5 Reasons Renting Still Beats Buying

[UCGal]

[quote=underdose]There are good reasons to either rent or own. It all comes down to your personal situation and what’s right for you.[/quote]

This is the take-away point. Rent vs. own is not a one size fits all.

If we were renting we would not have been able to build a handicap accessible granny flat for my in laws to live in. Building it may not have been the best use of our money, when you compare it to investing, but it was the right decision for our family needs, our lifestyle, etc. Math doesn’t factor in the upside benefit of having my kids’ grandparents live 100 feet away.

But, renting would have been far cheaper than buying. And not building the companion unit would have been a LOT cheaper.

Everyone has to do the cost/benefit analysis for themselves.

I’m looking at less than 9 years till the mortgage is paid off. Realistically, less than 10 years (probably around 5 years) before my in-laws aren’t able to live independantly or pass on… at which point we’ll rent out the granny flat for income… It’s all good in the long run.

[oxfordrick]

Why buy when you can rent?

[oxfordrick]

Why buy when you can rent?

[oxfordrick]

Why buy when you can rent?

[oxfordrick]

Why buy when you can rent?

[oxfordrick]

Why buy when you can rent?

[nostradamus]

[quote=underdose]If you go in fully expecting short term price declines but long term inflation, a 30 year fixed that shrinks in real terms overall might prove to be better than free floating rents.[/quote]Yes. This is the well-known, age-old technique for wealth building through real estate. Pay with weaker and weaker dollars. Even better with today’s low interest and if you can get a renter to cover your mortgage payments. Which brings us back to the cost of rent vs. cost to own (still out of proportion).

[nostradamus]

[quote=underdose]If you go in fully expecting short term price declines but long term inflation, a 30 year fixed that shrinks in real terms overall might prove to be better than free floating rents.[/quote]Yes. This is the well-known, age-old technique for wealth building through real estate. Pay with weaker and weaker dollars. Even better with today’s low interest and if you can get a renter to cover your mortgage payments. Which brings us back to the cost of rent vs. cost to own (still out of proportion).

[nostradamus]

[quote=underdose]If you go in fully expecting short term price declines but long term inflation, a 30 year fixed that shrinks in real terms overall might prove to be better than free floating rents.[/quote]Yes. This is the well-known, age-old technique for wealth building through real estate. Pay with weaker and weaker dollars. Even better with today’s low interest and if you can get a renter to cover your mortgage payments. Which brings us back to the cost of rent vs. cost to own (still out of proportion).

[nostradamus]

[quote=underdose]If you go in fully expecting short term price declines but long term inflation, a 30 year fixed that shrinks in real terms overall might prove to be better than free floating rents.[/quote]Yes. This is the well-known, age-old technique for wealth building through real estate. Pay with weaker and weaker dollars. Even better with today’s low interest and if you can get a renter to cover your mortgage payments. Which brings us back to the cost of rent vs. cost to own (still out of proportion).

[nostradamus]

[quote=underdose]If you go in fully expecting short term price declines but long term inflation, a 30 year fixed that shrinks in real terms overall might prove to be better than free floating rents.[/quote]Yes. This is the well-known, age-old technique for wealth building through real estate. Pay with weaker and weaker dollars. Even better with today’s low interest and if you can get a renter to cover your mortgage payments. Which brings us back to the cost of rent vs. cost to own (still out of proportion).

[NotCranky]

Peter and DavelJ make good points. Even when real estate is unequivicobly a good investment compared to renting, this stuff will be in the MSM. It is just the opposite of stupid RE shilling. I thought the article was so bad that I looked for an ulterior motive. Maybe it is just a coincidence that Mr Hough has a book out called, ” Your Next Great stock: How to Screen the Market for Tomorrow’s Top Performers”.

This article looks more like competition over where the money will go and through whom. With real estate and stocks apparently getting cheaper in lockstep, we will probably see a lot of this jockeying for position.Maybe it is just bias. Much to be taken with a grain of salt.

[NotCranky]

Peter and DavelJ make good points. Even when real estate is unequivicobly a good investment compared to renting, this stuff will be in the MSM. It is just the opposite of stupid RE shilling. I thought the article was so bad that I looked for an ulterior motive. Maybe it is just a coincidence that Mr Hough has a book out called, ” Your Next Great stock: How to Screen the Market for Tomorrow’s Top Performers”.

This article looks more like competition over where the money will go and through whom. With real estate and stocks apparently getting cheaper in lockstep, we will probably see a lot of this jockeying for position.Maybe it is just bias. Much to be taken with a grain of salt.

[NotCranky]

Peter and DavelJ make good points. Even when real estate is unequivicobly a good investment compared to renting, this stuff will be in the MSM. It is just the opposite of stupid RE shilling. I thought the article was so bad that I looked for an ulterior motive. Maybe it is just a coincidence that Mr Hough has a book out called, ” Your Next Great stock: How to Screen the Market for Tomorrow’s Top Performers”.

This article looks more like competition over where the money will go and through whom. With real estate and stocks apparently getting cheaper in lockstep, we will probably see a lot of this jockeying for position.Maybe it is just bias. Much to be taken with a grain of salt.

[NotCranky]

Peter and DavelJ make good points. Even when real estate is unequivicobly a good investment compared to renting, this stuff will be in the MSM. It is just the opposite of stupid RE shilling. I thought the article was so bad that I looked for an ulterior motive. Maybe it is just a coincidence that Mr Hough has a book out called, ” Your Next Great stock: How to Screen the Market for Tomorrow’s Top Performers”.

This article looks more like competition over where the money will go and through whom. With real estate and stocks apparently getting cheaper in lockstep, we will probably see a lot of this jockeying for position.Maybe it is just bias. Much to be taken with a grain of salt.

[Author]

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