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Houses - better to own or rent?
https://mail.chicagofanatics.com/viewtopic.php?f=47&t=115757		 Page 1 of 1
Author:  whistler [ Wed Jan 02, 2019 6:00 pm ]
Post subject:  Houses - better to own or rent?
really the question is, if you can't pay for the fuckin thing all in cash up front, is it just better to rent?

I mean, fuck, the interest over 30 years adds on like 75% of the original cost of the house. Why would u wanna throw away ur money like that? Plus property taxes, plus insurance, and shit like that.

Housing is expensive these days. So its hard to put a high down payment down. Is it just best to be patient, keep renting, until you've saved enough for a huge-ass down payment? How the hell do so many people own a house when theyre just getting their asses reamed?

So is it better to rent or own?

Any fuckin' advice?
Author:  Mr. Reason [ Wed Jan 02, 2019 6:05 pm ]
Post subject:  Re: Houses - better to own or rent?
Squat
Author:  Kirkwood [ Wed Jan 02, 2019 6:16 pm ]
Post subject:  Re: Houses - better to own or rent?
Live in Chicago/Chicago-land? Rent.
Author:  Regular Reader [ Wed Jan 02, 2019 6:42 pm ]
Post subject:  Re: Houses - better to own or rent?
If you have to ask, move?
Author:  vitoscotti [ Wed Jan 02, 2019 7:00 pm ]
Post subject:  Re: Houses - better to own or rent?
Never rented, imagine it's horrible. You'll never get ahead being a working stiff. You have to own a business yourself, or make investments.
Author:  newper [ Wed Jan 02, 2019 7:57 pm ]
Post subject:  Re: Houses - better to own or rent?
With the tax changes happening this year, it should be interesting to see how things trend.
Author:  C_Howitt_Fealz [ Thu Jan 03, 2019 9:03 am ]
Post subject:  Re: Houses - better to own or rent?
I'm never home enough to bother owning. Hell, I'm home so little I could have a Tokyo-sized studio and be okay.
Author:  Brick [ Thu Jan 03, 2019 9:07 am ]
Post subject:  Re: Houses - better to own or rent?
Figure out what type of home you would be happy owning and the price.
Figure out what type of rental you would be happy renting and the price.

If the rental costs more than 30% less then you should rent. If not and you plan to be in the area for a while you should be buying.
Author:  pittmike [ Thu Jan 03, 2019 9:31 am ]
Post subject:  Re: Houses - better to own or rent?
Boilermaker Rick wrote:
Figure out what type of home you would be happy owning and the price.
Figure out what type of rental you would be happy renting and the price.

If the rental costs more than 30% less then you should rent. If not and you plan to be in the area for a while you should be buying.


I haven't seen that figure before that I recall but it makes sense. Do you know how they arrive at 30%?
Author:  Brick [ Thu Jan 03, 2019 9:35 am ]
Post subject:  Re: Houses - better to own or rent?
pittmike wrote:
Boilermaker Rick wrote:
Figure out what type of home you would be happy owning and the price.
Figure out what type of rental you would be happy renting and the price.

If the rental costs more than 30% less then you should rent. If not and you plan to be in the area for a while you should be buying.


I haven't seen that figure before that I recall but it makes sense. Do you know how they arrive at 30%?

I'm sure there are more figures, but from what I remember it was basically what you get back every month in principal + tax deduction on interest. The 30% probably does assume the value of the house raises which seems to be less of a sure thing now.
Author:  pittmike [ Thu Jan 03, 2019 9:53 am ]
Post subject:  Re: Houses - better to own or rent?
Thx
Author:  long time guy [ Thu Jan 03, 2019 10:05 am ]
Post subject:  Re: Houses - better to own or rent?
whistler wrote:
really the question is, if you can't pay for the fuckin thing all in cash up front, is it just better to rent?

I mean, fuck, the interest over 30 years adds on like 75% of the original cost of the house. Why would u wanna throw away ur money like that? Plus property taxes, plus insurance, and shit like that.

Housing is expensive these days. So its hard to put a high down payment down. Is it just best to be patient, keep renting, until you've saved enough for a huge-ass down payment? How the hell do so many people own a house when theyre just getting their asses reamed?

So is it better to rent or own?

Any fuckin' advice?



In a down market buy if you can and in an up market might be best to rent.

In the case of Chicago its becoming sort of difficult to do either right now. Rental prices are going through the roof and housing prices have risen also. Its one of the reasons that there has been a mass exodus over the past 10 years or so.
Author:  good dolphin [ Thu Jan 03, 2019 11:50 am ]
Post subject:  Re: Houses - better to own or rent?
The one common thing among wealthy people since the beginning of time is the private ownership of real estate.
Author:  SpiralStairs [ Thu Jan 03, 2019 12:46 pm ]
Post subject:  Re: Houses - better to own or rent?
whistler wrote:
really the question is, if you can't pay for the fuckin thing all in cash up front, is it just better to rent?

