Remember renting vs buying debates?

[ninjachk08]

What you said was you could turn a profit. Plenty of people say that, but very very few can actually prove it. Maybe you're the exception?

he is. I know the numbers and the details. Dustin is right..in his situation at least.

[SchmuckGirl]

Owning a house works better for me because I didn't go out and buy a huge house with a huge mortgage. I kept the price well within my means and while I know i'm going to have costs that I wouldn't have had, such as new furnace, a new fence, etc, at least I don't have to deal with the things I dealt with in an apt. I don't have to listen to my old neighbor, Miss Elephant Feet, stomp around on the hardwood floors right above my head in heels. I don't have to deal with parking my motorcycle on my back porch, she goes in the garage now. I don't have to live in stark white boring walls. I don't have to scrounge quarters to put into someone else's washer and dryer on a weekly basis. I don't have to hide my tomato/basil plants in the flower bed and hope the landscapers don't cut them down. Sure, I could have rented a better apartment with more amenities but that would mean more money every month.... Now I have 3 - 4 times the space for the same amount of monthly cash.

I'm sure it differs for each person based on what they make and where they want to be located but owning works for me right now. Yeah, I still stress on whether or not I made the wisest choice but I got the house while the price was down and while interest rates were low, so I think it will be ok.

[Chrome]

+1, that's why I have have a girlfriend.

(I'm kidding, c'mon )

Nice:cheers:

[Catman]

Nick you make some great points that I haven't thought about. You say you investigated this and wrote an essay on it ? I rarely listen to what others tell me, but go with my own overthought process. But you got me thinkin.

Say, you pay 1,200 a month for your mortgage and you have an escro account so you don't have to worry about ins.

If you are paying 750 a month for rent, comparativly ,you realy only got 450 a month left to invest right ? So are you realy are investing a smaller amount. and the 750 is never to be seen again, not even a portion.

I didn't even add renters ins. witch can be as expensive as a homeowners policy if you have ANY valuables = more likely for robbery's in renters properties.

If you are recieving most of the interest back on the loan in taxes, and you get that back in the first seveal years of the loan. aren't you hitting a lick with that investment from jump , you don't go for the stupid traditional 30 year mortgage, and you do a 10 year , your interest rate is much lower like 4% or lower , your investment is easily seen in one decade !

If you are investing in a 401k that lets you handle your stocks yourself, you can't touch that untill your 60 years old and may never see it even if you live that long, if you do it will all go to Hospis

It is easy to spend cash and cash in bonds, but hard to sell a house.

I like the idia of buyin a home, willing it to family or children and giving them an opertunity to get a head start when they need it.

Also how often do kids need to move back home when learning to live on thier own, and how hard it is out there, or while they go to college. or where will older folks go when thier children haven't even got a home to move them into and help take care of them ?

i think it's a big iresposible direction to go.

This next generation will be the first in history to NOT live better than thier parents did.

Edited March 11, 2009 by Catman

[cbrjess0815]

The only reason I prefer renting is because I seriously do not need the stress that comes with homeownership. I do not need to worry about constantly fixing things, taxes and all that shit. I do not have the mental capacity for that at my age. And I don't need a huge house because thats just more shit for me to clean.. One bedroom is more than enough for me because its not like I'm there all the time. In fact I am almost never home unless I'm sleeping or just laying around being lazy.

[John]

<Matty> Hmm

<Matty> A little bored this afternoon

<Matty> Thought i'd do an exercise on buying versus renting

<UG> indeed

<Matty> Paul Macartney is my subject

<Matty> I note according to reports he paid 49million dollars to heather mills for 5 years or marriage?

<Matty> Assuming he got sex every night during their 5 year relationship (which lets be honest, probably didnt happen) it would end up costing him $26,849 per time.

<Matty> Heather aint exactly the best looking bird

<UG> then he's a dumbfuck

<Matty> Now i also note, Elliot Spitzers call girl, Kristen, an absolute stunner with a body like no other, charges $4,000 an hour. For anything..

