"Renting is throwing your money away" -- total BS

[flot]

Just a little annoyed, as my auto-deducted mortgage payment jumped about $150 this month.

After a quick call to my bank, it turns out I'm now paying $500 a month in taxes and insurance on my $200k house.

So rather than "throwing away" $950 a month on rent (which, incidentally, included water, maintenance, lawn care, and a kickass pool surrounded by girls in bikinis) I am now "throwing away" $500 a month and having to scrounge up another $850 a month next to that for the mortgage, not to mention the extra $300 a month in random house crap I didn't need to have when I lived in my apartment.

That is all.

Edited: I said $600, $500 is more accurate

 

[FoBoT]

sell?

 

[NutBucket]

Yeah, but you have NOTHING to show for renting. Having a house is huge.

 

[PlatinumGold]

Originally posted by: flot
Just a little annoyed, as my auto-deducted mortgage payment jumped about $150 this month.

After a quick call to my bank, it turns out I'm now paying $600 a month in taxes and insurance on my $200k house.

So rather than "throwing away" $950 a month on rent (which, incidentally, included water, maintenance, lawn care, and a kickass pool surrounded by girls in bikinis) I am now "throwing away" $600 a month and having to scrounge up another $850 a month next to that for the mortgage, not to mention the extra $300 a month in random house crap I didn't need to have when I lived in my apartment.

That is all.

1. you get SOME of that back at tax time.
2. you are building equity, albeit more thru appreciation than paying off the loan.

 

[Corporate Thug]

Originally posted by: NutBucket
Yeah, but you have NOTHING to show for renting. Having a house is huge.

you have a place to live in

 

[pillage2001]

Originally posted by: NutBucket
Yeah, but you have NOTHING to show for renting. Having a house is huge.

Even a dog house?? Yayyyyyyy.

 

[flot]

I get SOME of that back, true - but only about 20% of what I am "throwing away"

And building equity is an interesting concept, I believe on the 1st year of my 30 year mortgage I will build about $19.32 of equity... On the other hand I could have continued renting and put $800 a month into the bank, which would give me a GUARANTEED $10,000 a year.

I'm not against owning a house, I rather like a lot of it, but it always makes me mad when people act like it's one of those things you HAVE to do, financially.

 

[MailBoxHead]

Originally posted by: NutBucket
Yeah, but you have NOTHING to show for renting. Having a house is huge.

No responsibility is good.

 

[NutBucket]

Originally posted by: pillage2001

Originally posted by: NutBucket
Yeah, but you have NOTHING to show for renting. Having a house is huge.

Even a dog house?? Yayyyyyyy.

You can always stick your head in a dog house if you really need to

 

[pillage2001]

Originally posted by: NutBucket

Originally posted by: pillage2001

Originally posted by: NutBucket
Yeah, but you have NOTHING to show for renting. Having a house is huge.

Even a dog house?? Yayyyyyyy.

You can always stick your head in a dog house if you really need to

But having a house is huge I can rent it to anyone who thinks renting is way better than owning.

 

[Jzero]

Originally posted by: flot
I get SOME of that back, true - but only about 20% of what I am "throwing away"

And building equity is an interesting concept, I believe on the 1st year of my 30 year mortgage I will build about $19.32 of equity... On the other hand I could have continued renting and put $800 a month into the bank, which would give me a GUARANTEED $10,000 a year.

It's a longer-term investment. What about after 10 years?
BTW, owning the WRONG property is still a bad investment.

 

[Liviathan]

Yep..I agree with you..Owning a house to live in is WAY over rated......build equity crap...Please...takes forever to make any dent on the interest.

I manage my financial life very responsibly. I have good investments, good amount saved up in the bank..and don't own a house..what a shock!!!! And I don't plan to any time soon.

 

[flot]

? After 10 years I would have $100,000 cash, vs my house would have to appreciate to 270,000... which is less risky??

 

[DT4K]

You get to deduct all the property taxes and interest when you file federal taxes. That makes a big difference.

You are building equity.

You pay taxes and insurance when you rent also. It's built into the rental rate. You don't honestly think the property owner pays the taxes out of their own pocket and takes a loss do you? Of course not, they charge enough rent to cover the taxes and all their maintenance costs and insurance on the building. And you should be paying renters insurance to protect your personal belongings anyway.

