Buying a House vs Renting

[mmmmm...beer 807]

So as I stated in my Japan thread we recently sold our house.  Did pretty decent and made $223k all said and done.

That being said living in Japan on base we are provided a house for 3 years so no mortgage/rent.

We've bought and sold 4 houses in our last 20 years of marriage.

I've been really kicking around maybe not buying when we get back.

I'll have to run the numbers but with the interest rates where they are currently, taxes, insurance went through the roof lately as well.

Reading and watching more about how many folks well off don't buy/own their home anymore.

I mean.. maintenance... sheesh... I can't tell you how many Home Depot trips and thousands of dollars I've poured into homes.

[weepaws 3,191]

Wasn’t there a thread on this issue posted already? 

[mmmmm...beer 807]

3 minutes ago, weepaws said:

Wasn’t there a thread on this issue posted already? 

Dunno... I haven't been here for a a minute.

[LaChup 233]

If this doesn't scream, "Biden 2024!", I don't know what does.

[IGotWorms 4,058]

So you made $223k on the last house… how much would you have “made” renting?

Ok so you dropped some money on maintenance. $223k is a whole lotta maintenance!

But if you’re not sticking around then renting makes sense.

And it’s certainly not as good as it used to be with the higher interest rates. I’m sure it still makes more sense to own in many situations but I get the sticker shock of an 8% mortgage

[mmmmm...beer 807]

10 minutes ago, IGotWorms said:

So you made $223k on the last house… how much would you have “made” renting?

Ok so you dropped some money on maintenance. $223k is a whole lotta maintenance!

I get the sticker shock of an 8% mortgage

Right timing man.  I mean, think about it.  The house I paid $405 for in 2017 sold for $625k last month.

Our mortgage was $2150 @ 2.75%

Currently that same house... $4,170

Sooooooo... yeah.

[GutterBoy 2,899]

Think of it this way.  The person that owns your homes they pay mortgage, taxes, insurance, repairs, all that.  And then they charge you rent. Do you think they are taking a loss?

Everyone's situation is different, long term owning is always better. Short term it depends.

Many rents have gone up a lot recently.  My Sister in law is paying $200 less in rent for her 2 bed condo than I pay for my 5 bed house that I bought in 1999.

 

[Frozenbeernuts 2,264]

You will pay for all of that and more renting. If you move a lot or want something temporary, those are the only reasons to wait. Unless you think you can time the market. The problem with timing the market now is everyone knows the dollar is dying. Builders are also cautious enough not to build excess supply.

You need to wait until the actions of the corporations and politicians to reduce the population affect how many people are buying homes. That won't be for a while.

[TimHauck 2,870]

3 years from now?  Who knows what prices and interest rates will be then.

[Herbivore 1,134]

You should have kept your place and rented it out

[Maximum Overkill 1,988]

21 minutes ago, Herbivore said:

You should have kept your place and rented it out

.  Rent it out and take the mailbox money, buy another, then do it again, then again. 

[MLCKAA 574]

7 hours ago, IGotWorms said:

So you made $223k on the last house… how much would you have “made” renting?

Ok so you dropped some money on maintenance. $223k is a whole lotta maintenance!

But if you’re not sticking around then renting makes sense.

And it’s certainly not as good as it used to be with the higher interest rates. I’m sure it still makes more sense to own in many situations but I get the sticker shock of an 8% mortgage

Clearing $223k isn’t really the same making $223k.

 I know you guys were slap fighting about this a lot a while back and I’m not interested in that, but what you clear at closing doesn’t really quantify the profit on the sale of a house.

[mmmmm...beer 807]

45 minutes ago, Herbivore said:

You should have kept your place and rented it out

It was too nice to rent out IMHO.  My old man has rentals.  People treat rentals like . 

[MLCKAA 574]

4 hours ago, mmmmm...beer said:

It was too nice to rent out IMHO.  My old man has rentals.  People treat rentals like . 

We have the means to buy rentals, and I have the skills to maintain them, but my wife cannot be convinced to take that step for this exact reason.

[Herbivore 1,134]

5 hours ago, mmmmm...beer said:

It was too nice to rent out IMHO.  My old man has rentals.  People treat rentals like . 

yea, I get that. I have vrbo'ed our place. The renters have been great, but it is in a vacation spot.

[mmmmm...beer 807]

2 hours ago, MLCKAA said:

We have the means to buy rentals, and I have the skills to maintain them, but my wife cannot be convinced to take that step for this exact reason.

My old man just sold his last 14 plex up in thr Bakken in Williston, ND.

