Posted on 11/21/2024 8:14:12 PM PST by RomanSoldier19
On paper, owning a home is almost always more expensive than renting — about 14% more, on average, after factoring in expenses like insurance, taxes, and upkeep.
But the difference has grown much more extreme in recent years as just about all homeownership costs have ballooned.
(Excerpt) Read more at aol.com ...
What bullshit. Who thinks the property owner is going to charge you less when they are paying all the mortgage taxes and upkeep? When you rent you pay the mortgage, taxes, insurance, upkeep and a tidy profit for your landlord. After you pay rent for 20 years you can move out and have absolutely nothing to show for it. The landlord gets to build equity and credit and buy more rental properties. As a homeowner after 20 years at least you have something that you can borrow against.
Owning a long paid off home certainly seems to be better on a ca$h flow basis.
Certainly having “free” off road parking is a Yuge benefit [Free Parking has been a significant part of making America GREAT].
YMMV [But I don’t think so in this case.]
I’ve read that owning a home vs. renting is essentially a wash. But only if the renter takes the money he saves by not buying and invests it in something like the S&P 500.
And therein is the problem. The average renter does not invest that money. Instead he buys a new car, or whatever. And so the renter loses out.
Maybe the are comparing apples oranges. Rent would be something besides a home. A smaller apartment for example.
I have to admit that the line between owning my home is closing with renting. We own our house, free and clear, but we have to pay almost $10,000 a year in taxes. Admittedly, in our area the rents are high, but it’s a thing to think about for those of us on a fixed income. I can’t see the libs around here in Northern Virginia lowering taxes as property values go up, and they are looking for more money all the time.
Just about our only hope is that Pres. Trump is successful in reducing government employment, which would temper the rise in property values.
The government is attempt to push people out of their homes with punitive ever increasing property taxes. In most cases it’s just out of control, as they demand more and more.
Owning a home vs. renting may be a wash under certain circumstances, but I would think the beauty of a fixed-rate mortgage more than offsets whatever advantages rental housing might have over the long term.
I live in a 1600 SF home built 5 years ago. I am almost embarrassed how cheap it is to live in this home. I have no mortgage loan, and property taxes are about $2500 with Florida senior exemption. I skipped home insurance 3 year ago. With utilities and upkeep (mostly outside landscaping) my monthly cost averages $475/month. I cancelled cable TV last year and using Roku, with zero monthly cost. Roku works via wi-fi and quality of picture is as good as with my previous cable TV from Comcast.
A house might make sense after 10 years or so. That requires a commitment to staying in the same place for that long. Me, I’ve moved at least 16 times over the years. House or condo purchases carry a lot of transaction costs. Renting right now as buying would be a lot more work maintaining a property.
Wonder how much Blackrock paid Yahoo to publish this article?
Absolutely! Home is best when not moving for 10 years or more.
I traveled a great deal for work and was often home a couple nights a week at most.
Buying a home made no sense at that point.
That was my thought!
Hey suckahs, sell your houses and become our serfs!
“What bullshit. Who thinks the property owner is going to charge you less when they are paying all the mortgage taxes and upkeep?”
Hold on. Your point makes sense if you’re talking about the choice between (1) buying a house yourself; vs (2) letting someone else buy the house and then renting from him. That’s not necessarily how things work in the real world. To buy the house today, for example, might cost you $6,000 per month between mortgage, property tax, insurance. You’re right that no landlord is going to want to pay $6,000/mo and then rent to you for $5,000. He’d be losing money. But, wait, what about the landlord who bought the place 20 years ago and is paying $2,500/mo in mortgage/taxes/insurance to own the place. That landlord doesn’t really care what the current cost to buy the place is, does he? He’s the guy offering the place for rent for $5,000, and he’s the guy who makes renting cheaper than owning.
That makes no sense. A landlord owner isn’t going to put the place up for rent and take a loss.
My daughter bought a house for $28,000 and sold it for $95,000.
I was attending a funeral out of state and ended up paying cash for a tiny little house because it was so cheap and because I had never owned any land or a house and wanted something in my back pocket, at the time I was renting a tiny shack on a California beach for $300.00 a month.
About 15 years later I ended up moving into that house, that little purchase was a heck of a lucky buy for me.
Own nothing. Be happy!
THAT’S AN ORDER.
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