Rent Forever, Don’t Buy A Home

[ksteezy]

I never said I was an expert, are you?...

I made the best move for myself, I'm in a comfortable position regardless of where the market is, I have a stable job, I own the property I live in, I'm happy....if paying someone elses property is your thing, then do you bro...good luck.

 

[ksteezy]

I never said I was an expert, are you?...

I made the best move for myself, I'm in a comfortable position regardless of where the market is, I have a stable job, I own the property I live in, I'm happy....if paying someone elses property is your thing, then do you bro...good luck.

 

[jordanhendrix]

Originally Posted by 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.

Most of us here aren't 35 with kids, most of the people here are getting ready to enter the real world. I'm not giving specific advice to anyone, how could I? this is a forum for sharing opinions. That is mine. 
Also I never said "rent forever" I'm not the OP. I advocate sound investments for all people, the problem buying a house at a young age isn't as sound as people believe that is all, that is the crux of my argument.

 

[jordanhendrix]

Originally Posted by 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.

Most of us here aren't 35 with kids, most of the people here are getting ready to enter the real world. I'm not giving specific advice to anyone, how could I? this is a forum for sharing opinions. That is mine. 
Also I never said "rent forever" I'm not the OP. I advocate sound investments for all people, the problem buying a house at a young age isn't as sound as people believe that is all, that is the crux of my argument.

 

[tim teufel]

Originally Posted by jimmybeanz

Originally Posted by tim teufel

This is actually the best time to buy a home.rates are low and u can get pretty good houses these days if u look in the right place.my uncle bought a three family house in queens for 390.000 with a 5/1 ARM at 3.875 interest rate.renting second and third floor house basically pays itself off. Renting is for Suckers

lulz its funny how people reply acting like they know what they're talking about. not everyone buys a home to stay long term genius.so a arm can be beneficial according to what situation you are in

 

[tim teufel]

Originally Posted by jimmybeanz

Originally Posted by tim teufel

This is actually the best time to buy a home.rates are low and u can get pretty good houses these days if u look in the right place.my uncle bought a three family house in queens for 390.000 with a 5/1 ARM at 3.875 interest rate.renting second and third floor house basically pays itself off. Renting is for Suckers

lulz its funny how people reply acting like they know what they're talking about. not everyone buys a home to stay long term genius.so a arm can be beneficial according to what situation you are in

 

[jordanhendrix]

^^^ I know right.....flip it and be gone..........

 

[jordanhendrix]

^^^ I know right.....flip it and be gone..........

 

[mr marcus]

Originally Posted by solesavage

Originally Posted by eaalto


I came from Southern California, and had been in escrow on an absolute dump for $185,000.  There simply was nothing else even close to being in our price range that we were interested in.  The market was much more competitive because everyone was going after the short sales and foreclosures like we were.  We ended up being denied on our loan from WaMu because our loan agent never clearly communicated to us that we needed at least 6 months reserves.  We had switched between FHA and a conventional loan so we were fronting 15% down and we were stretched pretty thin.  My parents were totally open to helping us, but it was a case of bad timing.  We fell out of escrow on the 45th day of a 45 day escrow, and were working so hard to secure a loan through a different bank.  They tried to rush it through underwriting but it didn't happen.  We lost about $2,000 from the failed transaction.  

The upside to the story is that it got my wife thinking about moving out of state, she found a job in North Carolina, got a 20% increase, $5,000 signing bonus, full relocation, company covered the closing costs, temporary housing and meals in a furnished apartment, all we had to do was get on a plane.  I transferred within the company I work for and took a 20% hit in salary, but have already recouped about 13% of that.  We are making more money in a place with a lower cost of living.

The stats:

What we almost bought:

Built: 1966

Sq. Ft: 1,389

What we did buy:

Built: 2006

Sq. Ft: 3,159

Difference in price? $75,000.

We got a place that was 40 years newer, in a great neighborhood, more than double the size, substantially better finishing work (laughable).  It's our dream house.  Something we never could have afforded in California.  Our property tax and homeowners insurance are tied into the monthly payment, which is all of $200 more than we were paying for a 1/5th of the square footage on a one bedroom apartment in Long Beach, CA. 

