Rent Forever, Don’t Buy A Home

[jordanhendrix]

Originally Posted by ksteezy

Originally Posted by GetThisMoney

Originally Posted by ksteezy

^^^ people that bought homes they couldn't afford is the problem...got into these ridiculous loans with no means to pay them and banks were handing out loans to anyone caused the problem, then the market dropped and these people were screwed even more...if you are smart you buy into what you can afford, I bought a Co-op apt right before the drop and lost out, a couple of months later I would hbe save at least 15k...but besides that I'm happy I own something, even if it's just shares in a building, they are MINE.....guess what if I wanted to +!#$ a renter I could because right now people have the state of mind most of you do..."renting is better" so that benefits an owner...I pay in maintenance and mortgage 1100 a month, around my way the average rent for an apt like mine is 1300-1400.....so I could rent this out to someone like you, I coul be nice and charge way low and have you thinking you are winning when in fact you are paying someone else's property off and then I can go buy another property at the low property cost that we are in now...own two properties, pay for one....how is that stupid?...I just don't have the time needed to invest in all that and I actually like my place...


One more thing, Rent will continue to increase as the years go...a mortgage at a fixed rate won't.

Last time i checked, 99% of CO-OPs in NYC do not allow you to rent out. Most have extremely strict rules and regs even for buyers.Oh and one more thing....MAINTENANCE varies and changes depending on vacancy and upkeep costs. And trust me they go up too.

Co-ops is at the bottom of the put when it comes to owning, I've learned thither hard way, I will still say is better than renting...my Co-op allows for me to rent after 2 years of living in the apt, from what I know of that's the rule for most Co-ops...been here 3 years and before I sell because I will obviously not gain anything, I'd rent it out and wait till the market comes back around to place it in the market, yes co-ops have boards with stupid regulations...no different than a landlord when it comes to that though, in reality they are protecting the building, the investment by being so picky and anal, so I understand.Maintanence fees have gone up 10$ in 3 years I've been here, and our state has a STAR rebate program which depending on how the board distributes it, covers 10% of the maintenance fees during the winter when is the time where we get hit with the oil surcharges...in other words in 3 years I've been here my monthly cost of living went from 1095$ to 1105$I'm not saying I couldn't have done better by buying into a condo perhaps, but nobody is going to tell me that renting is better than what I'm doing, given the opportunity.

let me present a scenario to you. What if you rented a condo for $1500 a month and had 2 houses bringing in $1750 every month, and you could sell said house(s) at anytime. This way you get the best of both worlds, YOU OWN A HOUSE! and you have the flexibility of a renter. You could even move into one of those houses if you wanted *for your peace of mind of course. What the hell is so hard to grasp? buying a house needs to be treated like any other investment. You got screwed and youre doing it to yourself again cause youre too stubborn to spread that money around. (bronx tale)"Now yous cant leave"(bronx tale) I'll rent for now and watch my stock account appreciate like your house never ever will, then buy one when I feel like it later. You have to make your money work for you, its the code of rich people. Buying a house will keep you down. UNLESS you mortgage is less than 20% of your take home income.
If you could borrow money from the bank at 6% and then lend it to someone for 12% would you do it? 

 if you say yes to the above, then why get locked into a house now when you can get a better return on your money?

you already got burned, havent you learned your lesson?

There are 3 types of people in this world.

Person 1 touches a hot stove and says "that burns" then they touch it again and get burned again.

Person 2 touches the stove and gets burned and says I''m not touching that stove again

Person 3 says those two dummies got burned, I am NOT touching that stove.

Make that money work for you in a better way. That said, I have a very strict investment strategy that I never deviate from, I'm not gambling with my money on penny stocks. I know this year has been amazing in the market but even in bad times you can beat a house.

How can you seriously justify putting your hard earned money into something that burned you before? Its the definition of stupid.

 

[akm2tan]

Saying renting is better over buying is ridiculous. Especially now. He also fails mention the tax benefit of owning a house once tax season comes up. With the interest rates and low house prices everyone will see equity gain eventually. Could it take 10 years? sure but at least you're gaining something vs renting forever. Even little things like my car insurance went down from owing a home.

 

[jordanhendrix]

Originally Posted by Dirtylicious

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

all this talk of better investments etc is all well and good; however, there's one part of equation you're missing that people with homes that are paid off or nearly paid off have.

peace of mind.

besides home improvements/upkeep, taxes and utilities...those with paid off homes no longer need to keep paying a sizable portion of their income to keep a roof over their head.
a renter won't ever have that.

and yes.. a person who buys and maintains rental properties will have a larger income base...but honestly.... being a manager of investment property is really not for everyone.

