http://www.inc.com/minda-zetlin/5-re...uying-one.html
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Right, but in some states it's cheaper to own than rent? @ least it's said to be in IL, CA, & I forget where else.
^This!!!!! And it isn't just those states known for being expensive. Rent is at historic high across the country. Where I live, it is still possible to find cheap rent, but the areas are generally unsafe/trashy and iffy at best. To get a decent place even here in Dallas for a one bed one bath you are looking at 1000k/month. Hell, even in the suburbs around here like Plano rent is getting ridiculous. Homeownership is cheaper even with property taxes.
Here is a mortgage calculator for shits and giggles if anyone is interested:
http://www.bankrate.com/calculators/...alculator.aspx
I'm not going to get political as that is frowned upon here on stripperweb, but if you ask me this is just another tactic for the man to keep you down and keep the poor in poverty and for greedy landlords to get richer. Make the rent so high that you can never save up for a home and are always just scraping by and essentially "stuck." Another issue is that at most places you need to prove you make double or triple your rent each month in pay. Therefore if you are down on your luck and make $7.50 an hour and work 40 hours a week, you can technically only afford a 400/month or 600/month apartment. Good luck finding many of those! And forget about ever saving for a house. So frustrating! That's why I get so revved up by the "pull yourself up by your bootstraps" mentality Conservatives preach at any given opportunity. Before someone can pull themselves up by the bootstraps, they need an opportunity to have a pair of boots.
I digress. Good article, good points, but to me with the low interest rate and high rent, a home is a better option unless you like to be a nomad.
That article would have been relevant before the last market crash. There is no wide spread crash anticipated; though there are certain bubbles that are expected to pop (Miami condos, for ex). Mortgage rates are very low right now, and in my area the rising values more than makes up for mortgage rates; though I know this is not the case everywhere. Also, if you are credit worthy you can buy with little (3.5% FHA) to no (VA, FHA bond or local down-payment assistance) money down. This, of course assumes you can prove your income. Yes, there will be unexpected expenses; but you can always buy a home buyer's warranty for a few bucks a month.
Every time you make a mortgage payment, your principal balance goes down just a little and eventually you build equity in your home. Hopefully, you do not use your house as a piggy bank and in time you pay it all off. The excuse about losing the home if you don't pay the mortgage or taxes is horse shit. What do you think happens if you do not pay your rent ? You get EVICTED!! Most mortgage companies have programs to assist borrowers who are struggling with their payments so they can avoid foreclosure.
I'd like to repeat here one of my fav quotes, Idk the source:
All rent is a form of corruption.
Also, I don't like being @ the mercy of some land lord, & I"m not saying they're all bad, but I've always been a decent tenant & run into some shitty ones. I even tried taking one to court, I had a good attorney too & to no avail.
I can see the merits of both renting and owning. But, with rent, you never gain any equity. I do caution though never to own too much home. The banking industry and the government says you can pay about 1/3 of your gross income on housing. I say hold that to no more than 1/3 of your take home and better hold it to 25%. Also remember to count in taxes, insurance, HOA dues (or better don't live in a HOA) and utilities in that housing cost. In my book utilities include cable, phone, internet, cell phone, hulu, netflix along with the traditional water, sewar, trash, electricity and gas.
HTH
Z
This is 100% true - even if you have money you can easily see this. This is called "sinecure income" and it causes stagnation in the economy. People need a roof to raise children. So the if the roof and food are 100% of their income they'll pay it and have nothing else. Idiots who imagine that is a good state of affairs have no understanding of economics.