Rent Forever, Don’t Buy A Home

[jordanhendrix]

^^^ no making more money than people buying homes as their primary investment is what they look forward to. Dont offer straw men and knock them down. Aspiring to be renter. LOL no one is talking about that, they are talking about making the most money. Youre not "smarter or better" for owning a home. Its like people are totally disregarding the last 5 years. RENTERS WON BIG!!!!
Now all those people who bought homes and got crushed are aspiring to RENT a better property.....do you think they will buy homes now?
Do you son but dont be arrogant about something that you cant back up.....just silly

 

[getthismoney]

Originally Posted by jordanhendrix

^^^ no making more money than people buying homes as their primary investment is what they look forward to. Dont offer straw men and knock them down. Aspiring to be renter. LOL no one is talking about that, they are talking about making the most money. Youre not "smarter or better" for owning a home. Its like people are totally disregarding the last 5 years. RENTERS WON BIG!!!!
Now all those people who bought homes and got crushed are aspiring to RENT a better property.....do you think they will buy homes now?
Do you son but dont be arrogant about something that you cant back up.....just silly

   Ouchh but true. Those people will never get that money back, it sucks to be paying 3x what your neighbor who moved in yesterday pays.

 

[getthismoney]

Originally Posted by jordanhendrix

^^^ no making more money than people buying homes as their primary investment is what they look forward to. Dont offer straw men and knock them down. Aspiring to be renter. LOL no one is talking about that, they are talking about making the most money. Youre not "smarter or better" for owning a home. Its like people are totally disregarding the last 5 years. RENTERS WON BIG!!!!
Now all those people who bought homes and got crushed are aspiring to RENT a better property.....do you think they will buy homes now?
Do you son but dont be arrogant about something that you cant back up.....just silly

   Ouchh but true. Those people will never get that money back, it sucks to be paying 3x what your neighbor who moved in yesterday pays.

 

[juggy4805]

Originally Posted by GetThisMoney

The real comedy is that owing a bank for 30 years is what people call "owning" a home. You miss three payments and see how fast the bank takes THEIR house back.
To me, I don't care if I'm renting I'm free to roam the earth as long as I keep making cash. If business is good, I rent a penthouse. If it slows down I rent a smaller condo. Unless you buy a house in cash you are still renting, except now you pay property tax which adds no equity to your house. Some areas in NY and CA have property tax 7 to 8k a year plus. Thats almost rent money alone. To those that can buy properties with a huge amount of money down or cash in neighborhoods with very low property tax, it may be worth it.

Moving around makes sense for the single person. I have two young kids, I won't uproot my family every couple of years.  

  

 

[juggy4805]

Originally Posted by GetThisMoney

The real comedy is that owing a bank for 30 years is what people call "owning" a home. You miss three payments and see how fast the bank takes THEIR house back.
To me, I don't care if I'm renting I'm free to roam the earth as long as I keep making cash. If business is good, I rent a penthouse. If it slows down I rent a smaller condo. Unless you buy a house in cash you are still renting, except now you pay property tax which adds no equity to your house. Some areas in NY and CA have property tax 7 to 8k a year plus. Thats almost rent money alone. To those that can buy properties with a huge amount of money down or cash in neighborhoods with very low property tax, it may be worth it.

Moving around makes sense for the single person. I have two young kids, I won't uproot my family every couple of years.  

  

 

[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.

 

[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.

 

[ksteezy]

Missing a payment on your rent will land you in the street aswell, nobody moves on their own expecting not to pay someone..I rather pay a bank than a landlord or another owner

Yes people who bought before the market drop lost, myself included....it's a sad reality, doesn't mean things won't get better...dudes in here patting themselves in the back as if they had any clue this was going to happen...lol

 

[ksteezy]

Missing a payment on your rent will land you in the street aswell, nobody moves on their own expecting not to pay someone..I rather pay a bank than a landlord or another owner

Yes people who bought before the market drop lost, myself included....it's a sad reality, doesn't mean things won't get better...dudes in here patting themselves in the back as if they had any clue this was going to happen...lol

 

[ksteezy]

Double

 

[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.

 

[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.

