re: Is it better to rent or buy a house
Posted on 7/9/19 at 9:51 am to PearlJam
Posted on 7/9/19 at 9:51 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.
You are ignoring all other costs to try to make your point. You may can sell your house for 20k more than you bought it, but you had to buy a lawnmower and have some work done on the roof and replace some flooring, call a plumber etc, etc, etc. Then let's factor in buying and selling costs and interest and in reality you've made no money.
Again, to build wealth you look at home ownership as an essential cost and try to minimize that cost, using appreciation in thay calculation, but you do not view it as an investment.
3
Posted on 7/9/19 at 9:52 am to notsince98
quote:Only if the person is choosing ownership over the option of living for free elsewhere.
While the house went up in value, it ends up costing people money and not growing money
With ownership you have a valuable asset that often offsets the cost of housing entirely and sometimes provides additional equity. You don't get that with renting. If you want to do mental gymnastics to avoid calling that an investment, be my guest.
That doesn't mean buying is always the right choice.
Posted on 7/9/19 at 9:52 am to PearlJam
quote:
You all simply want to argue against some traditional view of home ownership
Because it's wrong
Posted on 7/9/19 at 9:53 am to Mingo Was His NameO
quote:no I'm not. Did you read over the parenthetical?
You are ignoring all other costs to try to make your point
Posted on 7/9/19 at 9:53 am to Hammertime
quote:
Hell, contractors flip houses and make money all of the time
that is a completely different discussion. Yes, it is fairly easy to make money off of flipping houses. That is business, not living. You can make money off of building houses, too. There is much money to be made off of houses.
It is hard to make money off of houses that are only a primary residence. If you are living in a house while you flip it, I would consider that a business venture, not a housing purchase.
Posted on 7/9/19 at 9:53 am to Kujo
quote:
I've tried to show my girl the math,
pussy
quote:
but she's 3rd world as well.
quote:
convert the garage into an in-law studio
congrats on the Haitian ghetto when the rest of her 150 family members move in
Posted on 7/9/19 at 9:53 am to PearlJam
quote:
With ownership you have a valuable asset that often offsets the cost of housing entirely and sometimes provides additional equity
And could also ruin you financially for the rest of your life.
Posted on 7/9/19 at 9:54 am to Mingo Was His NameO
quote:Again, over starting the case and completely missing my argument. You are arguing against a point that wasn't made (a straw man) and completely over stated the case to try to argue the point.
Because it's wrong
Posted on 7/9/19 at 9:54 am to Mingo Was His NameO
quote:Which is why it isn't always the right choice.
And could also ruin you financially for the rest of your life
Posted on 7/9/19 at 9:55 am to PearlJam
quote:
You all simply want to argue against some traditional view of home ownership so much that you vastly over stated the case.
You are absolutely correct that is the traditional view of home ownership and tradition doesn't make it right.
Note that none of the statements presented have said owning a home is a bad choice or the wrong choice. Owning a home is awesome and a good choice. The only thing bad about it is labeling it an investment. It is not an investment.
Posted on 7/9/19 at 9:57 am to Mingo Was His NameO
quote:
You are ignoring all other costs to try to make your point. You may can sell your house for 20k more than you bought it, but you had to buy a lawnmower and have some work done on the roof and replace some flooring, call a plumber etc, etc, etc. Then let's factor in buying and selling costs and interest and in reality you've made no money.
Again, to build wealth you look at home ownership as an essential cost and try to minimize that cost, using appreciation in thay calculation, but you do not view it as an investment.
Exactly. More and more people are coming around to this view. It is getting pretty mainstream. I am not sure why they think you are being a contrarian arse here.
Posted on 7/9/19 at 9:58 am to notsince98
If you buy in the right place, at the right time, with the intention of selling it for a profit, that's not an investment? News to me
There are plenty of places around here where an empty lot could've made you over $100k. I guess that's not an investment though
There are plenty of places around here where an empty lot could've made you over $100k. I guess that's not an investment though
Posted on 7/9/19 at 9:58 am to notsince98
quote:I know. I haven't advocated the traditional view.
You are absolutely correct that is the traditional view of home ownership and tradition doesn't make it right
quote:Again, it's different from traditional investments, but it most certainly is an investment.
It is not an investment
Comparing it to the purchase of depreciating and consumed goods is far more of a stretch than calling it an investment.
Posted on 7/9/19 at 9:58 am to notsince98
quote:
it is fairly easy to make money off of flipping houses.
not as easy as most people think it is
Posted on 7/9/19 at 9:58 am to Kujo
quote:
I'm now looking at 5k a month mortgage in a less than perfect area
Posted on 7/9/19 at 9:59 am to notsince98
quote:
Note that none of the statements presented have said owning a home is a bad choice or the wrong choice. Owning a home is awesome and a good choice. The only thing bad about it is labeling it an investment. It is not an investment.
This.
Do I think some people get lucky on timing and make a nice profit? Yes. But, generally, home ownership/renting should be viewed as an essential cost and one should try and maximize their situation as best as possible. Sometimes it could be renting and sometimes it could be buying.
To make a blanket statement that owning a personal home is an investment is insane to me.
This post was edited on 7/9/19 at 10:00 am
Posted on 7/9/19 at 10:00 am to PearlJam
quote:
Comparing it to the purchase of depreciating and consumed goods is far more of a stretch than calling it an investment.
It's neither, this isn't a binary choice
Posted on 7/9/19 at 10:01 am to Mingo Was His NameO
quote:
hen let's factor in buying and selling costs and interest and in reality you've made no money.
While true, if you can get close to break even of even only 5 or 10K "loss" after 5 years that's still better than paying $1200 a month in rent x 12 x 5 years for a place to live. But its true that you need to calculate taxes paid yearly, insurance paid yearly, interest payments made lifetime while you owned, closing costs for selling in addition to all of the improvements and maintenance to get your actual "profit" on the house.
To actually make money on your house you either need to 1) be handy/able to do serious upgrades on a house with your own labor 2) get lucky with timing on both when you are ready to buy and when you are ready to sell
Houses aren't investments in the sense that it wont automatically make you rich, but if you're smart about the location (which in many cases is much more important than the house itself) and have a stable lifestyle owning is 100% the way to go
Most young people shouldn't buy though, only because if you are young you want to have the ability to move and job jump quickly if an offer presents itself
This post was edited on 7/9/19 at 10:04 am
Posted on 7/9/19 at 10:01 am to PearlJam
quote:
Comparing it to the purchase of depreciating and consumed goods is far more of a stretch than calling it an investment.
Calling a house a depreciating asset is a stretch?
So you even accounting bro??
Posted on 7/9/19 at 10:01 am to 777Tiger
Because a lot of idiots watch TV shows, and then decide they can do it all themselves. I dated one girl who bought a flip house. She didn't even know how to put up light fixtures or fans, so she was subbing it out
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