Renting and reinvesting the savings from renting, will outperform owning and building equity

[UberEatsDriver]

Yes. The house you actually live in is a poor investment compared to getting a property purely to rent it out

Yea it makes sense. There’s a joke that I like to tell myself. Avoid all the directions that the middle class/working class people take. Lol. Almost all of these people think buying a house is the path lol. And even with that being said many are materialistic about the house they want instead of seeing how they utilize it for investments.


That’s why I laugh at those people who think people who buy small homes in prime markets are dumb.

 

[Spence]

Owning a home is about leaving something of value for my kids. They can sell it for a large sum of money one day, or they can live there relatively hassle free if they can afford the mortgage. You kids can't sell a rental property

Your kids can very much sell a rental property (even though it’s not advisable) since that’s passive income you do much of nothing if you pay a property management company to handle things for you.

 

[Luke Cage]

Your kids can very much sell a rental property (even though it’s not advisable) since that’s passive income you do much of nothing if you pay a property management company to handle things for you.

I meant they can't sell a property that you pay rent for. If i suddenly die they get my house because i own it.

 

[Spence]

I meant they can't sell a property that you pay rent for. If i suddenly die they get my house because i own it.

Oh ok yeah. I was about to say fk yeah you can sell your rental property! It’s dumb but that doesn’t stop you from actually doing it.

 

[BaldingSoHard]

If renters don't want to pay a mortgage then why are they so comfortable paying their landlord's mortgage?

 

[Kyle C. Barker]

If renters don't want to pay a mortgage then why are they so comfortable paying their landlord's mortgage?

Lot of variables in this with the main ones being transaction cost and time.

 

[-DMP-]

I rent right now but owned before I moved. I bought a small home in rural Georgia and currently rent it out for over double the mortgage.

I am renting again but am stacking for a multi family property. I use both renting and owning when necessary.

I will eventually buy a “home” for a family but, until then, home owners ship is just a vehicle for passive income.

 

[Sampson]

This was always bullshyt advice

 

[Conan]

This was always bullshyt advice

It was not.

There are numerous analyses showing that depending on the market, price and other factors, it is possible to come out ahead while renting as long as savings are invested.

 

[Standing on business]

Until the rent goes up and you can't afford to live there

That’s exactly what happened, another thing that happened since the time you wrote this is house prices doubling. Lose lose situation for a lot of people.

 

[Luke Cage]

My house is worth twice as much now as when i bought it. Can see any scenario where i would profit off of renting.

 

[Sampson]

It was not.

There are numerous analyses showing that depending on the market, price and other factors, it is possible to come out ahead while renting as long as savings are invested.

Real estate is one of the few investment vehicles that has outpaced inflation. Meanwhile rents are on the rise every single year.

 

[CrimsonTider]

If renters don't want to pay a mortgage then why are they so comfortable paying their landlord's mortgage?

Credit, mainly

 

[Be Strong Blackman]

My mortgage in Houston is $1020 and comparable houses rent for $1600 in the area. Granted, I do spend more per month since I do all the upgrades and repairs but I do have equity in the house. I could sell it tomorrow and walk away with 70k in my pocket after paying off the loan. Also, you can pay off a house in 15 years or less by making extra payments towards the principle.

Owning a multi unit building that pays for itself and puts profit in your pocket >>> whatever you hollering about in OP

Word I regret renting and will never do this again

 

[CrimsonTider]

I rent right now but owned before I moved. I bought a small home in rural Georgia and currently rent it out for over double the mortgage.

I am renting again but am stacking for a multi family property. I use both renting and owning when necessary.

I will eventually buy a “home” for a family but, until then, home owners ship is just a vehicle for passive income.

I fail to see how this is passive

there’s a lot to manage when it comes to renting out a property

passive is a house you own appreciating in value