america becoming land of renters

[wtf]

Still about 1000 times better than most of China.

how do u know

[nobs]

I have always been a renter, and I think for most people renting is the best option.

I am single so I dont need more than amedium size one bedroom anyway.

When people buy they have to pay all the utilities, repairs, insurance, taxes, and the interest from the loan. I heard most people have to pay almost 3 times the cost of the house before its finally paid off. Meaning if they pay $150,000 for the house most people will pay $450,000 to have it fully paid off.

Also, as a renter I can move a lot easier if a better job comes along and It requires a move.

[Domestic]

A lot of countries are, too difficult to buy a house for young people.

[wtf]

Built a home 3 years ago. Cost 194,000 I've been paying 1401 a month for Taxes/Mortgage Now would I rather be spending 1400 a month on something that I can sell and get money back? Or would I rather spend 1200 a month and receive nothing back for 20 years?

what happens when the crack dealers move in next door

or the whole neighborhood becomes detroit

[milwaukee mike]

Built a home 3 years ago.

Cost 194,000

I've been paying 1401 a month for Taxes/Mortgage

Now would I rather be spending 1400 a month on something that I can sell and get money back?

Or would I rather spend 1200 a month and receive nothing back for 20 years?

at 1400/month owning a home might make sense vs renting.
around here with the high property values/taxes a decent house's monthly payment is 2200/month+

we'll agree to disagree ngates, mostly because i have so much money stuck into my house it makes me sick.
that 1400/month doesn't include new kitchens/bathrooms/roof/siding/windows/furnace/etc etc etc that inevitably have to get done

[milwaukee mike]

ngates that extra money each month (let's say $600/month including maintenance and extra utility costs of owning) compounded over 30 years at 5% would be $500,000.
are you sure your house is going to be worth $700,000 after 30 years to get you at breakeven vs renting and saving the extra money?

[ngates815]

ngates that extra money each month (let's say $600/month including maintenance and extra utility costs of owning) compounded over 30 years at 5% would be $500,000. are you sure your house is going to be worth $700,000 after 30 years to get you at breakeven vs renting and saving the extra money?

400K If I were not making extra payments. Go ahead and throw in some extra costs for repairs.

If I were renting for 1K a month...X 12 X 30 years....360K

What happens to after that 30 years? No more payments.


Same thing Why I buy cars instead of leasing them...I'd much rather be payment free after the loan than to just go on paying a lesser amount for the rest of my life. Just doesn't make sense. When I'm tired of the car, I can take it and sell it and get SOME money back. When I'm done leasing a car, what do I get back?

[milwaukee mike]

good points ngates.

there was a time when leasing a car made more sense, for example i once leased a mustang gt ($26k car) for 230/month for 3 years.
so 3 years worth of payments was $8280, even ignoring interest the car wasn't going to be worth 70% of it's value after the first 3 years. if you're borrowing the money to buy the car then you really have to put a pencil to what you are paying each way over the time you are driving the car.
i do buy vs lease analysis all the time and currently it usually makes more sense to buy, especially since the cash won't earn anything sitting in money market accounts right now.

good to hear someone else here likes to be payment free, though. it is quite liberating not owing anyone.

[d2bets]

renting cheaper in the long run, unless housing prices are ramping up (which they certainly won't be due to baby boomers downsizing).

anyone that thinks rent is throwing money away is crazy, take any homeowner over the last 10 years and add up their:
1) interest
2) real estate taxes
3) insurance
4) maintenance
5) higher utility cost (i pay $200/month just for water!)
6) 6% commission every time you sell a house
etc etc etc

the homeowner (who's house is probably worth less than he paid for it) has paid way more than the renter and has also had to cut the grass and put up with all the headaches of home "ownership"

There are tenant headaches too. Namely, you can't do what you want with the property you live on. Besides, you just can't easily rent the types of houses that you might want to buy. Renting is better for some people, owning is better for some people.

