Renting and reinvesting the savings from renting, will outperform owning and building equity
- Thread starter Robbie3000
- Start date
shyt forgot I started this thread. Still renting and saving some of the difference even though I moved back to Atlanta which has a much lower real estate market than DC. I can afford to live in luxury apartment buildings in really nice neighborhoods and save about $700 a month than if I was paying a mortgage for an equivalent home. I invest the difference in an eft. Works great for me. I like having access to liquid and flexibility of not being tied to home.
It’s not for everybody though. Different strokes, for different folks.
It’s not for everybody though. Different strokes, for different folks.
I'll give it a shot.
Primary homes (homes you buy to live in) are mediocre investments. Yes, they appreciate over time. However, they are illiquid. You can only tap the equity upon sale, or through a HELOC (expensive, volatile). They (most of the time) generate zero cash flow. To buy them you gotta pay a lot in closing fees. To own them you gotta pay a lot in taxes and maintenance to keep them in shape. While owning, you pay a shyt ton in interest to the bank. When you sell them, you pay a lot in closing fees. They're vulnerable to natural disasters.
Basically, you're just hoping that when you sell, you come out ahead. But guess what happens when you sell? You gotta buy another house or rent.
Why your house is a terrible investment
Intro by JL’s Team “Is now the time to buy a house?” As national mortgage interest rates hit +7% and housing prices fall across the country, many people are asking themselves this very question. But like the stock market, “investing” in a home isn’t a question of timing. In this post, JL...jlcollinsnh.com
Now, housing is an absolute need. Whether you rent or buy, you need a roof over your head. I see a primary home as an expense, more than an investment. Yes I hope it appreciates, but the primary value of a home is hedging against housing cost inflation (to some extent, given property tax/home insurance/maintenance increments). If I am looking for what brings the best return to my pocket I would rather invest in a personal business or the broad stock market or even REITs that are built around commercial real estate businesses.
So yes, a primary home is an investment. But do people sit down and run the numbers and be completely rational when buying a home, the same way they do when buying into any other investment? No. There's a level of irrationality when it comes to buying/owning a primary home that makes it sub-optimal from an investment perspective.
But, there is NOTHING wrong with saying, "fukk all this noise, I WANT a house". Then cool, buy and don't overstretch yourself. I buy vinyl because I want to. They may appreciate over time but I don't call them investments.
Interesting.....
How come so many investment groups are buying and building residential neighborhoods?
What do you consider an actual investment?
If you've ever been employed in a service or repair role that brings you into people's random homes you quickly run into people that had no business buying a home. Houses be trashed as hell and they do nothing on the upkeep causing them to fall into disrepair. That's not even getting to the house poor who can't really afford the home they have.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?
Plenty are better off having someone else maintain the place they live in.