I mean, fuck, the interest over 30 years adds on like 75% of the original cost of the house. Why would u wanna throw away ur money like that? Plus property taxes, plus insurance, and shit like that.

Housing is expensive these days. So its hard to put a high down payment down. Is it just best to be patient, keep renting, until you've saved enough for a huge-ass down payment? How the hell do so many people own a house when theyre just getting their asses reamed?

So is it better to rent or own?

Any fuckin' advice?


Your landlord doesn't factor in those costs when you rent? Does he lower your rent over time as the interest on his loan decreases?
Author:  Big Chicagoan [ Thu Jan 03, 2019 12:48 pm ]
Post subject:  Re: Houses - better to own or rent?
good dolphin wrote:
The one common thing among wealthy people since the beginning of time is the private ownership of real estate.


Owning real estate is great for wealth. Owning the home you live in is not necessarily great for wealth.
Author:  IkeSouth [ Thu Jan 03, 2019 1:00 pm ]
Post subject:  Re: Houses - better to own or rent?
Depends on situation. Renting is a little more down every month but you never pay for repairs. And many people never see equity after 30 years thats substantial enough to offset the repair costs.

If you travel a lot for work, or you just like partying every weekend, renting is way better.

If you have kids and shit and your life is shit and you don't like people, then owning is better.
Author:  T-Bone [ Thu Jan 03, 2019 1:29 pm ]
Post subject:  Re: Houses - better to own or rent?
I've really enjoyed home ownership for the most part. The first house I bought with my then wife was likely too big for what we needed but the
financing was there and this was back in the mid 2000's or so when getting a loan was pretty easy. It was a cookie cutter type house in a planned
community but we got to pick out finishes and a lot of the stuff on the inside. A lot of fun for a young couple and we kept the house up nicely. I
was sad to leave it when I got divorced. Having my own apartment for about 18 months had it's advantages because I didn't have to worry about
any other stuff outside but I found it pretty depressing and didn't like living so close to so many other people. I also lived on a very busy road. I
got this place ( which was a bit of a dump ) because they allowed me to have 2 dogs and I rented two garage spaces which was really handy. My
current house is a small 1200 sq ft ranch. It is probably a little small for what we need but it is cozy and I have a yard that I can mow and trim in
45 minutes or less. I didn't need a house 2 or 3x that size. Was able to get a 15yr mortgage on it at 3.25% and will have it paid off completely in
10 years. My wife and I will be empty nesters in 2.5 years. In a nutshell I would say take the financial costs and the time it will take you to keep it
up to determine if you want to buy. Do you plan on staying a long time? If so I would probably lean towards buying a place. In the end it usually
becomes a pretty good investment.
Author:  Ogie Oglethorpe [ Thu Jan 03, 2019 4:09 pm ]
Post subject:  Re: Houses - better to own or rent?
If you are not relocating in the next 5 years, you should own.

When you purchase a house, you are locking in your payment for 15-30 years so that it remains the same (and as inflation hits your payment becomes more and more of a bargiain) while renting comes with annual increases in cost for the same location/quality.

Furthermore, once you pay off your home, you no longer have a payment and you definitely don't want an expense like a mortgage or rent in your retirement years. If you rent, you will always have a payment.

I could go on with additional benefits such as gaining equity with each payment, appreciation of your home's value, etc.
Author:  Big Chicagoan [ Thu Jan 03, 2019 4:11 pm ]
Post subject:  Re: Houses - better to own or rent?
Ogie Oglethorpe wrote:
If you are not relocating in the next 5 years, you should own.

When you purchase a house, you are locking in your payment for 15-30 years so that it remains the same (and as inflation hits your payment becomes more and more of a bargiain) while renting comes with annual increases in cost for the same location/quality.

Furthermore, once you pay off your home, you no longer have a payment and you definitely don't want an expense like a mortgage or rent in your retirement years. If you rent, you will always have a payment.

I could go on with additional benefits such as gaining equity with each payment, appreciation of your home's value, etc.



All true in most places, but in places with high real estate values, is not always the best answer.
Author:  Kirkwood [ Thu Jan 03, 2019 4:21 pm ]
Post subject:  Re: Houses - better to own or rent?
Ogie Oglethorpe wrote:
If you are not relocating in the next 5 years, you should own.

When you purchase a house, you are locking in your payment for 15-30 years so that it remains the same (and as inflation hits your payment becomes more and more of a bargiain) while renting comes with annual increases in cost for the same location/quality.

Furthermore, once you pay off your home, you no longer have a payment and you definitely don't want an expense like a mortgage or rent in your retirement years. If you rent, you will always have a payment.

I could go on with additional benefits such as gaining equity with each payment, appreciation of your home's value, etc.

