Renting V Owning

[The Psychic Observer 193]

53 minutes ago, Stryker Ryker said:

Rent until you can buy. Buy a cheaper house to start with. Sink some money into it to fix it up. Sell after living there for a few years. Buy another cheap house & fix it up. Should have some money left over from first sale. Rent that house out & use money from first sale to buy another house. Rinse & repeat until you have a good 5-8 houses you’re renting. 

Wouldn't it make more sense to rent those 5-8 houses instead of buy them?

[Stryker Ryker 176]

27 minutes ago, The Psychic Observer said:

Wouldn't it make more sense to rent those 5-8 houses instead of buy them?

I don’t think you quite understand 

[listen2me 23 1,542]

Renting is fine depending what you are trying to do.  And probably even more so in these big cities where a good house is ungodly amounts.  

I just find it funny, people living in big cities making big boy money but buying a house in said location is just ridiculous for them.  Cost of living matters.  

[listen2me 23 1,542]

1 hour ago, Stryker Ryker said:

Rent until you can buy. Buy a cheaper house to start with. Sink some money into it to fix it up. Sell after living there for a few years. Buy another cheap house & fix it up. Should have some money left over from first sale. Rent that house out & use money from first sale to buy another house. Rinse & repeat until you have a good 5-8 houses you’re renting. 

This makes sense but a couple things.

A. Many people living in big metro areas can't really do this unless they slum it.  There are no houses that they can realistically do this a couple times.

B. City folk don't know how to do anything.  So fixing up a house that needs a bit of TLC is a money pit, paying out big outfits who are even higher priced in these areas gets expensive.  

Me and a friend put a roof on my house and I paid maybe a quarter of what many of you would pay for the same exact job.  

[Stryker Ryker 176]

1 hour ago, listen2me 23 said:

This makes sense but a couple things.

A. Many people living in big metro areas can't really do this unless they slum it.  There are no houses that they can realistically do this a couple times.

B. City folk don't know how to do anything.  So fixing up a house that needs a bit of TLC is a money pit, paying out big outfits who are even higher priced in these areas gets expensive.  

Me and a friend put a roof on my house and I paid maybe a quarter of what many of you would pay for the same exact job.  

Yea it’s a lot harder to do in a major city like LA or NYC. Be a little easier to do in smaller ones 

[seafoam1 1,879]

1 hour ago, listen2me 23 said:

This makes sense but a couple things.

A. Many people living in big metro areas can't really do this unless they slum it.  There are no houses that they can realistically do this a couple times.

B. City folk don't know how to do anything.  So fixing up a house that needs a bit of TLC is a money pit, paying out big outfits who are even higher priced in these areas gets expensive.  

Me and a friend put a roof on my house and I paid maybe a quarter of what many of you would pay for the same exact job.  

"TLC" is a relative term in a sense. If you need a new roof, you may need a new furnace, new windows, new driveway, etc...

Or... Maybe you already paid up for those over the years. 

[listen2me 23 1,542]

16 minutes ago, seafoam1 said:

"TLC" is a relative term in a sense. If you need a new roof, you may need a new furnace, new windows, new driveway, etc...

Or... Maybe you already paid up for those over the years. 

I bought my house around 4 years ago.  After I bought it I put the roof on just because it was going to need it coming up.  A dying pine had did a number on 1 side and the garage.   Also had the tree cut down.  I did put in a new water tank last year.   4 windows in the kitchen.  So far.   

It wasn't a total fixer upper.  But yeah when I bought it, it could use a few things.  Everything else as is, I am still comfortable with until something goes wrong.  

[seafoam1 1,879]

4 minutes ago, listen2me 23 said:

I bought my house around 4 years ago.  After I bought it I put the roof on just because it was going to need it coming up.  A dying pine had did a number on 1 side and the garage.   Also had the tree cut down.  I did put in a new water tank last year.   4 windows in the kitchen.  So far.   

It wasn't a total fixer upper.  But yeah when I bought it, it could use a few things.  Everything else as is, I am still comfortable with until something goes wrong.  

[listen2me 23 1,542]

As for vehicles, I have always been for owning.  But have been more open to leasing now a days.  These winters do a number on your vehicle.   I drive a decent amount however.  

[Horseman 1,514]

7 minutes ago, listen2me 23 said:

As for vehicles, I have always been for owning.  But have been more open to leasing now a days.  These winters do a number on your vehicle.   I drive a decent amount however.  

