# Rent Vs. Buy Myths That Ruined the Housing Market **URL:** \ **Category:** NYSpeed Off Topic\ **Created:** [March 20, 2008, 8:44am UTC](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333 "2008-03-20T08:44:25Z")\ **Posts on this page:** 6\ **Page:** 5
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [March 27, 2008, 10:22am UTC](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333/81 "2008-03-27T10:22:40Z")
not always… shitty houses tend to be in undesirable locations. easy to end up with the best house on the block syndrome. ---
**Author:** ![Syclone11](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/syclone11/32/7300_2.png) [@Syclone11](https://forums.speedlife.net/u/Syclone11)\ **Post date:** [March 27, 2008, 10:32am UTC](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333/82 "2008-03-27T10:32:01Z")
> [@theblue](#): > > not always… shitty houses tend to be in undesirable locations. easy to end up with the best house on the block syndrome. Right now with the way the market is and the foreclosures that is not necessarily true. Many of the mid-to higher end houses in the Central Florida area are being foreclosed due to people who go interest only and adjustable rate mortgages and defaulted. The banks were practically giving away loans 3-5 years ago here in the area due to the mass amount of housing developments that were going up daily to accomodate the housing boom here in Central FL. People ‘bought’ into the theroy that they could refinance or sell their houses for profit before the interest only or adjustment period came due. Unfortunately, that was not the case and a house that may have appraised at $300k 3 years ago is now appraising at $260 -275 along with a hit of 5% now that it is considered a ‘depreciating market’. ---
**Author:** ![Fry](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fry/32/7284_2.png) [@Fry](https://forums.speedlife.net/u/Fry)\ **Post date:** [March 27, 2008, 10:40am UTC](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333/83 "2008-03-27T10:40:36Z")
> [@66impalass](#): > > PM me any issues you had financing 100%, I am curious if this is a viable option for me or should I wait to get 20% down… No issues. Just a mortgage for the sale price of the house. IIRC our interest rate was like 0.4% higher in exchange for no PMI or something like that. Since we’ll only be in this house for ~5 years it worked out in our favor to do it that way. My mortgage broker was Sam DiPiano at Premium Mortgage out of Rochester. I don’t think he’s with them anymore though. My financial advisor recommended him. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [March 27, 2008, 10:50am UTC](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333/84 "2008-03-27T10:50:48Z")
> [@Syclone11](#): > > Right now with the way the market is and the foreclosures that is not necessarily true. Many of the mid-to higher end houses in the Central Florida area are being foreclosed due to people who go interest only and adjustable rate mortgages and defaulted. The banks were practically giving away loans 3-5 years ago here in the area due to the mass amount of housing developments that were going up daily to accomodate the housing boom here in Central FL. People ‘bought’ into the theroy that they could refinance or sell their houses for profit before the interest only or adjustment period came due. Unfortunately, that was not the case and a house that may have appraised at $300k 3 years ago is now appraising at $260 -275 along with a hit of 5% now that it is considered a ‘depreciating market’. agreed, I was talking more of WNY where we didn’t have the boom. for some reason you post reminded of my ditech’s stupid slogan “people are smart”… I f-ing hate that slogan because it means less than nothing. ---
**Author:** ![Daddie](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/daddie/32/7621_2.png) [@Daddie](https://forums.speedlife.net/u/Daddie)\ **Post date:** [March 27, 2008, 10:52am UTC](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333/85 "2008-03-27T10:52:31Z")
> [@bing](#): > > Arbitrarily chasing tax benefits is kinda stupid. Net dollars is all that matters. > > Cash flow, like in business, is the often more important than the bottom line. Companies can grow too fast, but can never have too much cash flow. > > Similarly, stretching your credit to be “house rich, cash poor” is very dangerous. > > Anyone in this thread that is unequivocally pro-equity / pro-mortgage is a product of the same construct that has led to the state of America’s credit. You guys are paying car payments, home payments, credit card payments that are probably for your car or car stuff. > > You have no cash flow or very little. > > This creates dependency on work, reduces your ability to take financial risks (starting businesses when you have a young family to provide for), exposes you to great danger in the event of physical injury and therefore requires you to ouptput more cash on insurance. > > it is an all around unhealthy way to manage your funds. > > – > > buying is not necessarily bad, like i said… i just bought a home… but renting can be a way better investment depending on what you do with your free cash. > > If you have your own business or if you are a savvy market player you can make your cash flow (difference between renting and buying) earn greater returns than a home. Arbitrarily thinking I am ONLY in this for tax benefits is also stupid 🙂 But from the way it sounds - you’re renting a cheap ass place. You have to compare apples to apples. A nice place to rent that will cost you 2500 + utils, is going to cost you around the same in a mortgage. When you are done with the house (which most people are within a few years, before their mortgage is up) you have paid of some principle and yes, interest as well, however you sell your house worth something, and go to the next one. When you rent - you stop paying, and you move. Everything you gave your landlord is gone. While you lived there, there was no tax benefits to you. You have nothing to show for your past x amount of years besides your semi-empty checking account from which you paid your rent. Not to mention this : cash flow - without a house, what equity do you have? What can you put as collateral when you take a loan out? Whilst your house isn’t an ATM, it’s a big fat piece of colateral for a loan. And I’m sure the house is worth more than what you can save from renting/saving, vs buying/saving. Not to mention your cash is just that - cash, and doesn’t exactly “appreciate” nowadays. Well, maybe your Canadian money did. Fucker. So what are you saying, because you don’t own a house you don’t depend on your job? You have to pay rent don’t you? I don’t see your point. ---
**Author:** ![Syclone11](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/syclone11/32/7300_2.png) [@Syclone11](https://forums.speedlife.net/u/Syclone11)\ **Post date:** [March 27, 2008, 12:20pm UTC](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333/86 "2008-03-27T12:20:36Z")
I agree with Howie ^^^^ [Previous page](https://forums.speedlife.net/t/rent-vs-buy-myths-that-ruined-the-housing-market/45333.md?page=4)