Posted on 05/13/2025 6:31:45 AM PDT by where's_the_Outrage?
But renting is more fun because the idea of privacy, of quiet require constant vigilance, often in vain, the real fun comes with the intrusive landlord. Best of all are the rent increases. And when you move, you begin the process all over again.
Not in Texas, you don't Senor Citiens here can get homeowner exemptions, over 65 age exemptions and even defer all their property taxes as long as they live in the home.
"Desire" is the key term. If someone decides to start blockbusting your neighborhood, you may take a loss or become a prisoner in a bad neighborhood.
On the other hand, if you rent your home you are at the mercy of the landlord as to how long you can live in your rented home.
True but having an easier ability to leave if the landlord changes or the neighborhood sours may be the better option.
As a comparison, a major factor that led to increased automobile quality was the growth in the percentage of vehicles leased. American car manufacturers in particular rolled out absolute junk to customers for years because they could get away with it. As leasing increased, manufacturers could no longer afford to roll out lemons because lessees would just keep sending them in for repair, hand back the keys at the end of the lease, and go with a different brand on their next lease.
The same could be said, not only of rental properties, but of entire towns. Many people watched their parents or grandparents get stuck with property in a dying town, and are determined not to face the same fate.
I have been in the land of Critical Mass now for several years. I practically worship the day that Cal football did not play and the radio offered Bob Brinker in its place.
Agreed.
To turn this into a spreadsheet, you have to assign a value to those “unpriced” things. Which, when you think about it, are pretty darn valuable.
It is subsidized and provides leveraged investment for many who wouldn’t have such opportunity otherwise.
That has led to our being overinvested in housing, when applying capital to productive businesses would generate more real wealth.
1. Your primary residence is one of the least diversified and most illiquid assets you can ever own.
2. For your primary residence, the U.S. tax code does not allow you to write off many carrying costs — like depreciation, maintenance/repairs, etc. that you CAN write off if the same property is rented out to a tenant.
He mentioned that he and his wife were still living in the same home for 35+ years. They live very close to Trump National Golf Club in New Jersey, and I suspect most people who see it would be surprised that someone so wealthy lives in such a (relatively) modest home.
I did not know of his passing. Loved listening to him on KGO SF.
Compared to renting, it’s better financially.
On sale, it’s taxed like an investment (capital gains).
Nevertheless, I don’t think of it as an “investment”. That’s just marketing, encouraging people to buy vs rent.
If anything, it’s more like a closed-corporation where you and spouse are stock owners.
If you want to think of it as an investment, keep track of all of your expenses, taxes (including deductions and credits), along the way, not just purchase and sales price.
Generally, you are likely to break even by the time it’s all said and done, which is far superior to renting, which is 100% loss.
This is timely thread for me, rented my whole life. Landlords recently died and their kids have offered the place at a reasonable price.
I have almost daily liquidity in my market, I could sell my house in less than 5 days.
Let me check the price of NVDA and I’ll get back to ya ...
Actually you can schedule these for the home office portion of your residence. Or, if you conduct business at your home you can file for certain tax benefits.
“Every one here is talking about a house and very little mention of home.”
“We two (my wife and I) have an older mobile home, 2 acres with a garden and a 15 year old, very well maintained Honda Pilot . . . all paid for. We’re not off the grid, but we are out of the rat race.”
In 1991 Mrs BBB333 & I moved to our town in Montana. We tried to find a rental but we had two cats so we purchased a 14 x 70 older mobile home. We made it into our home and we’re very comfortable there with the exception of some of the neighbors. We purchased not quite two acres and began planning upon building a small < 1,100 sq. ft. house which we did in ‘95.
We realized $10,000 in equity after the sale of said mobile home and have been very happy - this Thanksgiving marks our 30th year of living in our home.
Prices have sky-rocketed in our area and we have massive equity but it’s been a long-term investment.
If we were renting we would have very little and rent would be very expensive these days.
Our neighbors - a mid 30’s couple with two small children - have been renting their house for at least five years (it’s owned by our friends who hope to move back here someday and property managed by Mrs. BBB333) have on average for the five years have paid more than $40,000 after tax dollars in rent. What do they have?
Nice furniture and a nice home (they have made it a nice home) but no equity...
I’m sure happy we had those two cats and purchased that mobile home.
Best, FRiend
bump
Bkmk
His last radio show was in the fallof 2018. I lost track of him before that, but did listen to him while traveling on the weekends..
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