Strikes

[TDub]

“Why pay my own mortgage when I can pay someone else’s for them!”

But the issue is, paying $1100 a month rent for years does not convince a bank you can afford an $800 a month mortgage.

Not to mention that whole down payment thing.

How long you've rented is irrelevant. Banks decide your credit worthiness for a primary residence solely off your tax returns and credit report.

Paying your rent does impact your credit report though

[TDub]

Is this another thread redirection for ous to explain how the system is built to fuck him specifically?

[ousdahl]

And hang on a sec - aren’t you the same guys who argue against a living wage - you know, precisely the sort of thing that would allow more working class folks to buy their own homes?

[TDub]

Sigh

[Deleted User 863]

Renting is equivalent to throwing money in a fire every month.

I tend to agree....but property taxes and homeowners insurance are sort of throwing money away too.

I can envision some scenarios where renting absolutely makes more sense.

Sure. But those are dead costs. At the end of the day sell your house and you will have something.

Your lease is up...you have nothing.

True...but you also don't have to pay for continual maintenace either. So there are also sunk costs you're avoiding.

[TDub]

I tend to agree....but property taxes and homeowners insurance are sort of throwing money away too.

I can envision some scenarios where renting absolutely makes more sense.

Sure. But those are dead costs. At the end of the day sell your house and you will have something.

Your lease is up...you have nothing.

True...but you also don't have to pay for continual maintenace either. So there are also sunk costs you're avoiding.

But you give up the ability to make improvements and increase your future capital. You are only treading water....at best.

Own and you have multiple avenues to increase your future capital.

[Deleted User 863]

And hang on a sec - aren’t you the same guys who argue against a living wage - you know, precisely the sort of thing that would allow more working class folks to buy their own homes?

No. I don't think anyone should work for less than a fair wage. I just don't think the federal government should set one. I think those would be best left up to states and local governments who can do a more effective job.

[Deleted User 863]

Sure. But those are dead costs. At the end of the day sell your house and you will have something.

Your lease is up...you have nothing.

True...but you also don't have to pay for continual maintenace either. So there are also sunk costs you're avoiding.

But you give up the ability to make improvements and increase your future capital. You are only treading water....at best.

Own and you have multiple avenues to increase your future capital.

Hey i am with you in the vast majority of scenarios. But there is also risk in owning that you don't have with renting.

[TDub]

Almost nothing good comes without risks.

But, hey! You (not you specifically, the general "you") can make some mean reddit posts about life being unfair if you never try to find a way to take a shot.

[Deleted User 863]

I was making less than 45k a year when i bought my first house.

Working at McDonalds in an entry level position probably means you don't deserve to buy a 150k house. Sorry. I am not villifying entry level workers, but if everyone is paid $25/hr then my spicy mcchicken isn't going to be $1 and i am going home to make a sandwich instead....enough people do that and then that job is lost.

[TDub]

As i said, there are scenarios where renting is a good option. I've rented many times. Im not denying that....but for most people, if you can find a way to own you will build a financial foundation quicker than by renting and saving alone.

[Cascadia]

Some good explanation in there

It literally answers the questions/debate that has encompassed this thread lately. Yet, I bet no one listens to it in order to educate themselves on the topic.

To be honest, I don't listen to podcasts let alone 27 minute long ones. If the same information was provided in written form, it would cut out the extra junk and take 5 minutes to read. I just don't have 27 minutes to give to the topic.

No worries, being willfully ignorant is pretty much the theme of this thread.

[ousdahl]

I tend to agree....but property taxes and homeowners insurance are sort of throwing money away too.

I can envision some scenarios where renting absolutely makes more sense.

Sure. But those are dead costs. At the end of the day sell your house and you will have something.

Your lease is up...you have nothing.

True...but you also don't have to pay for continual maintenace either. So there are also sunk costs you're avoiding.

continual maintenance lulz

[ousdahl]

And I wish I had bought a property up here like 5-10 years ago.

But every time I have enough saved for a down payment, the market goes up another bajillion percent.

[ousdahl]

And man, just when I thought we were gonna have a kumbaya moment about home ownership, we got back to blaming poor people for being poor in a hurry.

[Deleted User 863]

As i said, there are scenarios where renting is a good option. I've rented many times. Im not denying that....but for most people, if you can find a way to own you will build a financial foundation quicker than by renting and saving alone.

I think part of it is that people like immediate satisfaction.

So instead of buying a 40k house and fixing it up while they live in it, it is easier to rent a 75k house and burn money.

I could make minimum wage a buy a 25k house. Probably only need about $1k for downpayment and roll closing costs into loan...but probably shouldn't have newest iphone, cable TV, a car nicer than i can afford, and eat out 5 days a week.

The problem with a lot of americans is that they "need" too many "wants".

[Cascadia]

A 25k house?

[ousdahl]

man, I wish every market was as affordable as bumfuck Illinois.

[TDub]

Lifes about choices. Your part of Colorado is notoriously expensive.

[Mjl]

If you're not going to have your house for at least 5 years, I'm not sure owning makes sense. Property taxes, insurance, interest, maintenance, and especially real estate agents commissions... And now that only $10,000 of SaLT is deductible it makes even more sense to rent. And you take on the risks of needing to repair a flooded basement or of a drop in the housing market.