Quote:
Originally Posted by LEG1T
I normally agree with your posts, but here I strongly disagree with what you and Silver are saying.
We understand that rent is like a test drive and it's great for people that want that freedom and flexibility, and that's fine. However going back to my original point you can't say that renting and is financially more responsible or is a good business decision to one that can "afford to buy a home" because that is just not so. Looking at owning a home as an investment vehicle on the other hand is one thing. Most of us understand that nothing is guaranteed but paying rent is essentially paying someone else's bill except you have nothing to show for it in the end. Think about it. Yes you can move around and relocate, but you can you leverage your expenses and potentially make $$? Can you remodel, Can you sell? No, most cases no and definitely no. What exactly do you have in the end, your freedom, ok got it.
Also your notion of owning a home as being a security blanket for kids is very single sided and quite frankly just isn't so. There are many people here that still even in today's market flip coin on buying and selling or buying and renting properties for other "investment" purposes. There's a great term here that's huge among business owners, called "It takes money to make money" think about the landlord you're paying your rent check too and get back to me on all those ppl that are using homes as security blankets.
Put quite simply if you make a decision and it is within your means of affordability, the smarter thing to do is leverage what you have in attempt to have more. You can't sell what you don't own and that's the bottom line.
Risky lending has caused the housing industry to fail! Looking forward, If you can afford it after looking at your budgets/income/career, I would 100% say go out and get a house while you can. Now if your lifestyle says the latter, than by all means give that money to the landlord, the person most likely using you as his means to more.
|
Wow you so missed important parts of my post. I stated what the original ideal of home owning was I did not state it was the end all be all. I also stated that if you have the ability to flip houses to make money you can.
Fact is most people can't flip houses and make money in fact a lot of times they lose just like flipping cars. Everyone will tell you can't mod a car and make money. Actually some of us do and have. same goes for houses.
Fact is I can make more money off financial investments in less time than owning a house.
Ok and don't get started about financial advisers. Fact is indeed there are financial advisors out there that will tell you that owning a house is not always the way to go.
You guys smoke the pipe of the American dream with the twist of the I want it now of the early part of this century. Fact is there a few markets in the country that have rising equity in most places equity is flat if not still somewhat negative. It does not make financial sense for all people to own homes. Jus like car leases can be favorable to owning the car and making payments.
Stop looking at from one side. Maybe my post came on strong from the opposite but it was rooted in financial awareness and facts. Do you watch the financials markets everyday? I do and I follow housing as well. All I am saying is don't just merrily jump on the idea that owning a house is better. It's not always.
Quote:
Originally Posted by exitspeed
Agree with you. There isn't a financial advisor out there that will tell you renting is financially smarter then owning. People have their own reasons to buy or rent but if you can buy it is smarter.
The same goes for buying vs leasing a car. In the case of a vehicle it made more sense to me to lease with the particular car I own now.
|
Actually Mel you are wrong here. Read what I wrote above. Oh and your comment about your car lease actually does contradict the first part of your car statement.
I will say again guys stop thinking its written in sand one way. It's not and it's not that simple or cut and dry.
I should add any homeowner is not going to like what I wrote. They bought and own a house to tell them it might not have been the wisest choice of them offends and bothers them. You could say that as well as the homeowner telling the renter he made a bad choice.
Only real difference is if I can make more off investments in ten years than the equity earned from owning a house, while paying less rent and no property taxes or upkeep costs. No realtor fees , no bank fees. Then I have probably put my money to better use than owning.
That is a fact, owning a house does not mean you are not throwing money away. It all depends on needs, costs and markets. Not all is the same in any given region of the country.