This is true, but with smart investments you can get that piece of mind too. Peace of mind is knowing that you can have a roof over head, renters can have that too if they have money in the bank. 
And as far as being a landlord, this is where property management companies come in....5-10% of the rent goes to them and you never have to do anything.

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

 

[akm2tan]

Saying renting is better over buying is ridiculous. Especially now. He also fails mention the tax benefit of owning a house once tax season comes up. With the interest rates and low house prices everyone will see equity gain eventually. Could it take 10 years? sure but at least you're gaining something vs renting forever. Even little things like my car insurance went down from owing a home.

 

[jordanhendrix]

Originally Posted by Dirtylicious

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

all this talk of better investments etc is all well and good; however, there's one part of equation you're missing that people with homes that are paid off or nearly paid off have.

peace of mind.

besides home improvements/upkeep, taxes and utilities...those with paid off homes no longer need to keep paying a sizable portion of their income to keep a roof over their head.
a renter won't ever have that.

and yes.. a person who buys and maintains rental properties will have a larger income base...but honestly.... being a manager of investment property is really not for everyone.

This is true, but with smart investments you can get that piece of mind too. Peace of mind is knowing that you can have a roof over head, renters can have that too if they have money in the bank. 
And as far as being a landlord, this is where property management companies come in....5-10% of the rent goes to them and you never have to do anything.

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

 

[ksteezy]

I think the misconception here I that you are thinking j went in over my head, I didn't buy a house, I bought a small apartment bro...I'm not throwing away even 40% of my monthly income into my mortgage....I'm only 28 years old and I have no kids, when my life makes a big change I'll decide what to do with this place, till then I'm more than happy with what I got, even more so than friends of mine who are constantly moving everytime they need to sign a lease because the landlord wants to up the rent on them.


I'll repeat it again!...buy into something that's within your budget, as long as you are not in over your head, how are you in a worst situation than someone who pays probably more than I do in rent to a landlord, a private owner or the city they live in?...

 

[ksteezy]

I think the misconception here I that you are thinking j went in over my head, I didn't buy a house, I bought a small apartment bro...I'm not throwing away even 40% of my monthly income into my mortgage....I'm only 28 years old and I have no kids, when my life makes a big change I'll decide what to do with this place, till then I'm more than happy with what I got, even more so than friends of mine who are constantly moving everytime they need to sign a lease because the landlord wants to up the rent on them.


I'll repeat it again!...buy into something that's within your budget, as long as you are not in over your head, how are you in a worst situation than someone who pays probably more than I do in rent to a landlord, a private owner or the city they live in?...

 

[ninjahood]

Originally Posted by ksteezy

^^^ people that bought homes they couldn't afford is the problem...got into these ridiculous loans with no means to pay them and banks were handing out loans to anyone caused the problem, then the market dropped and these people were screwed even more.....


One more thing, Rent will continue to increase as the years go...a mortgage at a fixed rate won't.

1. once a couple of people forclose around your PAID OFF home, your house value goes down whether you do anything or not, so there goes money outta your pocket.

2. when you live is spots where rent is stabilized/controlled rent NEVER goes up.

my moms didn't even feel da recession, she has no home in da US, and da rent is dirt cheap, we got property rented out outta OT, so all da income she's making is saved.

alot of cats that bought homes lost BIG money a couple of years back 

 

[ninjahood]

Originally Posted by ksteezy

^^^ people that bought homes they couldn't afford is the problem...got into these ridiculous loans with no means to pay them and banks were handing out loans to anyone caused the problem, then the market dropped and these people were screwed even more.....


One more thing, Rent will continue to increase as the years go...a mortgage at a fixed rate won't.

1. once a couple of people forclose around your PAID OFF home, your house value goes down whether you do anything or not, so there goes money outta your pocket.

2. when you live is spots where rent is stabilized/controlled rent NEVER goes up.

my moms didn't even feel da recession, she has no home in da US, and da rent is dirt cheap, we got property rented out outta OT, so all da income she's making is saved.

alot of cats that bought homes lost BIG money a couple of years back 

 

[ksteezy]

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

Originally Posted by jordanhendrix


This is true, but with smart investments you can get that piece of mind too. Peace of mind is knowing that you can have a roof over head, renters can have that too if they have money in the bank. 
And as far as being a landlord, this is where property management companies come in....5-10% of the rent goes to them and you never have to do anything.