Cash for slightly used vehicle is the sweet spot for me.  Basically new, less depreciation, never a loan.  

[Horseman 1,514]

7 hours ago, Alias Detective said:

which market and which index?  If you are talking the S&P 500 then I agree, its hard to beat and any active manager who does will be on the cover of Barron's ad nauseam.

I think that's true of any index fund.  That's what I'm confused about your subpar comment.

[seafoam1 1,879]

Just now, Horseman said:

Cash for slightly used vehicle is the sweet for me.  Basically new, less depreciation, never a loan.  

Me too. But my weakness is almost always buying new. But at least I hang on rhem for at least 150000 miles. 

[Ron_Artest 681]

2 minutes ago, Horseman said:

Cash for slightly used vehicle is the sweet for me.  Basically new, less depreciation, never a loan.  

You buy used cars?

What about the former owners dead skin?

[Horseman 1,514]

1 minute ago, Ron_Artest said:

You buy used cars?

What about the former owners dead skin?

Never heard of getting a car detailed?  Man you must be poor.

[listen2me 23 1,542]

Just now, Horseman said:

Cash for slightly used vehicle is the sweet for me.  Basically new, less depreciation, never a loan.  

Ive only ever had 3 vehicles.   1 I bought for 1500.  Other I made payments on foolishly young.   And my truck now that I paid cash for through a buddy whos dad owns a car shop.   My truck is starting to rust and I don't want to fix it because it doesn't last in these winters.  Ive had it for 6 years and it still runs great hardly any issues.  Torn on looking around or fixing it here and there to not let it get like a bomber.     

[Ron_Artest 681]

3 minutes ago, Horseman said:

Never heard of getting a car detailed?  Man you must be poor.

The guy who buys used cars accusing others of being poor

[Horseman 1,514]

Gutterboy's version of buying a used car is finding one on Craigslist.  

[seafoam1 1,879]

Just now, Horseman said:

Gutterboy's version of buying a used car is finding one on Craigslist.  

One that his $300 budget can afford. 

[Horseman 1,514]

Just now, Ron_Artest said:

The guy who buys used cars accusing others of being poor

How many times do we have to cover this for the on the spectrum posters?

The vast majority of self made millionaires got that way by being smart with money.  That habit never changes.

Idiots buy a new car that depreciates 20% instantly, and you take out a loan to pay for it.

Smart people by the exact same car one year old at a 20% discount with cash. 

You're welcome.  

[listen2me 23 1,542]

If I had money to just burn id still buy an upper end vehicle slightly used.  Those people take care of them and get bored.  They can drive it off the lot and to church 5 times and sell it.  If its a regular vehicle then id buy new.  

[Horseman 1,514]

1 minute ago, listen2me 23 said:

If I had money to just burn id still buy an upper end vehicle slightly used.  Those people take care of them and get bored.  They can drive it off the lot and to church 5 times and sell it.  If its a regular vehicle then id buy new.  

   The spectrum posters should listen2you.

[listen2me 23 1,542]

I myself cant justify spending over 40k on a vehicle.   And thats generous.  The roads around here absolutely suck once wveey 2 years.  You cant miss a pothole. The winter salt takes a toll and even if you drive a nice car it looks like crap unless you wash it each day.  

Id love a new truck but the prices get ridiculous.    I like to drive something decent but to me at end of the day its a body mover at this point.  And it needs to be able to get around the roads.   

[listen2me 23 1,542]

A lot of the coveted vehicles here, people look for from the south and away from the ocean.  Tennessee is a hotbed  for vehicles getting bought and sold up here.  

[Alias Detective 1,179]

22 minutes ago, Horseman said:

I think that's true of any index fund.  That's what I'm confused about your subpar comment.

I prefer the SPY, RUT and other well known indexes.  As you even stated, your goal is to beat the indexes.  I say the goal is to beat the s&p and that’s the index to be in if your in growth mode.

[Horseman 1,514]

5 minutes ago, Alias Detective said:

I prefer the SPY, RUT and other well known indexes.  As you even stated, your goal is to beat the indexes.  I say the goal is to beat the s&p and that’s the index to be in if your in growth mode.

I said that meaning that you can beat the indexes with regular rebalancing.  But my investing in index funds is to match the market they are indexing, that's what they do.  I'm not investing in funds that say they can beat the indexes, because I'm not convinced any can with any certainty or regularity.  

Agree S&P is a good one for growth.  I'm moving towards total market (as compared to S&P) to reduce risk nearing retirement.  

