One of the biggest myths regarding renting vs buying

I have seen self-claiming experts posting here day and night that if you don’t buy you will be renter for rest of your life, only losers will rent, also if anyone out there willing to rent, they are just too poor to buy etc, etc. You have heard it all.

There is no general rule to buy vs rent however pay attention to following:

ignore national data, every local market is different! rents gone up so did price of RE. You are better off renting in a market where rents gone up by lets say 5% but price of RE gone up by 35%. So always take ratio of rent/RE price and compare it prior years. Low interest rate doesn’t always equate to opportunity. 1% hike in interest rate equates to about 2k a year increase in your mortgage payment on a 400k property (some of you may be screaming no that is 4K, on your first year it is, as you pay your mortgage you pay less into your interest), however changing a roof or fixing foundation can cost 20-40K on the same house! Your primary residence is not an asset it is a liability so don’t look for a business opportunity look for a place to live. Some may say you build equity over years into it, true but what do you do with that equity when you sell it? You put it to ward purchase of your next home. So, you sell at pick of market you will buy at pick of market and vice versa. There is no shame in renting. I am a landlord and a renter. Being a renter comes with lots of convenience and great deal of flexibility. It is really a personal preference!
Do not take financial advice from a RE agent. A highschooler can become RE agent as long as they pay few hundred bucks and pass an exam. They are there to conduct the transaction and good portion of them even fail to do that properly as evident by this sub.

submitted by /u/Large_Surround8768
[link] [comments]

I have seen self-claiming experts posting here day and night that if you don’t buy you will be renter for rest of your life, only losers will rent, also if anyone out there willing to rent, they are just too poor to buy etc, etc. You have heard it all. There is no general rule to buy vs rent however pay attention to following: ignore national data, every local market is different! rents gone up so did price of RE. You are better off renting in a market where rents gone up by lets say 5% but price of RE gone up by 35%. So always take ratio of rent/RE price and compare it prior years. Low interest rate doesn’t always equate to opportunity. 1% hike in interest rate equates to about 2k a year increase in your mortgage payment on a 400k property (some of you may be screaming no that is 4K, on your first year it is, as you pay your mortgage you pay less into your interest), however changing a roof or fixing foundation can cost 20-40K on the same house! Your primary residence is not an asset it is a liability so don’t look for a business opportunity look for a place to live. Some may say you build equity over years into it, true but what do you do with that equity when you sell it? You put it to ward purchase of your next home. So, you sell at pick of market you will buy at pick of market and vice versa. There is no shame in renting. I am a landlord and a renter. Being a renter comes with lots of convenience and great deal of flexibility. It is really a personal preference! Do not take financial advice from a RE agent. A highschooler can become RE agent as long as they pay few hundred bucks and pass an exam. They are there to conduct the transaction and good portion of them even fail to do that properly as evident by this sub. submitted by /u/Large_Surround8768 [link] [comments]

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