Yeah, we would have qualified for the first time homebuyers credit if we had bought in California (time wise), but it would have been poured back into the house for repairs and renovations and even then the place wouldn't be half as nice as what we ended up with.

Home ownership might not be for everyone, and sure, it might not always make perfect financial sense, but there comes a certain sense of comfort, and it really doesn't feel the same to come to YOUR home instead of some apartment with arguing neighbors and crying babies and wall unit air conditioners.  I like owning a home.

Pics:

Home we almost bought but fell out of escrow:


Home we did buy:

Sounds all peachy, but you still live in North Carolina. lol If that works for you more power to you and your fam. However, I cant picture myself moving out of So-Cal.

I purchased my house last summer, after two years of looking and it wasnt easy.... i'll tell you that much. I almost threw the towel in but we finally found a home in Whittier/La Mirada

I've been renting my entire life, and the feeling of throwing money into someone elses pocket gave me nightmares. Not having the liberty to be able to do what I wanted around the house, or just the freedom of having a big yard(a big plus for me when looking for a home) Seriously, it was a nightmare for me. Depending on a damn landlord who was cheap as hell

At the end of the day, im happy and I love my new home. I've invested so much time and effort into fixing it up little by little, and ive learned so much in doing so. I have a huge yard, finally a dog, and so much room for additions for future projects. Cant wait.

SMH at anyone taking advice from NinjaHood when son lives in a rat cave

chill slime......i for one will talk $*@* about my state but north carolina isn't a bad place to live 

 

[mr marcus]

Originally Posted by solesavage

Originally Posted by eaalto


I came from Southern California, and had been in escrow on an absolute dump for $185,000.  There simply was nothing else even close to being in our price range that we were interested in.  The market was much more competitive because everyone was going after the short sales and foreclosures like we were.  We ended up being denied on our loan from WaMu because our loan agent never clearly communicated to us that we needed at least 6 months reserves.  We had switched between FHA and a conventional loan so we were fronting 15% down and we were stretched pretty thin.  My parents were totally open to helping us, but it was a case of bad timing.  We fell out of escrow on the 45th day of a 45 day escrow, and were working so hard to secure a loan through a different bank.  They tried to rush it through underwriting but it didn't happen.  We lost about $2,000 from the failed transaction.  

The upside to the story is that it got my wife thinking about moving out of state, she found a job in North Carolina, got a 20% increase, $5,000 signing bonus, full relocation, company covered the closing costs, temporary housing and meals in a furnished apartment, all we had to do was get on a plane.  I transferred within the company I work for and took a 20% hit in salary, but have already recouped about 13% of that.  We are making more money in a place with a lower cost of living.

The stats:

What we almost bought:

Built: 1966

Sq. Ft: 1,389

What we did buy:

Built: 2006

Sq. Ft: 3,159

Difference in price? $75,000.

We got a place that was 40 years newer, in a great neighborhood, more than double the size, substantially better finishing work (laughable).  It's our dream house.  Something we never could have afforded in California.  Our property tax and homeowners insurance are tied into the monthly payment, which is all of $200 more than we were paying for a 1/5th of the square footage on a one bedroom apartment in Long Beach, CA. 

Yeah, we would have qualified for the first time homebuyers credit if we had bought in California (time wise), but it would have been poured back into the house for repairs and renovations and even then the place wouldn't be half as nice as what we ended up with.

Home ownership might not be for everyone, and sure, it might not always make perfect financial sense, but there comes a certain sense of comfort, and it really doesn't feel the same to come to YOUR home instead of some apartment with arguing neighbors and crying babies and wall unit air conditioners.  I like owning a home.

Pics:

Home we almost bought but fell out of escrow:


Home we did buy:

Sounds all peachy, but you still live in North Carolina. lol If that works for you more power to you and your fam. However, I cant picture myself moving out of So-Cal.

I purchased my house last summer, after two years of looking and it wasnt easy.... i'll tell you that much. I almost threw the towel in but we finally found a home in Whittier/La Mirada

I've been renting my entire life, and the feeling of throwing money into someone elses pocket gave me nightmares. Not having the liberty to be able to do what I wanted around the house, or just the freedom of having a big yard(a big plus for me when looking for a home) Seriously, it was a nightmare for me. Depending on a damn landlord who was cheap as hell

At the end of the day, im happy and I love my new home. I've invested so much time and effort into fixing it up little by little, and ive learned so much in doing so. I have a huge yard, finally a dog, and so much room for additions for future projects. Cant wait.

