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Isn't it silly how people pay more for rent than mortgage?

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Bignate603 said:
This. Once you own a home you'll realize that covering the mortgage is only part of the cost. Properly maintaining a home and covering all the taxes/fees/insurance is not that cheap.
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Yep. I bought a house because the mortgage was way cheaper than renting. Thought that meant I'd be paying less, but I was wrong. Hopefully I can sell it in a few years when I finish gradschool.
 
Shawn said:
Yep. I bought a house because the mortgage was way cheaper than renting. Thought that meant I'd be paying less, but I was wrong. Hopefully I can sell it in a few years when I finish gradschool.
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The benefits outweigh the costs though, especially when you're done paying it off. Just need to ensure there's no HOA or you may as well be renting.
 
Red Squirrel said:
Well it depends....
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mmm hmmm. ^_^

Anyway, both sides have merit. If you stick it out, make extra payments, choose an appreciating property, etc... owning a home can be very fulfilling and less costly in the long run. You get something for your money and payments do eventually end.

Of course there's also the risk of choosing a shit money pit property, the neighborhood going to hell, having to make major repairs, being house poor, losing the property, etc...

Renting allows you to skip all the maintenance, risk and hassle, nor are they anchored down if they decide to up and join the peace corps. Flexibility and that sense of freedom is worth a lot to a lot of people. You might, however, give up that freedom of ownership and control over your domain. Paint art on the walls, own pets, landscape as you please, crank your speakers and not deal with sharing walls.
 
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Corporate Thug said:
Our northern neighbors have failed to learn from our fiasco.
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We're just as stupid as the rest of the world... especially with a finance minister that put my province into huge debt during the boom times. He decided that 5% down, 40 year mortgages would be great... even after the 2007/2008 meltdown.
 
I don't know any newly graduated college students that can take home $50K/year AFTER taxes and health insurance (providing he/she gets free room and board, free meals, free laundry, free car allowance and car insurance, free gas, free spending allowance, free everything else from mom and dad).

In my case, I haven't buy a house yet because I am not sure whether I will stay in this area or not. The housing/rent market around here is not too bad. Rent is about $800/month for 1BR at a nice apt. Houses are about 200K for 2K sq ft at a nice neighborhood with good school.

I do agree that if you are sure about staying put and starting a family, and have a stable good paying job, buy a house is a better option for the long term.
 
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I don't know any newly graduated college students that can take home $50K/year AFTER taxes and health insurance (providing he/she gets free room and board, free meals, free laundry, free car allowance and car insurance, free gas, free spending allowance, free everything else from mom and dad).
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Friend graduated with an undergrad from UTDallas in EE and is working at T.I. Dallas for $75k/y
 
Renters can move out at the end of the lease, and don't have to worry about depreciation.

I can't get out of my house unless I foreclose and destroy my credit, or put up $10-15k at closing.
 
OP is retarded.

let me recount my experiences working at a private bank doing lending specialized to 1 type of client, law firm partners and the average annual income i saw was 1 million.

most of them don't take out a mortgage to buy a house. the bank offer a special product for them instead of underwrite a mortgage. they take out a interest only mortgage from us for 10 years, like a lease.

there are many reasons for smart/rich people not to take out a mortgage. for them, their lease payments are tax deductible.
 
DixyCrat said:
Friend graduated with an undergrad from UTDallas in EE and is working at T.I. Dallas for $75k/y
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Read my post again.

... college students that can take home $50K/year AFTER taxes and health insurance...
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Your friend would pay about 25% of that 75K (assuming he/she does not have any other incomes) for federal tax, so just right of the bat, that $75K would be down to less than $60K or so, give or take (TX does not have state income tax and I am estimating the tax amount and deductions). Then health insurance.

Don't forget about other expenses of grown up (besides what I mentioned above in post #83 already) such as clothes and shoes for work/go to the movies/hang out with friends/travel for fun/buy a book or any electronic stuffs/internet connection/cell phone/personal grooming/etc.
 
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Tommy2000GT said:
I see nice homes that rent for around $2000+/mo.

But if you live with your parents for a couple of years and save up $150k-$200k for a down payment, you can pay less than $1000/mo for comparable or better house. And your monthly budget won't be stretched thin.
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LMAO. Is this guy for real ??
Who the fuck can save $150K-$200K in 2 years ??
And to top that off, its only for a down payment.
So wrong on so many levels.
Does the OP lives in the real world ??
 
The "renters end up with nothing" argument is true if you spend the difference every month instead of investing it.

Also, the equity in your home can be much harder to get at than the funds in a brokerage account. If you've lost your job you might not be able to borrow against it, and depending on the market it could take months to sell. After which, you're renting just like me.

Both have advantages, either one can be the better choice depending on where you are and what you want.
 
OP is the same brainiac making threads asking how to kiss a girl without leaving a hickey. Anything he says can be safely disregarded.
 
renting is good when you work and live somewhere you do not plan on staying for more than about 5 years.

I rent and apt and have 2 room mates that make it cheap for all of us.

wyoming is great, probalby has a higher avg. income and lower cost of living than most of the places all of you live.
 
Red Squirrel said:
Also in a very big emergency situation such as losing your job, you can always sell the house and make a decent profit with it.
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I bought my house less than a year before being laid off. Selling at that point wasn't an option.

Now that I'm tied to the house, I don't have the option of moving closer to my new job to reduce my commute. And I would have, if I were still renting, to save on gas money and wear and tear on my car.

I love my house, but if house prices were better, I'd probably be seriously considering selling it. As it is, I'm going nowhere.
 
I pay $3200 to rent if wanted to buy would be $4600 plus maintenance. Plus $200k down payment. No spank you.
 
chimaxi83 said:
OP is the same brainiac making threads asking how to kiss a girl without leaving a hickey. Anything he says can be safely disregarded.
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Ahhh...this explains it all.
14 yr old adolescent.
Save $150K-$200 in 2 yrs...hahahahahahahahahahahahahahahahahahaha.
 
jjsole said:
Renters can move out at the end of the lease, and don't have to worry about depreciation.

I can't get out of my house unless I foreclose and destroy my credit, or put up $10-15k at closing.
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Huh? Why would you have to foreclose or touch any credit? I always thought the way it worked is you put it up for sale, the money you get pays off the rest of the mortgage and the rest covers everything you've paid on the house so far + it's value increase since then. So unless you accept some ridiculously low ball offer you should be coming out with a profit, not a loss.

And I don't get people who want to move all the time. It's better to find a place, settle in, and be happy than moving every couple years. It can be a pita moving all the stuff and having to reorganize everything all the time.

I can see renting if you are working contract work and have trouble finding a full time job though. That's an unstable life style I would not want, but sometimes you have no choice.
 
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