International Playa
Playa with a Passport
FACTS. If a landlord fixes a major problem on the rental, best believe the next month the rent is going up.
Money Expert: "Don't buy a house"
- Thread starter winb83
- Start date
R.E.N. Spells Ren
Veteran
Renting is the better option only if you will be moving around in the near future (1-5 years) or if you’re in a dying city. If you’re planning to stay in one location for longer than 5 years (in some hotter markets, even shorter timeframes work), owning your home outperforms renting.
Property taxes, maintenance, and other costs associated with owning don’t go away when you rent, they just get baked into your rent, often at a higher amount. Residential tax rates are typically lower than commercial, which an apartment building would be, and in my city there’s a “residential exemption” for a homeowner’s primary residence which significantly reduces the property tax bill. So even a property that’s taxed at the residential rate is more expensive for a landlord than an owner. Maintenance also tends to be higher for landlords because tenants don’t give a shyt about preventative measures that prevent or lessen the need for future maintenance. Homeowners do. Also, landlords are turning over apartments which necessitates upkeep (such as painting walls) much more often than a homeowner would.
Your landlord is also baking in the risk associated with renting out properties so that they don’t go broke when they need to cover vacancies and problem tenants.
Finally, your landlord’s main objective is to make a profit. If market conditions change (such as a new commuter station gets built within walking distance, or employer bring more higher paying jobs to the area), the landlord may raise rent to not only cover the property tax increase associated with this change, but also maximize your profit. The homeowner’s mortgage is unchanged; their equity just increases. Equity is, of course, the huge benefit of home ownership.
Property taxes, maintenance, and other costs associated with owning don’t go away when you rent, they just get baked into your rent, often at a higher amount. Residential tax rates are typically lower than commercial, which an apartment building would be, and in my city there’s a “residential exemption” for a homeowner’s primary residence which significantly reduces the property tax bill. So even a property that’s taxed at the residential rate is more expensive for a landlord than an owner. Maintenance also tends to be higher for landlords because tenants don’t give a shyt about preventative measures that prevent or lessen the need for future maintenance. Homeowners do. Also, landlords are turning over apartments which necessitates upkeep (such as painting walls) much more often than a homeowner would.
Your landlord is also baking in the risk associated with renting out properties so that they don’t go broke when they need to cover vacancies and problem tenants.
Finally, your landlord’s main objective is to make a profit. If market conditions change (such as a new commuter station gets built within walking distance, or employer bring more higher paying jobs to the area), the landlord may raise rent to not only cover the property tax increase associated with this change, but also maximize your profit. The homeowner’s mortgage is unchanged; their equity just increases. Equity is, of course, the huge benefit of home ownership.
Isn’t this the definition of being house poor?
If you're single or a couple with no kids renting would probably be the best option.
But these comparisons never really factor sq. footage, number of rooms, parking in a driveway/garage for free vs paying for parking, not sharing walls, laundry in house etc. I think a big factor is also how much your mortgage is. My mortgage including taxes and insurance is $3,100/month. I would not be able to rent a 5 bedroom/3 bathroom at that price. Also having 2 incomes makes things less stresstful as far as a financial burden.
Yes in any structure things break but a lot can be fixed via DIY. Everything costs to be maintained (your body, your car, washing ya clothes).
Also if you rent, you're still paying property taxes in your rent price but receive no tax benefit of doing so.
And if you are against owning, you can't be crying about gentrification and complain about immigrants taking over an area as they buy houses with multiple family members living in a house.
But these comparisons never really factor sq. footage, number of rooms, parking in a driveway/garage for free vs paying for parking, not sharing walls, laundry in house etc. I think a big factor is also how much your mortgage is. My mortgage including taxes and insurance is $3,100/month. I would not be able to rent a 5 bedroom/3 bathroom at that price. Also having 2 incomes makes things less stresstful as far as a financial burden.
Yes in any structure things break but a lot can be fixed via DIY. Everything costs to be maintained (your body, your car, washing ya clothes).
Also if you rent, you're still paying property taxes in your rent price but receive no tax benefit of doing so.
And if you are against owning, you can't be crying about gentrification and complain about immigrants taking over an area as they buy houses with multiple family members living in a house.
This.ain thing is don't view a house like a fashion accessory like many do
beenz
Rap Guerilla
sayyestothis
Free the guys
Those who rent whats ur neighborhood or building network?
Buying ina suburb builds a community lifestyle for yourself and ur kids. shyts important.
Also...I've bought 3 times so far in my life and always have made money and created additional wealth from owning.
Buying ina suburb builds a community lifestyle for yourself and ur kids. shyts important.
Also...I've bought 3 times so far in my life and always have made money and created additional wealth from owning.
Exactly. Mfs buy a crib they can barely afford to maintain, soon as shyt starts breaking the crib immediately starts morphing into a traphouse
Dallas' 4 Eva
Superstar
Single women homeowners are my #1 customers as an electrician/handyman doing that shyt on the side, but I do be feeling bad for them. A lot of women just bought a house because they just wanted to get into a house cause it was the thing the herd was doing. They didn't realize the amount of repairs that needed to be done or maintenence that goes into being a homeowner. Keeps paper in my pocket, but I can't lie I do feel bad for those ladies sometimes. They really don't be knowing what they getting themselves into, just following the herd.
I'm not saying men don't fall for it too, but a lot of men just do the repairs themselves whereas the women don't know how or are physically not capable of it.
Yup real estate is only an investment if you are renting it out. Otherwise a lot of people break even long term or worse.
The_Unchosen_One
Superstar
Taught myself most my craft for fixing homes from Youtube over the years... I try to tell my techs to do the same... if they run into a problem they can't figure out... there's a youtube video for it somewhere. And part of it was trial and error as well as working with vendors and asking a lot of questions!
Just laid new floors in my living room/dining room, cut new baseboards, this spring replacing the back deck and privacy fence
Mordith
H.E.N.R.Y.
I guarantee the homeowners on here have higher incomes and net worths.than the rest of you that rent... 
beenz
Rap Guerilla
One thing for damn sure is to never buy new construction
My homie going through it
a lot of times with new construction, they underestimate the taxes cuz it was taxed as land only, and when the new owners get in there, the county reassesses the house and jacks up the property taxes. most people don't take this into account only to get sticker shock when their bank does an escrow analysis
i would say right now aint the best time to buy a house....prices dont make any sense.
but i bet you all the renters pre covid and further....wished they bought a house...
renting will never make sense..unless you have a job or business where it make sense...other then that its basically giving away money and agian with these rent prices today..
but i bet you all the renters pre covid and further....wished they bought a house...
renting will never make sense..unless you have a job or business where it make sense...other then that its basically giving away money and agian with these rent prices today..
etrofllenrod504
Superstar
Reading some of the comments no way the whole interview was watched.
