Rent Forever, Don’t Buy A Home (2024)

Originally Posted by wawaweewa

Originally Posted by cguy610

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

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Lay terms?

Originally Posted by wawaweewa

Originally Posted by cguy610

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

Click to expand...

Click to expand...

Lay terms?

Originally Posted by cguy610

Originally Posted by wawaweewa

Originally Posted by cguy610

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

Click to expand...

Click to expand...

Lay terms?

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House prices and rent move intandemover the medium to long term. Neither one willnecessarilybe cheaper for too long a time.
You're correct that if you can predict the exact time of high inflation and the perfect time to buy a house when it is relatively cheap relative to theforwardoutlook in inflation then you'd win. Although not many can play that game and come out on top.

Originally Posted by cguy610

Originally Posted by wawaweewa

Originally Posted by cguy610

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

Click to expand...

Click to expand...

Lay terms?

Click to expand...

House prices and rent move intandemover the medium to long term. Neither one willnecessarilybe cheaper for too long a time.
You're correct that if you can predict the exact time of high inflation and the perfect time to buy a house when it is relatively cheap relative to theforwardoutlook in inflation then you'd win. Although not many can play that game and come out on top.

Originally Posted by wawaweewa

Originally Posted by cguy610

Originally Posted by wawaweewa

Click to expand...

Lay terms?

Click to expand...

House prices and rent move intandemover the medium to long term. Neither one willnecessarilybe cheaper for too long a time.
You're correct that if you can predict the exact time of high inflation and the perfect time to buy a house when it is relatively cheap relative to theforwardoutlook in inflation then you'd win. Although not many can play that game and come out on top.

Click to expand...

Gotcha. I was mainly focusing on how mortgage payments are fixed for the entire term while rent can go higher. The rising rent because of inflation will take away all the initial savings from renting instead of buying.

Originally Posted by wawaweewa

Originally Posted by cguy610

Originally Posted by wawaweewa

Click to expand...

Lay terms?

Click to expand...

House prices and rent move intandemover the medium to long term. Neither one willnecessarilybe cheaper for too long a time.
You're correct that if you can predict the exact time of high inflation and the perfect time to buy a house when it is relatively cheap relative to theforwardoutlook in inflation then you'd win. Although not many can play that game and come out on top.

Click to expand...

Gotcha. I was mainly focusing on how mortgage payments are fixed for the entire term while rent can go higher. The rising rent because of inflation will take away all the initial savings from renting instead of buying.

Here in CA if you can afford to buy a home then buy a home. One of the main reasons why people choose to rent is because they can't qualify to purchase a house. It doesn't make any sense why someone would choose to rent their entire life throwing all that hard earned money away with NOTHING to show for it. Basically all you are doing is building equity for your landlord.

Buying a home in CA right now where the values basically can range from 30-50% of what the house was originally purchased for equals a buyer's market. For qualified buyer's this is exactly what they want making it a perfect time to purchase a home.

With this Real Estate market the only ways to make money is longevity or renting out your properties. If you choose to rent your entire life there is no way to make money from Real Estate point blank!

Here in CA if you can afford to buy a home then buy a home. One of the main reasons why people choose to rent is because they can't qualify to purchase a house. It doesn't make any sense why someone would choose to rent their entire life throwing all that hard earned money away with NOTHING to show for it. Basically all you are doing is building equity for your landlord.

Buying a home in CA right now where the values basically can range from 30-50% of what the house was originally purchased for equals a buyer's market. For qualified buyer's this is exactly what they want making it a perfect time to purchase a home.

With this Real Estate market the only ways to make money is longevity or renting out your properties. If you choose to rent your entire life there is no way to make money from Real Estate point blank!

Originally Posted by wawaweewa

btw, I just heard in an speech by an economist that the Banks have been selling 97% of all mortgage loans that they originate to the Feds the last few years.
How long do you think the feds can keep this up? Without them the market collapses.

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The Feds can keep it up forever. It's the beauty of fiat money. The #1 rule of finance is "don't fight the Fed".

Originally Posted by wawaweewa

btw, I just heard in an speech by an economist that the Banks have been selling 97% of all mortgage loans that they originate to the Feds the last few years.
How long do you think the feds can keep this up? Without them the market collapses.

Click to expand...

The Feds can keep it up forever. It's the beauty of fiat money. The #1 rule of finance is "don't fight the Fed".

