Rent Forever, Don’t Buy A Home

[unbornseed]

Originally Posted by usainboltisfast

Originally Posted by UnbornSeed

I think most of us are on 30 yr mortgages. I pay mine as if it was a 15 yr when I can. Make 169% on penny stocks all you want. I'll take the long term appreciation and make sure my kids are taken care.

How old are you btw? I just dont see how it makes any sense for anyone who is not ready to settle down to own a home. Especially with how many ways their are to make money in America I just dont see owning a home as being that great of an investment for a young person. It really limits your options in life and there are so many things that can happen when owning a home that you are liable for it should really only be reserved for those who are 100% ready for that leap (which it is a leap not a step).

30. As stated, I have a duplex and dont pay my mortgage, my tenant does. I send in extra just cause I dont like bills. I wholeheartedly agree with you that its a leap and is not for everyone. I've had to shell out a lot of money to fix plumbing caused my root infiltration from a city tree that the city refused to help out on so there are pros and cons.
But, if you're in the position...own>rent.  I live in L.A. a decent place is about $1200 for a 2 br. My mortgage is $1100 with tax and insurance which my tenant pays $1500 so I make $400 a month and when its not rented the mortgage is low enough for me not to care. I send my tax refund right into my mortgage and having it not rented for half the year on my return I claim a loss which gives me a extra amount to my refund. I have $150k of equity at my disposal and a 5% interest rate. 

Again, I agree with you and you're pretty much the only one to have a valid argument on the renting side. 

 

[unbornseed]

Originally Posted by usainboltisfast

Originally Posted by UnbornSeed

I think most of us are on 30 yr mortgages. I pay mine as if it was a 15 yr when I can. Make 169% on penny stocks all you want. I'll take the long term appreciation and make sure my kids are taken care.

How old are you btw? I just dont see how it makes any sense for anyone who is not ready to settle down to own a home. Especially with how many ways their are to make money in America I just dont see owning a home as being that great of an investment for a young person. It really limits your options in life and there are so many things that can happen when owning a home that you are liable for it should really only be reserved for those who are 100% ready for that leap (which it is a leap not a step).

30. As stated, I have a duplex and dont pay my mortgage, my tenant does. I send in extra just cause I dont like bills. I wholeheartedly agree with you that its a leap and is not for everyone. I've had to shell out a lot of money to fix plumbing caused my root infiltration from a city tree that the city refused to help out on so there are pros and cons.
But, if you're in the position...own>rent.  I live in L.A. a decent place is about $1200 for a 2 br. My mortgage is $1100 with tax and insurance which my tenant pays $1500 so I make $400 a month and when its not rented the mortgage is low enough for me not to care. I send my tax refund right into my mortgage and having it not rented for half the year on my return I claim a loss which gives me a extra amount to my refund. I have $150k of equity at my disposal and a 5% interest rate. 

Again, I agree with you and you're pretty much the only one to have a valid argument on the renting side. 

 

[jordanhendrix]

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

 

[jordanhendrix]

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

 

[destination kicks]

Originally Posted by ooIRON MANoo

Irony of the article...you will be renting from someone that own's a home.

Renting Keeps You Flexible

When you own a home, you don't have a lease.  Planting your roots is a thing of the past, I know plenty of people that either A)Own multiple properties or B) have moved due to financial/job reasons and are currently renting out their homes.  They call it: "Letting someone else pay my mortgage, and I get the tax break."

Someone Else Does The Repairs
This is true, however, security deposits are there for a reason.  Also, replacing a washer/dryer or refrigerator

.  I haven't lived in a place where that is provided for you by the landlord, it's always been bring your own furniture and appliances.  I know they provide those amenities in luxury condos, but you pay dearly for them.

Owning A Home Is More Expensive Than It Looks
Reason's why I wouldn't buy a condo, the fee's are ridiculous.  When you buy a home you have the option of including your insurance and taxes with mortgage payments instead of getting punched in the gut twice a year (property taxes).  You can then have a renter pay those fee's for you.

Home Prices Can Go Down Short-Term
They are only going lower, so it will be hard to build equity.  I don't think home prices/values will ever reach the peak they reached before the bubble burst.  It sucks for a lot of people that got caught up on it.  People were getting swindled though, buying $500k homes while bringing home a $50k a year salary.  C'mon now.

