Renting is not better than buying

[Anonymous]

Raybyrnes,
I think your mom has a more rational view with regard to home values. If all owners decide to cash out their equities in their homes, multiple things could happen: profits will disappear because there are not enough buyers at the price they want; rents will go up and eliminate the rent vs own advantage; or home owners just end up swapping homes with each other and paying higher property taxes. Only relatively few people can take advantage of the timing (or be taken advantage of) in an illiquid market — mark to market gain or loss notwithstanding. So she might as well enjoy living peacefully than worrying about these fictitious gains and losses, unless she has a financial need for the home equity.
A similar view on the stock market does not hurt long term investment performance either. Financial market is a zero sum game. You can’t all profit at the same time. Real gain comes from owning good businesses long term.

[Raybyrnes]

JWM in SD

“I just don’t think you are acknowledging the risk posed to the personal financial health of a buyer if they choose to buy today.”

The fact that I am renting should be a very strong ackowlegement of my perception of risk in the housing market.

I have a hundred k + documented W2 for 150+ yet I rent. Now my wife recently passed her dental exams so that changes our financial situation dramiticalls as I ahve had to carry the load over the last few years.

With the prospects of having a potential 300K of income I am still not racing to buy but I do keep my eye on markets that I am interested in.

Unfortunately what I see is that if there is a significant drop in the areas I am looking at there is an equal chance that my own job will be threatened.

That being said, I work in sales so my job is probably more liquid than engineering and if I have to learn a different product and do a little prospecting , than so be it. I’ve built my clientel before and I believe if necesary I would be able to do it again.

[Raybyrnes]

JWM in SD

“I just don’t think you are acknowledging the risk posed to the personal financial health of a buyer if they choose to buy today.”

The fact that I am renting should be a very strong ackowlegement of my perception of risk in the housing market.

I have a hundred k + documented W2 for 150+ yet I rent. Now my wife recently passed her dental exams so that changes our financial situation dramiticalls as I ahve had to carry the load over the last few years.

With the prospects of having a potential 300K of income I am still not racing to buy but I do keep my eye on markets that I am interested in.

Unfortunately what I see is that if there is a significant drop in the areas I am looking at there is an equal chance that my own job will be threatened.

That being said, I work in sales so my job is probably more liquid than engineering and if I have to learn a different product and do a little prospecting , than so be it. I’ve built my clientel before and I believe if necesary I would be able to do it again.

[Raybyrnes]

JWM in SD

“I just don’t think you are acknowledging the risk posed to the personal financial health of a buyer if they choose to buy today.”

The fact that I am renting should be a very strong ackowlegement of my perception of risk in the housing market.

I have a hundred k + documented W2 for 150+ yet I rent. Now my wife recently passed her dental exams so that changes our financial situation dramiticalls as I ahve had to carry the load over the last few years.

With the prospects of having a potential 300K of income I am still not racing to buy but I do keep my eye on markets that I am interested in.

Unfortunately what I see is that if there is a significant drop in the areas I am looking at there is an equal chance that my own job will be threatened.

That being said, I work in sales so my job is probably more liquid than engineering and if I have to learn a different product and do a little prospecting , than so be it. I’ve built my clientel before and I believe if necesary I would be able to do it again.

[Raybyrnes]

JWM in SD

“I just don’t think you are acknowledging the risk posed to the personal financial health of a buyer if they choose to buy today.”

The fact that I am renting should be a very strong ackowlegement of my perception of risk in the housing market.

I have a hundred k + documented W2 for 150+ yet I rent. Now my wife recently passed her dental exams so that changes our financial situation dramiticalls as I ahve had to carry the load over the last few years.

With the prospects of having a potential 300K of income I am still not racing to buy but I do keep my eye on markets that I am interested in.

Unfortunately what I see is that if there is a significant drop in the areas I am looking at there is an equal chance that my own job will be threatened.

That being said, I work in sales so my job is probably more liquid than engineering and if I have to learn a different product and do a little prospecting , than so be it. I’ve built my clientel before and I believe if necesary I would be able to do it again.

[Raybyrnes]

JWM in SD

“I just don’t think you are acknowledging the risk posed to the personal financial health of a buyer if they choose to buy today.”

The fact that I am renting should be a very strong ackowlegement of my perception of risk in the housing market.

I have a hundred k + documented W2 for 150+ yet I rent. Now my wife recently passed her dental exams so that changes our financial situation dramiticalls as I ahve had to carry the load over the last few years.

With the prospects of having a potential 300K of income I am still not racing to buy but I do keep my eye on markets that I am interested in.

Unfortunately what I see is that if there is a significant drop in the areas I am looking at there is an equal chance that my own job will be threatened.

That being said, I work in sales so my job is probably more liquid than engineering and if I have to learn a different product and do a little prospecting , than so be it. I’ve built my clientel before and I believe if necesary I would be able to do it again.

[renterclint]

Alex,

Hang in there.

It’s great to hear from an opposing viewpoint. Most of the guys who post here are very bright, but they spend a lot of time patting each other on the back as they all share a similar perspective. And they just love to finish there comments with “the train has left the station”, “the music has stopped”, “it’s getting ugly”, “look out below”, or some other brilliant cliche. They don’t usually resort to dismissing folks with minority views as “Trolls” so easily.

I agree with you that owning kicks serious bootie over renting. I even moved out of state to own again, and I freakin’ love having my own home again. No regrets. But I think if you run the numbers as some of the less offensive geniuses have posted above, you’ll find that renting will look pretty good in the current SD market. Especially when rents are such a steal compared to owning – my rent was half what my mortgage payment would have been in SD.

Good luck to you either way.

[renterclint]

Alex,

Hang in there.

