RENT vs. PROPERTY

[Anonymous No.17213120]

>He's paying rent.

Why do you pay rent for 40+ years instead of buying a affordable house?

Assuming you pay €1000 rent for 15 years that's already is $180.000 which would have bought you a nice little home.

[Anonymous No.17213157]

owners pay taxes too and prices could crash soon

[Anonymous No.17213261]

>>17213120
both are a scam.

[Anonymous No.17213274]

>>17213120
>affordable
>good neighborhood

sure it be cheaper to buy than rent in Detroit

[Anonymous No.17213395]

>getting a 40 year loan on anything
>down payment opportunity cost
>house can depreciate
>upkeep costs
You used to be able to write off mortgage interest but I don't think you can anymore. Mortgage good rent bad is Boomer mentality.

[Anonymous No.17213407]

>>17213395
Also I forgot that anytime you want to go live somewhere else you have to deal with a headache first

[Anonymous No.17213455]

>>17213120
If you are making you money work for you rent, you can buy cash.
If you're not what the fuck are you doing on this board?

[Anonymous No.17213470]

>>17213120
I guess it mainly depends on where you live, but when you buy house/condo in a city you end up paying just as much in insurance/property taxes/etc which is almost as substantial as rent.

Renting is a pretty good deal altogether, yeah you don't "own" anything but you also avoid a lot of additional payments that will eat at your income

[Anonymous No.17213504]

How realistic would it be to buy a plot of land in bumfuck nowhere and make a nice little neet cave? Basically all I want is a 1 car garage with a bedroom attached to it.

[Anonymous No.17213539]

>>17213120
>Not renting while owning property that you rent to others
ngmi

[Anonymous No.17213558]

>>17213157
In germany you pay little property tax in most areas.

[Anonymous No.17213577]

>>17213120
>what is interest and taxes

[Anonymous No.17213596]

>>17213261
based and bumpilled

[Anonymous No.17213600]

buying doesnt add up in hyper expensive cities like NYC or SF, unless you are at least well into 7 figures liquid wealthy and can outright pay cash for your home...

a million for a shitty run down home that hasnt been updated since 1950
$10,000 a year in property taxes and goes up every year.
pay 6 figures interest over the life of your mortgage.
dont even think about buying for other than a primary home. for investing its returns have sucked even if you bought at lows of the last recession. sure a $500k home in 2009 might now be $1m. but an sp500 index over the last ten years would have gained you 450%.

[Anonymous No.17213615]

>>17213395
>40 year loan

what the ... everything above 15 years at fixed interest is fucking crazy.

[Anonymous No.17213725]

>>17213600

You still have to pay rent if you don’t buy. A 500k house will rent for $2500 in most places. That’s 300k over 10 years and that’s assuming rent doesn’t go up which 99% of the time it does. If you mortgage a 500k house you lock that in for life and get a very low interest rate when you factor in tax deductions. A 30 year mortgage at 3.75% can be in effect a 2.5% rate or lower with deductions if you are in the right bracket. Imagine someone saying you can lock in rent forever AND borrow money at rock bottom rates to pay for it. Over time you come out ahead. Now renting definitely makes sense in a lot of situations especially if you have to move around a lot.

[Anonymous No.17213783]

>>17213725
intiially a 3.75% interest is 500000*.0375=18750 for the first year with interest alone, then another 5k in taxes, another 1k in insurance, another 1-5k in maintenance...

[Anonymous No.17213798]

>>17213783
dont forget 3k in HOA.. all of which is built into the rental payment

[Anonymous No.17213911]

>>17213783

In 2050 the house will be worth $1.25M @ 3% annual growth costing around 12.5k a year in property tax + 10k or so in maintenance while it will rent for around 72k a year assuming rent goes from $2.5k to $6k in that period. If you want to retire ever it helps massively to not have a mortgage or rent payment eventually.

[Anonymous No.17213935]

>>17213120
>$180.000 which would have bought you a nice little home.
no it doesnt lmao

[Anonymous No.17213970]

>>17213911
yeah but the classic error is opportunity cost... can you beat this with an investment portfolio as opposed to a downpayment... and that depends on the markets, your area, and your expertise

[Anonymous No.17213972]

Property taxes would equal my current rent so I'll pass

[Anonymous No.17214064]

>>17213970

Depends how well you think the S&P will do over the next 30 yrs

[Anonymous No.17214231]

>>17213558
i don't care about you life

[Anonymous No.17214516]

Both are retarded. You live with a relative or in an FHA financed triplex/4plex so you can contribute your entire income towards a maximized debt/income ratio.

[Anonymous No.17214926]

>>17213120
>it's another Low IQ /biz/ take of renting vs buying

https://youtu.be/Uwl3-jBNEd4

>5% rule
Take value of home you're interested, times it by 0.05 (5%) and divide it by 12.
That's the value of capital loss you'll get from homes.
Let's say you're buying a property for 500k. 500k *0.05/12 = 2083.33.
So if you can rent under 2k you're losing less capital than the person who owns a home. This is a general rule and can vary from places to places. All you need to do is sit down and see what will be your costs for each and what's lower in capital loss. Just don't be like OP and be like "DUUUR RENTING BAD. HOME GOOD."
Do the math.

[Anonymous No.17214954]

>>17214926
Like I said, live at relatives to save money and borrow to build a rental property portfolio. Easiest way to long term wealth.

[Anonymous No.17214957]

>>17213120
I really don't understand younger renters. I'm 25 and work with mostly young people (Big 4 firm). I'm probably the only one in my group that lives with their parents. Everyone else pays out the ass in rent. Boston for reference. I'm saving so much money by staying with my parents for a couple more years.

[Anonymous No.17215080]

>>17214954
If you can do that then do that but this entire thread is about renting vs buying.

[Anonymous No.17215105]

all these buyers live in flyover states with no culture or upward mobility unless you work in oil or some other gay shit like that. move to nyc or sf and see if you want to drop 3 million for a 2 bedroom walk up

[Anonymous No.17215138]

>>17213577
Something the renter pays to his landlord in addition to a little extra for ROI.

[Anonymous No.17215150]

>>17214957
you are going to make it

[Anonymous No.17215164]

>>17213395
Mortgage interest is still deductible. As are some home repairs

[Anonymous No.17215169]

>>17215138
It's all about capital loss and opportunity costs.
>>17214926

[Anonymous No.17215174]

>>17214957
Most young people like to have sex

[Anonymous No.17215186]

>>17213470
not true. My property taxes and insurance are $2400 per year on an 1800 sq ft house downtown in a Capitol city

[Anonymous No.17215200]

>>17215174
Well I am not most young people. Get owned libtard.

[Anonymous No.17215248]

>>17215174
Only Chads get laid. I might as well live with my parents and save money.

[Anonymous No.17215262]

>>17214957
have sex, incel.

[Anonymous No.17215295]

>>17213558
It's because income tax is quite higher. In Texas there is no state income tax, but to balance that Texas has a high property tax/

[Anonymous No.17215354]

>>17215174
Why not just get a motel for the rare night you have sex?

[Anonymous No.17215409]

>>17215354
Cuz dood totes livin it upz in my manz cave XD

[Anonymous No.17215576]

>>17215186
not sure where capitol city is, but in NYC a 800 sq ft condo costs 15,000 a year in property tax. condo HOA fees another 1000-2000 a month

[Anonymous No.17215644]

>>17213395
>>17213261
This

[Anonymous No.17215688]

>>17214957
Always feel so bad for people when I see these still living with parents posts

[Anonymous No.17215733]

>>17213120
How is it possible none of you guys own an apartment or a house? What the fuck were your boomer grandparents doing with their lives? Drinking it away? Seriously your family should really own at least one for each member right?

[Anonymous No.17215814]

>>17215688
Renter cope

[Anonymous No.17215831]

>>17214957
most likely your coworkers have wealthy parents or trust fund paying the rent, perhaps their parents bought them a condo

[Anonymous No.17215864]

Guys.. got 60k saved up.. i make 70k a year.
Thinkin of buying a duplex..
How much should i spend.. looking like 5k a year in taxes round here.

[Anonymous No.17216327]

You have to do the math. Illinois is a bad place to own property because the state is completely fucked. Florida is a good place to own property because all the people from NY and CT are fleeing there.

I reside in shithole Asia and property prices are insane. I am renting an ocean view penthouse for $600/mo and even the lower floor units in this building sell for $600,000. Demographics here are such that the population is dropping, and yet 16% of apartments are already sitting empty. Meanwhile, there is a building boom where every vacant lot around me is under construction with brand-new high rise buildings with hundreds of units in each. A person would have to be utterly insane to buy here.

[Anonymous No.17216369]

>>17213261
Black pilled.

[Anonymous No.17216556]

>>17213504
You can get a used trailer and plot in bumfuck for less than 30k in some areas. If you have the motivation to build it yourself then $30 a sqft and your living. A framing package on a 12x20 is only like $2k.

[Anonymous No.17216577]

>>17213120
The real smart investor would buy a caravan and live on Crown Land for free

[Anonymous No.17216628]

>>17214926
>times it by
You sound like you're six years old.

[Anonymous No.17216648]

>>17213120

You forgot to include repair costs, yard maintenance cost, property taxes, etc.

[Anonymous No.17216716]

>>17216648

You already pay that because it's built into the rent. You pay the landlords mortgage, taxes maintenance, and give him a profit each month.

[Anonymous No.17217106]

>>17214926
My rent is $575. It's actually really not that bad. Got a washer, dryer, own shower, kitchen, oven, microwave. Am I going to make it?

[Anonymous No.17217217]

>>17217106
How much is an average house there?

[Anonymous No.17217242]

>>17217217
Depends. A really nice 3 bed 2 bath with garage will run about $200K newly built.
But you can get a starter home for about $150

[Anonymous No.17217362]

>>17213120
A 4 bedroom costs $700,000 where I live. They cost half that a decade ago. They are not worth $700,000. I promise you, they are not. I will not be holding the bag when this all comes tumbling down. I will just save up the down payment. If the crash doesn't come on time, I move to flyover country with the money and buy a normal house in cash, no mortgage.

[Anonymous No.17217755]

>>17216327
Which part of Asia?

[Anonymous No.17217788]

Property taxes and maintenance costs make owning virtually on par with renting

I still favor owning but owning is not the best play cut and dry

[Anonymous No.17217814]

>>17213120
just rent out a room in your apartment it's practically like owning a brick and mortor asset except not tied to market hijinks

[Anonymous No.17217882]

>>17213120
shut the fuck up boomer. Zoomers are forced into cities in order to have a job, and rent is 50% of their income with the other 60% spent just staying alive. It's impossible to save the $1M plus you need for even a shitty apartment in the suburbs.

[Anonymous No.17217903]

>>17217242
Yeah, you're doing good. Even at the lower end of your target, you're losing less capital by 50 dollars per month than a homeowner. Again, this is based on the averages.

[Anonymous No.17217915]

>>17213261
baaased

[Anonymous No.17217930]

>>17213261
based and diogenes-pilled

[Anonymous No.17218126]

>>17213120
> Oh, look! Another Rent Vs Own thread
I rent.
I have $180K saved up and $0 debt.
I don't work. I spend most of my days NEET'ing off and I have a brain, so I'm able to invest and make my money work for me.
I live on one of the wealthiest islands in the country and have a gf who lives with me and helps me hustle.
Our goal is to buy something in cash for a good price and continue with $0 debt, never have to be wagecucks, and enjoy life.

Comparatively:
My friends that "own" all have 30 year mortgages. They're all wageslaves that hate their job, but they must continue with their bs job in order to pay off their mortgage, car loan and other debt. They're miserable and stay at home all the time. They are always crying about how they have no money. They live in shit neighborhoods with absolutely nothing to do. These same friends always want to come over to my spot to hang out, but cry about gas money. It's a 120 mile commute round trip to put it into perspective.

[Anonymous No.17218242]

>>17218126
Debt isn't necessarily bad. Let's say you have 200k and a house is for 200k. You can put in the 40k, be in debt of 160k at 3%. Now you put in that 160k cash you have into the market index over the long term get a good 6% return you just made 3% for free. It's literally free money. This is not even including the apperciation of the house value. it's even better if it's a rental property because now you have two sources of income.

