Renting is not better than buying

[Ex-SD]

Alex, are you competing with “schizo” for the title of poster child for the “Dumber than a bag of hammers” organization?

[stansd]

Alex,

Wanted to give you the straight up truth without being nasty:

Most of the folks on this board are much more knowledgeable than you are. If you want to learn from them, I’d encourage you to post questions rather than opinions. When you post opinions, your reasoning is typically either flawed, or trite, and you aren’t really adding value. If you continue to post opinions, I must assume that you simply enjoy the excitement of others tearing into you.

In all seriousness, ask yourself if you want drama or learnings. If you want drama, continue to post opinions. If you want to learn, ask questions and learn from folks who know much more than you do…humble yourself, my friend, or others will continue to do it for you.

Stan

[stansd]

Alex,

Wanted to give you the straight up truth without being nasty:

Most of the folks on this board are much more knowledgeable than you are. If you want to learn from them, I’d encourage you to post questions rather than opinions. When you post opinions, your reasoning is typically either flawed, or trite, and you aren’t really adding value. If you continue to post opinions, I must assume that you simply enjoy the excitement of others tearing into you.

In all seriousness, ask yourself if you want drama or learnings. If you want drama, continue to post opinions. If you want to learn, ask questions and learn from folks who know much more than you do…humble yourself, my friend, or others will continue to do it for you.

Stan

[stansd]

Alex,

Wanted to give you the straight up truth without being nasty:

Most of the folks on this board are much more knowledgeable than you are. If you want to learn from them, I’d encourage you to post questions rather than opinions. When you post opinions, your reasoning is typically either flawed, or trite, and you aren’t really adding value. If you continue to post opinions, I must assume that you simply enjoy the excitement of others tearing into you.

In all seriousness, ask yourself if you want drama or learnings. If you want drama, continue to post opinions. If you want to learn, ask questions and learn from folks who know much more than you do…humble yourself, my friend, or others will continue to do it for you.

Stan

[stansd]

Alex,

Wanted to give you the straight up truth without being nasty:

Most of the folks on this board are much more knowledgeable than you are. If you want to learn from them, I’d encourage you to post questions rather than opinions. When you post opinions, your reasoning is typically either flawed, or trite, and you aren’t really adding value. If you continue to post opinions, I must assume that you simply enjoy the excitement of others tearing into you.

In all seriousness, ask yourself if you want drama or learnings. If you want drama, continue to post opinions. If you want to learn, ask questions and learn from folks who know much more than you do…humble yourself, my friend, or others will continue to do it for you.

Stan

[stansd]

Alex,

Wanted to give you the straight up truth without being nasty:

Most of the folks on this board are much more knowledgeable than you are. If you want to learn from them, I’d encourage you to post questions rather than opinions. When you post opinions, your reasoning is typically either flawed, or trite, and you aren’t really adding value. If you continue to post opinions, I must assume that you simply enjoy the excitement of others tearing into you.

In all seriousness, ask yourself if you want drama or learnings. If you want drama, continue to post opinions. If you want to learn, ask questions and learn from folks who know much more than you do…humble yourself, my friend, or others will continue to do it for you.

Stan

[POZ]

A_A,

1. “Opportunity Cost” — look it up
2. Average appreciation for housing on average, since the mid 1800s has been ~2% (Yes I have heard the San Diego and SF are Diffrent but I think we have dispelled those rumors in the past few months — SD/SF NOT special or diffrent)

In the current environment it absolutely makes more sense to rent than to buy (everything else being equal) until hosing prices conform to normalized trend and the disparity between renting and buying is narrowed it will continue to make sense.

I dont get poeple who make this argument at all (in the current environment), did you or did you not have a roof over your head, walls to protect you from wind and rain, privacy so you could do whatever it is you wierd people do behind close doors. . . well?

I thought so, if you dont LIKE to rent because somehow you feel inferrior to all those other koolaid drinkers who look down on us renters because they rent from a bank instead of a landlord. GO BUY TODAY DEALS like never before!!!! BUY BUY BUY!!! before there are no more houses out there and you are left behind with the rest of societies lower class: RENTERS.

com up with a better argument next time this one has been debunked–or did you miss that episode of myth busters?

