Renting is not better than buying

[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

[Alex_angel]

Touched a nerve with the rest of you loser renters I see. Does it hurt you all so bad that the best you can say is move blah blah blah. You all know I’m right but you fail to admit to yoursleves how pathetic your lives have been renting and having nothing but your balls in your hand to show for it. Uterly pathetic. JWM Hahahaha, you are the biggest loser of them all, do you even have a job? Sad state for most of you for sure. Once you all buy a home you will then join some home owners forum and spend the rest of your days bashing renters. So sad, I really for sorry for some of you guys for sure. EX-SD, WTF do you even care about sd homes if you don’t live here. You act like an expert but you don’t live here. You get the award for loser #2 of this board. Sad pathetic humans you all are. Back to my planet to refuel.

[Alex_angel]

Touched a nerve with the rest of you loser renters I see. Does it hurt you all so bad that the best you can say is move blah blah blah. You all know I’m right but you fail to admit to yoursleves how pathetic your lives have been renting and having nothing but your balls in your hand to show for it. Uterly pathetic. JWM Hahahaha, you are the biggest loser of them all, do you even have a job? Sad state for most of you for sure. Once you all buy a home you will then join some home owners forum and spend the rest of your days bashing renters. So sad, I really for sorry for some of you guys for sure. EX-SD, WTF do you even care about sd homes if you don’t live here. You act like an expert but you don’t live here. You get the award for loser #2 of this board. Sad pathetic humans you all are. Back to my planet to refuel.

[Alex_angel]

Touched a nerve with the rest of you loser renters I see. Does it hurt you all so bad that the best you can say is move blah blah blah. You all know I’m right but you fail to admit to yoursleves how pathetic your lives have been renting and having nothing but your balls in your hand to show for it. Uterly pathetic. JWM Hahahaha, you are the biggest loser of them all, do you even have a job? Sad state for most of you for sure. Once you all buy a home you will then join some home owners forum and spend the rest of your days bashing renters. So sad, I really for sorry for some of you guys for sure. EX-SD, WTF do you even care about sd homes if you don’t live here. You act like an expert but you don’t live here. You get the award for loser #2 of this board. Sad pathetic humans you all are. Back to my planet to refuel.

[Alex_angel]

Touched a nerve with the rest of you loser renters I see. Does it hurt you all so bad that the best you can say is move blah blah blah. You all know I’m right but you fail to admit to yoursleves how pathetic your lives have been renting and having nothing but your balls in your hand to show for it. Uterly pathetic. JWM Hahahaha, you are the biggest loser of them all, do you even have a job? Sad state for most of you for sure. Once you all buy a home you will then join some home owners forum and spend the rest of your days bashing renters. So sad, I really for sorry for some of you guys for sure. EX-SD, WTF do you even care about sd homes if you don’t live here. You act like an expert but you don’t live here. You get the award for loser #2 of this board. Sad pathetic humans you all are. Back to my planet to refuel.

[Alex_angel]

Touched a nerve with the rest of you loser renters I see. Does it hurt you all so bad that the best you can say is move blah blah blah. You all know I’m right but you fail to admit to yoursleves how pathetic your lives have been renting and having nothing but your balls in your hand to show for it. Uterly pathetic. JWM Hahahaha, you are the biggest loser of them all, do you even have a job? Sad state for most of you for sure. Once you all buy a home you will then join some home owners forum and spend the rest of your days bashing renters. So sad, I really for sorry for some of you guys for sure. EX-SD, WTF do you even care about sd homes if you don’t live here. You act like an expert but you don’t live here. You get the award for loser #2 of this board. Sad pathetic humans you all are. Back to my planet to refuel.

[Dukehorn]

Good grief, you’re a moron with your logical fallacies and strawman statements. There’s no right answer since its time-dependent.

Obviously you were stupid 7 years ago not to buy when you had the chance. That’s your stupidity and not ours.

If you want to buy now and project for 7 years, here’s the easy analysis.

