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

[At30wecashout]

If you study it in your free time then you should have known from the jump that a house is an investment.

Study harder.

I dont know what your issue was, but I was trying to converse and you keep trying to “son” me while saying nothing. Im not stuck in my position, and prefer to chop it up, and you lightweight insult me for trying to engage. Again.

Aiight, B.

 

[PullOutGawd]

Going homeless while working 40 hours a week+savings will be your best ROI

Honestly, if I didnt have 2 huskies and my girlfriend.. i would love to "live" in my car for a few months -- even a year
Mind you, I'm in Canada. So perhaps not the winter

I could live off protein shakes + ramen noodles for 90% of the duration of time

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

Facts
I'm renting a house right now and the owners butchered the renovations
The price is better than renting an apartment

When I purchase my first home in the next 2 years.. I'm going to do renovations in the basement, and rent out the basement to 2-3 university kids. They'll pay my mortgage and what I make will be profit.

Hopefully in the next 10 years I'll be able to purchase a small apartment building, nothing big to begin with. Maybe 10 units

I can do all the renovations and maintenance work myself. Know how to do majority of it already

I want to build generational wealth

 

[Wiseborn]

In all things it's location dependent. Unless you have several million dollars it makes way more sense to rent in megacities like New York, LA and San Fran

 

[lespaulultra3]

Why is Hannah’s rent held steady over 30 years rent certainly isn’t the same in Oakland right now as it was even 5 years ago, certainly not 30...I get what you’re trying to prove, but this example doesn’t work due to you cutting out real variables and the wide range of assumptions throughout the rest of their finances.



Edit: after looking it up, albeit starting in 1984, and using your budget of $2000, Hannah would have been homeless by 2003/2004 when rent crossed the $2000/month mark

Happened to my sister. Rent went up $300 and she was forced to move out since she couldn't afford it.

 

[lespaulultra3]

No matter which side of the argument you're on, I think we can all agree that nobody wants to be stuck with rent or a mortgage at the age of 70. When I lived in Detroit, I worked with my step father at an eviction company. We would go in and set people's stuff on the curb when the landlord wanted them out. It sucked seeing people 60-70 years old that were being put on the streets because they lived on a fixed income and couldn't afford the rent after the landlord raised it. That right there taught me from a young age that I don't want to be stuck with any sort of mortgage after I retire. Even if you choose to rent for most of your life, make sure you are investing your money in something so that you eventually have enough money to buy a house cash when you choose to retire.

 

[Deuterion]

No matter which side of the argument you're on, I think we can all agree that nobody wants to be stuck with rent or a mortgage at the age of 70. When I lived in Detroit, I worked with my step father at an eviction company. We would go in and set people's stuff on the curb when the landlord wanted them out. It sucked seeing people 60-70 years old that were being put on the streets because they lived on a fixed income and couldn't afford the rent after the landlord raised it. That right there taught me from a young age that I don't want to be stuck with any sort of mortgage after I retire. Even if you choose to rent for most of your life, make sure you are investing your money in something so that you eventually have enough money to buy a house cash when you choose to retire.

A good learning lesson from this as well is to try to find a way to build passive income so that you are not dependent on let’s say a pension or 401k to sustain you all the way to death. You want to make some type of investment that’s adding a dollar for every dollar you take out of your retirement savings.

 

[ahomeplateslugger]

A good learning lesson from this as well is to try to find a way to build passive income so that you are not dependent on let’s say a pension or 401k to sustain you all the way to death. You want to make some type of investment that’s adding a dollar for every dollar you take out of your retirement savings.

this is what drove me to buy essentially. i figure the sooner i buy my place, the sooner i can pay it off.

a lot of variables to consider when buying a house so i can see why some ppl rather rent. at the end of the day, ppl i know who said renting is better ended up buying a house. it's just the wise money move to do.

 

[Deuterion]

this is what drove me to buy essentially. i figure the sooner i buy my place, the sooner i can pay it off.

a lot of variables to consider when buying a house so i can see why some ppl rather rent. at the end of the day, ppl i know who said renting is better ended up buying a house. it's just the wise money move to do.

Yes. My plan is to have a portfolio of multi family properties all cash flowing and so if I’m ever in a situation where I need to downsize in my elder years I’ll just move into one of my units and live virtually rent free.

 

[Controversy]

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.

If you make one extra payment per year, you knock 7 or 8 yrs off of a mortgage

In Philly, a crib you rent for $800 would be a $400 or $500 mortgage

With a fixed rate mortgage you don't have to worry about rent increases

owning your home adds to your net worth in most instances too

home ownership is the foundation of stable neighborhoods

I'm gonna let you cook tho

And I have a degree in finance

 

[CBalla]

If you make one extra payment per year, you knock 7 or 8 yrs off of a mortgage

In Philly, a crib you rent for $800 would be a $400 or $500 mortgage

With a fixed rate mortgage you don't have to worry about rent increases

owning your home adds to your net worth in most instances too

home ownership is the foundation of stable neighborhoods

I'm gonna let you cook tho

And I have a degree in finance

thank you for coming in here and dropping facts

 

[Hacksaw Jim Thuggin]

this depends on what you want...and what kind of person you are....

VAST majority of people can't tolerate uncertainty and are allergic to taking chances....so a mortgage is perfect for them

if you can stand taking chances....investing is definitely the way to go.....

wholesaling....buying multifamily housing and renting them out is the route for me....with the occasional flip

 

[feelosofer]

This isn't true in the long run.

Some of the properties I own are pretty profitable after years of treading water.

 

[Skooby]

Up...

 

[calixprynce]

savings from renting??

 

[UberEatsDriver]

You’d be surprised at how many people want a house but don’t know exactly what they’re doing. Also those mortgage loan calculators are conflicting. If you live in a good market always go for a house that’s below the amount of the loan the bank will give you because you decrease your mortgage amount that way as well.


For example I was doing the numbers on trulia and saw that if I made 150K and saved up 120K i can qualify for a loan that is 755K but when I saw properties in Ossining, NY I saw properties like 4 bedrooms 4 baths lots of land and over 2500 sq ft going for a little less than 600K.


If I had this Income set up I would save lots on mortgage payments by taking that house which is way less than what the bank told me they’d give me.