[POZ]

A_A,

1. “Opportunity Cost” — look it up
2. Average appreciation for housing on average, since the mid 1800s has been ~2% (Yes I have heard the San Diego and SF are Diffrent but I think we have dispelled those rumors in the past few months — SD/SF NOT special or diffrent)

In the current environment it absolutely makes more sense to rent than to buy (everything else being equal) until hosing prices conform to normalized trend and the disparity between renting and buying is narrowed it will continue to make sense.

I dont get poeple who make this argument at all (in the current environment), did you or did you not have a roof over your head, walls to protect you from wind and rain, privacy so you could do whatever it is you wierd people do behind close doors. . . well?

I thought so, if you dont LIKE to rent because somehow you feel inferrior to all those other koolaid drinkers who look down on us renters because they rent from a bank instead of a landlord. GO BUY TODAY DEALS like never before!!!! BUY BUY BUY!!! before there are no more houses out there and you are left behind with the rest of societies lower class: RENTERS.

com up with a better argument next time this one has been debunked–or did you miss that episode of myth busters?

[POZ]

A_A,

1. “Opportunity Cost” — look it up
2. Average appreciation for housing on average, since the mid 1800s has been ~2% (Yes I have heard the San Diego and SF are Diffrent but I think we have dispelled those rumors in the past few months — SD/SF NOT special or diffrent)

In the current environment it absolutely makes more sense to rent than to buy (everything else being equal) until hosing prices conform to normalized trend and the disparity between renting and buying is narrowed it will continue to make sense.

I dont get poeple who make this argument at all (in the current environment), did you or did you not have a roof over your head, walls to protect you from wind and rain, privacy so you could do whatever it is you wierd people do behind close doors. . . well?

I thought so, if you dont LIKE to rent because somehow you feel inferrior to all those other koolaid drinkers who look down on us renters because they rent from a bank instead of a landlord. GO BUY TODAY DEALS like never before!!!! BUY BUY BUY!!! before there are no more houses out there and you are left behind with the rest of societies lower class: RENTERS.

com up with a better argument next time this one has been debunked–or did you miss that episode of myth busters?

[POZ]

A_A,

1. “Opportunity Cost” — look it up
2. Average appreciation for housing on average, since the mid 1800s has been ~2% (Yes I have heard the San Diego and SF are Diffrent but I think we have dispelled those rumors in the past few months — SD/SF NOT special or diffrent)

In the current environment it absolutely makes more sense to rent than to buy (everything else being equal) until hosing prices conform to normalized trend and the disparity between renting and buying is narrowed it will continue to make sense.

I dont get poeple who make this argument at all (in the current environment), did you or did you not have a roof over your head, walls to protect you from wind and rain, privacy so you could do whatever it is you wierd people do behind close doors. . . well?

I thought so, if you dont LIKE to rent because somehow you feel inferrior to all those other koolaid drinkers who look down on us renters because they rent from a bank instead of a landlord. GO BUY TODAY DEALS like never before!!!! BUY BUY BUY!!! before there are no more houses out there and you are left behind with the rest of societies lower class: RENTERS.

com up with a better argument next time this one has been debunked–or did you miss that episode of myth busters?

[POZ]

A_A,

1. “Opportunity Cost” — look it up
2. Average appreciation for housing on average, since the mid 1800s has been ~2% (Yes I have heard the San Diego and SF are Diffrent but I think we have dispelled those rumors in the past few months — SD/SF NOT special or diffrent)

In the current environment it absolutely makes more sense to rent than to buy (everything else being equal) until hosing prices conform to normalized trend and the disparity between renting and buying is narrowed it will continue to make sense.

I dont get poeple who make this argument at all (in the current environment), did you or did you not have a roof over your head, walls to protect you from wind and rain, privacy so you could do whatever it is you wierd people do behind close doors. . . well?

I thought so, if you dont LIKE to rent because somehow you feel inferrior to all those other koolaid drinkers who look down on us renters because they rent from a bank instead of a landlord. GO BUY TODAY DEALS like never before!!!! BUY BUY BUY!!! before there are no more houses out there and you are left behind with the rest of societies lower class: RENTERS.

com up with a better argument next time this one has been debunked–or did you miss that episode of myth busters?

[Noob]

Hi Alex,

Your logic is flawed because you did not include the total cost of ownership in your analysis.

When you rent, that is your cost. Over seven years, add it up and you have the number. According to your calculations, you have rented for 7 years at an average cost of $2300 per month.

Your cost for renting: 7 x 12 x 2300= $193,200

Your cost for buying assuming your numbers is really the cost of capital + property taxes + income tax(tax breaks) + maintenance + (gain) or loss in capital.

