Rent they said. It’s cheaper they said.

[Conan]

Imma be real. If taxes and maintenance costs are a big enough blow to your pocket that that saving them helps you in a big way then you probably couldn’t afford the property in the first place.

Like my yearly weed bill is bigger than what I pay in property taxes. My monthly auto deposit into my brokerage is bigger than what I pay yearly in property taxes. This is not the point that you think it is lmao.






The bank at most will collect 2.6% of what I paid for my spot. If I sold the property that I’ve had for less than a year today I would have an estimated $120k net proceeds. And everything in my zip code is cash offers above asking or bust.

Keep justifying paying rent though. I’m sure the 2-3k you save in taxes will take you far in life.

You're not selling your house next year. If you did, you would have to buy a house in the same market

So the value of your house doesn't fukking matter until you sell. You must think house prices will continue to appreciate indefinitely at current rates for 30 years (I mean, not understanding supply and demand will lead you to that conclusion)

Your yearly weed bill is bigger than ... Yeah that explains a lot

 

[Sad Bunny]

Property tax on a 400k property in NJ can hit $1500 per month. Then there's still mortgage interest charges especially early on in the plan. Maintenance, utilities... You can absolutely be over a typical rent payment

Unrecoverable costs usually are not much lower than rent. But you never sat down and did the math, so of course you think it's much lower...

Lack of knowledge is a mofo...

Homes in NJ are priced lower to offset that cost though. I was looking at new construction homes for 190K 4-5 years ago.

 

[TallMan_J]

Nikka bragging about his rent payments.....

Stall him out, breh. Give that breh a break. He may not know any better.

 

[Turbulent]

Homeowners have higher net worth than renters.

“2020 by the Federal Reserve, found the median U.S. household net worth is $121,700. However, the difference between the net worth of homeowners versus renters is staggering. In 2019, homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300.”

Here's the average net worth of homeowners and renters

There is a stark difference in average net worth of homeowners versus renters in the U.S. Here's what you need to know.

www.cnbc.com

Is this stat adjusted for age? Are teenagers who just moved out working at mcd worth 80$ who would technically be renters included in that stat?

What. I get from this stat is that people who own homes tend to have high incomes and therefore tend to on average have a higher chance of having a high net worth.

It would be like saying people who own a yacht tend to be millionaires, therefore owning a yacht increases your chances of becoming a millionaire.

 

[BaldingSoHard]

Or, pay someone else's mortgage, invest the cash you save in taxes, maintenance, and reduce home expense in an index fund, and enjoy having a relatively more liquid asset that may rival the value of the home that you would have bought without having to deal with maintenance or tenants.

This "just invest in the market" nonsense keeps coming up.
Yes, guys. We (owners) do that too.

And that's not a bad strategy, especially considering that the amount of money required to own a home has effectively doubled in the last 2 years, and with the market trading near 52-week lows, yes it is a great time to invest.

All of this is known to us (owners).

But... you're not gonna tell me with a straight face that you'd rather be renting in this market, than owning a home in this market.

In fact, I think the fact that you have to shift the conversation away from Renting vs. Owning to Owning vs Investing in stocks speaks to the weakness of the Renting vs Owning debate.

 

[Conan]

Homes in NJ are priced lower to offset that cost though. I was looking at new construction homes for 190K 4-5 years ago.

Where in NJ? Close to Delaware?

If you're putting down 20% on a 200k house, investing that down payment (40k) in an index fund can appreciate to 700k over the course of a standard mortgage. Now add the additional costs inherent in home ownership to that index fund... Now you up over 1M.

Can the home appreciate to over 1M in that period? Absolutely. Is it a clear advantage either way? Depends on the numbers. Is there a clear decision to make? No. That's my point.

 

[Turbulent]

This "just invest in the market" nonsense keeps coming up.
Yes, guys. We (owners) do that too.

And that's not a bad strategy, especially considering that the amount of money required to own a home has effectively doubled in the last 2 years, and with the market trading near 52-week lows, yes it is a great time to invest.

All of this is known to us (owners).

But... you're not gonna tell me with a straight face that you'd rather be renting in this market, than owning a home in this market.

If we are talking strictly financial, it depends on location.

If two people have the exact same income, one rents, the other owns, even if both invest, the renter has more disposable income to invest in the market.

 

[Conan]

This "just invest in the market" nonsense keeps coming up.
Yes, guys. We (owners) do that too.

And that's not a bad strategy, especially considering that the amount of money required to own a home has effectively doubled in the last 2 years, and with the market trading near 52-week lows, yes it is a great time to invest.

All of this is known to us (owners).

