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

[Be Strong Blackman]

I fail to see how this is passive

there’s a lot to manage when it comes to renting out a property

passive is a house you own appreciating in value

If you have a property manager...then it's pretty passive

 

[im not you]

my mortgage is 1100. the same place if rented would be 1800+

wouldnt work for me

 

[Wildhundreds]

People just not thinking long term black communities anymore.. People who want to raise families and live in a thriving community look at properties differently.. So both could be a good idea depending on your mindset of what a community means to you..

 

[Absolut]

Aged like milk

 

[StretfordRed]

I pay the same I used to rent, and that was a 2 bedroom flat vs a 3 bedroom house that I am living in now and we paid 10% deposit.

I say always buy when you can as you have no idea what may occur in the future or when the bubble will burst

 

[Conan]

my mortgage is 1100. the same place if rented would be 1800+

wouldnt work for me

The mortgage isn't the only cost of owning a home

 

[Conan]

Real estate is one of the few investment vehicles that has outpaced inflation. Meanwhile rents are on the rise every single year.

The stock market outpaces real estate almost every year since time immemorial.

The argument isn't solely rent vs buy. It's rent + stock market vs buy + asset appreciation.

 

[Astroslik]

my mortgage is 1100. the same place if rented would be 1800+

wouldnt work for me

But you’re spending more for utilities, maintenance, and repairs, and then there’s property taxes and hoa fees (if applicable).

Just playing devils advocate

 

[Conan]

But you’re spending more for utilities, maintenance, and repairs, and then there’s property taxes and hoa fees (if applicable).

Just playing devils advocate

In addition, to buy a house, you gotta put 20% down, and pay closing costs that can go up to 6% of sale price. That's money that if put in the stock market can put you ahead over time.

 

[Adeptus Astartes]

But you’re spending more for utilities, maintenance, and repairs, and then there’s property taxes and hoa fees (if applicable).

Just playing devils advocate

Generally, you will get significantly more space for the money when owning vs renting (assuming home vs apartment), not to mention it eliminates the fear of eviction.

 

[1thouwow]

Terrible advice

 

[desjardins]

Horrible advice. Some of the financial advice on here be so bad I wonder if it's purposely being spread as misinformation
May come to some people surprise but you can invest in stocks and buy property at the same time , that's called a diversified portfolio where I'm from.
And all the expenses associated with home ownership like taxes and maintenance get passed down to renters anyway. Landlords adjust their cap ratio based on their increased expenditures

 

[Conan]

Generally, you will get significantly more space for the money when owning vs renting (assuming home vs apartment), not to mention it eliminates the fear of eviction.

Millions of Americans lost their homes in the recession of 08

Horrible advice. Some of the financial advice on here be so bad I wonder if it's purposely being spread as misinformation
May come to some people surprise but you can invest in stocks and buy property at the same time , that's called a diversified portfolio where I'm from.
And all the expenses associated with home ownership like taxes and maintenance get passed down to renters anyway. Landlords adjust their cap ratio based on their increased expenditures

This is not true. If the rental market price is $800, and you set your rent at $1300 to cover expenses you will not get a tenant. Supply and demand drives rent, not landlord expenditure.

 

[Absolut]

But you’re spending more for utilities, maintenance, and repairs, and then there’s property taxes and hoa fees (if applicable).

Just playing devils advocate

You also have an appreciating asset

 

[BeeCityRoller]