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

[Robbie3000]

Damn nikkas is hostile than a MF in this thread. Maybe I shouldn't have said Mortgages are scams. That’s my bad. I wasn’t trying to insult anyone, I was honestly just looking for feedback.

I’m happy to hear all sides to expand my horizons. Thanks brehs.

 

[dora_da_destroyer]

Meh...You are assuming a lot. But that’s not the subject of this thread though so we’ll just table it for now.

Your OP assumed a lot as well, which si why sweeping advice about real estate doesn’t work

 

[havoc]

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.

How much interest have you pay thus far while paying a mortgage debt?

 

[BlackBall]

I live out of my car and bathe at the gym. I invest all my money in a stock portfolio I’m rich

 

[BeeCityRoller]

In Eight Years you'll have enough to put down 50%Do you know how much changes in that amount of time in terms of COL? 2006 my mom bought her house when the market was at an all-time high, by 2010 it lost 25% of its value, now another 9 years later it's recovered all losses and gained another 30% And those gains are on the low-end here in Charlotte

Same people who call mortgages a scam are the same ones hopping from apartment complex to apartment complex or roommate/family member because they raised the rent another 5 or 10%. "But you don't own your home the bank does what happens if you stop paying property taxes"

 

[OfTheCross]

In an expensive market, you should continue renting until such a time rent is higher than the mortgage payments.

This is the strategy I’ve been using over the past few years. People laughed at me for “wasting” my money renting, but In eight years, I calculate I will have enough to put down 50% towards the place if I choose.

Meanwhile, if I had bought a place with no money down or 5% money down, in 15 years most of my mortgage would still be going towards the interest and wouldn’t have made a dent in the principal.

Mortgages are scams if you can rent the same place for cheaper.


Speak on it.

That's a big caveat.

But you're right.

 

[Ezekiel 25:17]

Anywhere with low rent in my area is the hood. Anywhere considered luxury is about 1600 for a 2 bedroom and almost 2k for 3 bedrooms. My mortgage is 1300 and my interest rate is 3.2%

This day and age you may just have to take your chances and move.

If nikkas told me I'm not retiring till 70, fukk all that I'm going overseas. All the kids grown and come fly to see me

 

[levitate]

Here the rest is so damn high that you're just better off purchasing...

 

[Ezekiel 25:17]

Damn nikkas is hostile than a MF in this thread. Maybe I shouldn't have said Mortgages are scams. That’s my bad. I wasn’t trying to insult anyone, I was honestly just looking for feedback.

I’m happy to hear all sides to expand my horizons. Thanks brehs.

I don't know

Black people shouldn't be better off owning? Gentrification is pushing our asses to the boondocks where there's no jobs and transportation sucks

 

[playplayaj]

Where do you live? Because you can definitely rent 2 and 3 bedrooms in The Beach in good areas for less than $1600/month...

757 I refuse to live in the beach lol. I live in the suburbs. Average rent in my neighborhood is 2200. Mostly military families renting out if they do at all

 

[mag357]

How is a mortgage a scam? You usually paying less than what people are renting. In 15 years the house is yours, all you gotta do is pay the $150 property tax. Where can you live where rent is $150?

At the end of day Property>>>>>>>>Imaginary Numbers

What type of houses are yall buying where ur whole mortgage is less than someone's rent.

Principle, interest,, insurance, and tax on a decent home, is gonna be more than the majority of people's rent

 

[10bandz]

What type of houses are yall buying where ur whole mortgage is less than someone's rent.

Principle, interest,, insurance, and tax on a decent home, is gonna be more than the majority of people's rent

how do you think people make money off rental properties? Obviously they're renting it for more than the whole mortgage

 

[theworldismine13]

Anybody telling you not to buy real estate is an idiot

 

[Fat Fred Jones]

When thinking long-term, as most of us should be, buying simply makes more sense. The idea that one can invest the monthly savings of $100 - $300 by renting instead; and come out ahead is a big gamble. The image below is a summary of a comparing renting vs buying over 30 years. They assumed a house purchased for $260k would eventually be worth $1M after 30 years based on historical appreciation. Even cutting that in half, having an asset worth $500k after 30 years beats having no asset after 30 years. Keep in mind that both the renter and buyer will have incurred about the same costs over those 30 years, even after the perceived monthly "savings".

The cost of homeownership vs. renting | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

Other valuable information:

Mortgage payment 2015

• Fat Fred Jones
• Dec 23, 2019

Average mortgage payments by region 2015

Rent 2018

• Fat Fred Jones
• Dec 23, 2019

Average Rent by region

 

[GreenGhxst]

Saying mortgages are a scam is a bit of a stretch

You just have a solid strategy