Rent=$2300
Monthly payments on an $800,000 (with insurance, HOAs, melos)=$4500

So the real question is whether your equity in your home 7 years from now is greater than (7 * 12 * (4500-2300)) + (your downpayment) + (any investment increase from the previous number).

I just don’t understand your ignorance in paying an average of $2300/month for a place over 7 years (unless, you’re telling an untruth, which is pretty typical in your posts). Face it, you couldn’t afford a home 7 years ago, and if think its a good time to buy right now, you should be able to (if you saved up enough money)

[Dukehorn]

Good grief, you’re a moron with your logical fallacies and strawman statements. There’s no right answer since its time-dependent.

Obviously you were stupid 7 years ago not to buy when you had the chance. That’s your stupidity and not ours.

If you want to buy now and project for 7 years, here’s the easy analysis.

Rent=$2300
Monthly payments on an $800,000 (with insurance, HOAs, melos)=$4500

So the real question is whether your equity in your home 7 years from now is greater than (7 * 12 * (4500-2300)) + (your downpayment) + (any investment increase from the previous number).

I just don’t understand your ignorance in paying an average of $2300/month for a place over 7 years (unless, you’re telling an untruth, which is pretty typical in your posts). Face it, you couldn’t afford a home 7 years ago, and if think its a good time to buy right now, you should be able to (if you saved up enough money)

[Dukehorn]

Good grief, you’re a moron with your logical fallacies and strawman statements. There’s no right answer since its time-dependent.

Obviously you were stupid 7 years ago not to buy when you had the chance. That’s your stupidity and not ours.

If you want to buy now and project for 7 years, here’s the easy analysis.

Rent=$2300
Monthly payments on an $800,000 (with insurance, HOAs, melos)=$4500

So the real question is whether your equity in your home 7 years from now is greater than (7 * 12 * (4500-2300)) + (your downpayment) + (any investment increase from the previous number).

I just don’t understand your ignorance in paying an average of $2300/month for a place over 7 years (unless, you’re telling an untruth, which is pretty typical in your posts). Face it, you couldn’t afford a home 7 years ago, and if think its a good time to buy right now, you should be able to (if you saved up enough money)

[Dukehorn]

Good grief, you’re a moron with your logical fallacies and strawman statements. There’s no right answer since its time-dependent.

Obviously you were stupid 7 years ago not to buy when you had the chance. That’s your stupidity and not ours.

If you want to buy now and project for 7 years, here’s the easy analysis.

Rent=$2300
Monthly payments on an $800,000 (with insurance, HOAs, melos)=$4500

So the real question is whether your equity in your home 7 years from now is greater than (7 * 12 * (4500-2300)) + (your downpayment) + (any investment increase from the previous number).

I just don’t understand your ignorance in paying an average of $2300/month for a place over 7 years (unless, you’re telling an untruth, which is pretty typical in your posts). Face it, you couldn’t afford a home 7 years ago, and if think its a good time to buy right now, you should be able to (if you saved up enough money)

[Dukehorn]

Good grief, you’re a moron with your logical fallacies and strawman statements. There’s no right answer since its time-dependent.

Obviously you were stupid 7 years ago not to buy when you had the chance. That’s your stupidity and not ours.

If you want to buy now and project for 7 years, here’s the easy analysis.

Rent=$2300
Monthly payments on an $800,000 (with insurance, HOAs, melos)=$4500

So the real question is whether your equity in your home 7 years from now is greater than (7 * 12 * (4500-2300)) + (your downpayment) + (any investment increase from the previous number).

I just don’t understand your ignorance in paying an average of $2300/month for a place over 7 years (unless, you’re telling an untruth, which is pretty typical in your posts). Face it, you couldn’t afford a home 7 years ago, and if think its a good time to buy right now, you should be able to (if you saved up enough money)

[Coronita]

A_A,

 

If you feel so strongly about this, just buy now. Get it over with. Find a place that you can afford, and buy it now. Be done with it. If you want exactly what you want at the price you want it at, you'll need to wait. If you can cut corners and still be happy with it and really don't mind losing $100k to $200k+ down the road, than by all means, you really shouldn't be waiting. Some people want to wait for a discount, and have time to wait. Sure, great. If you don't want to wait, and get all bent out of shape for not being an owner right now, well go out and buy. You're spending $2300/month on rent, find a place that's like a 2-3 bedroom, get rid of any extra crap that you currently need to store inside your rental garage, and live there for a few years. Trade up when your financial situation changes.

