Does long-term renting never win?If you have a 7% APR mortgage, only about 42% (averaged over a 30 year mortgage) comes back to you in equity. That means if your rent payment is < mortgage * 0.42, then you’re better off renting and investing the remainder in an S&P500 ETF.Not to mention>No property tax>No maintenance>Stress-free living>My oven is broke. Fix it LandlordCuckAfter 30 years, you should have enough liquid assets to buy a home cash if you so desire.Does this work? Does rent inflation destroy this model?
That image makes no sense.Also, what is with the math on these rent vs buy arguments assuming the rent payment is less than a mortgage? For the same size property the rent is usually mortgage + taxes + 10% for leasing company or maintenance funds at minimum. I pay less for my home mortgage than some do for apartments, just depends on size of property and location.
>>61216150I have a 3% mortgage and a 4% savings account
>>61216467People are renting out ZIRP era homes with absurdly low fixed rate mortgagesThe rent charged on those properties is cheaper than what you'd pay if you got a mortgage on that property at today's higher valuation and today's higher rates
>>61216467I don't know how it is in the US, but from what you're saying, this is definitely not normal, and not sounding like a working economy. Rents should always be less than a mortgage for the exact same (or close to it) property.Here at 1:1 exact same flat, I'm renting for 850€ all included (various taxes and all). Buying what I'm renting right now would cost me 220K€. Let's say I pay up 20K uprfont and mortgage the rest, the mortgage ends up costing me 1200€/month @3.80% over 20 years. This doesn't account for the yearly property tax, which would be at between 1400-1500€/year.
>>61216150Yea until landlord or worse private equity raises your rent and you have to move your shitty furniture and bugman tv every year
Been renting the same hpuse in Baltimore for 10 years. Rent is 1600/month for 4 bedrooms. Everything else around me is 26-3200/monthI'd say long term renting has saved me a lot of money since covid.
>>61216723>living in BaltimoreSheeeeeeeit whatchu gon do novemba da 1st
>>61216150Real estate is a poor investment strategy for the simple fact remote work has been normalized and most men are incels. Why would a man sign a mortgage when he doesn’t have a wife and kid and can work anywhere? The modern man is no longer tied to one location and can roam free. He has no incentive at buying an overpriced shit box from some boomer.
>>61216150Rent also increases while the mortgage stays the same over the 30 year loan. I bought my first home 3 years ago and I’m already selling it for 300k more than I bought it for. So I basically lived for free the past three years and made a little on top.
>>61216723They haven’t increased the rent? I had a good rental but then the owner sold it and they knocked it down. I probably would’ve rented there until we had our third kid otherwise.
I think renting and buying a house are equally valid strategies. But I think renting is more risky because there are no guarantees that you won't blow everything on the stock market and lose a ton of money... Simply because the average investor makes a lot of mistakes. If you can avoid lifestyle inflation and avoid mcmansion, you can save yourself a lot of headaches. Buying a townhome still is not that expensive. And pretty cozy.
Generally speaking, I don't think a single family home is worth the much higher cost.
>>61216150You're wrong because the price goes up 5% per year that's extra equity in addition to what you put in. 6.5 to 7 apr is the turning point though. At 7 a mortgage and renting is almost the same
>>61216616If rent is less than a mortgage, how would the homeowner not constantly lose money? Rent is always more than the mortgage on that property.Now if the property was last financed a while ago, and housing prices have gone up, the rent can be less than what the mortgage would be if you could buy the house at current market values. If you can rent a house for significantly cheaper than you would have to mortgage a similar house, then I guess it makes sense to rent. Everyone here eventually sells properties they are holding so the mortgage price for the new owner means rents have to go up.
>>61216931They are only equally viable at 7 apr.Below 7 rates, mortgage us better.
>>61216723Similar story, but my building was just sold to someone else so that may all change soon. That's the risk of renting I suppose.