I've built about 30k in equity in the one year since I bought my house, and because of the 9k I paid in interest, my total federal income tax liability is ZERO.

 

[rancidcrabtree]

Call me when you sell the house for 250k two years from now. If your that short sided you should've never left the foil-windowed beehive you came from.


kev

 

[MAME]

I never understood owning a house. So what if your name is on it? I'd rather invest in stock and buy a house later on

 

[Ameesh]

Originally posted by: Liviathan
Yep..I agree with you..Owning a house to live in is WAY over rated......build equity crap...Please...takes forever to make any dent on the interest.

I manage my financial life very responsibly. I have good investments, good amount saved up in the bank..and don't own a house..what a shock!!!! And I don't plan to any time soon.

just make extra payments aside from your mortgage and your debt will go down immensely.

 

[flot]

Shanti, so let me get this straight, you only made $9k this year, yet you could afford a $150k house?

Of course the landlord is paying taxes etc - however, the guy across the street from me, in a house largely identical to mine, pays probably $250-300 a month (Less than HALF of what I pay) in taxes and insurance, strictly because he has lived there longer. How's that for fair government?

 

[DT4K]

And I don't know what it's like where you live, but I don't know where you come up with the extra 800 a month. My mortgage is 1200 a month including insurance, taxes, etc. It would cost me about 1200 a month to rent a similar house. So I'm not spending any extra money to own rather than rent.

If you are comparing renting a small apartment with buying a large house, then you really can't compare. Would it really save you 800 a month to rent the same house that you bought? If not, you can't logically compare the two.

 

[DT4K]

Originally posted by: flot
Shanti, so let me get this straight, you only made $9k this year, yet you could afford a $150k house?

Of course the landlord is paying taxes etc - however, the guy across the street from me, in a house largely identical to mine, pays probably $250-300 a month (Less than HALF of what I pay) in taxes and insurance, strictly because he has lived there longer. How's that for fair government?

WTF are you talking about?
Where did you get the 9k number from?

EDIT: I said I paid 9k in interest.
And I've never heard of property tax rates being dependent on how long someone has lived somewhere.

 

[flot]

900 sq ft apartment = $950 a month
1100 sq ft house = $1450 a month

Welcome to S. Florida. The "$800 a month" figure I quote is the literal $500 difference plus the $300 of misc house expenses that I did not have when renting an apartment.

Edit: You said you paid $9k in interest therefore you had no federal tax liability... which would mean that you only made $9k this year.

 

[ElFenix]

Originally posted by: Ameesh

Originally posted by: Liviathan
Yep..I agree with you..Owning a house to live in is WAY over rated......build equity crap...Please...takes forever to make any dent on the interest.

I manage my financial life very responsibly. I have good investments, good amount saved up in the bank..and don't own a house..what a shock!!!! And I don't plan to any time soon.

just make extra payments aside from your mortgage and your debt will go down immensely.

yeah really. its sooo easy to make double principle payments early on its ridiculous. each time you double the principle you're reducing the length by a month. when your principle payment is $15 a month or whatever, the extra $15 is easy to come by.

and i'd like to see an apt as large as the house you're in for the same money. not only do they have to pay a loan and taxes and all that, they're also turning a profit.

 

[eakers]

Originally posted by: Ameesh

Originally posted by: Liviathan
Yep..I agree with you..Owning a house to live in is WAY over rated......build equity crap...Please...takes forever to make any dent on the interest.

I manage my financial life very responsibly. I have good investments, good amount saved up in the bank..and don't own a house..what a shock!!!! And I don't plan to any time soon.

just make extra payments aside from your mortgage and your debt will go down immensely.

but you have to pay a penelty if you pay it off faster

 

[ScottyB]

The best part of owning your house: Not having noisy upstairs neighbors blasting one indian song in a constant loop for hours on end.

 

[ElFenix]

Originally posted by: eakers

Originally posted by: Ameesh

Originally posted by: Liviathan
Yep..I agree with you..Owning a house to live in is WAY over rated......build equity crap...Please...takes forever to make any dent on the interest.

I manage my financial life very responsibly. I have good investments, good amount saved up in the bank..and don't own a house..what a shock!!!! And I don't plan to any time soon.

just make extra payments aside from your mortgage and your debt will go down immensely.

but you have to pay a penelty if you pay it off faster

if you're taking loans with prepayment penalties you're doing something wrong