It’s great to hear from an opposing viewpoint. Most of the guys who post here are very bright, but they spend a lot of time patting each other on the back as they all share a similar perspective. And they just love to finish there comments with “the train has left the station”, “the music has stopped”, “it’s getting ugly”, “look out below”, or some other brilliant cliche. They don’t usually resort to dismissing folks with minority views as “Trolls” so easily.

I agree with you that owning kicks serious bootie over renting. I even moved out of state to own again, and I freakin’ love having my own home again. No regrets. But I think if you run the numbers as some of the less offensive geniuses have posted above, you’ll find that renting will look pretty good in the current SD market. Especially when rents are such a steal compared to owning – my rent was half what my mortgage payment would have been in SD.

Good luck to you either way.

[renterclint]

Alex,

Hang in there.

It’s great to hear from an opposing viewpoint. Most of the guys who post here are very bright, but they spend a lot of time patting each other on the back as they all share a similar perspective. And they just love to finish there comments with “the train has left the station”, “the music has stopped”, “it’s getting ugly”, “look out below”, or some other brilliant cliche. They don’t usually resort to dismissing folks with minority views as “Trolls” so easily.

I agree with you that owning kicks serious bootie over renting. I even moved out of state to own again, and I freakin’ love having my own home again. No regrets. But I think if you run the numbers as some of the less offensive geniuses have posted above, you’ll find that renting will look pretty good in the current SD market. Especially when rents are such a steal compared to owning – my rent was half what my mortgage payment would have been in SD.

Good luck to you either way.

[renterclint]

Alex,

Hang in there.

It’s great to hear from an opposing viewpoint. Most of the guys who post here are very bright, but they spend a lot of time patting each other on the back as they all share a similar perspective. And they just love to finish there comments with “the train has left the station”, “the music has stopped”, “it’s getting ugly”, “look out below”, or some other brilliant cliche. They don’t usually resort to dismissing folks with minority views as “Trolls” so easily.

I agree with you that owning kicks serious bootie over renting. I even moved out of state to own again, and I freakin’ love having my own home again. No regrets. But I think if you run the numbers as some of the less offensive geniuses have posted above, you’ll find that renting will look pretty good in the current SD market. Especially when rents are such a steal compared to owning – my rent was half what my mortgage payment would have been in SD.

Good luck to you either way.

[renterclint]

Alex,

Hang in there.

It’s great to hear from an opposing viewpoint. Most of the guys who post here are very bright, but they spend a lot of time patting each other on the back as they all share a similar perspective. And they just love to finish there comments with “the train has left the station”, “the music has stopped”, “it’s getting ugly”, “look out below”, or some other brilliant cliche. They don’t usually resort to dismissing folks with minority views as “Trolls” so easily.

I agree with you that owning kicks serious bootie over renting. I even moved out of state to own again, and I freakin’ love having my own home again. No regrets. But I think if you run the numbers as some of the less offensive geniuses have posted above, you’ll find that renting will look pretty good in the current SD market. Especially when rents are such a steal compared to owning – my rent was half what my mortgage payment would have been in SD.

Good luck to you either way.

[ibjames]

Man, it’s amazing how competitive it is for rentals. I’ve been looking, and I’ll view a place, finish the app, fax it and be too late. Same day. My wife and I ran home to the websites, turned them in right after, and there are 3 people in line.

I went to a viewing tonight, the guy said that he has had the place on craigslist for 3 months. Yesterday, he had 3 apps in one day.

I was thinking that maybe rent prices would increase due to demand? With condo conversions from apartments that there could be a shortage in rentals, making rent increase. With an increase in rent than the rent/buy equation increases also. I can’t imagine it sustaining due to the sheer unaffordability of it but it seems like it could happen short term.

What do you guys think?

[ibjames]

Man, it’s amazing how competitive it is for rentals. I’ve been looking, and I’ll view a place, finish the app, fax it and be too late. Same day. My wife and I ran home to the websites, turned them in right after, and there are 3 people in line.

I went to a viewing tonight, the guy said that he has had the place on craigslist for 3 months. Yesterday, he had 3 apps in one day.

I was thinking that maybe rent prices would increase due to demand? With condo conversions from apartments that there could be a shortage in rentals, making rent increase. With an increase in rent than the rent/buy equation increases also. I can’t imagine it sustaining due to the sheer unaffordability of it but it seems like it could happen short term.

What do you guys think?

[ibjames]

Man, it’s amazing how competitive it is for rentals. I’ve been looking, and I’ll view a place, finish the app, fax it and be too late. Same day. My wife and I ran home to the websites, turned them in right after, and there are 3 people in line.

I went to a viewing tonight, the guy said that he has had the place on craigslist for 3 months. Yesterday, he had 3 apps in one day.

I was thinking that maybe rent prices would increase due to demand? With condo conversions from apartments that there could be a shortage in rentals, making rent increase. With an increase in rent than the rent/buy equation increases also. I can’t imagine it sustaining due to the sheer unaffordability of it but it seems like it could happen short term.

What do you guys think?

[ibjames]

Man, it’s amazing how competitive it is for rentals. I’ve been looking, and I’ll view a place, finish the app, fax it and be too late. Same day. My wife and I ran home to the websites, turned them in right after, and there are 3 people in line.

I went to a viewing tonight, the guy said that he has had the place on craigslist for 3 months. Yesterday, he had 3 apps in one day.

I was thinking that maybe rent prices would increase due to demand? With condo conversions from apartments that there could be a shortage in rentals, making rent increase. With an increase in rent than the rent/buy equation increases also. I can’t imagine it sustaining due to the sheer unaffordability of it but it seems like it could happen short term.

What do you guys think?

[Author]

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