Well, yeah, you don't own an asset until you have proof of ownership (title, deed). So you're just keeping that asset in good shape for the bank until all payments are paid. Not much to be boastful about there, but what do I know
Rent they said. It’s cheaper they said.
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Well, yeah, you don't own an asset until you have proof of ownership (title, deed). So you're just keeping that asset in good shape for the bank until all payments are paid. Not much to be boastful about there, but what do I know
How much would monthly mortgage payments+taxes+maintenance be in those same exact same cities? Then take the difference and put it in an index fund for 30 years. Then compare that to the appreciation you got on your home. I think you might come ahead by owning a home but not by that much.
It's not that it is generally smarter, but folks only look at the sticker price: Rent vs Mortgage. My rent pretty much begins and ends my costs. Mortgage, prop taxes, fees for buying, regular upkeep, having to buy or service your own appliances, etc.
People talk about Rent vs Mortgage like it's the difference between buying 100% reinforced leather boots that will appreciate vs renting multiple lower quality boots over time and you won't wear either one. Ownership also means maintenance. Oh you get a pest problem? Thats out your pocket. Sump pump? Thats on you. shyt, mold in a corner of the top floor bathroom? Damn, they gotta damn near gut it to get to the root of it which turns out to be a roof leak.
No, these things don't happen all the time but anyone who actually owns a house knows that affording the mortgage does not mean affording the home. I only need to lose my income to lose my apartment. Home? Let Property taxes go up and suddenly my budget busts. Let the city finish that long-delayed restoration and now have more demand in the area...my assessments are up. Damn, there is an opportunity to move so I can pursue this job...can't just break a lease, gotta actually move an asset with all that comes with it. More often than not owning is the smart play BUT it is unquestionably more costly in total but people let the prospect of equity talk them into things they actually can't afford if just a couple of things go sideways on them. Not to mention you have to live somewhere so while all that house value talk is sweet, guess what, you sell your house for 100k more than you bought it for but all the other homes went up 100k or more in the meantime...include the maintenance and most people are never really getting over with that same equity they rah rah for.
Unless you are using your home as a credit card, you only come ahead when you sell. But then you need a home...so did you come ahead or did you use one home to buy another? Homes don't just print money. Money put in the market is actually easily transferrable goods. Your home can be an underwater anchor.
It's crazy, you barely able to save because wages are stagnant and a lot of expenses are towards housing and food. Not being able to leave, because you can't move so far away or really progress into a different direction, cause you have less money and less time since you are working on just getting by.
Good post, but I don’t see that last part happening. There’s too much corporate money tied up into real estate for it to burst now. This isn’t the 2008 Housing Crisis.
These prices are here to stay. You either adjust, or you don’t. Like you stated, expect to see a lot more shacking up.
UberEatsDriver
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Miami having an average of over 3K is probably the worst thing on the list when you adjust for pay
UberEatsDriver
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And to respond to the thread title ummm right now people can make the argument that owning is just as expensive when house prices are sky rocketing with people putting 20% over asking on a house.
Some of these houses easily have mortgages that are 2K and higher for the month. Only thing good is that it’s stable.
Some of these houses easily have mortgages that are 2K and higher for the month. Only thing good is that it’s stable.
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And again wether rents or owning is higher or cheaper depends on the market.
Different cities different situation
Different cities different situation
Silver Surfer
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The interest you pay to the bank goes towards boosting my stock portfolio. Keep those payments on time and that lawn manicured
If it boost yours it boost Mines.
Keep getting raped on that rent.........I see it went up
This is the math these simple minded remedial ass nikkas struggle with. Obviously, depending on where you are, you may come out a bit ahead renting or buying, but it's absolutely not buy > rent 100%
If it boost yours it boost Mines.
Keep getting raped on that rent.........I see it went up
Not mine, my rent has stayed flat for 4 years, the next increase is only $50 per month
BaldingSoHard
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The way these broke ass nikkas are trying to cling to certain points to make renting seem like the move is fukking hilarious.
But what if the rent is $1100 in your area and your mortage is $1500
But the bank owns it
But what if the people riot
Stocks are better investments
I'll repeat this as many times as needs to be said.
As an owner, your options are:
- Pay your own mortgage; earn equity, receive tax deductions and long-standing credit history and a marvelous hedge against inflation.
- Rent it out and let someone else pay your mortgage; earn equity, receive tax deductions and long-standing credit history and a marvelous hedge against inflation.
- Sell the home and cash in on your equity.
- Pass the property down to your progeny.
As a renter, your options are:
- Pay someone else's mortgage and the rising cost of inflation.
Silver Surfer
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Not mine, my rent has stayed flat for 4 years, the next increase is only $50 per month
Keep paying them folks mortgage like a good nikka....we proud of you keeping up them rent payment for 4 years