House owners VS renters

[encarter13]

Originally Posted by walds11

Maybe I’m old...not really mid 40s, but what is 1.5 kids?

Average American family has 1.5 kids.

https://www.thisisinsider.com/the-av...y-state-2019-2

[crazymcmichael]

Originally Posted by encarter13

Average American family has 1.5 kids.

https://www.thisisinsider.com/the-av...y-state-2019-2

True. Obesity is severe in the states i heard

[crazymcmichael]

this one is pretty good actually LMFAO :D

[SMD]

Originally Posted by R G

Hahahaha yes because you can make a profit with something you don’t own!?!?!

Stick with renting, buddy.

Frequently wrong but never in doubt. If it’s so obvious I am sure you can help educate me on the current Manhattan property market. Please lay out specifically with examples and all transaction costs (mansion tax, mortgage tax, transfer taxes, flip taxes, manintenace) so someone as uneducated as myself can understand. Thanks.

These broad brushed statements about markets you do not understand are tiresome. At the very least a successful investor such as yourself (everyone is a genius in a secular bull market) could be a pledge member no?

[Gaijin]

I've owned and sold 3 homes. Made a profit on all of them. Great investments, though I didn't know it at the time. People said I was crazy.

My first one was seriously in the 'hood." Gunshots outside not nightly but darn near weekly. I was young and well armed, single. So no worries. Bought a 1928 remodeled Craftsman Bungalow for 5 figures.That neighborhood gentrified and now it is Starbucks and Micro Brew places on every block.

I'm semi retired now, don't want a tenant and I rent because I honestly don't know where I'm going to be living tomorrow. I like that.

All of my personal possessions other than my car and my dog can fit into a suitcase. If I ever settle, maybe I'll buy again.

[crazymcmichael]

Originally Posted by Gaijin

I've owned and sold 3 homes. Made a profit on all of them. Great investments, though I didn't know it at the time. People said I was crazy.

My first one was seriously in the 'hood." Gunshots outside not nightly but darn near weekly. I was young and well armed, single. So no worries. Bought a 1928 remodeled Craftsman Bungalow for 5 figures.That neighborhood gentrified and now it is Starbucks and Micro Brew places on every block.

I'm semi retired now, don't want a tenant and I rent because I honestly don't know where I'm going to be living tomorrow. I like that.

All of my personal possessions other than my car and my dog can fit into a suitcase. If I ever settle, maybe I'll buy again.

that is also something i like, what you mention now.. The whole idea of owning just a few good watches and as much money as possible and than be basicly ''free man'' so no big posessions

[R G]

Originally Posted by SMD

Frequently wrong but never in doubt. If it’s so obvious I am sure you can help educate me on the current Manhattan property market. Please lay out specifically with examples and all transaction costs (mansion tax, mortgage tax, transfer taxes, flip taxes, manintenace) so someone as uneducated as myself can understand. Thanks.

These broad brushed statements about markets you do not understand are tiresome. At the very least a successful investor such as yourself (everyone is a genius in a secular bull market) could be a pledge member no?

Haha

Frequently wrong but never in doubt?

I have no idea what you’re referring to.

These statements i’m making are tiresome?

I wasn’t aware there have been so many I’ve made.

[uscmatt99]

It’s a decision based on your location, lifestyle, and future plans. For my family it made complete sense to buy. The rental market is targeted at singles and couples, and homes for rent are rare, and usually not that nice. The property taxes are low. $500K gets you a 5 bed 4 bath nicely finished home, $800K gets you well over 5000 finished square feet with a lot of customization and a fully built walkout basement, or smaller place on a lake. Homes over a million are rare, usually big homes on a sporting lake with a dock and/or small beach.

We will have our home paid off in a total of 15 years, though monthly payments will drop significantly after 10 years when the home equity loan is paid. Property taxes are 10-12K annually, plus maintenance costs. I estimate that if we stay here for 20 years until both kids are moved out, we could lose over $100K in value and still come out ahead, all while living in a home customized to our needs.

My wife wants to relocate to Chicago after I retire, and we hope to get a second property there sooner than that. Completely different calculus. I’ll have to time the market a bit, account for interest rates, HOA fees, parking, etc. It may very well make sense to rent at the end of the day.

[pickettt]

Originally Posted by Gaijin

I've owned and sold 3 homes. Made a profit on all of them. Great investments, though I didn't know it at the time. People said I was crazy.