My honest opinion is that the general rule of “buy a house, stop rentingâ€

 

[destination kicks]

Originally Posted by ooIRON MANoo

Irony of the article...you will be renting from someone that own's a home.

Renting Keeps You Flexible

When you own a home, you don't have a lease.  Planting your roots is a thing of the past, I know plenty of people that either A)Own multiple properties or B) have moved due to financial/job reasons and are currently renting out their homes.  They call it: "Letting someone else pay my mortgage, and I get the tax break."

Someone Else Does The Repairs
This is true, however, security deposits are there for a reason.  Also, replacing a washer/dryer or refrigerator

.  I haven't lived in a place where that is provided for you by the landlord, it's always been bring your own furniture and appliances.  I know they provide those amenities in luxury condos, but you pay dearly for them.

Owning A Home Is More Expensive Than It Looks
Reason's why I wouldn't buy a condo, the fee's are ridiculous.  When you buy a home you have the option of including your insurance and taxes with mortgage payments instead of getting punched in the gut twice a year (property taxes).  You can then have a renter pay those fee's for you.

Home Prices Can Go Down Short-Term
They are only going lower, so it will be hard to build equity.  I don't think home prices/values will ever reach the peak they reached before the bubble burst.  It sucks for a lot of people that got caught up on it.  People were getting swindled though, buying $500k homes while bringing home a $50k a year salary.  C'mon now.

My honest opinion is that the general rule of “buy a house, stop rentingâ€

 

[crunchyblack9]

I'm itchin to buy a house bad, but Cali aint the spot to do it. I'm tired of paying somebody elses mortgage. 

 

[unbornseed]

Originally Posted by jordanhendrix

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

You came off wrong and were misrepresenting the numbers. You can wake up day and your portfolio can be depleted...so your gains are consistent with the gains that can be had from holding on to real estate. You dont wait to buy...you buy and then wait when it comes to homes. The market goes on these waves and it will once again hit the peak just like before. You can make money in stocks but the risks at making any real money are far and few in between.
I like being a homeowner. I hate being a homeowner. Theres always a pro to every con and vice versa.

Nothing but positivity and riches to all my NTers. 

 

[unbornseed]

Originally Posted by jordanhendrix

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

You came off wrong and were misrepresenting the numbers. You can wake up day and your portfolio can be depleted...so your gains are consistent with the gains that can be had from holding on to real estate. You dont wait to buy...you buy and then wait when it comes to homes. The market goes on these waves and it will once again hit the peak just like before. You can make money in stocks but the risks at making any real money are far and few in between.
I like being a homeowner. I hate being a homeowner. Theres always a pro to every con and vice versa.

Nothing but positivity and riches to all my NTers. 

 

[crunchyblack9]

I'm itchin to buy a house bad, but Cali aint the spot to do it. I'm tired of paying somebody elses mortgage. 

 

[ooiron manoo]

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

, If that is what your Uncle intends on doing fine.

You dismissed my statement earlier when I said that ARM loans were the pin that caused the housing bubble to burst.

People were getting these loans with the intention of refinancing on the equity their home would build in 5 years.  Not with the intention of selling it for profit after five years, those who did are in the minority.  Once the bubble burst, house prices plummeted and there was no equity to pull from.  People went from paying an affordable $800-$1200 mortgage to paying a $1600-3000 mortgage with no "life boat" in site.  Mortgages became upside down.

An ARM loan works, but it is a very risky loan to get.  Year one you may see all profit in selling and moving, by year three life events may have changed your perspective.

The past decade, too many people became House "flippers" and that backfired in 2008. 

It's different for every person, and it is a personal choice.  Homeownership is what I want for me.  I grew up in a house, never lived in an apartment.  Wouldn't know how to ask for permission to do what I want which ranges from something simple like installing cable/satellite to throwing a bbq.  I was fortunate enough to take over my aunt's (Moved to Mexico) small home with a reasonable mortgage payment.  I'm basically paying her mortgage, but it's cheaper than an apt.  I get to do what I want, I do my own repairs.  It works.

Prices are low on homes, and getting lower the longer these homes sit.  If I can get a decent 2 bedroom house w/ a mortgage payment of $1200 I'm jumping on it.

