Can someone explain to me, how owning and buying a home, is better than renting...

Except if you go underwater... I would kill myself if I bought and lost 100k of property value.

You can just hodl it out. You're living their long term anyways if you're buying

Still just knowing my neighbors got a better deal, I could have bought a better neighborhood.... REEEEE

I do not doubt super long term. my assumptions were 30 year period.
However, even in super long term, you don't gain fuck all. from buying if you stay there. your offspring reap the benefits of your scrounging and frugal living in the case of many. and it also assumes that the renter stays put for the same time period which is a really unfair comparison.

I think the entry point is a fucking huge difference. hell yeah i'd be buying after a crash... but there are many retards around who dont factor in anything like that. normies constantly telling me "it only goes up forever" because they never experienced a downturn or got locked into a fucking awful mortgage due to a bust cycle.

Opportunity cost is a big thing. I believe the renter would still have outperformed if they invested in stocks. they would reach a point where they could outright purchase the home and have a lot left, or just have very liquid assets. Renters who piss their money away without investing in anything always lose.

A home should be looked at as a reduction in expense rather than an investment. You lose 100% of the rent you pay. With a house, you only lose interest, insurance, upkeep and taxes. These will almost always be less.

Read some hypertiger from 07-09 for enlightenment

Exactly. Owning your home can't be compared with an ETF or whatever because it provides the utility of shelter, so many of these comparisons are faulty apples-to-oranges arguments.

i agree. but opportunity costs are part of that too man.
how about this:
renter is not tied down. works on other continents where rent is really low, can save much more money, invests into stock market.

because every argument for buying over renting disregards things like taxes, maintenance costs, investment opportunities, and they always assume that the buyer never will decorate, and that the renter will just rent the same house for 50 years and never invest into anything else.

Its a valid point, but there's always the option to sell or rent out a property you own. Moving from continent to continent for work sounds like an extreme case that wouldn't effect the average person.

Because renting a home sucks ass.
having your own home is a game changer.
I'm spending LESS on my mortgage than i was renting.
why would I spend an extra $400 a month for a home i don't own and can't change anything about it.

>renter will just rent the same house for 50 years
doubt
as a former renter, living in home you don't really like sucks.
you can't change anything and the landlords won't fix anything.
My home flooded (2in of water) due to a water drainage failure, and the landlord didn't care.

Yes. I bought a home 25 years ago. Now I have ZERO rent.

>bought first house towards the end of 2009
>bank foreclosure, $68k
>it needed some work, I spent maybe $15k fixing it up to make it liveable
>live there for 7 years, decide I'm ready to move somewhere else
>spend about $3k painting the entire house, putting some new flooring down, and doing some misc repairs
>sell house for $125k

I mean it worked out for me but with home prices where they are right now I don't see it being a profitable venture unless you find one in pretty bad shape and fix it up doing most of the work yourself.

The reasoning is only that at least you own your place but people forget you don't really own it. You still pay property tax to the government and guess what happens if you don't pay it. I think it's worthy if you buy a house with a nice view to the ocean or mountains. However if you are talking about a generic house in a generic middle-class street like that pic then it's a waste of money. At least you could rent it out to others if you get bored of it and being a landlord is almost another job.

I lucked out in 2015 when i got a home 100K under asking.
but Retards from seattle are spending 500K+ on houses that are worth 200k

Why that, sir?

Renting is fine as long as you have the flexibility to move quickly if the landlord tries to raise your rent too much. My goal is to be able to fit all my possessions into 2-3 SUV loads so I can move easily without having to hire movers.

people with mortgages are slaves to the bank. That’s the jewish trick

real life ponzi with inflation existing to suck your money from you.

actually makes me more bullish on BTC.

>is better than renting

The rent can go up. There is no limit. You don't own the property.

It can also go down. Just like when buying.

Lets say you get a $300,000 home, 10% down, 30 year fixed rate at today's rate. It's around $1485 per month. For the purposes of this we will assume that the renter and owner are paying the same monthly.

Renter takes his $30,000 and invests it in the S&P 500 at the average annual return of 10%. After 30 years he has $523,482.07. He will then continue to rent, as he has not bought a place to live, and 10 years later he has $1.36 million but really $1.18 million, because at this point he's still paying rent.