SMH at anyone taking advice from NinjaHood when son lives in a rat cave

chill slime......i for one will talk $*@* about my state but north carolina isn't a bad place to live 

 

[tim teufel]

my mom bought a 2 fam in woodhaven queens for 218k back in 97 mortgage is fully paid off today and even in these tough times the house is worth at least 550. in its prime it was worth 800k. the houses and forclosures today will allow a buyer a great deal if they jump on it.you can never convince me that renting is better than owning if you are a smart individual. i have been in the mortgage bizz for over ten years so i know whats up. 

 

[tim teufel]

my mom bought a 2 fam in woodhaven queens for 218k back in 97 mortgage is fully paid off today and even in these tough times the house is worth at least 550. in its prime it was worth 800k. the houses and forclosures today will allow a buyer a great deal if they jump on it.you can never convince me that renting is better than owning if you are a smart individual. i have been in the mortgage bizz for over ten years so i know whats up. 

 

[sneakerheadtrini1]

Alotta good info in here, posting to read up later

 

[sneakerheadtrini1]

Alotta good info in here, posting to read up later

 

[kwh3]

You can't get equity from renting especially here in San Francisco.

 

[kwh3]

You can't get equity from renting especially here in San Francisco.

 

[jimmybeanz]

Originally Posted by tim teufel

Originally Posted by jimmybeanz

Originally Posted by tim teufel

This is actually the best time to buy a home.rates are low and u can get pretty good houses these days if u look in the right place.my uncle bought a three family house in queens for 390.000 with a 5/1 ARM at 3.875 interest rate.renting second and third floor house basically pays itself off. Renting is for Suckers

lulz its funny how people reply acting like they know what they're talking about. not everyone buys a home to stay long term genius.so a arm can be beneficial according to what situation you are in

i'm sure you recognize the irony in your statement. 

 

[jimmybeanz]

Originally Posted by tim teufel

Originally Posted by jimmybeanz

Originally Posted by tim teufel

This is actually the best time to buy a home.rates are low and u can get pretty good houses these days if u look in the right place.my uncle bought a three family house in queens for 390.000 with a 5/1 ARM at 3.875 interest rate.renting second and third floor house basically pays itself off. Renting is for Suckers

lulz its funny how people reply acting like they know what they're talking about. not everyone buys a home to stay long term genius.so a arm can be beneficial according to what situation you are in

i'm sure you recognize the irony in your statement. 

 

[tim teufel]

Originally Posted by jimmybeanz

Originally Posted by tim teufel

Originally Posted by jimmybeanz

lulz its funny how people reply acting like they know what they're talking about. not everyone buys a home to stay long term genius.so a arm can be beneficial according to what situation you are in

i'm sure you recognize the irony in your statement. 

no i dont. but im sure you are comfortable living with mommy and daddy and im sure they rent 

 

[tim teufel]

Originally Posted by jimmybeanz

Originally Posted by tim teufel

Originally Posted by jimmybeanz

lulz its funny how people reply acting like they know what they're talking about. not everyone buys a home to stay long term genius.so a arm can be beneficial according to what situation you are in

i'm sure you recognize the irony in your statement. 

no i dont. but im sure you are comfortable living with mommy and daddy and im sure they rent 

 

[jordanhendrix]

Originally Posted by tim teufel

my mom bought a 2 fam in woodhaven queens for 218k back in 97 mortgage is fully paid off today and even in these tough times the house is worth at least 550. in its prime it was worth 800k. the houses and forclosures today will allow a buyer a great deal if they jump on it.you can never convince me that renting is better than owning if you are a smart individual. i have been in the mortgage bizz for over ten years so i know whats up. 

renting is never "better" than owning, the idea is that what you can do with the extra money from renting cheap.....IE invest it in better vehicles.....your in the mortgage industry you know that there are other investments right? What the hell is so hard to understand. Yes having a tangible asset is better than not, I'm not saying rent forever....rent until you can buy a house in cash. Rent so you can put that money to better work than a house....damn you dense sometimes
217k to 550k is a 333k profit in ~14 years....it took your mom ~14 years to see a 153% return.....could have made more somewhere else....its 11% per year return. And NYC is a GREAT market.....so that 11% is no where near most areas. Get IT?

