Skip to comments.
Renters Gloat Over the Housing Slump
The Wall Street Journal Online/Yahoo! Finance ^
| December 29, 2006
| James R. Hagerty and George Anders
Posted on 12/29/2006 6:45:01 AM PST by Labyrinthos
click here to read article
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-80 ... 181-191 next last
Timing is everything.
To: Labyrinthos
Housing prices rise: renters hit.
Housing prices fall: homeowners hit.
Housing prices flat: renters and homeowners hit.
That should cover it . . . .
2
posted on
12/29/2006 6:48:10 AM PST
by
1rudeboy
To: Labyrinthos
If one really investigates, while ignoring common wisdom, then it will become clear that a mortgage, therefore buying a home, is a LIABILITY, not an asset as presumed by the masses.
A mortgage[house] is ONLY an asset when OTHERS are paying the mortgages off, while putting a chunk of change in your pocket monthly. [Leasing or renting.]
3
posted on
12/29/2006 6:53:20 AM PST
by
100-Fold_Return
(MONEY Cometh To Me NOW)
To: Labyrinthos
I'd say that it makes a great difference whether you are buying a house to live in, or buying a house as an investment.
But I know one thing - you'll never build equity by renting.
4
posted on
12/29/2006 6:54:11 AM PST
by
Kenton
(All vices in moderation. I don't want to overdo any but I don't want to skip any either.)
To: Labyrinthos
"Timing is everything."
Yep. Bought my 4/2 2550 sq. ft. in 2001 for $181,000. (Needed a little TLC) it is now worth $400,000. Can't afford to move. All who bought before the overvalued boom are sitting pretty. This renter is just trying to justify his poor timing. Cheers!
5
posted on
12/29/2006 6:57:11 AM PST
by
poobear
(Political Left, continually accusing their foes of what THEY themselves do every day.)
To: Labyrinthos
Timing is everything. Yep. This engineer is probably from silicon valley or somewhere that has seen a 100% run up in the last 6 years and is gloating because his market pulled back 9.7%. Remind me not to hire him as a financial advisor.
To: 100-Fold_Return
The money that goes towards rent goes NOWHERE. Besides, why make other people rich?
7
posted on
12/29/2006 7:03:59 AM PST
by
Extremely Extreme Extremist
(Why can't Republicans stand up to Democrats like they do to terrorists?)
To: 100-Fold_Return
If one really investigates, while ignoring common wisdom, then it will become clear that a mortgage, therefore buying a home, is a LIABILITY, not an asset as presumed by the masses. The note is a liability and the house is an asset. That is how every accountant would record the purchase of a house. Trying to claim that when you purchase a house, all you get is a liability is not accurate.
To: 100-Fold_Return
"If one really investigates, while ignoring common wisdom, then it will become clear that a mortgage, therefore buying a home, is a LIABILITY, not an asset as presumed by the masses.
A mortgage[house] is ONLY an asset when OTHERS are paying the mortgages off, while putting a chunk of change in your pocket monthly. [Leasing or renting.]"
You are absolutely right. Owning a home is the biggest liability as long as you live in it and pay the mortgage. It may appreciate in value and be an asset when you sell it but it is the biggest money sink while you live in it. The reasons to buy a home are more emotional and life can't be lived on logic only. The banks have a done a great job in brain washing the masses that a home is an asset and you need that tax deduction. Only something that puts money in your pocket every month is an asset and something which takes money out of your pocket is a liability.
9
posted on
12/29/2006 7:06:14 AM PST
by
Maneesh
(A non-hyphenated American.)
To: Kenton
But I know one thing - you'll never build equity by renting.
_____________________________________________________
Not a helpful statement though is it? That's like saying you'll never pay RE taxes while renting.
If renting frees up cash flow that you use to max out your 401K I wouldn't be surprised if renting would help you build equity.
10
posted on
12/29/2006 7:07:45 AM PST
by
Rippin
To: Labyrinthos
Let the renters gloat all they want. I have three rentals and raised the rent in all three this year. Housing starts are down and population is up. Let us landlords have a little gloat of our own.
To: 100-Fold_Return
In some areas even a mortgaged home can be an asset. Our pirmary residence has gone up over 30,000 per year, while the PITI is 22,000. That's a net asset.
To: poobear
My husband and I bought our 2 bedroom lake house several years ago for $80,000. I was recently told we could get well over $300,000 for it now.
13
posted on
12/29/2006 7:10:03 AM PST
by
MissEdie
(Liberalscostlives)
To: Rippin
I'll take real estate equity in investment (rental) properties over 401 (k).
To: 100-Fold_Return
If one really investigates, while ignoring common wisdom, then it will become clear that a mortgage, therefore buying a home, is a LIABILITY, not an asset as presumed by the masses.How right you are. I had this exact discussion over Christmas dinner and no matter how many times I explained the math, they just didn't get it.
To: carolinalivin
And I take (and have) them both. :)
To: linda_22003
I think 401 (k) is wasted investment, when you can do so much better in insurance grade investing or real estate. But suit yourself.
Best wishes!
To: Always Right
The note is a liability and the house is an asset. That is how every accountant would record the purchase of a house. You would be absolutely stunned at how many people cannot make that distinction ... or maybe you wouldn't.
18
posted on
12/29/2006 7:14:24 AM PST
by
Centurion2000
(Not one of those seasonal Festivians. I practice the Airing of Grievances daily. Often on this site.)
To: Extremely Extreme Extremist
"The money that goes towards rent goes NOWHERE."
Money that goes towards rent gives one a place to live. No, you certainly aren't building any equity while renting, but you aren't paying for a new roof or fixing a busted hot water heater.
There are some people who don't want to buy a house. I can appreciate that. Other people can't see renting. I can see that also. But money spent on rent is not a waste, unless you consider living with a roof over your head a "waste."
19
posted on
12/29/2006 7:14:51 AM PST
by
fleagle
To: carolinalivin
I do, thanks - when it gets up past a half million or so, it really snowballs. When I had $100k or so, I would have totally agreed with you. :)
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-80 ... 181-191 next last
Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson