House owners VS renters

[crazymcmichael]

Guys,

Considering anyone here spends crazy money on watches i was wondering are there any guys that actually don't own a house but rather rent it?
I'd actually would rather rent something than buy something as sonetimes it can be even cheaper on the long run.. Not when you rent something nice offcourse.

Anyone???

[superdog]

Not me.

I don’t like the idea of paying someone else’s mortgage.

[RichM]

Not me. As a matter of fact we just paid off our mortgage in January. More money for watches.

I’ve rented twice in the last 30 years. First time was for one year when we weren’t sure where we wanted to go. The second time was for three months, while our current home was being built.

[Dan Pierce]

Homeowner here, paid in full a couple of years ago.
dP

[wantonebad]

Originally Posted by Dan Pierce

Homeowner here, paid in full a couple of years ago.
dP

Only way to fly

[crazymcmichael]

The thing is maintenance Costs of a house can also be quite high. I have 2 left hands lol.. How much costs a year you count in for maintenance? Taxes are higher as a owner and the rent you pay for the mortgage are quite substantial. What if you had the oppurtunity to rent for just 550 dollar taxes gas, light water everything included? Does this change the case?

[SunTzu]

Originally Posted by crazymcmichael

The thing is maintenance Costs of a house can also be quite high. I have 2 left hands lol.. How much costs a year you count in for maintenance?

Property taxes too. My folks pay $18k a year for a postage stamp in Jersey. My grandparents were married almost 70 years and never once owned a home. They rented a lovely apartment with a garage for decades and decades despite being well off enough to own a home.

[.brian.]

I rent my watches.

[crazymcmichael]

Originally Posted by SunTzu

Property taxes too. My folks pay $18k a year for a postage stamp in Jersey. My grandparents were married almost 70 years and never once owned a home. They rented a lovely apartment with a garage for decades and decades despite being well off enough to own a home.

Holy... You kiddin right ? ? 18k taxes..???

[SunTzu]

Originally Posted by crazymcmichael

Holy... You kiddin right ? ? 18k taxes..???

Nope, welcome to NJ. It's why everyone is leaving (among other reasons running the State into a financial ditch) and moving down South (taking the same politics that ruined NJ with them ). My folks are one of the elderly few of their friends who stayed. Another couple is leaving for Delaware because they pay $25k a year. My dad wanted to leave ages ago but my mother refused. Sadly, her sister, my aunt, is severely mentally ill and lives in a psychiatric hospital. My mother said in good conscious she can't leave her alone. So they stay. Lower tax areas in NJ are in the middle of nowhere or in areas not as cultured as they would like. They're highly active, very cosmopolitan, love fine dining and being a 35 minute drive (no traffic) from NYC where they spend a lot of time as well as driving to the Hamptons to their best friend's summer home.

[Dan Pierce]

Originally Posted by wantonebad

Only way to fly

Agreed! So relieved we refinanced to a 15y mortgage early on. Not only saved multi thousands but could enjoy the thrill of paying it off.

I can remember when my parents paid off their home w/ a monthly payment of $98.00. At the same time my VW car payment was $110.00 per month.
dP

[VanAdian]

You have to do what makes sense for you in your location. We bought our house just before the market went ape in Vancouver. 50% increase over the first 3 years without doing anything to the property kind of makes justifying renting (retroactively) hard if you were lucky enough with timing. I wouldn’t recommend buying here now as the market seems to have topped out, so renting probably makes more sense in the short term.
If you have a longer term strategy in an area buying would make more sense;?10-20 years of renting and you have nothing to show for it. Outright ownership alps opens the possibility of renting out your property in the future.
Again do the math for your situation and what you are able to tolerate in terms of cash flow, mortgage rates, etc.”

[GolfJunkie]

Nope, will always own my own house.

+ I buy houses to rent them to others

[nick c]

Originally Posted by GolfJunkie

Nope, will always own my own house.

+ I buy houses to rent them to others

X2

[Dr. Robert]

Own, own? In California??

[Rolex Essex]

Originally Posted by GolfJunkie

Nope, will always own my own house.

+ I buy houses to rent them to others

Same here, I did started out renting as I was starting up my own business so it wasn’t possible to get a mortgage within the first three years. During that time I was renting I was already house hunting and finding the best location to buy.

I’ve only a few more years left to pay off my mortgage.

[derekhayden]

Originally Posted by crazymcmichael

What if you had the oppurtunity to rent for just 550 dollar taxes gas, light water everything included? Does this change the case?

This is far to vague to give a straight answer too. Is this $550 for 3,000 sq ft or 300 sq ft.. Also area, age and current life situations play a part as well. I have only rented twice in my life and both were financially the right decision for me at the time.
I believe there is a time and place for renting but I would not want to be renting all of my life.

[encarter13]

I have never rented, but I am not 100% against it.

However, the reason would have to be valid - renting while building, anticipated job move from one city to another, short contract in current place, etc.

[SMD]

Originally Posted by crazymcmichael

Guys,

Considering anyone here spends crazy money on watches i was wondering are there any guys that actually don't own a house but rather rent it?
I'd actually would rather rent something than buy something as sonetimes it can be even cheaper on the long run.. Not when you rent something nice offcourse.