Why do you insult other renters and call them losers when you're a renter yourself? It's pretty self defeating. You know, instead of say "you can't afford X" and shut your mind off of doing anything productive, why don't you re-think your question into "how do I go about affording X?" If you resign yourself to just complaining about affordability, you're just bathing yourself in self-pitty, and it does you no good. Get out and do something about it. Find a place you can afford to live int and make compromises if that's what you really want.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

A_A,

 

If you feel so strongly about this, just buy now. Get it over with. Find a place that you can afford, and buy it now. Be done with it. If you want exactly what you want at the price you want it at, you'll need to wait. If you can cut corners and still be happy with it and really don't mind losing $100k to $200k+ down the road, than by all means, you really shouldn't be waiting. Some people want to wait for a discount, and have time to wait. Sure, great. If you don't want to wait, and get all bent out of shape for not being an owner right now, well go out and buy. You're spending $2300/month on rent, find a place that's like a 2-3 bedroom, get rid of any extra crap that you currently need to store inside your rental garage, and live there for a few years. Trade up when your financial situation changes.

Why do you insult other renters and call them losers when you're a renter yourself? It's pretty self defeating. You know, instead of say "you can't afford X" and shut your mind off of doing anything productive, why don't you re-think your question into "how do I go about affording X?" If you resign yourself to just complaining about affordability, you're just bathing yourself in self-pitty, and it does you no good. Get out and do something about it. Find a place you can afford to live int and make compromises if that's what you really want.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

A_A,

 

If you feel so strongly about this, just buy now. Get it over with. Find a place that you can afford, and buy it now. Be done with it. If you want exactly what you want at the price you want it at, you'll need to wait. If you can cut corners and still be happy with it and really don't mind losing $100k to $200k+ down the road, than by all means, you really shouldn't be waiting. Some people want to wait for a discount, and have time to wait. Sure, great. If you don't want to wait, and get all bent out of shape for not being an owner right now, well go out and buy. You're spending $2300/month on rent, find a place that's like a 2-3 bedroom, get rid of any extra crap that you currently need to store inside your rental garage, and live there for a few years. Trade up when your financial situation changes.

Why do you insult other renters and call them losers when you're a renter yourself? It's pretty self defeating. You know, instead of say "you can't afford X" and shut your mind off of doing anything productive, why don't you re-think your question into "how do I go about affording X?" If you resign yourself to just complaining about affordability, you're just bathing yourself in self-pitty, and it does you no good. Get out and do something about it. Find a place you can afford to live int and make compromises if that's what you really want.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

A_A,

 

If you feel so strongly about this, just buy now. Get it over with. Find a place that you can afford, and buy it now. Be done with it. If you want exactly what you want at the price you want it at, you'll need to wait. If you can cut corners and still be happy with it and really don't mind losing $100k to $200k+ down the road, than by all means, you really shouldn't be waiting. Some people want to wait for a discount, and have time to wait. Sure, great. If you don't want to wait, and get all bent out of shape for not being an owner right now, well go out and buy. You're spending $2300/month on rent, find a place that's like a 2-3 bedroom, get rid of any extra crap that you currently need to store inside your rental garage, and live there for a few years. Trade up when your financial situation changes.

Why do you insult other renters and call them losers when you're a renter yourself? It's pretty self defeating. You know, instead of say "you can't afford X" and shut your mind off of doing anything productive, why don't you re-think your question into "how do I go about affording X?" If you resign yourself to just complaining about affordability, you're just bathing yourself in self-pitty, and it does you no good. Get out and do something about it. Find a place you can afford to live int and make compromises if that's what you really want.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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