>>61216150Fixed mortgage means your payment is eventually minimized by inflation. A mortgage rate from 10 years ago is likely far lower than rent for an equivalent property. The biggest issue with renting is the uncertainty in cost between renewing leases. You will always be paying a constantly increasing amount on some level unless you want to downgrade your living standards and go live by niggies. You do not have to be worried about being priced out of your home, unless there is a 2008 situation with mass layoffs and pay cuts, which to be fair is always a very real possibility, but that’s true in either case and if you are able to wait it out you’ll end up alright still
Where I live a mortgage would cost almost double the rent o an equivalent place. Add in taxes, maintenance, etc and it will be even more. Then you have the deposit locked up instead of being invested.There's just no way owning would outperform renting + BTC.
>>61216723Ten years ago you could have bought that house for $1100 a month. The mortgage is frozen. And you could be renting it for $3300 a month now. Aka 3X’ing your money. And you could be adding one property to your portfolio like this every year. Keep writing out those rent checks and pretending your lunch money in the S&P500 is going to make you rich though.
>>61216616>turd worlder thinks they know what a "working economy" looks like
The renting vs owning thing is a boomer era thing when renting was significantly cheaper than owning. To give you some context, my college apartment was $450/month in 2007 and now it rents for $2,300/month. The landlord didn't even update anything. It's two streets away from the main building on the campusOwning-Mortgage cost-Property taxes-PMI unless you have a down payment-Interest (front loaded so you don't actually build equity for 10 tens-Maintenance costs (10% of the value of the home annually-Possible HOARenting-Mortgage + taxes-No maintenance but rent goes up every year-Housing and tenant laws basically don't exist outside of NY and CaliforniaOwning is obviously the better long term choice, but the problem is that you probably don't make enough to afford a house. Buying a house you can't afford is a bullet train to poverty. You won't have any money to invest and all of your networth at retirement will just be the equity in your house. Normal fucking 3 bedroom homes in nice areas (no niggers) go for well over 600k near me now. Do you have a 120k down payment and make 350k a year? Then you have to go buy some shit in the boonies away from the brown plague and hope you can find a good enough job or live in an affordable part of the city where you will encounter melanin challenged individuals that will keep your property values low. Thank you boomers and jews
>>61217111Basically this though >>61217159If you’re able to settle down in a place and don’t plan on having to move for 5-6 years+, your mortgage will rapidly become cheaper than renting, on top of building equity for you. At this point you will be able to stack more in investments compared to renting on top of being able to get all your money spent back + profit on your house if you decide to sell.
>>61217215To add on to this, I got a $400k home last year at 6.4% mortgage, my monthly payment is around $2500, renting an equivalent place in an equally nice era would barely save me $400 a month optimistically, and that gap is only going to close and eventually become more expensive less than a decade down the line, and I won’t be able to get anything back for it.
>>61216150Why should an average job pay for a two bedroom apartment? If you want a two bedroom apartment you need to be doing better than average or split it with a room mate.When in human history did anyone afford a two bedroom apartment just through a single person working?
>>61217210>Normal fucking 3 bedroom homes in nice areas (no niggers) go for well over 600k near me now. Do you have a 120k down payment and make 350k a year?I make about 300k a year and am about to buy a 1.6M home. 200k down but will have some rentals on the property too to help finance it.
>>61216150>there is not a oneI made a rule where I stop reading anything at the first grammatical mistake. It's the best filter I can apply to myself as an individual.
>>61216150A $200,000 mortgage is $1100/mo and a comparable apartment is $2,000/mo instead of $462/mo. You can't even rent a room in a shared house in the ghetto for $462/mo these days.
>>61217286That are based.
>>61216150I bought a property with 5% deposit without LMI (ausfag scheme) and the property has gone up 12-13% in 6 months. A loan is cheap leverage in this case (20x). So my capital has almost done a 3x in 6 month, not too bad. But this is why property is a great investment as its a leveraged asset and if you are a landlord there is tax benfits to consider.Though leverage works in reverse when the bubble pops lmao so it's not a free lunch per say.
>>61217162He is using euros retard, he is more white than you mutts.
>>61216941>If rent is less than a mortgage, how would the homeowner not constantly lose moneybecause owner also gets price appreciation ($1M house becomes a $2M house).
Fake article. Posted for over 3 years running.Also>There is not a one U.S. StateRussian disinfo.