Your cost for buying a home at $700,000 , assuming 100% financing (6%) and your $100,000 capital loss and making the income tax equation easy by assuming the government pays 40% of the interest in the mortgage for you:

Cost of Capital: $138,000
Income Tax Advantage: ($55,200)
Property Tax (1.2%): $58,800
Maint + HOA estimated: $7000
Capital loss or (gain): $100,000
———————————-
Total Cost to own: $248,600

You can see using this approximate example, that you would have paid the bank, the state, your home owners association a lot more — $55,400 more — to own than you would your land lord to rent.

If you don’t like my math, then fine, do your own. Buy you cannot leave out what you have to pay the bank, the state, and the other costs of ownership. Even a Noob knows that.

Good Hunting,

Noob–but learning

[Noob]

Hi Alex,

Your logic is flawed because you did not include the total cost of ownership in your analysis.

When you rent, that is your cost. Over seven years, add it up and you have the number. According to your calculations, you have rented for 7 years at an average cost of $2300 per month.

Your cost for renting: 7 x 12 x 2300= $193,200

Your cost for buying assuming your numbers is really the cost of capital + property taxes + income tax(tax breaks) + maintenance + (gain) or loss in capital.

Your cost for buying a home at $700,000 , assuming 100% financing (6%) and your $100,000 capital loss and making the income tax equation easy by assuming the government pays 40% of the interest in the mortgage for you:

Cost of Capital: $138,000
Income Tax Advantage: ($55,200)
Property Tax (1.2%): $58,800
Maint + HOA estimated: $7000
Capital loss or (gain): $100,000
———————————-
Total Cost to own: $248,600

You can see using this approximate example, that you would have paid the bank, the state, your home owners association a lot more — $55,400 more — to own than you would your land lord to rent.

If you don’t like my math, then fine, do your own. Buy you cannot leave out what you have to pay the bank, the state, and the other costs of ownership. Even a Noob knows that.

Good Hunting,

Noob–but learning

[Noob]

Hi Alex,

Your logic is flawed because you did not include the total cost of ownership in your analysis.

When you rent, that is your cost. Over seven years, add it up and you have the number. According to your calculations, you have rented for 7 years at an average cost of $2300 per month.

Your cost for renting: 7 x 12 x 2300= $193,200

Your cost for buying assuming your numbers is really the cost of capital + property taxes + income tax(tax breaks) + maintenance + (gain) or loss in capital.

Your cost for buying a home at $700,000 , assuming 100% financing (6%) and your $100,000 capital loss and making the income tax equation easy by assuming the government pays 40% of the interest in the mortgage for you:

Cost of Capital: $138,000
Income Tax Advantage: ($55,200)
Property Tax (1.2%): $58,800
Maint + HOA estimated: $7000
Capital loss or (gain): $100,000
———————————-
Total Cost to own: $248,600

You can see using this approximate example, that you would have paid the bank, the state, your home owners association a lot more — $55,400 more — to own than you would your land lord to rent.

If you don’t like my math, then fine, do your own. Buy you cannot leave out what you have to pay the bank, the state, and the other costs of ownership. Even a Noob knows that.

Good Hunting,

Noob–but learning

[Noob]

Hi Alex,

Your logic is flawed because you did not include the total cost of ownership in your analysis.

When you rent, that is your cost. Over seven years, add it up and you have the number. According to your calculations, you have rented for 7 years at an average cost of $2300 per month.

Your cost for renting: 7 x 12 x 2300= $193,200

Your cost for buying assuming your numbers is really the cost of capital + property taxes + income tax(tax breaks) + maintenance + (gain) or loss in capital.

Your cost for buying a home at $700,000 , assuming 100% financing (6%) and your $100,000 capital loss and making the income tax equation easy by assuming the government pays 40% of the interest in the mortgage for you:

Cost of Capital: $138,000
Income Tax Advantage: ($55,200)
Property Tax (1.2%): $58,800
Maint + HOA estimated: $7000
Capital loss or (gain): $100,000
———————————-
Total Cost to own: $248,600

You can see using this approximate example, that you would have paid the bank, the state, your home owners association a lot more — $55,400 more — to own than you would your land lord to rent.

If you don’t like my math, then fine, do your own. Buy you cannot leave out what you have to pay the bank, the state, and the other costs of ownership. Even a Noob knows that.

Good Hunting,

Noob–but learning

[Author]

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