[jarvol]

IMO, the reason we are becoming the land of renters is because the last generation or two never learned how to save $, so most will never be able to come up with the down payment to own their own house.

later

[bb_skoots]

If America is becoming a land of lenders you become a landlord. You buy houses, fix them up and rent them. Then use the rental income to buy more houses and rent them.

The article said a land of "renters" not lenders. Landlord is profitable in areas with the jobs and income to support the house price that the landlord invested. In many areas the renters dont have enough money to pay a high enough rent to be profitable, and therefore the landlords are hurting.

[robmpink]

Iowa farmland and soy is the way to go!

[JW Cash]

who really cares..............everthing in life is temporary

[muldoon]

How about that black guy that is squatting in that 300k house in a white neighborhood. The house is foreclosed and the bank went out of business so in 3 years he assumes the title as long as he lives there. Not bad for paying the 16 bucks fee to get the title. Somewhere in Texas.

Not just any guy...but a BLACK guy....

[Scorpion]

400K If I were not making extra payments. Go ahead and throw in some extra costs for repairs.

If I were renting for 1K a month...X 12 X 30 years....360K

What happens to after that 30 years? No more payments.


Same thing Why I buy cars instead of leasing them...I'd much rather be payment free after the loan than to just go on paying a lesser amount for the rest of my life. Just doesn't make sense. When I'm tired of the car, I can take it and sell it and get SOME money back. When I'm done leasing a car, what do I get back?

Dont you still have to pay for property tax, insurance, ...?? Even after 30 years?

[ngates815]

Dont you still have to pay for property tax, insurance, all the utilities...?? Even after 30 years?

ohhhh yea....forgot about that.

But then again who's really gonna be sweating that.

[I/O]

Built a home 3 years ago.

Cost 194,000

I've been paying 1401 a month for Taxes/Mortgage

Now would I rather be spending 1400 a month on something that I can sell and get money back?

Or would I rather spend 1200 a month and receive nothing back for 20 years?

Don't forget any tax benefits

and I believe you can still loan against the house if you want to buy that car...or second home....or pay the kids school....interest free

You guys are crazy if you would rather rent than own. And I would never live in a dump like Detroit or somewhere some crack dealer is gonna move next two. When you plant roots somewhere, you think ahead. It's not really that hard. I live in an area were the city workers live. Cops, firemen, Streets and Sanitation, teachers. It's really not that hard. You can also buy a house with some property around it. Then nobody is next to you. I'm sure you have all the reasons to justify your choices. Whatever makes you happy. If you really look into it with an unbias opinion, renting IS NOT better than buying.

[wtf]

it is a different world than 20 years ago, people are much more mobile now and have to be to survive in MOST industries

sure, if you are a fireman, police officer , teacher in local school you are probably going to be there for 30 years then it makes sense

but if you are only going to be hanging around three or four years you can get murdered, why risk it

[I/O]

like I said

Do what you want, whatever makes you happy (whether or not family is involved). But don't think renting for a lifetime is ever better than ownership, unless your JJ and you're paying nothing for rent, food, clothes and the $$ you pay is going to family.

Also, I've rented and own now. Unless you peeps have a big picture perspective, you don't know.

[in2thethickofit]

Don't forget any tax benefits

and I believe you can still loan against the house if you want to buy that car...or second home....or pay the kids school....interest free

You guys are crazy if you would rather rent than own. And I would never live in a dump like Detroit or somewhere some crack dealer is gonna move next two. When you plant roots somewhere, you think ahead. It's not really that hard. I live in an area were the city workers live. Cops, firemen, Streets and Sanitation, teachers. It's really not that hard. You can also buy a house with some property around it. Then nobody is next to you. I'm sure you have all the reasons to justify your choices. Whatever makes you happy. If you really look into it with an unbias opinion, renting IS NOT better than buying.

Hundreds of thousands of people thought this same thing until the bank came and said "thanks for the house"! Which we know they really aren't thankful for because they are taking back what was already theirs to begin with.