LogFAQs > #912719099

clearaflagrantj posted...

AngelicTouch99 posted...

Doing the bare minimum and renting is what makes a real slave. You rent for 6 years and then what....nothing. You just throw all of that money away and have no equity. I did that in my early twenties and regret it. My house will be paid off in less than 10 years and ill own something i can sell if i choose or at the very least, wont have to pay a mortgage on anymore.

Rent:

- Rent cost per month
- Free major appliances
- Free repairs
- No major down payment necessary
- No closing costs or real estate fees, only security deposit

Mortgage:

- Major initial downpayment
- PMI if you opt out of substantial down payment
- Must buy appliances
- Major, costly repairs (central air, appliances, roofing, etc)
- Property tax
- Interest payments are pissed away too, major chunk of first years of payments are interest
- Housing is an incredibly illiquid, risky investment, all it takes is a factory opening up in the vicinity or the school district getting shitty to ruin your property value
- Housing earns roughly 3% annually nationwide, mutual funds in stocks earn 7-10%.
- More expensive insurance

All I know is my coworker was forced to pay $6,000 to repair his central air unit, four months worth of my rent. And in lieu of a downpayment I was able to fully fund my retirement accounts and open up a taxable brokerage account. There are plenty of instances where it makes sense to buy instead of rent, but it depends on the circumstances.

When i rented , i paid 875 per month. My mortgage is 549 per month for a bigger place in a slightly nicer neighborhood. Yes, you have to replace the ac if it breaks lol. Thats what happens when you own something. As for appliances, my place came with all new (2014 - 2016) ones. After you rent for 15 years and decide to move out, you leave with nothing. In that time my mortgage will be paid off and ill have a property to sell if i want. Ill be paying less per month towards housing which also adds up every month.

I can also repaint, recarpet and remodel my house. You cant do that with any rental places i viewed. They also have restrictions on things like pets and lame laundry fees and shit.

Youre free to do what you want but i spent 3 years renting and when i finally bought a house that i could comfortably afford, i felt like i was a sucker for having renting for so long.