Apparently made good money off them but yeah.  He said its a ton of work and its hard to find good help to do it.

And people are worse than ever, entitled whiney, empowered in a not good way.

[mmmmm...beer 807]

One caveat I hadn't mentioned before.  Our oldest is 20... next is our 15 yo daughter.  Then of course the 5 yo daughter.

Thing is... we don't know where they will eventually end up and hopefully start their families.

I'll tell you one thing though, being away from our son while he has been in the military has sucked bigly.  I mean really sucked.  I love spending time with my kids.  We can't imagine just okay... bye bye now.  You go live wherever with your spouses and kids.  We're up here in the PNW.  Call us sometime.

Fock that!  I am going to be where my kids/grandkids are.  Don't care if we have to have two condos and switch every couple months.

We will be in our kids/grandkids lives.

F that absent grandparents BS.

So maybe not buying... renting a house or condo until we know where they plant will suffice.

[LaChup 233]

My in-laws have been waiting 30 years for things to improve. They haven't. Prices, interest rates, etc.. Now you can't even rent a house for the amount you could have bought one 10 years ago. 

[mmmmm...beer 807]

3 minutes ago, LaChup said:

My in-laws have been waiting 30 years for things to improve. They haven't. Prices, interest rates, etc.. Now you can't even rent a house for the amount you could have bought one 10 years ago. 

Uhmmm... 6 years ago interest rates were sub 3%.  What were they waiting for free houses?

[LaChup 233]

ummmm......prices

 

[mmmmm...beer 807]

9 hours ago, LaChup said:

ummmm......prices

 

You mean like the housing market crash in 2008 when everything went half price damned near?

[TimHauck 2,870]

On 7/29/2019 at 10:34 AM, edjr said:

Housing market is due for a yooge pop as well

Maybe @LaChup’s in-laws were like @edjr who thought the housing market was due for a “yooge pop” in 2019

[iam90sbaby 2,611]

Rent will be $3,500 a month in ten years and you'll wish you'd have bought 

[IGotWorms 4,058]

3 hours ago, iam90sbaby said:

Rent will be $3,500 a month in ten years and you'll wish you'd have bought 

Holy sh1t, 90sbaby said something smart!

[iam90sbaby 2,611]

1 hour ago, IGotWorms said:

Holy sh1t, 90sbaby said something smart!

$4,500 a month if we keep letting in third world scum

[Maximum Overkill 1,988]

6 hours ago, iam90sbaby said:

Rent will be $3,500 a month in ten years and you'll wish you'd have bought 

It's there now, here anyway 

[Maximum Overkill 1,988]

I hear that rent is 28 cents a month where MDC lives in Fishtown. 

[IGotWorms 4,058]

2 hours ago, iam90sbaby said:

$4,500 a month if we keep letting in third world scum

I was wondering how you’d turn this racist

[seafoam1 3,023]

People who don't know what wealth is, think having a mortgage on a home or fulling owning a home is the definition of wealth. It is proven false. Many times over.

It is the most mind limiting trap you can fall into unless you WANT to own. 

[IGotWorms 4,058]

2 minutes ago, seafoam1 said:

People who don't know what wealth is, think having a mortgage on a home or fulling owning a home is the definition of wealth. It is proven false. Many times over.

It is the most mind limiting trap you can fall into unless you WANT to own. 

We’ve been over this many times before peefoam, and your statement is simply false.

Owning a home is an element of wealth. It should not be the only or even biggest part. Of course you should have retirement savings, liquid savings and investments as well.

Unfortunately for a lot of people, their home equity is their biggest source of wealth, and if they’d been renters instead they’d really be screwed.

But I digress, the point is it is one source of building wealth, and a source that you do not have because you choose to use your housing payment to build someone else’s wealth. But hey man, you do you

[mmmmm...beer 807]

12 minutes ago, seafoam1 said:

People who don't know what wealth is, think having a mortgage on a home or fulling owning a home is the definition of wealth. It is proven false. Many times over.

It is the most mind limiting trap you can fall into unless you WANT to own. 

Reading a lot of stuff on this.  The "American Dream".... for mortgage companies anyway.

[seafoam1 3,023]

Just now, IGotWorms said:

We’ve been over this many times before peefoam, and your statement is simply false.

Owning a home is an element of wealth. It should not be the only or even biggest part. Of course you should have retirement savings, liquid savings and investments as well.

Unfortunately for a lot of people, their home equity is their biggest source of wealth, and if they’d been renters instead they’d really be screwed.

