Renting Vs Buying: Absolutely No Contest

[Anonymous]

I’m married and my state taxes were $4,000 last year, but we’re in the 25% tax bracket in federal taxes. When I did may taxes itemized versus standard, the itemized fell about $5,000 short of the standard deduction. This will also become more and more important as houses become affordable for people who aren’t making 120K+

[ibjames]

[quote=HarryBosch]All this analysis is great for all you single guys and single heads of households. But when you’re married you have other variables such as: compromising values, emotional security, pride of ownership, building a future and maintaining a path to retirement. All of which exert more pressure to buy rather than rent.

[/quote]

I beg to differ Harry, I’m married, my wife makes almost as much as me (probably going to pass me very soon) and has the same values as me.

I personally was raised in an apartment, we rented, and it made no difference. With the difference in what you save vs. owning right now you can invest that and it builds rather quickly, because it’s a nice amount of cash. Which will also appreciate faster than any place you buy right now. So you are hindering your retirement path, not helping it. The only thing you get out of buying right now is pride of ownership at the cost of everything else. Since emotional security will be gone because you will have less disposable income due to a nice fat mortgage payment to go with your “pride of ownership”.

I tell you what.. my pride of ownership has went from owning a house, to owning a nice growing bank account that is fully liquid and easily accessible.

Point that out to the Mrs. and it’s amazing how they jump on the same ship as you.

[ibjames]

[quote=HarryBosch]All this analysis is great for all you single guys and single heads of households. But when you’re married you have other variables such as: compromising values, emotional security, pride of ownership, building a future and maintaining a path to retirement. All of which exert more pressure to buy rather than rent.

[/quote]

I beg to differ Harry, I’m married, my wife makes almost as much as me (probably going to pass me very soon) and has the same values as me.

I personally was raised in an apartment, we rented, and it made no difference. With the difference in what you save vs. owning right now you can invest that and it builds rather quickly, because it’s a nice amount of cash. Which will also appreciate faster than any place you buy right now. So you are hindering your retirement path, not helping it. The only thing you get out of buying right now is pride of ownership at the cost of everything else. Since emotional security will be gone because you will have less disposable income due to a nice fat mortgage payment to go with your “pride of ownership”.

I tell you what.. my pride of ownership has went from owning a house, to owning a nice growing bank account that is fully liquid and easily accessible.

Point that out to the Mrs. and it’s amazing how they jump on the same ship as you.

[ibjames]

[quote=HarryBosch]All this analysis is great for all you single guys and single heads of households. But when you’re married you have other variables such as: compromising values, emotional security, pride of ownership, building a future and maintaining a path to retirement. All of which exert more pressure to buy rather than rent.

[/quote]

I beg to differ Harry, I’m married, my wife makes almost as much as me (probably going to pass me very soon) and has the same values as me.

I personally was raised in an apartment, we rented, and it made no difference. With the difference in what you save vs. owning right now you can invest that and it builds rather quickly, because it’s a nice amount of cash. Which will also appreciate faster than any place you buy right now. So you are hindering your retirement path, not helping it. The only thing you get out of buying right now is pride of ownership at the cost of everything else. Since emotional security will be gone because you will have less disposable income due to a nice fat mortgage payment to go with your “pride of ownership”.

I tell you what.. my pride of ownership has went from owning a house, to owning a nice growing bank account that is fully liquid and easily accessible.

Point that out to the Mrs. and it’s amazing how they jump on the same ship as you.

[ibjames]

[quote=HarryBosch]All this analysis is great for all you single guys and single heads of households. But when you’re married you have other variables such as: compromising values, emotional security, pride of ownership, building a future and maintaining a path to retirement. All of which exert more pressure to buy rather than rent.

[/quote]

I beg to differ Harry, I’m married, my wife makes almost as much as me (probably going to pass me very soon) and has the same values as me.

I personally was raised in an apartment, we rented, and it made no difference. With the difference in what you save vs. owning right now you can invest that and it builds rather quickly, because it’s a nice amount of cash. Which will also appreciate faster than any place you buy right now. So you are hindering your retirement path, not helping it. The only thing you get out of buying right now is pride of ownership at the cost of everything else. Since emotional security will be gone because you will have less disposable income due to a nice fat mortgage payment to go with your “pride of ownership”.

I tell you what.. my pride of ownership has went from owning a house, to owning a nice growing bank account that is fully liquid and easily accessible.

Point that out to the Mrs. and it’s amazing how they jump on the same ship as you.

[ibjames]

[quote=HarryBosch]All this analysis is great for all you single guys and single heads of households. But when you’re married you have other variables such as: compromising values, emotional security, pride of ownership, building a future and maintaining a path to retirement. All of which exert more pressure to buy rather than rent.

[/quote]

I beg to differ Harry, I’m married, my wife makes almost as much as me (probably going to pass me very soon) and has the same values as me.

I personally was raised in an apartment, we rented, and it made no difference. With the difference in what you save vs. owning right now you can invest that and it builds rather quickly, because it’s a nice amount of cash. Which will also appreciate faster than any place you buy right now. So you are hindering your retirement path, not helping it. The only thing you get out of buying right now is pride of ownership at the cost of everything else. Since emotional security will be gone because you will have less disposable income due to a nice fat mortgage payment to go with your “pride of ownership”.

I tell you what.. my pride of ownership has went from owning a house, to owning a nice growing bank account that is fully liquid and easily accessible.

Point that out to the Mrs. and it’s amazing how they jump on the same ship as you.

[patientlywaiting]

Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.

[patientlywaiting]

Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.

[patientlywaiting]

Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.

[patientlywaiting]

Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.

[patientlywaiting]

Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.

[(former)FormerSanDiegan]

[quote=patientlywaiting]Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]

This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.

How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.

If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?

I think it’s pointless to even try to consider the underground economy as a factor here.

[(former)FormerSanDiegan]

[quote=patientlywaiting]Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]

This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.

How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.

If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?

I think it’s pointless to even try to consider the underground economy as a factor here.

[(former)FormerSanDiegan]

[quote=patientlywaiting]Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]

This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.

How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.

If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?

I think it’s pointless to even try to consider the underground economy as a factor here.

[(former)FormerSanDiegan]

[quote=patientlywaiting]Remember that is a large underground economy in San Diego.

Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]

This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.

How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.

If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?

I think it’s pointless to even try to consider the underground economy as a factor here.

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