[Anonymous No.17218510]

>>17218242
>Debt isn't Bad! Take a loan Goy!
It sounds good on paper, Mr. Kike. In reality, however, in order for you to underwrite that loan I would need to be a wageslave. I'd rather just buy outright and enjoy my freedom.

[Anonymous No.17218566]

>>17218510
>in order for you to underwrite that loan I would need to be a wageslave.

Pledged asset lines, margin, HELOC loans, I/O loans...there's ways to access "cheap debt" without being a wage slave as long as you're also not poor.

[Anonymous No.17218623]

>>17213120
Neither.

[Anonymous No.17218743]

>>17215688
cope harder

[Anonymous No.17218788]

>>17213395
Mortgage is tax deductible. Property taxes are tax deductible. Gains on your personal residence are tax free. Why do you speak on a topic you know nothing about?

[Anonymous No.17218796]

>>17213577
They are tax deductions...

[Anonymous No.17218846]

Okay retards. Let me simplify things for you. There are three main benefits for home ownership.

>tax deductions
Every dollar of interest you pay is a tax deduction, as is property taxes.

>leverage and appreciation
Put 3% down, this maximizes the tax benefits and increases your leverage. Mortgage debt is cheap to begin with (4.1%) and is even cheaper when you consider the tax benefits. Your average house will appreciate 3% a year. At 3% down with 33x leverage you are achieving a 99% cash on cash return from appreciation alone.

[Anonymous No.17218863]

>>17218846
>equity
Look up a mortgage amortization table. With each payment you are building equity. And every payment is an even larger amount of principal. On a typical 30 year mortgage a quarter of your payment will be principal. A $2,000 payment is effectively $1,500 as you are getting $500 equity.

[Anonymous No.17218901]

>>17218863
Oh not to mention tax free gains. Capital gains on your primary residence are tax exempt.

Add this all together and there are very few markets that make sense to rent. Unless you are an extremely low earner and it is a very small house (Due to the standard deduction).

>tldr don’t listen to all the retards advocating for renting. The system is built to subsidize homeownership.

[Anonymous No.17218961]

>>17213600
Eh. If you bought with 20% down that is 5x leverage and the property doubled. So that is 500% returns. In tour example you outperformed the S&P without even including building equity.

[Anonymous No.17218972]

>>17213120
theres chepa houses near me that are foreclosed for like 20k. Im broke so thats a no go but I do understand the logic behind paying for a home as opposed to your landlords mortage

[Anonymous No.17218975]

>Only a stupid goy would buy a house and pay mortgage interest and property taxes
>I'll just rent and pay another man's mortgage interest and property taxes for him.
The mental state of /biz/

[Anonymous No.17219055]

>>17215733
I got one for ya:
My boomer parents bought their first house in 2007. This year they started to get divorced and had to sell it, just as it had barely recovered it's value after the 2008 crash. So after 13 years of paying 5k per month in mortgage and taxes, being too poor to afford us anything else during that time, they finally rush sell it below market price, losing even more to jewy realtor commissions and home inspection scams that required urgent meme repairs (about $100k altogether ). Now they both rent and keep complaining how they can't afford anything ...

[Anonymous No.17219069]

>>17214926
This retard watches a YT video and thinks he understands the nuances of real estate.

The video doesn’t touch on your tax benefits (property tax and interest are write offs, and all gains are tax free on a personal residence)

[Anonymous No.17219162]

I'm approaching a point where I could buy a house outright.
Currently living with mother at 26 year old.
Only just starting to make my money work for me.

So don't know what I should do, as I need to move on my own soon. While I'm saving money here, it is stunting me in many ways.

Should I buy outright and starve the Jew? Deposit half? Deposit minimum possible and use the loan for investing? what do?

[Anonymous No.17219289]

>>17215864
>how much should I spend
As much as you can borrow. Before you get pre-underwritten for a loan, clear all your outstanding debts so you can borrow more. No car payments, student loan payments, etc..

I'd guess the bank would lend you around 500K in the right market, maybe more if you can convince them about the duplex's rental income. No more than 5% down.

[Anonymous No.17219311]

>>17213261
This.
I live in my office. I beat the system.

[Anonymous No.17219314]

>>17218975
This is the metal state of /biz/