Renting and reinvesting the savings from renting, will outperform owning and building equity

[UberEatsDriver]

savings from renting??

Why cant you save from rentals?


Saving is literally saving money. If you have positive cash flow after the bills and rent are paid what’s stopping you from saving?

 

[UberEatsDriver]

Btw if you see yourself living in a city long term you should def look to own. If your city is expensive then you should look to get more money. Weather is stepping up your game in your industry, going back to school or getting an extra job.

at the end of the day houses in both expensive and cheap cities sell like hot cakes.

 

[sportscribe]

savings from renting??

OP is trying to equate paying mortgage to being an opportunity cost. "If I had a mortgage, I wouldn't have all these 'savings' from paying monthly rent.

This is literally an ass backwards thread. Owning a home or at least being on the path to owning one makes you the holder of an asset. Which means you can use it to get loans and a myriad of other things. Not only that, there is the potential of gaining equity on the property which means you can resell at a profit (even under mortgage).

Rent is a liability, while paying off a home is going towards equity.

 

[UberEatsDriver]

OP is trying to equate paying mortgage to being an opportunity cost. "If I had a mortgage, I wouldn't have all these 'savings' from paying monthly rent.

This is literally an ass backwards thread. Owning a home or at least being on the path to owning one makes you the holder of an asset. Which means you can use it to get loans and a myriad of other things. Not only that, there is the potential of gaining equity on the property which means you can resell at a profit (even under mortgage).

Rent is a liability, while paying off a home is going towards equity.

is this a figure of speech? Cause I don’t know if renting is really a liability. Technically a mortgage is a liability until the house is paid off.


Paying rent is literally no different than paying a cell phone. Is paying all types of bills a liability?


Thought liabilities was basically when you owe money to a company or service.

 

[T’Challa’s Heir]

OP is trying to equate paying mortgage to being an opportunity cost. "If I had a mortgage, I wouldn't have all these 'savings' from paying monthly rent.

This is literally an ass backwards thread. Owning a home or at least being on the path to owning one makes you the holder of an asset. Which means you can use it to get loans and a myriad of other things. Not only that, there is the potential of gaining equity on the property which means you can resell at a profit (even under mortgage).

Rent is a liability, while paying off a home is going towards equity.

Eh. In the short term, the decision is a little more complex. In most cases, when you rent, your rent is the maximum your paying for shelter per month. When you buy, you have to factor in the maintenance costs. A few smallish things can add up pretty quickly.

 

[Azul]

Someone didn't give my clients the memo. I'm meeting with multiple clients everyday this week. In fact, I'm bout to head out soon I'm tired mayne

 

[UberEatsDriver]

Eh. In the short term, the decision is a little more complex. In most cases, when you rent, your rent is the maximum your paying for shelter per month. When you buy, you have to factor in the maintenance costs. A few smallish things can add up pretty quickly.

Yes which is why a an affordable mortgage is a bit stricter than an affordable rental.

mortgages I believe are a safe bet if it’s 28% of your monthly income while for rent I think it’s 35%.


The different in percentages would be the upkeeping you have to do for a house that you own.

 

[UberEatsDriver]

Someone didn't give my clients the memo. I'm meeting with multiple clients everyday this week. In fact, I'm bout to head out I'm tired mayne

get that paper

 

[sportscribe]

Eh. In the short term, the decision is a little more complex. In most cases, when you rent, your rent is the maximum your paying for shelter per month. When you buy, you have to factor in the maintenance costs. A few smallish things can add up pretty quickly.

Sure, but that's why you need to use discretion when getting on the property ladder - it's not for everyone.

OP was giving examples of mortgages with NO DOWN PAYMENT. First of all that results in higher interest rates and little to no equity on the home. Those are the types of transactions that brought the global economy to its knees during the subprime mortgage crisis. If you are cash strapped and have little cash flow, of course renting is a better option. If you are liquid it will always make more sense to purchase.

 

[sportscribe]

is this a figure of speech? Cause I don’t know if renting is really a liability. Technically a mortgage is a liability until the house is paid off.


Paying rent is literally no different than paying a cell phone. Is paying all types of bills a liability?


Thought liabilities was basically when you owe money to a company or service.

Of course rent payable is a liability.

Mortages are also liabilities but they go towards servicing debt on an asset.

 

[Astroslik]

Why cant you save from rentals?


Saving is literally saving money. If you have positive cash flow after the bills and rent are paid what’s stopping you from saving?

You'd be surprised how much rent takes up a disporportional amount of peoples monthly income. I live by the 33% rule.

 

[the bossman]

savings from renting??

Money saved not having to replace an A/C unit
Money saved not having to replace kitchen appliances.
Money saved not having to replace plumbing
Money saved not having to pay property taxes
Money saved not having to pay home insurance

 

[calixprynce]

Why cant you save from rentals?


Saving is literally saving money. If you have positive cash flow after the bills and rent are paid what’s stopping you from saving?

oh I see what you're saying. I'm currently staccing (lowkey perpetual) and looking at 1st time homebuyers programs in TX . My rent is 19% of my monthly income , but will raise to 28% when I move next month.

Rent be looking more expensive than buying nowadays

 

[UberEatsDriver]

You'd be surprised how much rent takes up a disporportional amount of peoples monthly income. I live by the 33% rule.

right that’s the right rule 30 to 35%


You can have positive cash flow if it’s up to 50% but you’d have to have a high income.


If your low income and rent surpass 50% it’s time move someplace else or learn cyber security

 

[newworldafro]

Going homeless while working 40 hours a week+savings will be your best ROI

Living in low income, rural area or teleworking making 6 figures is the move.