I know you wont care about the following: I am up 169% on one stock THIS YEAR, that 4 months. Any "smart individual" would ask you to look up the term opportunity cost.

 

[jordanhendrix]

Originally Posted by tim teufel

my mom bought a 2 fam in woodhaven queens for 218k back in 97 mortgage is fully paid off today and even in these tough times the house is worth at least 550. in its prime it was worth 800k. the houses and forclosures today will allow a buyer a great deal if they jump on it.you can never convince me that renting is better than owning if you are a smart individual. i have been in the mortgage bizz for over ten years so i know whats up. 

renting is never "better" than owning, the idea is that what you can do with the extra money from renting cheap.....IE invest it in better vehicles.....your in the mortgage industry you know that there are other investments right? What the hell is so hard to understand. Yes having a tangible asset is better than not, I'm not saying rent forever....rent until you can buy a house in cash. Rent so you can put that money to better work than a house....damn you dense sometimes
217k to 550k is a 333k profit in ~14 years....it took your mom ~14 years to see a 153% return.....could have made more somewhere else....its 11% per year return. And NYC is a GREAT market.....so that 11% is no where near most areas. Get IT?

I know you wont care about the following: I am up 169% on one stock THIS YEAR, that 4 months. Any "smart individual" would ask you to look up the term opportunity cost.

 

[unbornseed]

Originally Posted by jordanhendrix

Originally Posted by tim teufel

my mom bought a 2 fam in woodhaven queens for 218k back in 97 mortgage is fully paid off today and even in these tough times the house is worth at least 550. in its prime it was worth 800k. the houses and forclosures today will allow a buyer a great deal if they jump on it.you can never convince me that renting is better than owning if you are a smart individual. i have been in the mortgage bizz for over ten years so i know whats up. 

renting is never "better" than owning, the idea is that what you can do with the extra money from renting cheap.....IE invest it in better vehicles.....your in the mortgage industry you know that there are other investments right? What the hell is so hard to understand. Yes having a tangible asset is better than not, I'm not saying rent forever....rent until you can buy a house in cash. Rent so you can put that money to better work than a house....damn you dense sometimes
217k to 550k is a 333k profit in ~14 years....it took your mom ~14 years to see a 153% return.....could have made more somewhere else....its 11% per year return. And NYC is a GREAT market.....so that 11% is no where near most areas. Get IT?

I know you wont care about the following: I am up 169% on one stock THIS YEAR, that 4 months. Any "smart individual" would ask you to look up the term opportunity cost.

You are not a "smart individual" by any means.

 

[unbornseed]

Originally Posted by jordanhendrix

Originally Posted by tim teufel

my mom bought a 2 fam in woodhaven queens for 218k back in 97 mortgage is fully paid off today and even in these tough times the house is worth at least 550. in its prime it was worth 800k. the houses and forclosures today will allow a buyer a great deal if they jump on it.you can never convince me that renting is better than owning if you are a smart individual. i have been in the mortgage bizz for over ten years so i know whats up. 

renting is never "better" than owning, the idea is that what you can do with the extra money from renting cheap.....IE invest it in better vehicles.....your in the mortgage industry you know that there are other investments right? What the hell is so hard to understand. Yes having a tangible asset is better than not, I'm not saying rent forever....rent until you can buy a house in cash. Rent so you can put that money to better work than a house....damn you dense sometimes
217k to 550k is a 333k profit in ~14 years....it took your mom ~14 years to see a 153% return.....could have made more somewhere else....its 11% per year return. And NYC is a GREAT market.....so that 11% is no where near most areas. Get IT?

I know you wont care about the following: I am up 169% on one stock THIS YEAR, that 4 months. Any "smart individual" would ask you to look up the term opportunity cost.

You are not a "smart individual" by any means.

 

[jordanhendrix]

^^^ Nice come back thanks for the in depth analysis
oh yea before i forget: