People say renting is 'throwing money away' but I couldn't disagree more

[R.E.N. Spells Ren]

Somebody is making money off of you regardless.

Just like the banks making money off you as the property owner with a mortgage.

Most property owners borrowed to get the money to buy as well. Y'all really can't be this dense.

So if people can't afford to buy a place, should they be homeless? People need places to live

Who said this?

Obviously if you can't afford to buy, you can't buy.

 

[fckyoupayme]

This is silly too. I've seen numerous homes go to shyt, because of pass downs, seen people sell off the house for pennies because they don't want that house or the responsibility of it.

For the record, I didn't say renting was silly, I said it was shortsighted. The reasons you listed don't change the fact that renting your entire life holds you back from one of the most proven ways to build generational wealth.

 

[theworldismine13]

do not listen to this shyt, owning property is the foundation of the capitalistic system, so if you dont own property you are not really participating in it
now obviously you should wait until your ready to buy before you buy etc etc, but you should always be moving toward buying

I had read rich dad poor dad and he mentioned in the book how a mortgage is not an asset but a liability, and i listened to that and never really focused on buying, looking back i still like the book but that was awful advice, I should have brought property ASAP especially me cuz i had access to a VA loan (which means i could have brought property with no down payment), i would be wealthier to day if had brought my condo or house as soon as I could

also there is a racial aspect to this, this chick is probably white and has family whose wealth is tied to real estate like most middle class people, so her owning or not owning doesnt effect her families wealth since the rest of her family owns

black people are not in the same boat, owning property is an economic priority for us

 

[theworldismine13]

The way the modern job market works is that you may find your dream job, but it's in another city/state. It's not like in the past where you worked for the same company at the same place for 30 years and they gave you a pension. Buying a house would just unnecessarily tie you down.

no it doesnt, if you need to move you just get a property manager and rent it out

 

[Hater Eraser]

do not listen to this shyt, owning property is the foundation of the capitalistic system, so if you dont own property you are not really participating in it
now obviously you should wait until your ready to buy before you buy etc etc, but you should always be moving toward buying

I had read rich dad poor dad and he mentioned in the book how a mortgage is not an asset but a liability, and i listened to that and never really focused on buying, looking back i still like the book but that was awful advice, I should have brought property ASAP especially me cuz i had access to VA loan, i would be wealthier to day if had brought my condo or house when i could have

also there is a racial aspect to this, this chick is probably white and has family whose wealth is tied to real estate like most middle class people, so her owning or not owning doesnt effect her families wealth since the rest of her family owns

black people are not in the same boat, owning property is an economic priority for us

" I have a rent-controlled apartment in East Hollywood and pay $1,673.75 (up from $1,625 after three years) for a large one-bedroom with a small patio and parking spot.... "


She has subsidized/controlled rent ..

It probably rents for 3,500/mo regularly or more here in Cali

 

[Gold]

when i move out of a house i can sell it for a lot of money. When i move out of apartment i get nothing, except maybe my deposit back.
but in an apartment i'm not responsible for any repairs or maintenance costs.

You lose money when you sell a home, unless you bought that home in cash straight up.

Im pro-home ownership but lets not pretend most homeowners are flippers.

Its far more beneficial to keep property and pass it down

 

[Gold]

no it doesnt, if you need to move you just get a property manager and rent it out

This

 

[Amused Mastery]

do not listen to this shyt, owning property is the foundation of the capitalistic system, so if you dont own property you are not really participating in it
now obviously you should wait until your ready to buy before you buy etc etc, but you should always be moving toward buying

I had read rich dad poor dad and he mentioned in the book how a mortgage is not an asset but a liability, and i listened to that and never really focused on buying, looking back i still like the book but that was awful advice, I should have brought property ASAP especially me cuz i had access to a VA loan (which means i could have brought property with no down payment), i would be wealthier to day if had brought my condo or house as soon as I could

also there is a racial aspect to this, this chick is probably white and has family whose wealth is tied to real estate like most middle class people, so her owning or not owning doesnt effect her families wealth since the rest of her family owns

black people are not in the same boat, owning property is an economic priority for us

Ehh...

