Came across this and found it interesting. I know most of the board members here are around career starting/developing time and are curious about what to do down the road. Some of you are at the point where you are just sick of renting and want to own. Personally I will be at this stage in a few years and found this article useful.
This guy is making the assumption that if someone were to rent, the money they’re saving over having a mortgage and all that jazz will be put strictly into investing that will increase their net worth more than paying for a house and having that house as an asset down the road. The reality is, the majority of people who rent will just spend that additional money they are saving by not having a mortgage on other shit, and in the long run the homeowner will come out way ahead. But I could see how if you did it smart and rented then yeah you could end up doing pretty well in the long run.
make your first home a duplex. get rent from a tenant and suddenly the amount you pay on your mortgage is the amount, if not less, than what you paid when you used to rent.
gain equity, buy another home, rent out both sides of the duplex, succeed at life
[quote=“sureshot!,post:4,topic:34915"”]
make your first home a duplex. get rent from a tenant and suddenly the amount you pay on your mortgage is the amount, if not less, than what you paid when you used to rent.
gain equity, buy another home, rent out both sides of the duplex, succeed at life
[/quote]
Yup, or buy a nice 3 room house and rent the 2 other rooms out to 2 of your buddies for say 200 bucks each all included. Then you have 400 a month to help you pay for everything. Oh make sure you have a 12 car garage.
Dur, great article. :uhh:
Your rent will go up. Probably every 2 years. My mortgage payment will be the same 28 years from now. Oh wait, thanks to inflation the value of my payment actually goes DOWN every year. While the house is appreciating. My house was built 50 years ago for a mortgage of about $8000. The house is now worth well over $100,000.
Did that article conclude anything? He presented what he was doing, but no numbers or conclusions?
Yes, the article is correct that you should look deeper, not just compare the payments today. Beyond that, good luck proving that renting over 30 years makes more sense than buying. If you can do that you’d better find your error.
Short term, yes there are situations where renting makes more sense. But when it comes to a place you’re going to spend years and years at, owning > renting.
I read an article a while ago that actually does year by year comparison to which is cheaper…renting or buying. It took in the value of the house and after about 15-20 years (when the house had some value) it started to sway from renting being cheaper to the house. By the time the mortgage was paid off it was a no-brainer that buying was cheaper…not only do you not have payments (just insurance and maintenance) but you have the value of your house as equity.
Think of mortgages as an investment…if the property value goes up (which it will with inflation) you should be able to cover the purchase price and interest paid at some point.
If the first ( linked ) article didn’t make you question the credibility of the website, perhaps another article I randomly found will help you realize that site is a crock of shit.
I’ll save everyone the hassle.
Augment Your Income By Going To NightclubsHere’s the rub: You will need a lot of survey responses before you can go to the next step. Thousands would be good. So your initial investment in this idea is going to cost you (and hopefully your lackey friends too) a number of weekends.
Let’s say… 2 people, 4 hours a night ( 10-2 ) twice a week ( friday and saturday ) for 6 weeks. 2 x 4 x 2 x 6 = 96 hours invested.
What’s in it for you? Either a cut of the bar sales, or the cover fee at the door. You can work out the proper compensation that suits you both with the bar owner. (If they charge a paltry $2 cover fee and 500 people come over the night, you just pocketed $1,000).
$1000! sweet. for 96 hours of work… 1000/96 = $10/hr.
Sounds like a great way to make some extra cash. Only sacrificing the weekends to question likely belligerent party-goers on the chip-strip… :bloated:
ps: clearly i ignored some key facts of this article, as i lost interest quickly and as a result my attempt to discredit the website was done very poorly
That article is wrong in so many ways I don’t know where to begin.
I may post later when I have sorted the 1000 reasons why owning is better.
I am not talking about pink headlight opinions, I am talking about simple math that does not lie.
He also lives in some dream land where he doesn’t need insurance on his stuff, doesn’t have to pay for heat or cable or any number of retarded assumptions. Was that written by Jack or something?
the less house/apartment you need the more the article makes sense… the taxes on the house I rent add up to more then I personally pay per year in rent… nothing can make that flip. but it’s only because i have roommates.
as you want more house / garage etc it becomes more worth it to buy.
Fuck that , renting is the sux. Cant do shit to the apt. that would really make it better. What if you wanted a deck or something, good luck getting that out of a landlord. Owing a home is 10000000000000000000000000 X better then renting.
Uhh, let’s see if I remember 6th grade logic.
If you rent, the money you spend will be gone forever. ($700/mo x 12x 30years =$250k)
If you buy, considering you will sell down the road, you will get all that money back, and possibly more.
How I ever made it to the 7th grade is beyond me.
Personally that article does nothing for my situation. My house is worth 40% more than I paid for it because I basically stole it since the market is so horrible here right now and the house was vacant for over half a year when I got it. Also my property taxes for the entire year are about 1.5 months rent at my old apartment. Not to mention my loan payment is less than I was paying in rent and I made the sellers throw in a home owners warranty for 3 years so I don’t have many maintenance costs except when the wife wants to change the landscaping and such. I guess I could see his idea working but it would have to depend on each persons situation.
That guy is either retarded or thinks his audience is retarded.