But I digress, the point is it is one source of building wealth, and a source that you do not have because you choose to use your housing payment to build someone else’s wealth. But hey man, you do you

It's false? And yet another golden showers dreamer. 

I know how to build wealth with without being tied to an anchor. I could pay cash for 3 homes priced at your 400k home that you are stuck in, and live off the rest of my funds for the rest of my life. And that's just my money. My girlfriend of 12 years has never had debt, and makes a very good living and we both don't need your idea of a dream. 

See? I can do what I want. I don't need something to show my level of wealth. I live like I want. And I can afford it. I pay less in rent than those homes around where I live pay in property taxes alone. 

Sorry for your insecurity bltch. 

 

 

[IGotWorms 4,058]

1 minute ago, seafoam1 said:

It's false? And yet another golden showers dreamer. 

I know how to build wealth with without being tied to an anchor. I could pay cash for 3 homes priced at your 400k home that you are stuck in, and live off the rest of my funds for the rest of my life. And that's just my money. My girlfriend of 12 years has never had debt, and makes a very good living and we both don't need your idea of a dream. 

See? I can do what I want. I don't need something to show my level of wealth. I live like I want. And I can afford it. I pay less in rent than those homes around where I live pay in property taxes alone. 

Sorry for your insecurity bltch. 

 

 

I do all of that and I own my home. Nobody can tell me what to do in it, either. Jesus I couldn’t imagine having a landlord at my station in life.

And I don’t know where you’re coming up with your $400k number. It’s sort of irrelevant though. Let’s say it was only $400k. When I’m done paying my mortgage that’s $400k more that I have than you, dumbass

[mmmmm...beer 807]

The of the $223K I "made" on the house I invested it all.  $15k in Roth IRA's $5k to a UTMA for the 5 year old daughter.  The other $203k in a brokerage account, bought SCHG.

That was about 3 weeks ago.  It's up about +$9k

I will probably never have the opportunity to have that much capital to invest again for awhile.

[IGotWorms 4,058]

2 minutes ago, mmmmm...beer said:

The of the $223K I "made" on the house I invested it all.  $15k in Roth IRA's $5k to a UTMA for the 5 year old daughter.  The other $203k in a brokerage account, bought SCHG.

That was about 3 weeks ago.  It's up about +$9k

I will probably never have the opportunity to have that much capital to invest again for awhile.

I may have this same decision to make soon on the sale of another property. Seems there’s no real way to stuff it all in a tax advantaged account so I’m thinking put it in the brokerage, but I don’t want to have to pay capital gains. Oh well

[seafoam1 3,023]

5 minutes ago, mmmmm...beer said:

Reading a lot of stuff on this.  The "American Dream".... for mortgage companies anyway.

This is correct. They never factor in what the overall costs are for soooo many things in owning. Property taxes, home insurance, maintenance, etc, plus, mobility for the owner. It's not like buying and selling stocks, it's being locked in.

The key to renting is shopping correctly. 

Good maintenance, income level of allowing in renters, and whatever other needs you have are important. But it's out there.

[mmmmm...beer 807]

8 minutes ago, IGotWorms said:

When I’m done paying my mortgage that’s $400k more that I have than you, dumbass

I think his point is... after you've paid $550k for your $400k mortgage.

Just throwing excess money from renting into a S& P500 account averaging over 11% for the last 75 years it would be a ton more than the 400k house in the 30 year mortgage lifespan.

[seafoam1 3,023]

1 minute ago, mmmmm...beer said:

I think his point is... after you've paid $550k for your $400k mortgage.

 

Justt throwing excess money from rent I to a S& P500 account averaging over 11% for the last 85 years it would be a ton more than thr 400k house in the 30 yr mortgage lifespan.

Yes.

[mmmmm...beer 807]

2 minutes ago, IGotWorms said:

I may have this same decision to make soon on the sale of another property. Seems there’s no real way to stuff it all in a tax advantaged account so I’m thinking put it in the brokerage, but I don’t want to have to pay capital gains. Oh well

Just put it in a growth account and don't sell it.

[IGotWorms 4,058]

3 minutes ago, mmmmm...beer said:

I think his point is... after you've paid $550k for your $400k mortgage.

 

Justt throwing excess money from rent I to a S& P500 account averaging over 11% for the last 85 years it would be a ton more than thr 400k house in the 30 yr mortgage lifespan.

Where you living in the meanwhile?

You’re paying for housing costs either way.

And when you rent, you’re paying more because all the costs of ownership and usage have to be accounted for plus profit to the landlord.

Now you can rent a sh1tty place and save money there. Of course you could also buy a sh1tty house