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

Lulz you go ahead rent forever and wait for the "right time" then when you think the "time is right" you finally buy...then boom!...market dips...you lose along with everyone else...it's a risk like everything else, I'm sure if we could predict the future we would all be millionaires by now....get real man.

 

[ksteezy]

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

Originally Posted by jordanhendrix


This is true, but with smart investments you can get that piece of mind too. Peace of mind is knowing that you can have a roof over head, renters can have that too if they have money in the bank. 
And as far as being a landlord, this is where property management companies come in....5-10% of the rent goes to them and you never have to do anything.

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

Lulz you go ahead rent forever and wait for the "right time" then when you think the "time is right" you finally buy...then boom!...market dips...you lose along with everyone else...it's a risk like everything else, I'm sure if we could predict the future we would all be millionaires by now....get real man.

 

[eyegiantjackpot]

that article had good intentions, but wasnt written well. no facts, or real numbers with links etc..

but decided which is better can only be answered WHEN you ask this question first..

where do you WANT to live?


I live in middle of Hollywood, Ca.  Just moved into a new apt off Melrose.. 1bd in an old art deco remodeled building, top floor, with a view of downtown.  Im renting it for 1375 a month.

I WANT to live here. Its close to work, close to fun, and in the middle of LA. The convenience factor is off the charts, and I know thats what I am paying for.  Houses in my hood are in the 700 to 1mil range, and higher, and most are owned with old hollywood money.   I make good money, and Im still NO WHERE NEAR the funds i need to buy a place out here. and there is NO WAY IN HELL im moving out of here and deal with a commute to Hollywood from the Valley, or somewhere else. No way. THATS what I am paying for.  I call it the "Convenience Fee".

And lets say I want to move somewhere else.. well where else would I want to live? NY, NY.. and no way in hell am I buying anything in that city.. haha.

 

[eyegiantjackpot]

that article had good intentions, but wasnt written well. no facts, or real numbers with links etc..

but decided which is better can only be answered WHEN you ask this question first..

where do you WANT to live?


I live in middle of Hollywood, Ca.  Just moved into a new apt off Melrose.. 1bd in an old art deco remodeled building, top floor, with a view of downtown.  Im renting it for 1375 a month.

I WANT to live here. Its close to work, close to fun, and in the middle of LA. The convenience factor is off the charts, and I know thats what I am paying for.  Houses in my hood are in the 700 to 1mil range, and higher, and most are owned with old hollywood money.   I make good money, and Im still NO WHERE NEAR the funds i need to buy a place out here. and there is NO WAY IN HELL im moving out of here and deal with a commute to Hollywood from the Valley, or somewhere else. No way. THATS what I am paying for.  I call it the "Convenience Fee".

And lets say I want to move somewhere else.. well where else would I want to live? NY, NY.. and no way in hell am I buying anything in that city.. haha.

 

[jordanhendrix]

Let me just end on this:

I will buy a house when the time is right, with cash and within my means.

People are so hung up on owning a home that they get a decent job and start looking. I would implore anyone to take a step back before signing a mortgage and tying up a significant amount of your future earning potential in an illiquid investment that moves, historically, slightly above the rate of inflation (over time)

I, along with others who work in real estate investment, believe that renting LOW for a few years and then either buying a house in cash or at best a 10 year mortgage with a 50% down payment that doesn't stretch you out is the best and fastest way to an early retirement.

By all means sign up for a 30 year term and pay it off by the time your 60 if thats how you want your life to turn out. Live cheap now while plotting for the future.....thats how I do it. Its also how a lot of our clients did it. And trust me you want what they have. Just be open to the possibility that their may be a better way out there.

 

[jordanhendrix]

Let me just end on this:

I will buy a house when the time is right, with cash and within my means.

People are so hung up on owning a home that they get a decent job and start looking. I would implore anyone to take a step back before signing a mortgage and tying up a significant amount of your future earning potential in an illiquid investment that moves, historically, slightly above the rate of inflation (over time)

I, along with others who work in real estate investment, believe that renting LOW for a few years and then either buying a house in cash or at best a 10 year mortgage with a 50% down payment that doesn't stretch you out is the best and fastest way to an early retirement.

By all means sign up for a 30 year term and pay it off by the time your 60 if thats how you want your life to turn out. Live cheap now while plotting for the future.....thats how I do it. Its also how a lot of our clients did it. And trust me you want what they have. Just be open to the possibility that their may be a better way out there.