Originally Posted by Hollywood James 6

I want my own house so I can tell people to get the %%%! off my lawn.

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Lawn, parking, space from neighbors

House wins..

Originally Posted by Hollywood James 6

I want my own house so I can tell people to get the %%%! off my lawn.

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Lawn, parking, space from neighbors

House wins..

Originally Posted by cguy610

Originally Posted by wawaweewa

btw, I just heard in an speech by an economist that the Banks have been selling 97% of all mortgage loans that they originate to the Feds the last few years.
How long do you think the feds can keep this up? Without them the market collapses.

Click to expand...

The Feds can keep it up forever. It's the beauty of fiat money. The #1 rule of finance is "don't fight the Fed".

Click to expand...

They can't keep it up forever. That much we know. Entire nations become insolvent quite often.
In the short term they are quite powerful (whoever prints the money; in our case the US treasury/Fed) but it's impossible to keep this up in the medium to long term.

I sure as hell wouldn''t want to buy at a time when literally an entire market is artificially propped up. There is no way to know what the real value is. You can only guess.

Originally Posted by cguy610

Originally Posted by wawaweewa

btw, I just heard in an speech by an economist that the Banks have been selling 97% of all mortgage loans that they originate to the Feds the last few years.
How long do you think the feds can keep this up? Without them the market collapses.

Click to expand...

The Feds can keep it up forever. It's the beauty of fiat money. The #1 rule of finance is "don't fight the Fed".

Click to expand...

They can't keep it up forever. That much we know. Entire nations become insolvent quite often.
In the short term they are quite powerful (whoever prints the money; in our case the US treasury/Fed) but it's impossible to keep this up in the medium to long term.

I sure as hell wouldn''t want to buy at a time when literally an entire market is artificially propped up. There is no way to know what the real value is. You can only guess.

No one in here even consider building? That's real home ownership. When you take out a loan, which most people will do anyway, they seem to think it only counts for an existing structure. You can get a construction loan and build your house for it's true value rather than toying around with all this real estate market speculation. The market retail mark up could be anywhere from 20 -50 % and even more depending on what market you live in. Just because you may have your heart set on a million dollar home does not mean it cost 1 million to build it. Probably cost around 200K. the other 800k is profit and goes right into the pockets of the builder. That builder could be you. There are tax advantages to new constructions as well,( like a 2 years free of property taxes). You could build a home every 2 years and sell it.

It sounds good and all, but this side of house flipping requires knowledge, skill, and in a sense a true investor willing to research the ins and out rather than someone flipping and making a profit off of credit risk ( which is what most house flipping is)

No one in here even consider building? That's real home ownership. When you take out a loan, which most people will do anyway, they seem to think it only counts for an existing structure. You can get a construction loan and build your house for it's true value rather than toying around with all this real estate market speculation. The market retail mark up could be anywhere from 20 -50 % and even more depending on what market you live in. Just because you may have your heart set on a million dollar home does not mean it cost 1 million to build it. Probably cost around 200K. the other 800k is profit and goes right into the pockets of the builder. That builder could be you. There are tax advantages to new constructions as well,( like a 2 years free of property taxes). You could build a home every 2 years and sell it.

It sounds good and all, but this side of house flipping requires knowledge, skill, and in a sense a true investor willing to research the ins and out rather than someone flipping and making a profit off of credit risk ( which is what most house flipping is)

Originally Posted by Wr

No one in here even consider building? That's real home ownership. When you take out a loan, which most people will do anyway, they seem to think it only counts for an existing structure. You can get a construction loan and build your house for it's true value rather than toying around with all this real estate market speculation. The market retail mark up could be anywhere from 20 -50 % and even more depending on what market you live in. Just because you may have your heart set on a million dollar home does not mean it cost 1 million to build it. Probably cost around 200K. the other 800k is profit and goes right into the pockets of the builder. That builder could be you. There are tax advantages to new constructions as well,( like a 2 years free of property taxes). You could build a home every 2 years and sell it.

It sounds good and all, but this side of house flipping requires knowledge, skill, and in a sense a true investor willing to research the ins and out rather than someone flipping and making a profit off of credit risk ( which is what most house flipping is)

Click to expand...

It won't work like that because the land will cost more. You need to have the land to build on. So, yea the house may only cost 200K to build, but he land may cost 800K to buy so that you can build on.

