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

[#BOTHSIDES]

The mortgage isn't going up though, the taxes and insurance are and will keep going up after you pay off the mortgage.

Yeah and even then the landlord will wrap those into the monthly rent. What kinda landlord is gonna operate at a loss?

 

[Mike Nasty]

You mean the principal & interest isn't going up.

Breh said your mortgage won't go up.

I paid a mortgage, it was the escrow that went up mainly because of the taxes. The amount you paid on the principle and the interest stay the same. That is the point of a fixed rate mortgage. I'm not talking about the variable interest one that balloon up after a couple years.

 

[#BOTHSIDES]

You mean the principal & interest isn't going up.

Breh said your mortgage won't go up.

Ask anyone who was paying 2000/mo for their mortgage even just five years ago if they're still paying 2000/mo today

Are you sure they had a fixed-rate mortgage?

 

[twan83]

No your mortgage goes up cuz of damn homeowners insurance and shyt
Mines was $1008 now it’s $1138 been in my home for almost 10 years
My interest rate is around 3.5 I think
shyt like this I didn’t know when I owned a home wish I did
I don’t pay property taxes either

 

[Absolut]

No your mortgage goes up cuz of damn renters insurance and shyt
Mines was $1008 now it’s $1138 been in my home for almost 10 years
My interest rate is around 3.5 I think
shyt like this I didn’t know when I owned a home wish I did
I don’t pay property taxes either

Why are you paying renters insurance if you have a mortgage?

 

[twan83]

Why are you paying renters insurance if you have a mortgage?

Mistype home owners insurance

 

[winb83]

How about appreciation and equity?

Yall don’t have the same thoughts as far as investing in real estate though, right?

Won’t the average rent continue to increase too? In 10 years, we might see average rents of $4-5k a month…. 20 years it’ll be 8-10k possibly.

But your mortgage payment will remain $2000

Your principal and interest remain the same your taxes and insurance do not.

I been renting the same place for 14 years almost. My rent in that time has gone up $250 from that first month back in 2011. It's people with mortgages that get a new tax assessment and have their payments go up that much.

In all fairness I didn't start investing any money until 2019 outside of the 401K. The way I see it my equity is my investments. I also have the cash built up in that same span of time.

If I had a mortgage I would not be able to save and invest at the rate I do now. I save and invest about 40% my after tax income each month now. A mortgage would more than double my housing cost.

 

[twan83]

Your principal and interest remain the same your taxes and insurance do not.

I been renting the same place for 14 years almost. My rent in that time has gone up $250 from that first month back in 2011. It's people with mortgages that get a new tax assessment and have their payments go up that much.

In all fairness I didn't start investing any money until 2019 outside of the 401K. The way I see it my equity is my investments. I also have the cash built up in that same span of time.

If I had a mortgage I would not be able to save and invest at the rate I do now. I save and invest about 40% my after tax income each month now. A mortgage would more than double my housing cost.

My house value keeps going up fukkers keep raising insurance so it is what it is
Got my house at $220k now it’s like $380k but I’m sure it’s more than that with the extra shyt I did inside and backyard

 

[the bossman]

Are you sure they had a fixed-rate mortgage?

Yes we're talking fixed rate. All I'm getting at is it's disingenuous to suggest that average rent will be increasing but mortgage (even fixed rate) will stay the same.

Property taxes and insurance premiums have been going way up since Covid. That hypothetical $2000/mo you were paying five years ago on the mortgage is more like 2250 now.
EDIT: being generous. probably more like 2500

 

[-DMP-]

The mortgage isn't going up though, the taxes and insurance are and will keep going up after you pay off the mortgage.

For most ppl a mortgage payment includes taxes and insurance.

Although it is possible to not escrow, I don’t know anyone that does.

 

[#BOTHSIDES]

Your principal and interest remain the same your taxes and insurance do not.

I been renting the same place for 14 years almost. My rent in that time has gone up $250 from that first month back in 2011. It's people with mortgages that get a new tax assessment and have their payments go up that much.

In all fairness I didn't start investing any money until 2019 outside of the 401K. The way I see it my equity is my investments. I also have the cash built up in that same span of time.

If I had a mortgage I would not be able to save and invest at the rate I do now. I save and invest about 40% my after tax income each month now. A mortgage would more than double my housing cost.

Even where you’re living, there’s more than likely a mortgage on your place… someone is paying the increase… unless there’s a tax abatement. Like I said… idk why a landlord would want to operate at a loss unless it’s part of their strategy. I hear u tho

My house value keeps going up fukkers keep raising insurance so it is what it is
Got my house at $220k now it’s like $380k but I’m sure it’s more than that with the extra shyt I did inside and backyard

Yes we're talking fixed rate. All I'm getting at is it's disingenuous to suggest that average rent will be increasing but mortgage (even fixed rate) will stay the same.

Property taxes and insurance premiums have been going way up since Covid. That hypothetical $2000/mo you were paying five years ago on the mortgage is more like 2250 now.
EDIT: being generous. probably more like 2500

I understand. But looking at @twan83 story, breh gained over $170k in appreciation in matter of years. Even tho his payments went up an extra $100-200 a month. Thats a great return in my opinion… renters get 0 equity/appreciation. Like I said… I’m pretty sure renters will eventually be paying $5k on average… then $10k

@twan83 idk where you live but you can see if your county has tax programs or tax abatements.

 

[UpNext]

Imagine making the choice to not buy at 2019 prices and interest rates and investing the difference. I swear these dudes never show you screen shots of their investment accounts either.

 

[BeeCityRoller]

Y'all know good and well the average renter ain't investing like that

In Eight Years you'll have enough to put down 50%Do you know how much changes in that amount of time in terms of COL? 2006 my mom bought her house when the market was at an all-time high, by 2010 it lost 25% of its value, now another 9 years later it's recovered all losses and gained another 30% And those gains are on the low-end here in Charlotte

Same people who call mortgages a scam are the same ones hopping from apartment complex to apartment complex or roommate/family member because they raised the rent another 5 or 10%. "But you don't own your home the bank does what happens if you stop paying property taxes"

Time is undefeated.

With 2025's COL we still acting like the average renter has 6-Figures (or even 5 figures) in a Non-Employer supported investment account, or even sets $100 aside every month to invest? I can pull up to these luxury complexes and see nice cars parked with $500+ a month notes, apparently that's not a scam though.

 

[twan83]

Even where you’re living, there’s more than likely a mortgage on your place… someone is paying the increase… unless there’s a tax abatement. Like I said… idk why a landlord would want to operate at a loss unless it’s part of their strategy. I hear u tho






I understand. But looking at @twan83 story, breh gained over $170k in appreciation in matter of years. Even tho his payments went up an extra $100-200 a month. Thats a great return in my opinion… renters get 0 equity/appreciation. Like I said… I’m pretty sure renters will eventually be paying $5k on average… then $10k

@twan83 idk where you live but you can see if your county has tax programs or tax abatements.

Na we have one of the highest property taxes in Texas I was told so there’s that and i don’t pay property taxes cuz im 100% disabled vet otherwise i wouldn’t have gotten this house cuz of how much the mortgage was damn near double what I pay cus of now property taxes

 

[Mike Nasty]

I been renting the same place for 14 years almost. My rent in that time has gone up $250 from that first month back in 2011. It's people with mortgages that get a new tax assessment and have their payments go up that much.

So a mortgage increases because of taxes increases due to property values increasing but your rent increases cause your landlord says so. Using your logic I'd definitely rather be a home owner.