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Proof home ownership costs more than renting

By MAGA following x   2015 Sep 1, 5:46pm 1,400 views   7 comments   watch   nsfw   quote     share    


http://www.businessinsider.com/owning-a-home-costs-more-than-renting-2015-8

In most areas of the country, homeownership costs more than renting. Many economists with calculators claim the opposite, but the calculations and conclusions are often highly misleading. As is often the case, the devil is in the details. We recently reviewed one highly publicized calculation that owning was cheaper than renting in almost all markets.

#housing

1   anonymous   ignore (null)   2019 Feb 19, 5:19pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

It costs more to own a home than to rent one in every U.S. state - Here's a breakdown of the price difference by state

While previous articles have declared that the number of markets where it’s cheaper to buy than to rent is decreasing, this one says it’s plain non-existent.

Using data from the U.S. Census Bureau’s most recent American Community Survey, which tracks median housing costs from 2013 to 2017, a CNBC article says homeowners spend more money per month than renters in every single state across the U.S.

It also breaks down the monthly difference in renting versus owning per state.

In New Jersey, the difference is greatest at $1,100, while in Arkansas, it’s just $300, the article states.

“Owning is more expensive than renting because owners need to cover related costs such as maintenance, property taxes, repairs and insurance, in addition to handling their monthly mortgage payments, and those keep rising,” the article asserts, quoting a CNBC report that states the cost of owning a home has risen 14% in the last year.

Still, those who purchase a home may reap more rewards in the long run as home prices appreciate, the article notes, adding that homeownership also provides a sense of stability.

“And, once the mortgage is paid off, you've eliminated a major monthly expense and you can put that money toward other financial goals,” it concludes.

Here is a map illustrating the difference between renting and owning in every state:



Breakdown of the difference between renting and owning in every state in link below:

https://www.housingwire.com/articles/48210-it-costs-more-to-own-a-home-than-to-rent-one-in-every-us-state
2   AD   ignore (0)   2019 Feb 19, 5:34pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

The variables as far as home ownership are price appreciation or depreciation, maintenance costs, and HOA fees. Obviously as the home becomes more expensive to maintain because of age, then it is more at risk of depreciating unless it is in a neighborhood/zip code that is growing or gentrifying.

The others like property taxes, insurance, and mortgage are for the most part stable and not variable. Though property taxes could drastically go up which will lower the price of the house. Think of those trying to sell their homes in Connecticut and flee that state.
3   ThreeBays   ignore (0)   2019 Feb 19, 11:30pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Buying 4 to 6 years ago sure beats renting today.
4   Tim Aurora   ignore (0)   2019 Feb 21, 3:48am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Its a bizarre claim.

1. You can only look at the previous data to decide if the renters or owners were winners. I say in the last 10 years, owners have beaten the renters.

2. It is simple math . even with all the assumptions ( later on that ), it is some homeowners will come out ahead and some renters will come out ahead.

3. There are many variables - maintenance cost , taxes and downpayment and most important length of time the property is held to determine if the owners or renter are the winners.

4. For houses, renters can win if the single family home becomes a commodity. In that case, the landlord has streamlined the cost associated ( maintenance and taxes ). Otherwise SFH will always be better off with owners.

5. The website is ignoring the increase in value, That is absurd. Houses do increase in value over time, even if it is around 1-2% plus inflation.
5   clambo   ignore (4)   2019 Feb 21, 5:54am   ↑ like (0)   ↓ dislike (0)   quote   flag        

The key to being a renter is investing the savings for capital appreciation This is, invest in stock mutual funds or individual stocks if you are clever and lucky.

If you take savings from not paying property taxes, maintenance, HOA fees, replacing the roof, etc. , etc. and invest it in stock mutual funds, you will end up pretty well off compared to the capital gains of the guy who owns the house.

$500 per month for 33 years=$1 million+ (assume 8.5% return)

My friend sells houses in Santa Cruz, CA. Most of the people she is selling to have huge capital to spend which is from stock market gains, not real estate gains.

I have a broke friend who lives in a little shitbox house in Santa Cruz on a bad street full of Mexicans; there was a double murder about 150 yards from him in one direction, and a murder about 100 yards from him in the other. There was third by a maniac homeless about 1/4 mile from him, he killed a woman walking to work one day using a knife.

My friend likes to brag about how much money his shitty crummy house is worth; but he's unable to move. Where will he be able to go? He can't afford the rents with his crappy income.

Either way, I have had much more wealth created by having some roommates from the local university over the years and investing that dough into stock mutual funds. It's not even close to what he has "made" with his house.
6   anonymous   ignore (null)   2019 Feb 21, 7:31am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Tim Aurora says
Houses do increase in value over time, even if it is around 1-2% plus inflation


You do not want to experience those times however in areas where the largest single employer folds or the oil patch dries up.

It will take a very long time to recover from just a few years of decreasing values - some areas are still struggling and some have never ever really recovered to the point you would want to own anything there.
7   Tenpoundbass   ignore (14)   2019 Feb 21, 7:36am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Everyone I know renting has been complaining about Year over year rent increases with no end in sight. There's no new building on the horizon even being floated and nobody gives a fuck if Rent for a shitty needs a paint job 3 bedroom apt gets to be $10K a month.

Have fun with your Rents, and your Shittier Landlords.

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