<Matty> Had Paul McCartney 'employed' Kristen for 5 years, he would've paid $7.3 million for an hour of sex every night for 5 years (a saving of $41.7 million).

<Matty> Value-added benefits are: a 22 year old hot babe, no begging, no coaxing, never a headache, plays all requests, ability to put BOTH legs around you (!!!), no bitching and complaining or 'to do' lists. Best of all, she leaves when you're done, and comes back when you ask her. All at 1/7th the cost, with no legal fees

<Matty> Sometimes renting makes far more sense..

[NinjaNick]

Nick you make some great points that I haven't thought about. You say you investigated this and wrote an essay on it ? I rarely listen to what others tell me, but go with my own overthought process. But you got me thinkin..

I didn't write that. I posted the article with the link to it. It has the guys name on it; Jack Hough.

Also I'm about to move into a house I'm currently about to close on.

[Pedro]

Nick you make some great points that I haven't thought about. You say you investigated this and wrote an essay on it ? I rarely listen to what others tell me, but go with my own overthought process. But you got me thinkin.

Say, you pay 1,200 a month for your mortgage and you have an escro account so you don't have to worry about ins.

If you are paying 750 a month for rent, comparativly ,you realy only got 450 a month left to invest right ? So are you realy are investing a smaller amount. and the 750 is never to be seen again, not even a portion.

I didn't even add renters ins. witch can be as expensive as a homeowners policy if you have ANY valuables = more likely for robbery's in renters properties.

If you are recieving most of the interest back on the loan in taxes, and you get that back in the first seveal years of the loan. aren't you hitting a lick with that investment from jump , you don't go for the stupid traditional 30 year mortgage, and you do a 10 year , your interest rate is much lower like 4% or lower , your investment is easily seen in one decade !

If you are investing in a 401k that lets you handle your stocks yourself, you can't touch that untill your 60 years old and may never see it even if you live that long, if you do it will all go to Hospis

It is easy to spend cash and cash in bonds, but hard to sell a house.

I like the idia of buyin a home, willing it to family or children and giving them an opertunity to get a head start when they need it.

Also how often do kids need to move back home when learning to live on thier own, and how hard it is out there, or while they go to college. or where will older folks go when thier children haven't even got a home to move them into and help take care of them ?

i think it's a big iresposible direction to go.

This next generation will be the first in history to NOT live better than thier parents did.

When is renters insurance ever as expensive as homeowners insurance? Renters insurance typically covers contents and liability only not like a homeowners policy that covers the structure, contents, and liability..

[NinjaNick]

I'm currently renting a house that I'm about to move out of because we've purchased one, but I've had renters insurance for the longest. MY Renters insurance + car + bike = $103month!!!

[flounder]

My renters is right around $110 a year.. I can agree with Zorro a bit about yes a house may cost twice as much but you are getting allot more space in many situations. It really all depends on where you live. Nick,, Dayton is a pretty cheap place to live. I lived there for 5 years. Ahh.. the good ol days of shenanigans.

[Catman]

When is renters insurance ever as expensive as homeowners insurance? Renters insurance typically covers contents and liability only not like a homeowners policy that covers the structure, contents, and liability..

Yea, well my homeowners covers my home, brand new truck, conversion van, and 150,000 in contents and I pay $129.00 a month for all of it through eirie !!

I guess that's where I was going with that , It's all togeather , Not paying 4 differeent policy's and the way I add it up, it's a HUGE savings to me !

I wouln't have come even close to that without doing it togeather and getting all the discounts !

Shit I couln't even get just the truck and van insured for that without the house.

[NinjaNick]

My renters is right around $110 a year.. I can agree with Zorro a bit about yes a house may cost twice as much but you are getting allot more space in many situations. It really all depends on where you live. Nick,, Dayton is a pretty cheap place to live. I lived there for 5 years. Ahh.. the good ol days of shenanigans.

Oakwood, Centerville, Kettering, Beavercreek are the most costly. I live in Kettering about 2 blocks from Oakwood and it's way overpriced.