The owner now owns a home after 30 years (using the Case-Schiller Index average from 1987 to 2009 of 3.4%) worth $817k. For the next 10 years he puts that mortgage money into investments. It's now worth $306k. For a total of $1.45m (the house continues to appreciate).

Considering the home owner does have more to worry about, you could argue that it's a wash in the long run (expenses, property taxes, etc). But the real lesson is no matter what you do, invest money in something.

It's only better to buy a home if somehow you have a high paying job that you know you will never lose (unrealistic) and that will give you 20-30% raises every two years (unrealistic).

Otherwise, it's better to rent and move around while investing the initial "down-payment" you would've made on a house and keep investing a portion of the massive raises you'll get by staying mobile that home owners will be missing out on.

After you've acquired more wealth than the homeowners will ever see, go ahead and buy a home when you retire early.

>Still getting money sucked out of your wallet
>still don't own the property.

The value? Sure, it could. But as long as you get a fixed rate mortgage your mortgage isn't increasing.

Rent generally increases 3-5%. Working in the multifamily industry I've seen increases as high as 7-10% at times.

My rent has yet to go down, and the only way that will happen, is if I downgraded to a crappier shithole.

the real investment is buying a warehouse and turning it into a bar/ boxing gym

The idea of an "apples to apples" comparison is nonsense

In most of the United States, people are much more likely to RENT an apartment, and OWN a single detached home (condos and townhomes in this comparison are a luxury and in the financial sense complete garbage thanks to highly variable and usually outrageous monthly fees)
Comparing the two, renting the smaller apartment will be cheaper in perpetuity
If you're on your own and haven't shit out some kids you need to provide shelter for, home ownership makes no sense financially and is draining in multiple ways beyond that

this doesn't include rental income, but only complete hillbillies think they've made it when they have to be a fucking land lord all the time; if you don't want to be a land lord it's totally irrelevant

Tha's assuming the S&P has an annual return of 10% (it doesn't).

Has rent ever gone down (except in Detroit ?)

Actually, I think the best case is owning an apartment (value in city centres tend to appreciate). Detached homes are high-maintainance. Best deal is owning an apartment for rental income.

Also, if you are a homeowner, inflation works for you. If you are renting, it works against you.

The average return of the S&P 500 from 1928 to 2017 is around10%.

as I said, condos in my downtown can be had for $150k-$250k and look great, however on top of the mortgage you are paying "condo association fees" which range anywhere from $250-$500 a month, cover completely useless shit, and make them easily the worst option

don't expect the appreciation of those prices to beat other investment vehicles

You can deduct all interest payments on a mortgage from taxes, and that is a giant thing you’re forgetting. Meanwhile you pay Capital Gains taxes on anything gained in the market.

Land is finite. It's also going to be in high demand as more shitskins flood the country. It will always appreciate in value.

Stocks don't even exist. It's just an imaginary voucher for ownership in a company that nosebergstein et all sets an arbitrary value for. Most stocks don't even pay dividends. Noseberg even sells A and B stocks just to further emphasize how meaningless your shares are worth

you would need a $300,000 house to pay enough in interest to make that deductible, and only for the first few years
it's not very significant for most home owners
if you intend to sell at the end of ownership you get $250k in capital gains tax free, however you have been paying growing property taxes on that big house for decades, and you still have to sell it and end up without a house anyway
there's really no way to win here

Owning property is an illusion the government currently allows you to have. It's more a mental thing that it's 'stable'. Toughen up and invest in stuff with better ROI.
Rent increases because the value of the property increases. You can't always assume that will always be the case.
It's because the prices of property have gone up for 10 years straight

Before buying my house I lived in a 3br 2ba apartment with a friend that ran $940 a month. After the first year they sent us a letter with their new rates, it was going to be $1350 per month if we stayed there another year. We told them to get shafted and went our separate ways, he moved in with 3 other guys who were renting a house and I ended up buying a bank foreclosed house. My house payments with taxes and homeowner's insurance included were less than $800 per month. I then got 2 roommates and charged them $500 a month for rent because I had 2 spare bedrooms.