- Owning property to rent out is a different ballgame than owning your own home. If you listen to guys like Kiyosaki, Cardone, etc., they talk about this all the time. Most people consider their own house to be an asset but it really isn't b/c it's not paying you on a regular basis. Now if you own properties that you're actively renting, they pay for themselves and become a secondary stream of income, which qualifies as an asset.

- There are more asset classes outside of just houses. There are folks who rent apartments but they own things like businesses, stocks, crypto, etc. that pay them on a regular basis or otherwise increase in value. If you don't own a house you can still benefit from a capitalistic system in a variety of ways.

 

[theworldismine13]

Ehh...

- Owning property to rent out is a different ballgame than owning your own home. If you listen to guys like Kiyosaki, Cardone, etc., they talk about this all the time. Most people consider their own house to be an asset but it really isn't b/c it's not paying you on a regular basis. Now if you own properties that you're actively renting, they pay for themselves and become a secondary stream of income, which qualifies as an asset.

- There are more asset classes outside of just houses. There are folks who rent apartments but they own things like businesses, stocks, crypto, etc. that pay them on a regular basis or otherwise increase in value. If you don't own a house you can still benefit from a capitalistic system in a variety of ways.

i think he is just being too clever, he is using a specific definition of an asset which is how much income are you getting from it, under that definition it is true that a house is a liability

but IMO the correct description is that a house can be a short term liability but its a long term asset, by using his definition I was actually reducing my long term wealth by not focusing on buying a house or condo ASAP and or put another way his definition of income should include the equity you gain from paying your mortgage

he says a lot of good things, i totally agree with using stocks and business to increase your income but he is very wrong in using a definition of an asset in such a way that discourages people from buying a home

but the other issue is that black people should not confuse our situation with other peoples situation, other people live and grow up in neighborhoods where their own people own the real estate and business, black people live in neighborhoods where the real estate and business are owned by non black people so we cant use the same plan other people use, owning our own home and our neighborhoods is (or should be) a priority for us

 

[mcellas]

I'm no expert, I bought my first house 4 years ago since then the value has gone up 30k. I got a job offer 2 hours away and decided to sell it. Ended up getting all the mortgage I paid plus some when it was sold. I want to use that money to purchase another house. Now that I pay rent which is higher than my mortgage I feel like im giving money away every month.

 

[WesCrook]

You lose money when you sell a home, unless you bought that home in cash straight up.

Im pro-home ownership but lets not pretend most homeowners are flippers.

Its far more beneficial to keep property and pass it down

Especially if you get a fixer-upper

Also, when buying a house, you want to start paying on principal as soon as possible.

 

[Gold]

I'm no expert, I bought my first house 4 years ago since then the value has gone up 30k. I got a job offer 2 hours away and decided to sell it. Ended up getting all the mortgage I paid plus some when it was sold. I want to use that money to purchase another house. Now that I pay rent which is higher than my mortgage I feel like im giving money away every month.

When you bought the home you paid probably 15k in taxes/fees alone.

Not to mention the property taxes and insurance you paid during the time of ownership

When you sold it you probably paid closing cost.

Not to mention realtor fees.


You didnt make shyt selling a home that increased only 30k in value, dont fool yourself big breh

 

[mcellas]

When you bought the home you paid probably 15k in taxes/fees alone.

Not to mention the property taxes and insurance you paid during the time of ownership

When you sold it you probably paid closing cost.

Not to mention realtor fees.


You didnt make shyt selling a home that increased only 30k in value, dont fool yourself big breh

I'm no expert, what's the difference if I paid 1500 rent for the last 4 years. Where would that money go?

 

[Gold]

I'm no expert, what's the difference if I paid 1500 rent for the last 4 years. Where would that money go?

Im not pro rent, i agree with you. But I am anti selling homes if you can avoid it.

The upfront cost is owning a home is high. But keeping it in your family is a great idea.

 

[WesCrook]

When you bought the home you paid probably 15k in taxes/fees alone.

Not to mention the property taxes and insurance you paid during the time of ownership

When you sold it you probably paid closing cost.

Not to mention realtor fees.


You didnt make shyt selling a home that increased only 30k in value, dont fool yourself big breh

Ownership should be a goal, but people shouldn't break their necks financially to do it....which is what people are doing.

Houses are expensive af at the beginning, from the time of purchase throughout the first few years. You need to be financially set with money to spare before you even consider.