You may profit some but no crazy profits like $800K

Originally Posted by Wr

No one in here even consider building? That's real home ownership. When you take out a loan, which most people will do anyway, they seem to think it only counts for an existing structure. You can get a construction loan and build your house for it's true value rather than toying around with all this real estate market speculation. The market retail mark up could be anywhere from 20 -50 % and even more depending on what market you live in. Just because you may have your heart set on a million dollar home does not mean it cost 1 million to build it. Probably cost around 200K. the other 800k is profit and goes right into the pockets of the builder. That builder could be you. There are tax advantages to new constructions as well,( like a 2 years free of property taxes). You could build a home every 2 years and sell it.

It sounds good and all, but this side of house flipping requires knowledge, skill, and in a sense a true investor willing to research the ins and out rather than someone flipping and making a profit off of credit risk ( which is what most house flipping is)

Click to expand...

It won't work like that because the land will cost more. You need to have the land to build on. So, yea the house may only cost 200K to build, but he land may cost 800K to buy so that you can build on.

You may profit some but no crazy profits like $800K

Originally Posted by cguy610

Originally Posted by Wr

No one in here even consider building? That's real home ownership. When you take out a loan, which most people will do anyway, they seem to think it only counts for an existing structure. You can get a construction loan and build your house for it's true value rather than toying around with all this real estate market speculation. The market retail mark up could be anywhere from 20 -50 % and even more depending on what market you live in. Just because you may have your heart set on a million dollar home does not mean it cost 1 million to build it. Probably cost around 200K. the other 800k is profit and goes right into the pockets of the builder. That builder could be you. There are tax advantages to new constructions as well,( like a 2 years free of property taxes). You could build a home every 2 years and sell it.

It sounds good and all, but this side of house flipping requires knowledge, skill, and in a sense a true investor willing to research the ins and out rather than someone flipping and making a profit off of credit risk ( which is what most house flipping is)

Click to expand...

It won't work like that because the land will cost more. You need to have the land to build on. So, yea the house may only cost 200K to build, but he land may cost 800K to buy so that you can build on.

You may profit some but no crazy profits like $800K

Click to expand...

It's kind of a big scenario but it happens. You can get pretty good deals on just raw land. It's all about location. Plus with land your not gonna be always buying the sub surface ,littoraland riparian rights which can bring the cost of raw land down. Just the surface.
I see what you are saying. But this is essentially what your builders of subdivisions are doing. I should have scaled down my scenario i admit, but there is a benefit of doing it this way. Just takes time, research and hooking up with a team of people you can properly manage and trust. But I honestly understand that the average 9-5er doesn't have the time or the patience to go through a process like this.

Originally Posted by cguy610

Originally Posted by Wr

No one in here even consider building? That's real home ownership. When you take out a loan, which most people will do anyway, they seem to think it only counts for an existing structure. You can get a construction loan and build your house for it's true value rather than toying around with all this real estate market speculation. The market retail mark up could be anywhere from 20 -50 % and even more depending on what market you live in. Just because you may have your heart set on a million dollar home does not mean it cost 1 million to build it. Probably cost around 200K. the other 800k is profit and goes right into the pockets of the builder. That builder could be you. There are tax advantages to new constructions as well,( like a 2 years free of property taxes). You could build a home every 2 years and sell it.

It sounds good and all, but this side of house flipping requires knowledge, skill, and in a sense a true investor willing to research the ins and out rather than someone flipping and making a profit off of credit risk ( which is what most house flipping is)

Click to expand...

It won't work like that because the land will cost more. You need to have the land to build on. So, yea the house may only cost 200K to build, but he land may cost 800K to buy so that you can build on.

You may profit some but no crazy profits like $800K

Click to expand...

It's kind of a big scenario but it happens. You can get pretty good deals on just raw land. It's all about location. Plus with land your not gonna be always buying the sub surface ,littoraland riparian rights which can bring the cost of raw land down. Just the surface.
I see what you are saying. But this is essentially what your builders of subdivisions are doing. I should have scaled down my scenario i admit, but there is a benefit of doing it this way. Just takes time, research and hooking up with a team of people you can properly manage and trust. But I honestly understand that the average 9-5er doesn't have the time or the patience to go through a process like this.

WaaaWwarfjfjakan - What exactly was said? 97% of ALL seems way too high. 97% of FHA seems likely.

Investment banks and funds are gobbling this paper up still, don't be fooled. A bunch of funds have launched with distressed debt and credit strategies.