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

[TLR Is Mental Poison]

Who said this?

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

So then whether or not you're making money for someone else is irrelevant

Most renters don't have a choice. Just like most people can't grow their own foods or make their own clothes

 

[Donald J Trump]

Rent until the recession hits in a few years

When prices drop, then you buy and own.

 

[the cac mamba]

Who actually puts 20% down?

is that not a thing anymore. i definitely have that ready, motherfukk that PMI shyt

although i couldnt do it on a 800k house thats insane

 

[R.E.N. Spells Ren]

So then whether or not you're making money for someone else is irrelevant

Most renters don't have a choice. Just like most people can't grow their own foods or make their own clothes

It is relevant when evaluating owning vs renting since many pro renters like to overstate the costs of ownership as if the owners of their properties aren't incurring those costs all while turning a profit.

Most renters not having a choice (I don't even agree with this) is irrelevant. A top of the line Samsung TV is better than the cheapest Sanyo TV even tho most buyers of the cheapest Sanyo can't afford a top of the line Samsung.

 

[Slaimon Khan Shah]

Is it?

You sound like a moron.

YOU ARE CALLING ME A MORON ON THE INTERNET HUH?
I SKIPPED TWO GRADES GROWING UP (3RD TO 4TH GRADE AND 8TH TO 9TH GRADE).
OH YEAH... CHRISTIANS WORSHIP A MUSLIM (JESUS)!!!!

 

[Red11]

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

Hold up.

Bought house for 106,500. Realtor fees are paid by seller generally btw. Mortgage is $730 a month on a 105,000 home on a 30 year mortgage. Taxes insurance are 350 of that 730. Comparable 3 bedroom apartments where I live are 1400 a month. Which is what I would rent this house for, if I rented. The property taxes are deductible. Homeownership gives me the dual purpose of an asset (the equity in the home) that I can also live in. Like they always say "if it comes down to it, pay for the car note not the rent, you can't drive your house to work". This to me is the great part of homeownership. The equity in the home, is something I can live in. I can't live in my taxable/non-taxable retirement accounts.

 

[Gold]

Hold up.

Bought house for 106,500. Purchase fees are paid by seller generally btw. Mortgage is $730 a month on a 105,000 home on a 30 year mortgage. Taxes insurance are 350 of that 730. Comparable 3 bedroom apartments where I live are 1400 a month. Which is what I would rent this house for, if I rented. The property taxes are deductible. Homeownership gives me the dual purpose of an asset (the equity in the home) that I can also live in. Like they always say "if it comes down to it, pay for the car note not the rent, you can't drive your house to work". This to me is the great part of homeownership. The equity in the home, is something I can live in. I can't live in my taxable/non-taxable retirement accounts.

Once again... as ive said many many many times... im pro ownership, i own a home breh.

Im anti selling your home and that was my point. How much of your closing cost was principle? How much did you pay total at closing? Have you seen the amortization rates for your home?

Selling homes is not a good way to make money unless you are buying the home outright. That was my point, and is still my point. A home is not really a sellable asset unless you have multiple homes or having a roof over your head is irrelevant to you.

Stop selling homes brehs. Give them to your children and give them a 300k legup in life

 

[Red11]

Once again... as ive said many many many times... im pro ownership, i own a home breh.

Im anti selling your home and that was my point. How much of your closing cost was principle? How much did you pay total at closing? Have you seen the amortization rates for your home?

Selling homes is not a good way to make money unless you are buying the home outright. That was my point, and is still my point. A home is not really a sellable asset unless you have multiple homes or having a roof over your head is irrelevant to you.

Stop selling homes brehs. Give them to your children and give them a 300k legup in life

In the words of Nelly," everybody switching to fades, I'm thinking 'bout braids." I don't believe in holding anything long term. It all has its season. Buy in 2009 sell in 2020.
Great recession on its way. "Buy when blood in the streets. Investment opportunities come at the time when most are least likely to be able to accept them." When market downturns buy that shyt. When housing went to shyt buy at that point. I bought when prices were at their lowest in years. I am selling on the high point. Buying stocks at the next economic downturn (2020). Selling/renting it out next year, buying crypto/foreign currency before next recession, and then selling and pouncing on stocks. Netflix or McDonalds alone would have made me retire if I had the balls in 2008-2009. Now I have a recession-proof job and I'm laying it out on the line.



Furthermore, if I move out it becomes investment property. Hopefully after fulfilling its previous role as a homestead, I have $30,000 equity. I refininance the remaining 70k and am at at 400-600 range.

 

[Red11]

Also I pay an extra few payments a year straight principle, its fungible for me.

 

[C-NICE]

Who actually puts 20% down?

If you want a good loan you at least need to put down 15% how much you gonna put down for a 30 year fixed mortgage of a 1.5mill breh 25k even if you did 10% you got that laying around

 

[Amused Mastery]

Who wants to be in a apartment when they are 60?

You can rent houses FWIW.

 

[Sccit]

SMH

 

[Mike Ock]

Once again... as ive said many many many times... im pro ownership, i own a home breh.

Im anti selling your home and that was my point. How much of your closing cost was principle? How much did you pay total at closing? Have you seen the amortization rates for your home?

Selling homes is not a good way to make money unless you are buying the home outright. That was my point, and is still my point. A home is not really a sellable asset unless you have multiple homes or having a roof over your head is irrelevant to you.

Stop selling homes brehs. Give them to your children and give them a 300k legup in life

I totally agree with the bolded. My wife's parents bought a house in bad shape but in a great neighborhood in DC that my wife was raised in. They'd rather pass it down to my wife when they are ready to move into an apt because of their old age. When me and my wife decide to head to DC, we will have that house and will be able to rent out our current (co-op) apt here in nyc for 3 years then sell it....and that's all because her parents rather pass down the house then sell it. My mom owns a house in BK and when she wants to move me and my siblings will split it and end up renting it if one of us don't live in it.

I'd rather flip and keep it moving rather than being landlord. But, if being landlord is working for some here, then keep doing it.

 

[richaveli83]

No matter what someone is making money off you. If your renting then the landlord is making money off of you. If you buy a house then the bank(mortgage), HOA, county(property taxes), etc is making money off of you. It depends on the individual.

 

[Atsym Sknyfs]

I totally agree with the bolded. My wife's parents bought a house in bad shape but in a great neighborhood in DC that my wife was raised in. They'd rather pass it down to my wife when they are ready to move into an apt because of their old age. When me and my wife decide to head to DC, we will have that house and will be able to rent out our current (co-op) apt here in nyc for 3 years then sell it....and that's all because her parents rather pass down the house then sell it. My mom owns a house in BK and when she wants to move me and my siblings will split it and end up renting it if one of us don't live in it.

I'd rather flip and keep it moving rather than being landlord. But, if being landlord is working for some here, then keep doing it.

be careful how you pass it down .. IRS has problems sometimes with gift equity.. plus SS and Medicare has issues with adults owning homes .. especially outright .. had that issue with my aunt and mom ... had to add my sister to the deed about 4 years before they retired to prove no fraud ... then retire and etc.. I already own 4 but I don't live in the house anymore so there was no point adding me..

I know of some people who had to "sell" their home to their children to get the best taxable situation for everybody involved.