Anyone???

Me. The closing costs alone on a place for my family are 300k and the. maintenance and property taxes would be 6-8k per month. I am extremely liquid and I sleep well at night. I also have a ton invested in my business, which is a far better place for it than real estate. Will probably buy in a year or so but will be paying cash to do so.

[SMD]

Originally Posted by crazymcmichael

Holy... You kiddin right ? ? 18k taxes..???

Dude come to nyc - you are looking at 40-50 and you cannot even use the public schools (that’s another 120k for two kids).

[singe89]

Own. Too particular about how I want my house and have remodeled almost everything the way I want it. Know I will never want to live in another area so building a house for the long term makes more financial sense and makes me happier. However, if I was going to live in a city where I knew I wouldn't want to be there long term I would probably rent.

[crazymcmichael]

Originally Posted by SMD

Dude come to nyc - you are looking at 40-50 and you cannot even use the public schools (that’s another 120k for two kids).

In taxes ?

[mjclark32]

Originally Posted by crazymcmichael

Holy... You kiddin right ? ? 18k taxes..???

Yup, I'm from Bergen County, where $15k for a quarter acre is probably the norm for most towns.
I can see where people like the idea of renting though. No maintenance, no big down payment tying up cash, etc etc.
With that said, I haven't rented since about a year out of college and life's going just fine

[CamSLC]

There's many variables that need to be considered.

For a primary residence. Taxes, HOA, Co-op dues, long mortgage terms, property LOCATION. All things that drastically erode the purposed financial benefits of home ownership. So many people still rent from the bank and justify it because the property has appreciated, which is only because we live in a world of continuously lowered rates, and longer terms. In the real estate market of doubling values in the last 10 years, it's much easier to sell these extended term loans.

I plan to pay off my residence after 6 years of ownership. If I added up all the cash outlay/cost to live in, versus what the estimated value is. It's not that phenomenal. After paying off the mortgage is when the return is worth the investment. The security of a home free and clear is not monetizable.

[piratfisk]

Originally Posted by SunTzu

Nope, welcome to NJ. It's why everyone is leaving (among other reasons running the State into a financial ditch) and moving down South (taking the same politics that ruined NJ with them ). My folks are one of the elderly few of their friends who stayed. Another couple is leaving for Delaware because they pay $25k a year..

I'm born & raised in Park Slope and during my junior year in HS, we moved out to Union County. My parents (both close to 70) are fed up with "the f*ing taxes and the f*ing snow" and have had a house built in North Carolina. They're both very excited to be unburdened by tri-state taxes. My wife & I are soon to be San Diego residents, so clearly I haven't learned a thing.

We're planning on renting for the first year, then buying a condo.

[ezmarr]

I'm (temporarily) renting a nice 1BR apartment in Midtown Houston awaiting my next move. It does suck renting (especially being a realtor myself) but I have a house/pool in the suburbs I need to sell (probably to my ex) before buying something in town. Renting for a year works even at $1,500/month. And taxes/HOA's can be rather high so it's a good deal to me at the moment. I can walk to just about anything and enjoy the city life.

[SMD]

Originally Posted by crazymcmichael

In taxes ?

Yup. And they just increased the cost the get into real estate again by expanding the “mansion” tax. And the mortgage tax, and the transfer taxes.

Heck go to Westchester and you could easily get up to 70-100. But there you can use the schools. But those properties are getting killed right now. No one wants a home with high property taxes anymore because you cannot deduct them. Houses people have held for 10-15 years and they have to take a loss to move them.

Only way buying makes sense financially in NYC is if you are banking on appreciation. And that is a very dubious proposition and has been for some time. Without that you are better off renting.

Rent versus buy, from a purely economic perspective and not peace of mind or other intangible reason, is a very localized calculation. We know families that make several million per year and rent. Lots of them.

[landroverking]

My house is paid off.

[tudorbaja27]

Always rented. I do move a lot
Not a fan of creating long-term obligations for myself.

[SunTzu]

Originally Posted by piratfisk

I'm born & raised in Park Slope and during my junior year in HS, we moved out to Union County. My parents (both close to 70) are fed up with "the f*ing taxes and the f*ing snow" and have had a house built in North Carolina. They're both very excited to be unburdened by tri-state taxes. My wife & I are soon to be San Diego residents, so clearly I haven't learned a thing.

We're planning on renting for the first year, then buying a condo.

Bingo. Your parents are the norm for retiring couples in NJ. Overtaxed and moving South to a home they built on twice the lot for a fraction of the cost and zilch cost of living. Northeast pensions go a helluva a lot father there. My old man is like yours; the f*ing snow. After 77 years he's over it.

My financial advisor is telling me to go to Charlston, SC to a suburb outside the city. I have no family besides my folks and we have a close relationship, so leaving them would be a concern because I do make sure they're OK. But for now, I'm fine here as much as I'm eyeballing hard, Florida. I'm recently single after a 3.5 year relationship so I have freedom to make moves when the time is right with no other considerations in my life.

No, you clearly haven't learned a thing! Best of luck in San Diego though. Beautiful and gorgeous weather. If you can hack it, more power to you both. My folks are going in May, Hotel del Coronado.