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Lennar Corp. Message Board

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  • investment_wanker investment_wanker Mar 24, 2008 3:04 PM Flag

    Housing is NOWHERE NEAR bottom

    I'll tell you why renting is better, given EQUAL monthly costs based on a 30 year mortgage:
    1) Easier to move if necessary, no need to find a buyer first. So if a cigarette smoking moron moves in next door with barking dogs, loud dirtbikes, and drunken teenage sons driving boombox cars, you can hand the keys back to your benevolent landlord and flee.
    2) Assuming you will LIVE another 30 years or this country will survive another 30 is a major leap of faith in and of itself.
    3) The tax break is a total illusion, especially to low income earners. You give up your standard deduction so as to be able to itemize. That eats up a good chunk of your advantage right there.
    4) The home counts as an ASSET if you own it.
    If you are a low income earner with NO ASSETS, you can qualify for all sorts of free handouts, maybe even free rent.
    Beats working for minimum wage any day.
    5) Property taxes are out of control in many parts of this country, rising at 20%+ per year even as property values plummet. As a renter, you can easily walk away from this problem if your community starts getting greedy.
    6) Maintenance is the owners headache.
    7) Earthquakes, jet engines falling from the sky, fires, floods, tornados, all just make you move, but only the owner takes a big financial bath.

    You of course will say "that is what insurance is for." Insurance is EXPENSIVE and has lots of loopholes (bet your policy excludes earthquakes and acts of war, the two most likely major calamities these days).

    8) the opportunity cost of capital.
    this is where most of you "GENIUS LANDLORDS" miss the boat. If you tie up, let us say, $200,000 in a rental property, that is $200,000 you could have invested in gold or silver instead, or certainly some better idea that would return at least 20% per year. Meanwhile, in this market, your real estate depreciates and you struggle to collect your rents from lowlife losers who are trashing your properties and devaluing your neighborhoods with their obnoxious presence.

    Sorry, I fail to see the joys of ownership.
    If you can find a locale with no property taxes, MAYBE. Otherwise, there are a lot of darn good reasons to stay a renter.

 
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