Is home ownership overrated?

[Xennial]

This is better http://thenextweb.com/insider/2016/04/04/wework-launches-dorm-like-welive-spaces-new-york-dc/

 

[pdino]

Being a homeowner has been the best decision of my life, especially financially:

-No landlord, I didn't like the front yard, so I changed it to be drought tolerant. My changes are tax deductible and increase the value of the home, so it will sell more.

-Since buying last year it has appreciated 20k, if I were to sell now, I'd be 20k richer.. If you're renting you switch pads and get nothing, no equity.

-I can use the equity in my home to pay off different things if I want, cash out refinance.

-I can use equity in my home to get better loans which have interest tax deductible (home equity line of credit)

-Mortgage interest deduction vs no deduction (renting)...

-I average about 2,000 tax return prior to buying, since buying I got a 10,000$ tax return. I adjusted my withholding so I get more $$$ paycheck to paycheck, so since buying even though I make the same amount of $, I take home considerably more $ due to all the tax deductions

 

[fantastic4our]

No, overlending and failure to ensure that people could actually afford their homes is what caused the housing bubble to burst. It wasn't caused by the people who aspired to own homes, but rather the agencies who engaged in predatory lending instead of just lending what people could actually afford.

I'd say both went hand in hand. Without the belief in the "American Dream" and that a home is a key investment, people wouldn't be so hungry to put themselves in the position to lose out by accepting these loans they weren't qualified for to purchase homes that they couldn't afford.

 

[isco]

What sucks about ownership:

No flexibility..u wanna get rid of it? May hav to wait 6 months to a year to sell it

If it's an investment property u have to fix any problems that may arise

Also if u hav a nightmare tenant or no tenant at all u hav to pay the mortgage pmt out of pocket

nightmare tenant can destroy ur property

taxes and insurance and jump up at any time

as I just mentioned..property taxes

yes u can build equity..but it's no walk in the park

houses are definitely money pits

 

[yeah]

No, overlending and failure to ensure that people could actually afford their homes is what caused the housing bubble to burst. It wasn't caused by the people who aspired to own homes, but rather the agencies who engaged in predatory lending instead of just lending what people could actually afford.

I'd say both went hand in hand. Without the belief in the "American Dream" and that a home is a key investment, people wouldn't be so hungry to put themselves in the position to lose out by accepting these loans they weren't qualified for to purchase homes that they couldn't afford.

I wouldn't, because banks are legally required to make those checks - they simply chose to do a poor job because of vague laws, or ignored the law altogether. Loan counseling is a major part of the home ownership equation, and a lot of lenders flatout lied to consumers about expected monthly payments, variable interest rates, cost of ownership, etc. They weren't fined $110 billion for just doing what people asked.

My opinion is that the people who borrowed more than they could afford to pay were simply a symptom of the larger issue, but we can agree to disagree.

 

[yanky]

Owning will always be >>>>> than renting. Especially owning multiple properties.

That's just one guy. He probably has money in other investments such as his diamond business with other business partners and his clothing line which I'm not sure if it's profitable yet or not since it's so new.

Keep thinking that ownership is overrated.

More rental income for me.

factoids

Owning will always be >>>>> than renting. Especially owning multiple properties.

Always? thinking like that led to the last housing bubble burst.

I don't think home ownership is overrated. I think buying a home to live in is not necessarily a great investment, financially.

I see it differently. If you can own a home with a mortgage payment that is affordable you'll pay off the home and then you'll just be paying maintenance costs. I don't see anything wrong with that, why give some land owner your money when you can be your own land owner? If you can own two properties and have one rented out that pays your mortgage off you're basically owning a free house besides maintenance costs. Yes the housing market is unpredictable but that's the risk you take and if you're smart with your money and investments you can cash out big.

Biggerpockets.com people Biggerpockets.com

 

[al audi]

Depending where you live, it can be overrated.

BINGO



Exactly what I was going to say.

 

[al audi]

Ima lease these whips and rent these apts till I die, papi.

Owning a home is cool when you decide to raise your family in the middle of nowhere.
That's not the life I want though.

#facts

edit:

jokes aside.........i agree on lease a car because they depreciate.....


a house? nah

 

[polosanddunks]

#facts

edit:

jokes aside.........i agree on lease a car because they depreciate.....


a house? nah

Word

 

[aec23]

Don't own yet, but the one thing that I would look forward to when that time comes is paying it off and not having to pay a rent/mortgage when I retire. I know it's a ways out, but I do not want to still be renting when I'm in my 50s or 60s and beyond.

Goal is to somehow have 2 homes paid off by the time I retire. One to live in and one for rental income.

 

[supermanblue79]

For myself, home ownership is not overrated. I live in a city where the cost of living has doubled since I purchased my home. If I was renting I would be paying double right now each month, or be forced to move further away from the city to a less desirable area. Since I own my home my monthly payment never will increase, and the payments stop when its mine.

I can use it to generate income by renting it to tenants, and pass it down to my children so that they can build wealth for a lifetime.

 

[nazdrowie]

i want to own a house someday, and have a family, and own other houses or properties for businesses and collect the money to reinvest in something...