My first one was seriously in the 'hood." Gunshots outside not nightly but darn near weekly. I was young and well armed, single. So no worries. Bought a 1928 remodeled Craftsman Bungalow for 5 figures.That neighborhood gentrified and now it is Starbucks and Micro Brew places on every block.

I'm semi retired now, don't want a tenant and I rent because I honestly don't know where I'm going to be living tomorrow. I like that.

All of my personal possessions other than my car and my dog can fit into a suitcase. If I ever settle, maybe I'll buy again.

I'm pretty sure we'll be in the drink if/when we sell our house in Japan. However, I consider it a great investment considering the time we spend there. No more hotel costs......nor mental costs of staying with my wife's family.

[superdog]

Originally Posted by crazymcmichael

that is also something i like, what you mention now.. The whole idea of owning just a few good watches and as much money as possible and than be basicly ''free man'' so no big posessions

It’s wonderful if you can do it.

Tom has earned it through trial and error and life in general. And he’s got the loot to back it up. Earned through time.

The idea of living out of a suitcase for life is certainly appealing. But it’s not easy to get to that place.

[goin camping]

Bought my first house in Los Angeles in my 20's. Cruddy house in a great area.

Much rather own than rent. Hate having my plans in the hands of landlords. Also like the tax breaks and profits made.

[Gaijin]

Originally Posted by pickettt

I'm pretty sure we'll be in the drink if/when we sell our house in Japan. However, I consider it a great investment considering the time we spend there. No more hotel costs......nor mental costs of staying with my wife's family.

I totally understand. My married friends here absolutely cringe when they have to go spend time with their in laws.


They mean well, they just dote and give lots of unwanted advice. Draining after about 2 1/2 days. I guess it is like that everywhere though.

[davef]

I`ve never rented

[Watchflair]

You have to pay for where you want to live - the taxes are the taxes. Being in Westchester NY we have some of the highest property taxes in the country but I wouldn't want to live anywhere else. The schools are top notch so it eliminates the need for private schools. Location wise I think it's the best of both worlds - my house is in horse country yet only 50 minutes to NYC.

Personally I believe in most cases it makes sense to purchase your primary residence. You can customize it as you wish and it's yours.

I also have a house in South NJ that is rented out and paying for itself. Yes I do have incidentals here and there but so far so good. I also know that I've been blessed with a good tenant.

I personally don't believe the $10,000 limit on property tax deduction effects the average buyer of these homes.

[yoniman]

Originally Posted by nick c

X2

X4

And no more capital gains tax when and if I decide to sell my rental.

Time to buy a new Rolex!
Wait, what, no Rolex available here.

Time to go GS

Sent from my TRT-LX2 using Tapatalk

[vicsdca]

Rent my home and lease my cars. If something breaks I call the guy. I refuse to set foot in a Home Depot or in a car shop. I used to own a home when I was in my 20s. I was miserable. Freedom is the greatest asset you can ever own in my opinion.

[tudorbaja27]

Originally Posted by vicsdca

Rent my home and lease my cars. If something breaks I call the guy. I refuse to set foot in a Home Depot or in a car shop. I used to own a home when I was in my 20s. I was miserable. Freedom is the greatest asset you can ever own in my opinion.

[Lawman77]

Only own a home if you can pay off the note inside of 3 years.
Of course, all cash is preferred.

[piratfisk]

Originally Posted by vicsdca

Rent my home and lease my cars. If something breaks I call the guy. I refuse to set foot in a Home Depot or in a car shop. I used to own a home when I was in my 20s. I was miserable. Freedom is the greatest asset you can ever own in my opinion.

Interesting point of view. My wife & I have been mulling around the idea of buying a condo in SD in ~2yrs. Did you own your aforementioned home in that area?

[Fat_ninja]

Other people rent from me :). Im fortunate enough to have a lot of houses and lots of watches ;)

Was an active decision over a decade ago...its not my day job tho

[brandrea]

Originally Posted by Gaijin

I've owned and sold 3 homes. Made a profit on all of them. Great investments, though I didn't know it at the time. People said I was crazy.

My first one was seriously in the 'hood." Gunshots outside not nightly but darn near weekly. I was young and well armed, single. So no worries. Bought a 1928 remodeled Craftsman Bungalow for 5 figures.That neighborhood gentrified and now it is Starbucks and Micro Brew places on every block.

I'm semi retired now, don't want a tenant and I rent because I honestly don't know where I'm going to be living tomorrow. I like that.

