not if you can rent for a comparable cost to home upkeep + repairs + utilities + insurance
and that's not even factoring in the time cost of a house vs an apartment
OP, are you renting or something? That's the biggest waste first of all.
not if you can rent for a comparable cost to home upkeep + repairs + utilities + insurance
and that's not even factoring in the time cost of a house vs an apartment
I'd disagree with you.
Generally, speaking, you can buy a home for less than you can rent in terms of overall. The key thing being that you are making an investment over time that will have value. It takes a while for the value to be realized, but it can be done.
And if you start off with someone that needs a LOT of work, you generally have to pay less up front to own it and can use your own time and effort to add value. There will be expenses along the way, but you'll be able to make whatever changes you chose. So long as you don't overbuy, you should always be able to beat rent.
There is a reason why people buy several properties to rent. Because renting is profitable... for the ones receiving the check.
I'd disagree with you.
Generally, speaking, you can buy a home for less than you can rent in terms of overall. The key thing being that you are making an investment over time that will have value. It takes a while for the value to be realized, but it can be done.
And if you start off with someone that needs a LOT of work, you generally have to pay less up front to own it and can use your own time and effort to add value. There will be expenses along the way, but you'll be able to make whatever changes you chose. So long as you don't overbuy, you should always be able to beat rent.
There is a reason why people buy several properties to rent. Because renting is profitable... for the ones receiving the check.
This is not always true, which is why so many amateur investors sell after X years after eating their shit in losses. All it really takes is 1 bad tenant to fuck you up.
This happened to my wife's parents. Well, sorta. They own 16 condominium units across two complexes. Overall, they have earned about 12x what they put in. All the mortgages are paid off. They only have to cover taxes and the HOA dues. The rest is gravy to the tune of $1,200/month/unit. Since they bought in so low, they see a 100% return on the investment every two years. This is their retirement income.
They rented one unit to the same guy for 17 years. When he was moved out by friends to an assisted living facility, the place was totally trashed. Totally. There was an unreported leak that damaged drywall and rotted out the framing, there was a roach infestation, the refrigerator died at some point and the food rotted. They had to spend about $50k gutting the entire unit to the studs and beyond. Though, to be honest, they were going to do that regardless of the condition of the unit in order to update it and enable a $1,600/month rent.
Edit: Unfortunately, my wife has a sister, so we only have half of the units bequested to us.
Of course it CAN be done, but it's not a guarantee. You take on leverage, extra costs, and risk. Your returns are essentially compensation for these things. In some markets, renting is cheaper than owning, because home values have risen at a rate that outpaces rent increases and landlords are speculating on house values continuing to rise. Sure, you could hop between renting and owning as the math changes, but frictional costs would kill you.Generally, speaking, you can buy a home for less than you can rent in terms of overall. The key thing being that you are making an investment over time that will have value. It takes a while for the value to be realized, but it can be done.
And if you start off with someone that needs a LOT of work, you generally have to pay less up front to own it and can use your own time and effort to add value.
All has been explained. The best way to make a lot of money is to inherit it. You are so out of touch with reality because you haven't really had to make it on your own. It's so much harder to make it in our current economy then it used to be.
he didn't inherit his job though, and sounds like he doesn't have the properties now.
it'll be a nice perk though. i am trying to save a few hundred grand to help out my parents when they retire.
While he didn't inherit the job directly I'm sure that the contacts he gained through his wealthy in-laws didn't hurt. I would be genuinely shocked if Safeway's success was entirely self-made.
is anyone's success self-made though? unless you were raised by actual wolves, i think the answer is no.
For the majority of people born in a 1st world country in which the state provides free basic education and health care it will be predominantly your choices which decide what kind of life you make for you and your family.
*shrug* Not that difficult. I've squirreled away about 35-40% of gross total income (salary, RSUs, etc.) since I've started working.
OP, are you renting or something? That's the biggest waste first of all. A mortgage is also a big cost but there are benefits to doing it.
After daycare, saving became a lot easier for us and should be for most families.
It's pretty easy to save money until you get a wife and kids. Then all of your money gets eaten up by things like toys, sports equipment, and cleaning supplies.
No this is stupid. Renting is not a waste. The idea that having a mortgage is somehow this amazing thing is why housing crashes happen. Renting gives you tons of benefits that mortgages strip away.
Yet nothing sucks worse than thousands and thousands going out and never coming back.
^ This, especially if you're not settled in for the long haul in a particular city.No this is stupid. Renting is not a waste. The idea that having a mortgage is somehow this amazing thing is why housing crashes happen. Renting gives you tons of benefits that mortgages strip away.
Like Property taxes? Housing repair costs? HOA fees? Interest?
Housing appreciating could make up for it. You chose not to quote that part.
...because houses don't always appreciate. The other things I listed are pretty much guaranteed though.
So renting for 20 years is better?
You talk like you'll never pay property taxes or mortgage interest...
I was typing with one hand while eating with the other so I didn't feel like expanding on it, but anyway - freedom from being tied down to 1 location... that's what renting is good for. It applies to people in certain stages of their life, maybe if they're not sure the area is great, or students (obviously), but that's about it.
Mortgage - it's the better of the two, but it still sucks. Yet nothing sucks worse than thousands and thousands going out and never coming back. Our house - even after spending $200k additional to build up we were appraised at over $150k above that and we're only 5 years in. Our mortgage is not the "amazing thing"... our asset is.
I think the right answer is "it depends".
I understand that these costs are paid through my rent, but homeowners act like they aren't also pissing money away every month.
As for pissing away money... I already said housing is never going to be free. You ARE going to be worse off because you're starting from minus the money you've paid in rent.