Give it to me straight bros. Is renting a house really that much worse than owning it?
With house prices the way they are now, rent and mortgage would be between $2000 and $2300. With the mortgage though, the down payment would be close to $100k, I'd be paying for utilities, property tax, etc, and would be in the same house for 25 years at least. Meanwhile with renting, I'd be a rentcuck, but at the same time I'd still have all my down payment money saved and wouldn't be on the hook for paying for anything else.
I guess I don't really mind staying in the same place renting for a long amount of time, but the uncertainty of renting and dealing with a landlord make me wary. At the same time though I've only got about $130k saved and would have to deal with bidding wars and expensive repairs if something goes wrong.
I rent in super nice neighborhood on the beach in California. My rent is the property tax payment of the house. Basically I feel like I got a good deal lol
Cameron Cooper
I have researched this topic a lot in the past. Basically, you can't really say if you're financially better off in the end by renting or by buying. At least it's that way where I live (Germany). Also, since the laws are very tenant-friendly over here, I plan to rent for as long as I can. The only situation where I would consider buying property is if I'm absolutely sure I want to stay in the same place until retirement. That's only going to happen if I ever found a family and then owning your own property also kind of feels nice, independent of the financial aspect.
Ian Adams
Even in cases when buying seems superior, its still hard to buy at the all time top, of all time, ever.
Renting a house is not a bad choice if you think the housing market is inflated.
Buy Low Sell High. Rent rural and low while waiting for the dip period to buy low.
Elijah Cook
I have bought and sold multiple condos, co ops and am finally in a house while all of you guys have been deciding what to do.
Ryder Turner
How do you deal with the expensive HOA and insurance? How do you make the renting process easier? Do you hire a rental management company? If so, did you find paying a flat fee better than the renting %?
Adam Reed
Thanks for the responses. House prices keep skyrocketing so I'm just gonna settle on renting soon.
Only other thing I'm wondering is how negotiable are rent prices? Is it possible to knock $100-200 off the rent if you lock-in a multi-year lease or have an excellent credit rating or something along those lines?
Lucas Jenkins
I used to live in Germany and fell for the renter meme for most of my young adult life. Big mistake. The Five Eyes (UK, USA, AUS, etc.) are very different from most parts of Europe like Germany where property is king. Owning a property is one of the big goals you need to achieve after your graduation and working at a job. Buying property, getting married, kids, etc. Property in the West will help you build up equity since it's treated as an asset and will help with your diversification strategy. Don't fall for the renter meme like I did, you're most likely not a German, and you're most likely not living in Germany so don't pretend like you're one. Snap out of it, get back to reality, and start setting some meaningful financial goals.
Michael Garcia
Have you considered buying a condo? I know the meme and ridicule and all, but look at
Chase Turner
Fuck me, it's just going to get worse isn't it? Maybe housing isn't so expensive, money is just worthless now. I kick myself almost every day for not buying in 2015.
I'd ask for housing whitepills but I'm tired of cope.
Isaiah Gonzalez
I have, but even condos have been climbing up to $350-400k here. The only condos cheaper than that are more or less apartments and I've been trying to avoid those specifically.
David Rodriguez
>I used to live in Germany and fell for the renter meme for most of my young adult life. Big mistake. The Five Eyes (UK, USA, AUS, etc.) are very different from most parts of Europe like Germany where property is king. Owning a property is one of the big goals you need to achieve after your graduation and working at a job. Buying property, getting married, kids, etc. Property in the West will help you build up equity since it's treated as an asset and will help with your diversification strategy. You're probably right there that when it comes to political decisions, those typically go in favor of property owners. >Don't fall for the renter meme like I did, you're most likely not a German, and you're most likely not living in Germany so don't pretend like you're one. Snap out of it, get back to reality, and start setting some meaningful financial goals. Wie kommst du darauf, dass ich kein Deutscher bin?
Josiah Butler
If you are going to be an expat at some point then buying is the best. One of the main arguments against buying is that shelter is a sunk cost and even if you sell you will still need a place to live. Well if you are moving to a cheaper country you are hacking by building equity in an expensive country then selling and taking that purchasing power where it goes much much further.
Lincoln Price
No we are very close to collapse. Work from home is becoming the norm, violent riots in cities that the police and government have no interest in stopping, and major companies are leaving to low tax areas. This decade is going to be a major transition from Urban to Rural and suburban areas. As more and more people leave the cities, taxes in the cities will be raised to offset the loss in revenue which will exacerbate the problem. By 2030 or 2040, NYC, SF, LA, Toronto, etc. Will be like Detroit. Anyone buying property here is buying ATH and the bottom could literally be what Detriot housing prices are.
Jonathan Gray
True, except if you buy in Japan in 1991, you would had been losing money for 25 years, and still not at break even after 30.
For a US example look at Detroit from 1970 to now. Thinking that it can’t happen to your city is a logical fallacy. SF and Seattle are already doing much more damage than Detroit ever did. Once tech leaves these cities they are doomed.
Kayden Jackson
You never own a house. You're merely getting a fief by the government that might or might not get tax raped in the future. I don't think it will get worse in the US but in Germoney land taxes are ridiculously low and will be increased as a source of income for municipalities.
There was worse. See picture related. The transportation revolution depressed house prices for decades due to the dramatic increase in land area from which people could commute to work. Right now we're right at the eve of the next work revolution. I'd be careful. It is just very hard to predict what will happen. All bets are off. If I were you I would at least wait one or two more years to see how the future of the cities and the workplaces will be.
Avoid condos at all costs. I'm trying to dump my condo right now and it's a pain in the ass. It's a penthouse in great shape, but the neighbor below is a hoarder with a massive, aggressive pit bull that is making the place hard to move. Her dog threatened me for years, and makes the place smell disgusting, so I had a cleaning company come in and make the common area less repulsive for buyers checking it out. It's obvious the dog urinates and defecates in her unit and there's nothing I can do to stop it. She literally filled our shared basement (my building is 4 units, 2 basements, 2 units each per basement) with cardboard, trash, etc. like a massive extensive rats nest until my other condo mates finally got through to her to clean up, because she disregarded any message related to cleaning the basement despite warnings from contractor after contractor that her trash and mess were creating fire and other hazards in the basement. This slowed down my ability to sell the unit by months, and now the condo market in my city is getting bad. Hoarder bitch is also friends with the other owner (woman) and after some behind the back conversation they had, both of them tried to get me to pay for cleanup because of some idiotic backwards logic they tried to deploy on me. They pressured apathetic guy owner of the 3rd unit to agree to this scheme. So my lawyer took a fat shit on them because what they were trying to do was not legal at all, of course they never bothered to read our HOA, and then scurried away like little cockroaches that just got exposed to bright light. Condos are literally a fucking clown show. Everyone else in the building has made this process so excruciatingly painful that I'm literally going to dump the price of my condo to spite them and drive the value of their units down. I have way more income than them, so they can go fuck themselves and enjoy their rotting shithole of a building thanks to retard hoarder pit bull woman.
Joshua Butler
Buy a house to rent to people. Rent a place to live until you retire. How many times do I need to tell this board. The value a mortgage, the very point of it, is the contracting of a wagie into the slavie. THE. VALUE. IS. THE. SLAVE. Not the house. Shop for the perfect slave. The house isn't as important.
Even if your slave only covers 80% you are buying a house at 80% off and the slave buys your house for you. Imagine cucking yourself by buying a house just to live in. Rent cheap place until you settle down and take fat shits on the floor when you leave. Landis says no dog? You get diagnosed with anxiety and get two. Real estate is a "fuck everyone else" game. The sooner you take that pill the better.
Liam Cruz
Are you advocating to become a landlord without positive cash flows? lel If you can't break even now it won't get much better in the future.
Asher Evans
Is the 80% a rule? 80% and above and you are coming ahead?
Ryder Perez
It amazes me that people reduce buying property to a "slave" contract because you either pay the bank or the government with property taxes. When you rent, you never see your money back. While you may end up being a "slave" in some regard to some entity while buying a house, the same thing occurs when you make any notable purchase. If you make good money and live in the suburbs or a rural area, you'd be retarded to not consider buying a home. People 5 years ago were giving the same advice, "don't buy it's going to crash". At some point you've got to bite the bullet and be done with it. Renting is and always will be for suckers.
Anthony Flores
Owning a house is like putting your money into savings. I keep trying to explain this to my dumb wife but she doesn't believe it and still wants to throw her money away to slumlords.
Jack Lopez
I was checking the house prices on redfin and surprisingly found out that even in most parts of in south Cali, the prices have not up too much and some around 3-4% or less often. then you had to deduct 10-15% for the selling the house and also pay property tax and CGT. So I am convinced that buying a house is not a good choice in terms of investment as you can make more than 4-5% and don't have to put down payment.
>I've only got about $130k saved Buy a modest house for $250k and pay it off asap. Then save up for a bigger place.
Logan Phillips
You're half based, half retarded
Jonathan Anderson
You wife is smarter than you. Buying a house is NOT savings, it is an investment.
Wyatt Ortiz
It's both. If your house is paid off, you get to keep your future wages from then on while the house grows in value.
Ian Gray
100%. Bought a house in '13. Because of this I'll be retired 17 years later. I'll be 43, this is a worst case scenario and without any other investments.
'13 was a good time to buy, but because of inflation, everything goes up. Barring the great recession you're usually golden.
Renting means you're throwing money away. Buying means in 10 years I'll have a half million dollar asset that I'll use for passive income.
If you have better ways of deploying capital, starting a business or something, then do that. Otherwise real estate. Unfortunately, through real wages stagnating and inflation which further divides the wealth gap, this is becoming more and more difficult. So buy some Bitcoin too. Cheers.
Bentley Phillips
For most people it's actually consumption. House owners are much more baited into expensive as fuck "upgrades" while renters are mostly sick with basic shit. Housing is part consumption and part investment.
Cameron Miller
My parents want me to purchase a house instead of renting an apartment for my job, but I have also thought of transferring offices in several years. My state is booming though so the prices are rising but I also wouldn't struggle selling it either.
Chase Evans
Value goes up and so does taxes. I hate paying yearly maintenance fees on my investments. So I prefer to hold stocks and crypto. Both of which are ALSO at their ATH and historically perform better than housing. If homeowners can use the logical fallacy of past performance being an indicator for future performance than so can stock and crypto investors. Simply put if you think prices will keep going up forever then buy Bitcoin and QQQQ and you will be even more rich when you retire.
Christopher Hall
One advantage of buying property is that you can easily get cheap leverage by getting a mortgage which is not possible with most other investments. Other than that, I completely agree with you.
