Posted on 03/19/2011 1:03:32 PM PDT by SeekAndFind
At the end of 30 years, he has the down payment that he did not make, plus the savings from rent over mortgage and repairs.
Have them insure the mortgage and live life.
I simply don't care personally what the value of my houses are right now, as I don't intend to sell anything.
I have never in my life seen where renting costs more than owning. Ever. I’m almost 50 and I’ve lived in TX, NC, and VA. Who knows, maybe those places are bizarre somehow.
If I were in a stable situation and could afford it, I’d rather own a home. You can do a lot more with a home when you own it then when you rent.
To each his own, I guess.
Little do those tenants realize, they are actually paying for the house/apts, the damages, and the taxes through the rents and we still have enough to keep as profit for ourselves.
Home purchasing is an investment, and one of the best you can get.
For those who do not agree. I purchased these rentals about 15 yrs ago, after Carter's mess.
Some of you will laugh, but I paid around $15K to 26K per house. Rents at $400 to 650 per month. Now you have to do the numbers on what that same money in the bank (price per home), will net you each month as compaired to rentals.
Cement homes can last 200 years, easily.
Being a landlord is a huge headache.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
My husband and I thought of it as a small business. It is a job.
We owned 3 apartments for about 10 years. For the most part we had very nice tenants. Only twice were the apartments left in poor condition ( dirty but not damaged).
These three apartments worked out very well for us financially since they were built on the same land as our residence. We did not have have to pay extra for the land. We only had the cost of building the apartments.
Different strokes for different folks. Having a paid up in full home with no mortgage with resonable property taxes and extra cash to live on is a good scenario IMHO.
Yeah, me too. The value of my home can’t be put into dollars- to me.
One more thing about being a landlord.
We were able to give our young children meaningful work and pay them a fair wage. We also contributed the maximum allowed by law to their IRAs.
My daughter is in the process of buying a home this week. She will use some of that money to put a down payment on her home.
I have lived in rented places and I have lived in my own COndo and single family homes.
My Condo sold at 250% what I paid for it. My current home also has a juicy profit over my purchase price even with the drop in house values. And I saved paying $1500-1800 rent for a similar house, not to mention tax deductions for mortgage. I am getting ready to sell this house and it will have paid me to live in it for 12 years!
The key rule is do not buy unless you can live there for 7 years plus. And my cash in bank is paying 1%..hardly a king when inflation id eating away at its purchasing power at a much higher clip. And I have to pay income tax on that lousy 1% interest! My increase in home value is tax free!
Or if you know you are going to have to move with your job every 3-6 years.
The ONLY people I know who have been burned did it to themselves. Actually, they burned their relative who held the mortgage while they partied hardy. They bought the land and house off a relative about 20 years ago. They rarely made the payments because they couldn't live without new vehicles and booze. Heck, they couldn't make payments on the vehicles and had to file bankruptcy a few months ago. As for the burning, throw in the rest of us who know have to foot their bills. The relative finally got fed up and kicked their rears out (never go into business or loan money with relatives). So, yeah, I do know someone but they have no clue about money or responsibility.
I've been racking my brain and I can't think of anyone (other than the above) we know who aren't home owners.
The guy doesn’t have a wife and kids
If it is not, your landlord is going out of business. If all that is not covered in the rent, it is only for a temporary time.
Typical starter ranch here in NC, three bedroom two bath about 1400 sq ft or so, rents for $825 to $875, same or similar sells for $120K to $130K, 30 year mortgage including PITI $725 to $775.
Why would people buy rental houses with negative cashflow from the very outset? It’s untenable.
Don’t think so. Maybe in Europe where people are living in apartments that were built in the 1700’s. Here in the US, if it’s over 50yo, tear it down and build something newer. We had this restaurant in Seattle. The building was built in the late 1800’s. It survived the Seattle fire of the 1880’s. It became a world class restaurant. The floors were heavy planks, beautiful. Located in the entertainment section across from the opera house. It got torn down and a QFC market built. Totally out of character of the area.
All but a handful of the houses around here were built in the 50s or 60s. Sure, many have been remodeled and updated. There are only three that are falling down. An elderly couple lives in one and the other has been tied up since the guy died decades ago and then there’s the questionable house (you know, every neighborhood has one of those). The sizes vary but somewhere in the slightly less than 2000 to 4000 range. Styles and building materials also vary - brick, stone, wood. Some of the smaller wooden ones are those finish it yourself jobs but they’re all kept up. All have jumped in price and despite the burst bubble are still selling like hot cakes.
In Michigan, we got screwed when the prices dropped while we were trying to sell our home. We would have liked to stayed in Michigan but there were no jobs and we had to move to the west coast because it was one of the few areas of the country where my husband could get a good job. After years of investing in our Michigan home, we lost everything. So, I guess this article makes sense for people like myself. But for others, it wouldn’t.
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