All of my personal possessions other than my car and my dog can fit into a suitcase. If I ever settle, maybe I'll buy again.

Really interesting story Tom. Thanks for sharing this

[vicsdca]

Originally Posted by piratfisk

Interesting point of view. My wife & I have been mulling around the idea of buying a condo in SD in ~2yrs. Did you own your aforementioned home in that area?

No, I lived in the south of France at the time. I remember spending my weekends fixing things in my house or doing some home improvement when I could just have relaxed or spent time doing activities that I liked.

Unless you can predict that your condo will double in value every 10 years (based on an average annual ROI of 7.5% like that of the S&P 500), I would skip the condo and save for a house. With a condo, you will not only have to pay property taxes but also strata fees (usually not cheap and possibly unpredictable in the long run). Personally, I would never buy a condo as an investment. Condos are first to go down when there's any sort of housing slowdown or crash (thinking about Florida during the housing crisis). If you don't own the land beneath your home, most of what you own and pay for is the bubble of air in between, which becomes worthless when it bursts. It may not apply to densely populated areas like Manhattan but in San Diego where there's still plenty of land, I would think twice before buying a condo in the current market because prices are definitely inflated.

That being said, if you want to buy a condo in University City, there will probably be some great deals to be made within the next couple of years because the University of California is building thousands of apartment units at an alarming rate. Flocks of students will most likely relocate to those units when construction is completed, creating a surplus of available condos in the area.

[SpeakWithMichael]

Originally Posted by vicsdca

Rent my home and lease my cars. If something breaks I call the guy. I refuse to set foot in a Home Depot or in a car shop. I used to own a home when I was in my 20s. I was miserable. Freedom is the greatest asset you can ever own in my opinion.

Thiiiiiiiis.

[gmh1013]

My home in Cypress was paid off years ago...house i just bought in Phoenix I put 55 percent down and the financed the other 45 percent for 15 years....
Back before the crash I owned some condos in North Scottsdale ....3 to be exact ....picked them up as repos' and rented them out as golf vacation homes for 5 years or so since they were all on Kierlands goldfcourse....when i sold all 3 in May- June 2007 I was in a state of shock how much we made...enough to retire on....my wife left her job within weeks after 23 years at Wells Fargo and i Left IBM in Dec 2007.....plus the house we lived in was worth 115 percent more than what we paid for it.......real estate has been very very good to me.

[MrEleven]

Most wealthy people rent i would think why would you want a mortgage the bank wins its that simple. If your buying a house cash again another dumb move imo could make so much more money from a s and p 500 or even gold. Seen a lot of interviews over the years and alot of super rich just rent including grant cardone infact he just recently did a interview saying just how dumb buying a house was.

[Fat_ninja]

Originally Posted by MrEleven

Most wealthy people rent i would think why would you want a mortgage the bank wins its that simple. If your buying a house cash again another dumb move imo could make so much more money from a s and p 500 or even gold. Seen a lot of interviews over the years and alot of super rich just rent including grant cardone infact he just recently did a interview saying just how dumb buying a house was.

You sure this is accurate?

[MrEleven]

Originally Posted by Fat_ninja

You sure this is accurate?

Yes i watched his interview on vladtv then a week later grant cardone did the same topic on his own YouTube channel. Valdtv is very anti home owning so he asks alot of his wealthy guests and surprisingly most laugh when asked if they own or rent and the majority rent.
Think about it say you take a mortgage for 25 years the norm and after 25 years you have probably have a house that has doubled in price but add up what you have payed to the bank. Doesn’t look so good now.
Go look at what you could of made is a low cost index fund or gold golds around 400% profit and s and p 500 is even more so owning a house cant even be considered a investment its a liability

[JVM]

Property taxes are insane in Houston as well. The price we pay for no state income tax.

Originally Posted by crazymcmichael

Holy... You kiddin right ? ? 18k taxes..???

[dxbtousa]

The amount of guru's in this thread is amazing.

[steve099]

I rent even though I can afford to buy. I dont like factors like being owned by a bank, over paying for a residential property ( where I live a decent 3 bedroom home is 2-3M), nor do i care to deal with upkeep, rates, council and possibly problematic neighbors.

Investment wise I just keep reinvesting in my various business interests and intend to add some commercial property next year to diversify my portfolio. One day I will buy a few acres along the coast as a weekend retreat, and aim to retire there when I am older.

It works for me as i am not married and have no kids etc...If I had a family then I would get them a home for their sake but only then.