 

[ooiron manoo]

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

, If that is what your Uncle intends on doing fine.

You dismissed my statement earlier when I said that ARM loans were the pin that caused the housing bubble to burst.

People were getting these loans with the intention of refinancing on the equity their home would build in 5 years.  Not with the intention of selling it for profit after five years, those who did are in the minority.  Once the bubble burst, house prices plummeted and there was no equity to pull from.  People went from paying an affordable $800-$1200 mortgage to paying a $1600-3000 mortgage with no "life boat" in site.  Mortgages became upside down.

An ARM loan works, but it is a very risky loan to get.  Year one you may see all profit in selling and moving, by year three life events may have changed your perspective.

The past decade, too many people became House "flippers" and that backfired in 2008. 

It's different for every person, and it is a personal choice.  Homeownership is what I want for me.  I grew up in a house, never lived in an apartment.  Wouldn't know how to ask for permission to do what I want which ranges from something simple like installing cable/satellite to throwing a bbq.  I was fortunate enough to take over my aunt's (Moved to Mexico) small home with a reasonable mortgage payment.  I'm basically paying her mortgage, but it's cheaper than an apt.  I get to do what I want, I do my own repairs.  It works.

Prices are low on homes, and getting lower the longer these homes sit.  If I can get a decent 2 bedroom house w/ a mortgage payment of $1200 I'm jumping on it.

 

[unbornseed]

Originally Posted by CrunchyBlack9

I'm itchin to buy a house bad, but Cali aint the spot to do it. I'm tired of paying somebody elses mortgage. 

Cali is the mecca at the moment. Theres a foreclosed house almost on every block 

Just research and you can get a decent place for under 150k. A probate across from me went for 200k and it was valued at 900k when the market was at its peak and 400k at the time of sale. You can find deals.

 

[unbornseed]

Originally Posted by CrunchyBlack9

I'm itchin to buy a house bad, but Cali aint the spot to do it. I'm tired of paying somebody elses mortgage. 

Cali is the mecca at the moment. Theres a foreclosed house almost on every block 

Just research and you can get a decent place for under 150k. A probate across from me went for 200k and it was valued at 900k when the market was at its peak and 400k at the time of sale. You can find deals.

 

[jordanhendrix]

Originally Posted by UnbornSeed

Originally Posted by jordanhendrix

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

You came off wrong and were misrepresenting the numbers. You can wake up day and your portfolio can be depleted...so your gains are consistent with the gains that can be had from holding on to real estate. You dont wait to buy...you buy and then wait when it comes to homes. The market goes on these waves and it will once again hit the peak just like before. You can make money in stocks but the risks at making any real money are far and few in between.
I like being a homeowner. I hate being a homeowner. Theres always a pro to every con and vice versa.

Nothing but positivity and riches to all my NTers. 

I agree....More power to all of you....

PS...I'm moving my holdings to cash/shorts/puts very soon, I foresee a big drop in the market

 

[jordanhendrix]

Originally Posted by UnbornSeed

Originally Posted by jordanhendrix

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

You came off wrong and were misrepresenting the numbers. You can wake up day and your portfolio can be depleted...so your gains are consistent with the gains that can be had from holding on to real estate. You dont wait to buy...you buy and then wait when it comes to homes. The market goes on these waves and it will once again hit the peak just like before. You can make money in stocks but the risks at making any real money are far and few in between.
I like being a homeowner. I hate being a homeowner. Theres always a pro to every con and vice versa.

Nothing but positivity and riches to all my NTers. 

I agree....More power to all of you....

PS...I'm moving my holdings to cash/shorts/puts very soon, I foresee a big drop in the market

 

[lazyj10]

An ARM loan is risky, but they're also a good hedge against interest rates if utilized correctly.

I wouldn't get one right now since the rate we got was below 5 versus the 7 I had on my condo, but my parents utilized ARMs and it worked fine for what they needed it for. They were in that house 15+ years and paid it off in like 8.

And nice portfolio, wide spectrum there.

 

[lazyj10]

An ARM loan is risky, but they're also a good hedge against interest rates if utilized correctly.

