Just my own personal situation but I had a choice during Covid to rent or buy a house since rates were low but I hated moving to the suburbs or rent in Manhattan when there were quite a few rental deals. I wanted to rent an apartment which was 6k a month at the time. After 4 years that would be 288k down the drain. My house isn’t an investment, it’s what’s best for my family. After calculating the rent versus buy , I broke even in 3 years where buying saved me more money. Everyone is different, timelines are different, rates etc. People that want to maximize investment and savings should basically just rent the cheapest place in a low cost location, or just buy a run down house, basically do the math and either option can work out, just depends on your personal goals.
Renting and reinvesting the savings from renting, will outperform owning and building equity
- Thread starter Robbie3000
- Start date
This simply isn't true. The appliances outside of the microwave in my apartment I don't have to pay for or maintain the landlord does that. I don't need expensive yard equipment nor do I have to spend time maintaining my yard, shoveling snow, or spend for any external yard upkeep. My water is included in my rent all I pay is electric and gas. I don't pay for climate control equipment or to put a roof on the home. I'm allowed to rent a smaller space than a typical house but the space of the apartment suits me. Property taxes and insurance on a modest sized home would be at least 30% if not 40% of what I pay in rent.
I guess you could say in a way I do have to pay for this stuff but it's democratized and spread out over all tenants so the cost to me is much lower.
The real benefits of home ownership vs an apartment is possible appreciation of the property that is yours and you can do whatever with and you have your own space others don't live in. The down sides is everything is your responsibility. My pipes burst in the winter and I call the landlord. You own a home and your pipes burst and you're going to have to track down a plumber and you gonna be out of some money.
In reality if I got more aggressive with my stock portfolio and focused on dividends only I could build a portfolio that could literally pay most of if not all my rent. If I reallocated my current taxable portfolios as is and put all the money in SCHD it could right now pay enough in dividends to lower my rent to $176 a month. The CAGR would cover my rent increases and eventually I'd pay nothing out of pocket to live here.
Here's my current house.
I don't go back and forth with nikkas on here who can't back up the shyt that they post....
Post a pic of your apartment that you pay $600 a month for.
Nice crib and foreigns playa
Im not reading all that nor do I intend on getting in a back and forth with you tbh. Bottom line is being a renter never was for me personally nor do I think it truly benefits anybody being a renter for long periods of time
Mordith
H.E.N.R.Y.
Mike Nasty
Superstar
It has to be the profit margins that increase or decrease other wise they'd be operating at a loss.
Plenty of landlords operate at a cash loss renting (or barely break even) yet rely on the appreciation.
Unless you are literally relying on the rent to pay the mortgage, it's not a big deal. My landlord is a nurse and works. My rent has increased by only $50 in 7 years, yet she appreciates that I keep the place clean and I pay on time. I don't have to worry about a boiler crapping out and shelling out 12 grand. She can focus on paying her mortgage, I can focus on growing my net worth. It's a win win.
Mike Nasty
Superstar
You're essentially paying her mortgage, so yeah it's definitely a win for her. .......and I guess you don't to worry about replacing things.
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And if they would just accept this, then we would be good. It's just a mental obstacle for them
Yeah. Your mortgage finances Bank of America's yearly profits. What you spend at the grocery store pays for the owner's vacations. It's called an economy.
Y'all ever notice how smart dumb nikkas sound so confident in their bullshyt?
Mike Nasty
Superstar
Nah, I'm a smart dumb nikka who already paid off his mortgage and doesn't sweat replacing a boiler.
Aside from covid years...has anyone ever told you there rent has went down in a place they already live in?
Also with that rents is falling stuff you need to know the specification for the units that prices have dropped in. If a building has multiple units with different comps, but only drops a price in like 2 studio units, then they can genarally say prices have dropped using those 2 units to skew the numbers and the decrease might not reflect a unit you actually want. You rent is usually mortgage payment + cushioning. Whatever you think you arent paying for maintenance wise and property tax wise, is most likely imcluded in your rent.
Mordith
H.E.N.R.Y.
What I have yet to understand is why broke nikkas keep insisting that because they can't afford home ownership that no one else can either.
Are your egos so fragile that you can't recognize there are people who are more successful than you?
Are your egos so fragile that you can't recognize there are people who are more successful than you?
TheDarkskinnedDrake
All Star
Eh I’m glad I’m done renting. Hated that the landlord could just up and sell the place and I’d have to find a new spot all over again 
Controversy
Superstar
Good thing I'm a homeowner, who also owns investment properties, and still invests a ton into the stock market...best of all worlds
My only regret is not buying my current caliber of residence a few yrs earlier
My only regret is not buying my current caliber of residence a few yrs earlier