But... you're not gonna tell me with a straight face that you'd rather be renting in this market, than owning a home in this market.

Why? Prices at Lowes and Home Depot for appliances and raw material are sky high. My friend who owns was bytching about shelling out to do his roof and replace his boiler. I do not have to worry about that. If rent skyrockets in one location I can easily move. If property tax goes up or your roof starts leaking what you gonna do? You can't walk away... Actually a lot of homeowners have in the past

Why is it so hard to comprehend that for some renting may be more satisfying and more financially prudent?

 

[Sad Bunny]

Where in NJ? Close to Delaware?

If you're putting down 20% on a 200k house, investing that down payment (40k) in an index fund can appreciate to 700k over the course of a standard mortgage. Now add the additional costs inherent in home ownership to that index fund... Now you up over 1M.

Can the home appreciate to over 1M in that period? Absolutely. Is it a clear advantage either way? Depends on the numbers. Is there a clear decision to make? No. That's my point.

I can afford to invest and own a home. I could payoff my mortgage in 10 years if I wanted to.

You’ll be paying rent while I’m retired in a paid off house.

 

[Conan]

If we are talking strictly financial, it depends on location.

If two people have the exact same income, one rents, the other owns, even if both invest, the renter has more disposable income to invest in the market.

Opportunity cost is a tough concept

 

[UpNext]

I am making the argument that

1. There is a significant amount that needs to be dumped into a home purchase (down payment)

2. There are unrecoverable costs involved with home ownership (closing costs, property taxes, home maintenance, mortgage interest, additional utilities, etc)

3. There is an opportunity cost involved with the down payment/unrecoverable costs: what are you foregoing by making a home purchase. The stock market is readily accessible so that is the reference point.

4. Here is the key point. Depending on home prices, rental prices (and again I have to emphasize, there is a weak link between the two, as rent is driven by rental property supply/demand) in the area, you can come out ahead if you invest your down payment and unrecoverable costs in the stock market instead and continue to rent.

5. Sometimes the homeowner will come out ahead. Sometimes the renter will come out ahead. It is rarely clear cut in either direction.

I am not arguing rent is always better than buy. I'm pushing against those who try and justify their own anecdotal purchases with the line, buy > rent. It is sometimes not the case. Only an idiot would be so absolute on this. And there are a lot of idiots on this topic. Just Google rent vs buy calculator if you think the answer is always buy

Still no receipts huh

 

[BaldingSoHard]

If we are talking strictly financial, it depends on location.

If two people have the exact same income, one rents, the other owns, even if both invest, the renter has more disposable income to invest in the market.

That's a rather large assumption, and one I'm not willing to concede considering my mortgage is less than every single median number listed in the OP, and I sure as hell am not living in Bumblefukk, Rhode Island.

But even assuming it's true, over time it will continue to become less and less true as rent continues to rise.

 

[Jekyll]

You're not selling your house next year. If you did, you would have to buy a house in the same market

So the value of your house doesn't fukking matter until you sell. You must think house prices will continue to appreciate indefinitely at current rates for 30 years (I mean, not understanding supply and demand will lead you to that conclusion)

Your yearly weed bill is bigger than ... Yeah that explains a lot

I literally don’t have to buy again, though. I could rent and it would only be slightly higher than my mortgage. While my pockets are 100 bands bigger…


My yearly weed bill is probably bigger than what you make in half a year lil nikka. Explain that.


But you got it figured out lmfao.

 

[BaldingSoHard]

Why? Prices at Lowes and Home Depot for appliances and raw material are sky high. My friend who owns was bytching about shelling out to do his roof and replace his boiler. I do not have to worry about that. If rent skyrockets in one location I can easily move. If property tax goes up or your roof starts leaking what you gonna do? You can't walk away... Actually a lot of homeowners have in the past

Why is it so hard to comprehend that for some renting may be more satisfying and more financially prudent?

I can certainly understand it being more satisfying, but it's never more financially prudent over the long term unless the home loses value.

 

[the artist known az]

Facts!

It really is, which makes this debate so entertaining. You got retarded nikkas bragging about home equity and passing something on. As if their offspring will cherish their dusty 50 year old properties, or their home equity can be utilized prior to a sale of the home (except as a line of credit that's volatile)

Meanwhile they refuse to acknowledge there's an opportunity cost with every financial decision made... nah that's too harsh, they just can't comprehend it

Why do you think everyone in a house is dilapidated? You've stated that many times and bringing up the constant need of repairs. Really sounding like hate on your part.

And most people have their property taxes included in the mortgage payment. Mine goes into an escrow account so when it's time to pay I just forward it to the bank