 

[jordanhendrix]

Originally Posted by ksteezy

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

Lulz you go ahead rent forever and wait for the "right time" then when you think the "time is right" you finally buy...then boom!...market dips...you lose along with everyone else...it's a risk like everything else, I'm sure if we could predict the future we would all be millionaires by now....get real man.

the right time for me has nothing to do with where the market goes. By that I meant when I can buy a house in cash that I will live in with my family, at that point who cares if the market dips?. Subtext homie.....keep making assumptions and reaching though, you're almost an expert

 

[jordanhendrix]

Originally Posted by ksteezy

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

Lulz you go ahead rent forever and wait for the "right time" then when you think the "time is right" you finally buy...then boom!...market dips...you lose along with everyone else...it's a risk like everything else, I'm sure if we could predict the future we would all be millionaires by now....get real man.

the right time for me has nothing to do with where the market goes. By that I meant when I can buy a house in cash that I will live in with my family, at that point who cares if the market dips?. Subtext homie.....keep making assumptions and reaching though, you're almost an expert

 

[dirtylicious]

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

Originally Posted by jordanhendrix


This is true, but with smart investments you can get that piece of mind too. Peace of mind is knowing that you can have a roof over head, renters can have that too if they have money in the bank. 
And as far as being a landlord, this is where property management companies come in....5-10% of the rent goes to them and you never have to do anything.

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

I think you're confusing my use of the term pride.. what you're referring to is not pride.. rather hubris.
I'm referring to the fact that a homeowner is proud of their house.. not as an investment...but as a locus of stability for their family...a HOME....  There's no pride, as you're referring to it, involved.

.....and it's not pride that killed the middle class...it was overzealous and overeager middle class people wanting to jump into the upperclass by relying on their home's value to back up their terrible financial choices...along with Wall St.

And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully. 

But I thought you were against any type of home ownership?.. no?

Pride

I get it.. you see the money side.. as you should given your occupation... but I see the human side... not everyone is financially savvy.. not everyone is cut out to be a landlord(even with hiring a rental management company).

a home (note, not a house) gives a person a feeling of being settled into a community...feeling part of that community.
a rental just doesn't do that..  there's a reason why people don't like to have renters in their neighborhood..and it's b/c renters usually don't have any sense of belonging and gasp* pride in their home...b/c at the end of the day..it's not theirs.

 

[dirtylicious]

Originally Posted by jordanhendrix

Originally Posted by Dirtylicious

Originally Posted by jordanhendrix


This is true, but with smart investments you can get that piece of mind too. Peace of mind is knowing that you can have a roof over head, renters can have that too if they have money in the bank. 
And as far as being a landlord, this is where property management companies come in....5-10% of the rent goes to them and you never have to do anything.

in a way.. you're right... but there's something to be said about not having debt and not having to owe $ to anyone in your twilight years just to keep that roof over your head.
additionally... with renting.. you're always beholden to someone about what you want to do with your place.. there's a certain pride element in home ownership and your home.

I agree with that, pride IS involved. Pride is also the downfall of investors, hanging on to bad stocks or homes for too long. Buying something for the wrong price, signing a bad loan etc. If you base your investments on pride you will lose. Just look at what happened in the last 5 years.....that pride killed the middle class. And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully.  Pride

I think you're confusing my use of the term pride.. what you're referring to is not pride.. rather hubris.
I'm referring to the fact that a homeowner is proud of their house.. not as an investment...but as a locus of stability for their family...a HOME....  There's no pride, as you're referring to it, involved.

.....and it's not pride that killed the middle class...it was overzealous and overeager middle class people wanting to jump into the upperclass by relying on their home's value to back up their terrible financial choices...along with Wall St.

And a renter's versatility allows him to go ahead and buy a house when the time is right too.....with cash hopefully. 

But I thought you were against any type of home ownership?.. no?

Pride

I get it.. you see the money side.. as you should given your occupation... but I see the human side... not everyone is financially savvy.. not everyone is cut out to be a landlord(even with hiring a rental management company).

a home (note, not a house) gives a person a feeling of being settled into a community...feeling part of that community.
a rental just doesn't do that..  there's a reason why people don't like to have renters in their neighborhood..and it's b/c renters usually don't have any sense of belonging and gasp* pride in their home...b/c at the end of the day..it's not theirs.

 

[jordanhendrix]

^^^^ Let me post this again.....


Let me just end on this:

I will buy a house when the time is right, with cash and within my means.

People are so hung up on owning a home that they get a decent job and start looking. I would implore anyone to take a step back before signing a mortgage and tying up a significant amount of your future earning potential in an illiquid investment that moves, historically, slightly above the rate of inflation (over time)

I, along with others who work in real estate investment, believe that renting LOW for a few years and then either buying a house in cash or at best a 10 year mortgage with a 50% down payment that doesn't stretch you out is the best and fastest way to an early retirement.