[shittygsxr]

As long as you get a 30 year lease when you rent you are getting a good deal, but everywhere I have ever rented they kept increasing the rent!

[Bkizz]

That's cool. When your furnace takes a shit or you have a major problem that needs fixed NOW, you can use all that money you saved to pay for it.

This is true...but I've rented appartments and getting things fixed can be a huge pain in the ass. I've been without heat for days and I've lived with a broken refrigerator for weeks because my deadbeat landlord was a lazy piece of shit.

At least now that I own, I have more control over these things. Sure, I'm stuck with this place for a while but I'm cool with that. My mortgage is the same as that shithole apartment anyway.

[wrillo]

landlords are another thing to consider in this debate + legal issues that might arise over a bad experience

+1 on rent going up though. Its bullshit! The original asking rent at my place was $525.. its now at $650, and if the landlord wants to raise it with the next lease in June, I'm simply saying "no". Either it stays the same or I leave

[Zorro]

<Matty> Hmm

<Matty> A little bored this afternoon

<Matty> Thought i'd do an exercise on buying versus renting

<UG> indeed

<Matty> Paul Macartney is my subject

<Matty> I note according to reports he paid 49million dollars to heather mills for 5 years or marriage?

<Matty> Assuming he got sex every night during their 5 year relationship (which lets be honest, probably didnt happen) it would end up costing him $26,849 per time.

<Matty> Heather aint exactly the best looking bird

<UG> then he's a dumbfuck

<Matty> Now i also note, Elliot Spitzers call girl, Kristen, an absolute stunner with a body like no other, charges $4,000 an hour. For anything..

<Matty> Had Paul McCartney 'employed' Kristen for 5 years, he would've paid $7.3 million for an hour of sex every night for 5 years (a saving of $41.7 million).

<Matty> Value-added benefits are: a 22 year old hot babe, no begging, no coaxing, never a headache, plays all requests, ability to put BOTH legs around you (!!!), no bitching and complaining or 'to do' lists. Best of all, she leaves when you're done, and comes back when you ask her. All at 1/7th the cost, with no legal fees

<Matty> Sometimes renting makes far more sense..

Post of the Year!!!

[NinjaNick]

Bump for a LEGENDARY Ohio-Riders topic...

[max power]

My house payment is cheaper than rent...

+1. Its all about not being a dumb shit and living within your means.

I bought a nice old house I could easily afford in a nice neighborhood and remodeled it to be what I wanted. Now I have a nice 3 bedroom house with a beautiful kitchen and bath, big yard and a detached shop for less per month than I could rent a decent 2 bedroom apt. for.

I dont care what anyone says about the investment, I could easily get what I have in it out of it right now and even if I couldnt, its TONS better than living in any apartment complex.

[newarkOhioLinks]

Old "wisdom" is a hard thing to drop when it's no longer true. Buying(renting from the bank and the government) is a luxurious option that you pay dearly for. The pluses are obvious. You can make any changes your landlords(again government and bank) will approve and you can own as many pets as you want. It's also more difficult for the neighbors to force you to move. If that's what you're after, buying is worth the payment.

Renting is a wonderful option if you don't mind moving often and the pet thing. I don't like the idea that someone always has a right to enter my home. I have friends living much cheaper than my very average house payment and they have swimming pools, club houses, gyms, etc. They have no worries about maintenance, no lawn care to do, no huge honey-do list. Money down the drain? I don't think so.

My idea 20 years ago was socially unacceptable, some considered it a disgrace. I bought a mobile home new for $18k. It would have been long paid for by now. I just wanted to finance land. Then you're not in debt for the exception of the land which is easily sold.

Buying a house is easily the worst financial mistake I've ever made. I remember being sick to my stomach when I signed the papers and the happy sellers, lawyers and real estate agents wondering what in the hell was wrong with me.

