Is owning a home mostly a bad thing?

I explained why those numbers are pretty much meaningless and didn't hear a counter-argument. Except for that rent thing again.

 

Obviously the landlord is making money off you if you rent, or he wouldn't do it. He seems to have it figured out. Complaining about mowing the lawn or shoveling snow? Come on now

 

What state are you in ?

In Texas the going rental rate is ~1% of the home's value.


I am not sure about 1 million dollar homes but 1% is pretty close ranging from $50,000 townhomes to $500,000 homes around the Houston area.

 

Hmm another one. People just seem to have a chip on their shoulder about the landlord making a buck.

 

You explained nothing and don't hear anything that goes against your naive views.
http://www.elitetrader.com/vb/showthread.php?s=&postid=2931820#post2931820

Everyone has to live somewhere. Either you can do so and pay down your own mortgage or you can pay down your landlord's like the sucker you are. If it makes you feel better to pretend that has no economic consequences, keep dreaming.

 

So paying the landlord makes you feel like a sucker? You see how that is psychological and emotional rather than rational?

 

I don't pay the landlord, YOU do, sucker.

 

The best thing about home ownership is it forces the owner to build/save equity that can be used later. If you take a 30 year loan on a $150,000 house and pay all 360 payments you will have paid around $289,000 for it and that does not even include insurance, property taxes, and any repairs over 30 years.




Assume $3000 x 30 years for property tax $90,000


$1000 x 30 for insurance $30,000


1000 x 30 for maintenance/ repairs $30,000



In 30 years you will have paid $439,000 total cost for that home.


Assuming 3% appreciation and you might be able to get $285,000 back out of it.



The same home would rent for roughly $1300 in my area.


So after 30 year of renting with no increase would have cost you $468,000 to live there but at the end of 30 years you have zero equity instead of $285,000.

 

that would be 12% return for a year if you paid cash for 50000 house and renting it for 6K a year? hard to believe..i'm in PA..here you can have about 7-8% before any maintenance expenses(and taxes,condo fees, whatever)..so after it would be probably around 5% a year...with possibility that the house will loose the value in the future..i would skip that kind of investment..

 

Recheck your math.


A $50,000 house here will went for about 1% of it's value so $425-500 per month.


So figure $6,000 for rental income


Now subtract $1000 that you paid in property tax.


Now subtract another $800.00 that you paid for property insurance.


Now subtract another $1000 that you paid for repairs/ maintenance.

Now subtract the 1% fee that is charged to manage it.

So your net return assuming full rental is $2700 on a $50,000 investment.


Far from 12%