patrick.net
An Antidote to Corporate Media
1,363,492 comments by 15,734 users - Ceffer, Patrick, WookieMan, zzyzzx online now
« First « Previous Comments 25 - 30 of 30 Search these comments
tatupu70
2012 Jun 7, 12:53am
That's exactly my point.... How many people do you know that bought houses in 1976 are still in the SAME house versus how many people do you know bought houses in the 2000's????
Well, my Mom for one. But that wasn't my point. Take a look at home prices in 1976 and prices in 1983, then rental prices in 1976 and rental prices in 1983 and tell me which was the better option.
In the normal 5 to 7 year cycle, it's a lot cheaper to rent!!
I'm not so sure about that--that's a pretty broad generalization. Do you have any data backing that up?
tatupu70
2012 Jun 7, 3:31am
Well, my Mom for one.
Case closed. That is enough of a sample size for me. ;)
Any argument should end when Mom is brought up.
How many people actually want to stay in the same home 30 years, and then moving forward their entire lives? Very few. Especially now, when job losses are common. If you truly know that you want to stay in the same city for 30 years , it may make sense to buy. I'm a big fan of living below your means , even if that means renting or buying a tiny little place. Pocketing and investing the extra. Doing fun stuff throughout your life with the extra money instead of dumping all of it into a house which you won't be able to fit into your coffin when you die. A house is just an object. The bigger your house, the more crap you are going to own. I think people are still programmed to think that real estate is a great investment because its the only leveraged investment they can make, and in the past , it has had good results for many. Problem is, how long will you need to wait before you "make money" on your house when you sell. I think it is longer than most are anticipating.
FortWayne
2012 Jun 7, 5:14am
I think you misunderstand the argument, own or rent is based on the costs associated with it. Throw the numbers together and see for yourself individually. Sometimes owning makes sense financially, sometimes not.
When we rented, we saved the difference and it was quite large. Same we kept in guaranteed investments like CD's, some went to stocks, some simply went to keeping the shop alive. No regrets there, thrn we bought our condo all cash, never paying a dime of interest to the banking cartel.
« First « Previous Comments 25 - 30 of 30 Search these comments
The problem with your scnario that renting is cheaper than owning is totally wrong bc you are forgetting that after 30 years of renting you own nothing!
If you had stayed in your house 30 years you would own it. Assuming you bought it for $250k as you mention it is very likeley and probable your home would be worth double or even triple what you paid for it after 30 years and that is at a 3-4% increase per year. Yes, we have ups and downs and sometimes values go in reverse for a while but look at the last 30 years and you do the math. ANother note is your rent will NOY STAY at $1200 for 30 years, it will go up and up over time. Also you are getting ZERO TAX deduction so that is another HUGE benefit of owning.If you are living in the Bay Area it will be prtty difficult to live in a decent area for $1200 per month!
Renting is a losing game and always has been in the the economy we live in. Of course if you went out and overpaid and took high risks and were paying outrageous monthly payments from the last RE boom than in that situation you should never have owned anyway and you should rent. If you use your money wisely and make responsible decesions ownng is better 99% of the time. I know...as I have done both. I was a Union truck driver and dock worker for 23 years and I bought 3 homes during that time. I still own them and it has helped me propel myseld in a good position. I now own over 30 homes and many are loan free so my renters who I treat very well pay n me to enjoy a great life. I worked for it. Nothing was given to me, no handouts, I paid for my own mistakes but I didn't waste my money either. Never made over $40k per year as a Trucker up till 1993. You have to sacrice and live below your means. RE still the best investment in the world if you know how to do it.Nothing can beat it. I know. I also have invested on the stockmarket and that is not anythin close to RE. Plus RE rentals give you cash flow month after month year aftyer year. It never stops flowing. Own..do not rent!