[Horseman 1,514]

16 minutes ago, Alias Detective said:

I prefer the SPY, RUT and other well known indexes.  As you even stated, your goal is to beat the indexes.  I say the goal is to beat the s&p and that’s the index to be in if your in growth mode.

I'd also suggest VOO (0.030%) instead of SPY (0.090%) since it has a lower expense ratio.

https://www.portfoliovisualizer.com/fund-performance?s=y&sl=5mIMtrQEa4PnqVAK0JyBso

[Alias Detective 1,179]

Fair enough.  

34 minutes ago, Horseman said:

I'd also suggest VOO (0.030%) instead of SPY (0.090%) since it has a lower expense ratio.

https://www.portfoliovisualizer.com/fund-performance?s=y&sl=5mIMtrQEa4PnqVAK0JyBso

 

[Baker Boy 1,485]

Biden to target ‘rent gouging' landlords, as high housing costs factor into 2024 race
 

https://www.nbcsandiego.com/news/business/money-report/biden-to-target-rent-gouging-landlords-as-high-housing-costs-factor-into-2024-race/3465115/
 

my mortgage payments have never gone upI guess that’s a benefit to not renting.

 

[jonmx 1,591]

Squatting >>>>>>>>>>>>>>>>>Owning>>Renting. 

[Maximum Overkill 645]

You're an absolute idiot if you rent. 

It's that simple 

[Bert 1,091]

2 hours ago, Baker Boy said:

Biden to target ‘rent gouging' landlords, as high housing costs factor into 2024 race
 

https://www.nbcsandiego.com/news/business/money-report/biden-to-target-rent-gouging-landlords-as-high-housing-costs-factor-into-2024-race/3465115/
 

my mortgage payments have never gone upI guess that’s a benefit to not renting.

 

Yeah but your insurance, maintenance cost and property taxes have. 

[Ultra Max Power 214]

6 hours ago, Baker Boy said:

Biden to target ‘rent gouging' landlords, as high housing costs factor into 2024 race
 

https://www.nbcsandiego.com/news/business/money-report/biden-to-target-rent-gouging-landlords-as-high-housing-costs-factor-into-2024-race/3465115/
 

my mortgage payments have never gone upI guess that’s a benefit to not renting.

 

Rent gouging is a byproduct of Bidenomics. Everything the landlord provides and covers has gone up 15-20%, so the rent naturally does as well. 

[Maximum Overkill 645]

 

[Baker Boy 1,485]

The value of American homes has gone up 26% since Joe Biden took office. 

[Bert 1,091]

3 minutes ago, Baker Boy said:

The value of American homes has gone up 26% since Joe Biden took office. 

Insurance costs have gone up 45%.  Maintenance cost are up about 50-55%. What is your point?  And don't forget the increase in property taxes that comes with that increased value.

[seafoam1 1,879]

1 minute ago, Bert said:

Insurance costs have gone up 45%.  Maintenance cost are up about 50-55%. What is your point?

He has a lot of points, just no good ones. 

[Maximum Overkill 645]

A small, half decent apartment runs $2,000 a month at least. WTF would anyone rent and pisss their money away? 

[Alias Detective 1,179]

10 minutes ago, Bert said:

Insurance costs have gone up 45%.  Maintenance cost are up about 50-55%. What is your point?  And don't forget the increase in property taxes that comes with that increased value.

The cost of insurance and maintenance is due to increased wages and materials.  Bidenomics.

[Baker Boy 1,485]

1 minute ago, Bert said:

Insurance costs have gone up 45%.  Maintenance cost are up about 50-55%. What is your point?  And don't forget the increase in property taxes that comes with that increased value.

 

1 minute ago, Bert said:

Insurance costs have gone up 45%.  Maintenance cost are up about 50-55%. What is your point?  And don't forget the increase in property taxes that comes with that increased value.

What is your point are you saying that you don’t pay insurance , property, taxes, and maintenance in your rent? 
 

my point is that you don’t have any equity in your rental property.

BTW: property taxes, and a large portion of mortgages (interest) are tax deductible. 

[seafoam1 1,879]

Just now, Baker Boy said:

 

What is your point are you saying that you don’t pay insurance , property, taxes, and maintenance in your rent? 
 

my point is that you don’t have any equity in your rental property.

BTW: property taxes, and a large portion of mortgages (interest) are tax deductible. 

It's funny to watch people not understand how  things work....