A lot of that information does not apply to many places.
Author:  GoldenJet [ Thu Jan 03, 2019 4:21 pm ]
Post subject:  Re: Houses - better to own or rent?
The parents have finally gotten sick of whistler's shit.
Author:  Ogie Oglethorpe [ Thu Jan 03, 2019 4:39 pm ]
Post subject:  Re: Houses - better to own or rent?
Big Chicagoan wrote:
Ogie Oglethorpe wrote:
If you are not relocating in the next 5 years, you should own.

When you purchase a house, you are locking in your payment for 15-30 years so that it remains the same (and as inflation hits your payment becomes more and more of a bargiain) while renting comes with annual increases in cost for the same location/quality.

Furthermore, once you pay off your home, you no longer have a payment and you definitely don't want an expense like a mortgage or rent in your retirement years. If you rent, you will always have a payment.

I could go on with additional benefits such as gaining equity with each payment, appreciation of your home's value, etc.



All true in most places, but in places with high real estate values, is not always the best answer.

I'd say that if you live in a place where prices keep you out of the buying market, then you probably should look to relocate.
Author:  hnd [ Thu Jan 03, 2019 5:02 pm ]
Post subject:  Re: Houses - better to own or rent?
big city livin vs burbs/out in the country is so different from a real estate perspective.

someone mentioned not paying for repairs. i know lots of renters who have stuff perpetually broke or fork out the money on their own to have repairs done to where they live. so it doesn't sound like that is as much of an advantage as you'd assume.
Author:  Minooka Meatball [ Thu Jan 03, 2019 5:04 pm ]
Post subject:  Re: Houses - better to own or rent?
Last time I bought was 2005, when the market was riding high.

Then 2008 happened.

We still hadn’t regained all of the equity back when we sold in March 2018 to relocate, but we got most of it back.

I don’t care what anyone says right now, but IMO I would wait before buying, unless you get a cheap crappy property that you can rehab on the cheap. The housing market is starting to feel a bit too carefree, and has been on the rise for quite awhile; I think it’s gonna slow down in the next couple of years. I mentioned my concern to a guy who I was working with in a lab earlier today, and he said “ahhh, it’s not coming back down anytime soon - my wife’s a realtor, and she knows...” :roll:

My wife and I are starting to peek around a bit for a smallish house out here in the Columbus sticks, but we are in no hurry.
Author:  Kirkwood [ Thu Jan 03, 2019 5:18 pm ]
Post subject:  Re: Houses - better to own or rent?
Ogie Oglethorpe wrote:
I'd say that if you live in a place where prices keep you out of the buying market, then you probably should look to relocate.

Depends on what your priorities are.
Author:  Drake LaRrieta [ Thu Jan 03, 2019 7:03 pm ]
Post subject:  Re: Houses - better to own or rent?
It all depends on your life situation and what you can afford. You have to make a good amount of money to own a house and to maintain it and there are always unforeseen home repairs. The property taxes are a killer for a lot of people who own houses in high tax states. A lot of people pay anywhere from $4,000 a year and up just for owning a home. Also dealing with certain villages is like dealing with communists--they have certain permit requirements and they impose arbitrary rules on homeowner's. You may have your home paid off, but you still have to pay homeowner's insurance and property taxes.

Renting is a good setup for people without kids and who don't mind moving every so often. In my mind being a townhouse, duplex or condo is somewhere in-between having a house and being a renter. People in associations often don't have to do their own snow removal or lawn maintenance, but some associations don't allow non-owners to rent the units. If you have to rent and you have kids that go to the public school you want to make sure you're in a good school district.

It's become increasingly difficult to get a loan for a house. With the limits on state and local income tax deductions richer homeowners may feel the pain more on their federal return and may consider moving states or just renting. Tax deductions and home appreciations were some of the incentives to home ownership, but if it becomes more of a liability then maybe less people will want to own homes.
Author:  whistler [ Fri Jan 04, 2019 12:21 am ]
Post subject:  Re: Houses - better to own or rent?
GoldenJet wrote:
The parents have finally gotten sick of whistler's shit.



:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

fuck! :lol:
Author:  whistler [ Fri Jan 04, 2019 1:39 am ]
Post subject:  Re: Houses - better to own or rent?
is there a catch if u buy a house and rent it out instead of living in it?

Like, are u double-taxed or some shit?

Or does the state/city/county let u do it with no problem?
Author:  good dolphin [ Fri Jan 04, 2019 10:52 am ]
Post subject:  Re: Houses - better to own or rent?
whistler wrote:
is there a catch if u buy a house and rent it out instead of living in it?

Like, are u double-taxed or some shit?

Or does the state/city/county let u do it with no problem?


usually a different type of mortgage and definitely have to disclose to the lender
Author:  Don Tiny [ Fri Jan 04, 2019 11:04 am ]
Post subject:  Re: Houses - better to own or rent?
Mr. Reason wrote:
Squat

Not with my knees.
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