OP is 17 and his parents basically put him on notice to gtfo their house. youre assuming sp500 always goes up, that renter wont have to fork over like first and last month rent, + security depost + pet deposits + some other bullshit. at least a house is a significant asset that can usually be liquidated rather quickly. I figured all you money hungry capitalists would understand the freedom of owning your own house and adding whatever value you want to it.

great post

nice assumption. waht most people on here general default to when someone says renting might be a better option. the reason for that is usually because that person is extremely narrow minded and has no idea what "cost of opportunity" actually means outside of some very concrete examples.

be a good lemming.

And you can't see the irony of your own post. Yes, the Sp500 does average going up. a tlot more than a house. since the 1930s its averaged 10 percent a year. do you understand what average means?
meanwhile houses till 1997 averaged just a measly half a percent ove inflation. then bubble. then huge fucking pop. now they are bubbling up again.

in the same time the sp500 crashed and recovered it has done a 3x. go learn what a fucking average means.

You lower your rent by moving. Landlords always jack the rent because most people are too lazy to move. If you are ready to move on a moment's notice it's usually easy to find a place for your current rent or even cheaper. I like to sign a one year lease and be ready to move immediately if the landlord jacks my rent too much when it's time to renew. If they see you're ready to move they will sometimes back off on the rent increase especially if you're a good tenant.

My dad owes $600k on his current home thats worth $700k, he only has 100k in the bank and he wants to buy ANOTHER house for $500k as an "investment"

how do I tell him to stop this shit?

exactly the kind of thing people dont take into consider when renting can be a better option for many people.

the common argument of buying is better and renting is wasting money assumes that the average renter. the average renter? they put up with price rises. they cant be bothered to move around for a good price. they dont invest any money into over investments like the stock market. their extra cash is just wasted.

no FUCKINg shit its better to buy like a lemming compared to that. you are actually investing into equity one day vs nothing. a non brianlet renter has a lot of opportunities though.

sssshhh stocks don't exist and are a jewish conspiracy

now cryptos
no way the kikes can get my shitcoins

thats why we're all here. investing into BTC and ETH alone may prove to be better option than jsut about anything else.

Why would he invest in a house when home prices are higher than they've ever been and the affordability index is showing that houses are the most unaffordable they've been since the housing crisis occurred due to interest rate hikes and there are several more rate hikes coming over the next couple of years?

oh I see, but if it crashes your only lose the meager savings from your NEETbux and minimum wage jobs

yeah makes perfect sense now

I dont know, he says "rent money"

Literally hang yourself. you are posting on this exact same forum. lmfao. so to boot you are als painfully unself-aware while you project.

for the record, i'm not even from the USA.

to boot i bet you are probably mostly invested in shitcoins and have little to no BTC or ETh instead of it being 95% of your portfolio in crypto, shitcoins are 95%.

>Baby trying to tell boomer how to think
Good luck with that

hes basically hedging against idiots being willing to pay more for rent still even in the event of crash. classic boomer thinking

I have no crypto at all lol
don't you have a street to shit in?

why the hell you here? absolute lier. I'm from the UK you mongoloid. is there anything more sad than someone trying to lie about holding crypto currencies on Jow Forums? lmfao. wow.

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my rent is $620 a week but is unironically cheaper than a mortgage
whereas the last place I lived mortgage was only 1k a month but rent 350 a wek

user, i...

This is the most basic tenant of personal finance/financial independence: you own the roof over your head. Renting is literally for niggers.

I own a 2br condo. When I get enough for a downpayment on another in going to buy one and rent this one out and have them pay over half my mortgage, then when thats paid off I plan on buying a house and having the renters of the two condos pay for my house.

Even if you arent doing it as a pure investment it still makes more financial sense to own the roof over your head. Worst case sceanrio you're eating beans and rice in the comfort of your own home you'll always live to fight another day. You cant live in your 500k index fund portfolio in a shit hits the fan scenario.

You can get to write off real estate tax which isn my state is huge. You can borrow against the house.

You dont have a faget landlord who tries to screw you over.