I wouldn't get one right now since the rate we got was below 5 versus the 7 I had on my condo, but my parents utilized ARMs and it worked fine for what they needed it for. They were in that house 15+ years and paid it off in like 8.

And nice portfolio, wide spectrum there.

 

[wawaweewa]

Originally Posted by jordanhendrix

Originally Posted by UnbornSeed

Originally Posted by jordanhendrix

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

You came off wrong and were misrepresenting the numbers. You can wake up day and your portfolio can be depleted...so your gains are consistent with the gains that can be had from holding on to real estate. You dont wait to buy...you buy and then wait when it comes to homes. The market goes on these waves and it will once again hit the peak just like before. You can make money in stocks but the risks at making any real money are far and few in between.
I like being a homeowner. I hate being a homeowner. Theres always a pro to every con and vice versa.

Nothing but positivity and riches to all my NTers. 

I agree....More power to all of you....

PS...I'm moving my holdings to cash/shorts/puts very soon, I foresee a big drop in the market

Get out of Scottrade partner. Especially if you're working options. 
IB or TOS is the way to go. Much more potential there (better analytical tools and interface) and better commissions at that.

btw, I agree. Owning  a main residence was never meant as an investment or a profit driven acquisition. That propaganda was pushed during the bubble for obvious reasons. When you look at a home as simply shelter, it is no better than renting in many respects.  Couple that with the fact that even when you own a home you're essentially renting the land from the state it's not as rosy as it sounds. It's great for some and not so great for others. 

 

[wawaweewa]

Originally Posted by jordanhendrix

Originally Posted by UnbornSeed

Originally Posted by jordanhendrix

^^^ He'srestating my entire argument....renting is only better if you're saving money and said money is bringing you a beter return than the house would.

I also said several times that renting out to others = winning, I do that !

You came off wrong and were misrepresenting the numbers. You can wake up day and your portfolio can be depleted...so your gains are consistent with the gains that can be had from holding on to real estate. You dont wait to buy...you buy and then wait when it comes to homes. The market goes on these waves and it will once again hit the peak just like before. You can make money in stocks but the risks at making any real money are far and few in between.
I like being a homeowner. I hate being a homeowner. Theres always a pro to every con and vice versa.

Nothing but positivity and riches to all my NTers. 

I agree....More power to all of you....

PS...I'm moving my holdings to cash/shorts/puts very soon, I foresee a big drop in the market

Get out of Scottrade partner. Especially if you're working options. 
IB or TOS is the way to go. Much more potential there (better analytical tools and interface) and better commissions at that.

btw, I agree. Owning  a main residence was never meant as an investment or a profit driven acquisition. That propaganda was pushed during the bubble for obvious reasons. When you look at a home as simply shelter, it is no better than renting in many respects.  Couple that with the fact that even when you own a home you're essentially renting the land from the state it's not as rosy as it sounds. It's great for some and not so great for others. 

 

[lazyj10]

Has TOS's platform changed since being acquired?

 

[lazyj10]

Has TOS's platform changed since being acquired?

 

[wawaweewa]

Originally Posted by LazyJ10

Has TOS's platform changed since being acquired?

Everything's usual except it's actually changed for the better in some respects ( more/ better applications) within the sfotware.
I'm sure some people exploit the software to the max and they may have some gripes but I'm not that proficient yet. I really like it. 

 

[wawaweewa]

Originally Posted by LazyJ10

Has TOS's platform changed since being acquired?

Everything's usual except it's actually changed for the better in some respects ( more/ better applications) within the sfotware.
I'm sure some people exploit the software to the max and they may have some gripes but I'm not that proficient yet. I really like it. 

 

[supermanblue79]

Originally Posted by usainboltisfast

Originally Posted by Supermanblue79

Ownership over renting IMO.
Financial Freedom is the real return on your investment, not what the housing market says that your property is worth.

 

I dont really see a 40 yr mortgage equaling financial freedom ESPECIALLY to someone young (which most of us are). Like I said in my earlier post it is a situation by situation thing.

Tell me more about this 40 year mortgage thing...
But even if it does take that long to pay off a property the payments end.  So at some point, you will have financial freedom.
As long as you are renting you are in debt no matter what your savings/portfolio look like.
To me it makes more sense to buy when you're young since time is on your side.

But I agree that it depends on the situation.