By all means sign up for a 30 year term and pay it off by the time your 60 if thats how you want your life to turn out. Live cheap now while plotting for the future.....thats how I do it. Its also how a lot of our clients did it. And trust me you want what they have. Just be open to the possibility that their may be a better way out there.

 

[jordanhendrix]

^^^^ Let me post this again.....


Let me just end on this:

I will buy a house when the time is right, with cash and within my means.

People are so hung up on owning a home that they get a decent job and start looking. I would implore anyone to take a step back before signing a mortgage and tying up a significant amount of your future earning potential in an illiquid investment that moves, historically, slightly above the rate of inflation (over time)

I, along with others who work in real estate investment, believe that renting LOW for a few years and then either buying a house in cash or at best a 10 year mortgage with a 50% down payment that doesn't stretch you out is the best and fastest way to an early retirement.

By all means sign up for a 30 year term and pay it off by the time your 60 if thats how you want your life to turn out. Live cheap now while plotting for the future.....thats how I do it. Its also how a lot of our clients did it. And trust me you want what they have. Just be open to the possibility that their may be a better way out there.

 

[bigtomgetsgwap]

Interesting article I never really thought of the pros of renting but ima have to agree with the majority that it always depends on where you live, what you do for a living and how your credit looks and hopefully by next year I will have a check mark with all of those

 

[bigtomgetsgwap]

Interesting article I never really thought of the pros of renting but ima have to agree with the majority that it always depends on where you live, what you do for a living and how your credit looks and hopefully by next year I will have a check mark with all of those

 

[dirtylicious]

Originally Posted by jordanhendrix

^^^^ Let me post this again.....


Let me just end on this:

I will buy a house when the time is right, with cash and within my means.

People are so hung up on owning a home that they get a decent job and start looking. I would implore anyone to take a step back before signing a mortgage and tying up a significant amount of your future earning potential in an illiquid investment that moves, historically, slightly above the rate of inflation (over time)

I, along with others who work in real estate investment, believe that renting LOW for a few years and then either buying a house in cash or at best a 10 year mortgage with a 50% down payment that doesn't stretch you out is the best and fastest way to an early retirement.

By all means sign up for a 30 year term and pay it off by the time your 60 if thats how you want your life to turn out. Live cheap now while plotting for the future.....thats how I do it. Its also how a lot of our clients did it. And trust me you want what they have. Just be open to the possibility that their may be a better way out there.

I'll agree there with you... however, that wasn't the crux of your initial argument.
Here's the thing... you're giving advice based on what's good for you... what's good for your life situation may not be the best investment strategy for someone who is 35+ with 3 kids.

Investment strategies should be tailored to what fits a person in their life, and their needs.  A landlord situation just isn't for everyone.

ps. personally, I don't mind the 30 yr though...while yes, the rates for 10 yrs are better.. I'd rather have the 30 yr and pay extra on the principle....the 30 yr affords a "just in case I have a life changing event" breathing room.

 

[dirtylicious]

Originally Posted by jordanhendrix

^^^^ Let me post this again.....


Let me just end on this:

I will buy a house when the time is right, with cash and within my means.

People are so hung up on owning a home that they get a decent job and start looking. I would implore anyone to take a step back before signing a mortgage and tying up a significant amount of your future earning potential in an illiquid investment that moves, historically, slightly above the rate of inflation (over time)

I, along with others who work in real estate investment, believe that renting LOW for a few years and then either buying a house in cash or at best a 10 year mortgage with a 50% down payment that doesn't stretch you out is the best and fastest way to an early retirement.

By all means sign up for a 30 year term and pay it off by the time your 60 if thats how you want your life to turn out. Live cheap now while plotting for the future.....thats how I do it. Its also how a lot of our clients did it. And trust me you want what they have. Just be open to the possibility that their may be a better way out there.

I'll agree there with you... however, that wasn't the crux of your initial argument.
Here's the thing... you're giving advice based on what's good for you... what's good for your life situation may not be the best investment strategy for someone who is 35+ with 3 kids.

Investment strategies should be tailored to what fits a person in their life, and their needs.  A landlord situation just isn't for everyone.

ps. personally, I don't mind the 30 yr though...while yes, the rates for 10 yrs are better.. I'd rather have the 30 yr and pay extra on the principle....the 30 yr affords a "just in case I have a life changing event" breathing room.