Theres literally no reaosn to rent if you can buy other than I plan on moving again within the next few years

> I'm young and single though and just prefer the flexibility
Tbqhfam, you sound pozzed af saying some gay shit like that, but I guess that fits in perfectly with your sex positive heteroflexitive, homogloblex lifestyle.

>it's whatever yo, have you ever sucked a dick? or maybe seeing it all vanish and have nothing to show for it, it's watever yo, it's the bad whites that are the real problem.

most houses you buy are a lot nicer and higher quality than rentals unless you're into the fixer upper game. even some fixer uppers are nicer than a lot of rentals tho

landlords suck and they don't fix things or take care of places

you feel rootless when you're renting. granted, if you need to bail from a rental "quick" then its probably easier than liquidating a house

Bought a house, mortgage is cheap, by electricity/utilities is like 3/4th my mortgage. How do I lower my bills senpai.

I love we live in a society where you actually have to be a big shot tycoon to actually own nice house that isn't a cuckbloc, shotgun sucide shack or ikea swedebox.

blow more insulation into your attic, make sure your doors and windows seal up tight, caulk any gaps in siding / trim

Also, don't crank the AC down too far, if you can keep it at 76 you'll be paying WAY less than if you try to keep it at 70.

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>absolute lier.
Why lie? I only hold USD, ETF's, and mutual funds

>I'm from the UK
as I said Pajeet, don't you already have a street to shit in? why do you need a house

You'll be banging yourself in the head once low end apartments in most metropolitical cities will cost over a million dollars and the rent will be the double for median salaries.... and you'll just have to live with immigrant brown people renting old industry housings as your living spaces.

Thanks. Im looking into blowing in insulation in the attic maybe after winter when I can check if theres any leaks that need to be sealed coming out of the ventilation or whatever its called. Ive done some caulking, def need to do the rest. Ive got a vented crawl space with just dirt and a cheap tarp covering it that I probably need to sort as well.

Ive been leaving it at 74-75 degrees and am going to pay around ~$288 for a 2k sq ft house built in the 70s.

Yeah, your attic and crawlspace are probably the top two culprits on your high electric bill. 74-75 degrees is a pretty good temperature to keep the thermostat set at. Also, how old is your AC unit? The older ones are a lot less efficient than the newer ones but you probably won't make back the $4k-$7k it'll cost you to put in a new one with savings on your electric bill. Just make sure you keep your air conditioner filters changed out on time, a dirty filter cuts down on airflow and makes the AC unit use more power than it otherwise would need to.

As far as investing arguments go, it really depends on location. National average means dick. The area I'm in right now WILL go up regardless of national swings and I love my monthly payments contributing toward equity rather than getting pissed down the drain. I also live near a large military base, so it's always a sellers market for me. My mortgage for a three bedroom house plus utility payments still comes out less than most two bedroom apartments in the area. But all that aside, you renties can talk about money sense all you want, nothing beats coming home and knowing that if I really wanted to I could paint all the ceilings black and put a sledgehammer through the wall and i dont have to clear it with anyone and no one can tell me know. That type of freedom is priceless.

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Its aA home is an asset not an investment. I treat my home as a savings account that might increase in value that otherwise wouldve been an expense.

Where do you live bro?

Just buy house in a high developing area. My house went from 780k to 920k within 3 years. No amount of inflation on fiat is ruining these numbers. Evey renter is a huge idiot. You have to be borderline mentaly retardef to rent.

Not sure how old it is, at least 10+ years old, definitely older. Id consider replacing it with some crypto gains after I do the other stuff if I was going to live here long enough. I was looking into the blown in insulation, saw some ppl also do some silver insulation on the inside of the roof. Ill get the filter replaced this week, its been maybe 3-4 months. Someone was telling me I also needed a storm door, idk if that would help. Last year one months bill hit $400+ for electric so it might push that high July/August and Id like to just get it cheaper.

South Carolina, should have bought somewhere cold with cheap electricity to mine

Surely Uncle Sam lets you occupy the land for free.

you could try buying a house that is within yuor means AND invest in the stock market

the property tax you pay on your stick built shitpile in a year alone is more than the entire cost to rent a 1 bedroom