 

[ksteezy]

Double

 

[j d0t win]

alot of great information in here. As most with most of us, were all at that stage where we are looking to possibly own a house, this post has gave me alot of insight form both perspectives.

 

[j d0t win]

alot of great information in here. As most with most of us, were all at that stage where we are looking to possibly own a house, this post has gave me alot of insight form both perspectives.

 

[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

 

[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

 

[toy collector123]

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.
 You need a different mindset to be able to tell that mother with 4 kids that since she hasn't paid her rent for 4 months that its time for them to leave.

 

[toy collector123]

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.
 You need a different mindset to be able to tell that mother with 4 kids that since she hasn't paid her rent for 4 months that its time for them to leave.

 

[ksteezy]

^^^ exactly taking home owning advice from someone who lives in a 8x8 room is ludacrous to me.


:uts on flamesuit::

 

[ksteezy]

^^^ exactly taking home owning advice from someone who lives in a 8x8 room is ludacrous to me.


:uts on flamesuit::

 

[lazyj10]

I look at it like this...

You need a place to live as a basic necessity to life. Id rather own a home in certain areas versus others because I'd like to get a return for tyin up the cash (i.e. Downpayment).

In NYC it makes less sense to buy versus other parts of the country. Also, some of you are assuming everyone who buys homes has a mortgage or is fully leveraged. Making the argument that you won't pay for (as many) repairs by renting? Oh so you think you're getting the deposit back or you won't see a rent increase to cover expenditures incurred? Hardly.

We just bought a house in the Bay Area. Near Clayton, one block away from an elementary school. We don't have kids yet but we will. The intangible of being able to walk kids to school helped solidify our purchase. Saves on gas and time. My days start early as is, so I'll take what i can get. There's also no place we could rent that would work for a growing family.

Further, I purchased a 1 bedroom 1 bath in 2007 (single, marriage not in sight). I would never, ever buy a 1 bedroom again other than for rental income. The resale on that is harder and not worth it. Lesson learned.

We went from 740 sq feet 1/1 (paying a total of $2,100, mortgage, HOA and prop tax) to a 3/2 house on almost a quarter acre lot on a quiet street for a lot less. Bought in at $240k (was a foreclosure) and put $50k of work into it (mainly ourselves - friends and family) and we're in under $300k in total. The market could further decrease and we're still insulated. However, a house 4 down from us with an additional bedroom on a smaller lot sold for $470k. It is what it is.

The last itangible is, coming from a condo, I'm happy. Quality of life is 100x better to say the least. I sleep better and enjoy life. Our house is dope and it'll be paid off within 10 years. Probably sooner. Then onto the next one...

 

[lazyj10]

I look at it like this...

You need a place to live as a basic necessity to life. Id rather own a home in certain areas versus others because I'd like to get a return for tyin up the cash (i.e. Downpayment).

In NYC it makes less sense to buy versus other parts of the country. Also, some of you are assuming everyone who buys homes has a mortgage or is fully leveraged. Making the argument that you won't pay for (as many) repairs by renting? Oh so you think you're getting the deposit back or you won't see a rent increase to cover expenditures incurred? Hardly.

We just bought a house in the Bay Area. Near Clayton, one block away from an elementary school. We don't have kids yet but we will. The intangible of being able to walk kids to school helped solidify our purchase. Saves on gas and time. My days start early as is, so I'll take what i can get. There's also no place we could rent that would work for a growing family.

Further, I purchased a 1 bedroom 1 bath in 2007 (single, marriage not in sight). I would never, ever buy a 1 bedroom again other than for rental income. The resale on that is harder and not worth it. Lesson learned.

We went from 740 sq feet 1/1 (paying a total of $2,100, mortgage, HOA and prop tax) to a 3/2 house on almost a quarter acre lot on a quiet street for a lot less. Bought in at $240k (was a foreclosure) and put $50k of work into it (mainly ourselves - friends and family) and we're in under $300k in total. The market could further decrease and we're still insulated. However, a house 4 down from us with an additional bedroom on a smaller lot sold for $470k. It is what it is.

The last itangible is, coming from a condo, I'm happy. Quality of life is 100x better to say the least. I sleep better and enjoy life. Our house is dope and it'll be paid off within 10 years. Probably sooner. Then onto the next one...

 

[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.

 

[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.