11 years after buying my home, taxes and insurance have upped the payment $210 higher than the original payment. Houses nearly identical are selling for not much more than what I paid for mine. The market is not going to swing back and make up for it. I would be a fool to stand and tell a person to buy so they can do the same. Those who are are just to stubborn to realize what a mistake they've made.

A house is not an investment. The sooner Americans get that out of their head the better their finances will be. A house is a place to live. A wise person will only buy what they need to fulfill their need for a place to live. Never let someone else convince you what your needs are.

If you have no morals, here's the real genius plan that many missed out on. Thanks to the current administration, you may not be to late though. Buy a McMansion for way more than it's actually worth. If you make 70k, buy about a $400k house on a balloon payment. When that balloon pops, just don't pay. Stay in the house rent free for a year or more and bank the cash. While you're doing all of this, jack your credit card to the hilt. When this is over it could be 6 months or more before they let you get another card. If you have a wife, you can count on her bailing and finding a fresh sucker with good credit when this is over too, just letting you know, whether you care or not is optional. If you can get into another house before you declare bankruptcy on all of this, by all means do so. You'll get to keep it in the bankruptcy. Same goes for cars and bikes. If you can make the payments, you can keep them. After all of this is done, wait a few years and repeat.

[NinjaNick]

A house is not an investment.

To some it is.

http://www.aetv.com/flipthishouse/

[SAMBUSA]

To some it is.

http://www.aetv.com/flipthishouse/

Little over 2 years ago I sold the first house I bought/financed. When I sold it, I got just shy of $40K in equity. Pretty sure it was a good investment. My house I am currently in, I could sell for more than what I bought it for. Even in the shitty market we are in. Again, another pretty good investment;)

[dustinsn3485]

I bought and now I'm going to rent what I own. So now that means making a few bucks and still building equity. Then sell for profit later...

[oldschoolsdime92]

I am getting ready to buy. quite frankly i don't care if its a good investment or not. If i want to work in the garage at midnight so be it. Right now if i work in the garage at midnight, my neighbors will probably be beating on my door.

[redkow97]

I think buying can still be financially viable in some markets. the Cleveland area is one of them.

Renting a decent 2-bedroom place was costing me around $550/month. that's cheap compared to a comparable place in other cities. My mortgage is only like $940/month. Friends of mine have also noticed that their rent has gone up considerably in the year since I've purchased my house. Why? because all those people defaulting on their mortgage have to live somewhere. There's greater demand for rental property right now. the place my old roommate and I rented for $525/month 2.5 years ago is now $600/month. that adds up. (that's not even mentioning the fact that the woman who lived above us in the duplex we rented was a total bitch. she would SCREAM at her daughters every morning at 6AM. worst parent ever.)

If i make minimum payments, then I probably pay more IN INTEREST than it would have cost me to rent a comparable place though. So of course buying seems stupid when you're really just paying the bank 'rent' and putting a couple hundred bucks toward actually purchasing your house. my $940 mortgage payment also gets me more than $940 in rent would. I have 3 bedrooms, 2 full baths, and a 2.5 car garage that comfortably fits 2 cars, my trailer, 3 bikes, and I added shelves that take up 3' at the back. The house across the street from us is smaller, and rents for $1200/month.

I think we pay $150/month over our premium, which takes something silly like 12 years off our 30 year mortgage, and saves us tens of thousands of dollars.

Yes, I have to mow my lawn, replace the AC when it breaks, and pay property taxes, but it's MY house. I like that. I can paint, break shit, remodel, and do anything else I want to it. I have 2 bikes in the garage that I know are reasonably secure, and I can take any steps I want to improve their security.

I think the bottom line is that a home isn't an investment unless you own it. Financing a home is just renting from the bank, but with more freedom to paint shit.

Edited May 6, 2010 by redkow97

[Cheech]

A house is not an investment.

I can condense your tome into just this phrase. I wish the assholes on AE could have this branded into their skin as a constant reminder.

I'm not looking to make a huge return on my house, nor am I looking to flip it 6 months after I buy it. My house is where I live.