Author Topic: Better To Own Than Rent?  (Read 2836 times)

Dicey

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Better To Own Than Rent?
« on: November 09, 2016, 01:04:08 PM »
This story scares the shit out of my inner bag lady. It underscores the advantages of owning, not renting. It also explains why I favor investing before prepaying the low-interest mortgage.

http://www.mercurynews.com/2016/11/08/on-the-thin-line-between-prosperity-and-homelessness

Cassie

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Re: Better To Own Than Rent?
« Reply #1 on: November 09, 2016, 01:11:28 PM »
That was really sad. I prefer to own for a variety of reasons.

arebelspy

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Re: Better To Own Than Rent?
« Reply #2 on: November 19, 2016, 04:35:45 AM »
If you're tied to that one location, and will be forever, sure, there are good arguments for owning.

In her situation, I'd just... move.  Obviously some people don't want to do that, and owning is never feasible for them.  They're in a tough situation.  =/
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Metric Mouse

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Re: Better To Own Than Rent?
« Reply #3 on: November 19, 2016, 05:06:30 AM »
This story scares the shit out of my inner bag lady. It underscores the advantages of owning, not renting. It also explains why I favor investing before prepaying the low-interest mortgage.

http://www.mercurynews.com/2016/11/08/on-the-thin-line-between-prosperity-and-homelessness

Sad. I wonder if she could have ran her consulting business out of another lcol area.

calimom

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Re: Better To Own Than Rent?
« Reply #4 on: November 20, 2016, 09:05:35 AM »
If you're tied to that one location, and will be forever, sure, there are good arguments for owning.

In her situation, I'd just... move.  Obviously some people don't want to do that, and owning is never feasible for them.  They're in a tough situation.  =/

It sounds as though the lady in the article did move, after her Motel 6 stay, to Sonoma County. Still pricey by most standards but not as insane as Silicon Valley. Any number of things can trip people up: cancer, rising rents, car problems, and it's hard to argue that a paid off house or condo would not be a big measure of security when one is 67 and still working. And sadly $80K per year is a pretty decent salary, but not really in Silicon Valley.

As much as I feel for this lady and others in her situation, stories like this inspire me further to be independent, work toward paying my mortgage, further invest in rentals, my ROTH, etc.

Another Reader

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Re: Better To Own Than Rent?
« Reply #5 on: November 20, 2016, 10:45:33 AM »
What is even worse is that she probably has to give up her current medical care as she needs to change insurance plans to one in Sonoma County.  She will have to start all over on her Stage 4 breast cancer treatment up there, if she can find a competent oncologist up there that takes her new insurance.

Dicey

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Re: Better To Own Than Rent?
« Reply #6 on: November 20, 2016, 11:33:52 AM »
This story scares the shit out of my inner bag lady. One of my crazy-ass dreams is to buy an apartment building, convert one of the units to communal space and then affordably rent the other units out to single women, primarily friends. Don't know if it's feasible, but I can't let go of the idea.

Metric Mouse

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Re: Better To Own Than Rent?
« Reply #7 on: November 20, 2016, 11:50:46 AM »
This story scares the shit out of my inner bag lady. One of my crazy-ass dreams is to buy an apartment building, convert one of the units to communal space and then affordably rent the other units out to single women, primarily friends. Don't know if it's feasible, but I can't let go of the idea.

I think if you can dream it, you can achieve it. I wouldn't expect to come out ahead financially in such a transaction, but the benefits would probably be worth it.

Another Reader

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Re: Better To Own Than Rent?
« Reply #8 on: November 20, 2016, 11:54:24 AM »
This story scares the shit out of my inner bag lady. One of my crazy-ass dreams is to buy an apartment building, convert one of the units to communal space and then affordably rent the other units out to single women, primarily friends. Don't know if it's feasible, but I can't let go of the idea.

I think you are on to something.  Better than them ending up in SRO hotels or living in a car.

FIFoFum

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Re: Better To Own Than Rent?
« Reply #9 on: November 20, 2016, 12:30:07 PM »
I feel like there is false security in the "I should have owned" mindset as well.

I know retired people living in on a fixed income in their owned/paid off home in a HCOL who are looking at ginormous property tax bills that only go up and up each year. There is always a breaking point where people may need to sell to make ends meet (and may be unable to buy/downsize in that same HCOL).

The reality is that if there aren't structural supports creating new housing in high demand areas or other caps/safety net protections, this can happen to anyone who rents OR owns.

Ayanka

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Re: Better To Own Than Rent?
« Reply #10 on: November 20, 2016, 12:40:42 PM »
I feel like there is false security in the "I should have owned" mindset as well.

I know retired people living in on a fixed income in their owned/paid off home in a HCOL who are looking at ginormous property tax bills that only go up and up each year. There is always a breaking point where people may need to sell to make ends meet (and may be unable to buy/downsize in that same HCOL).

The reality is that if there aren't structural supports creating new housing in high demand areas or other caps/safety net protections, this can happen to anyone who rents OR owns.

Yes, however, if you own and pay ginormous property taxes, generally your house also has a ginormous value. If you combine that with a paid of house, you might still have to move, but it would give you a lot more options where to.

Cassie

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Re: Better To Own Than Rent?
« Reply #11 on: November 20, 2016, 01:09:15 PM »
I moved alot when young and really enjoyed it but now I have put down roots the past 20 years and would never want to move.  Luckily we have a ton of equity in our home and a MCOL.  Plus our property taxes are super low. If need be we could downsize to a condo and still have plenty of $ left.

marty998

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Re: Better To Own Than Rent?
« Reply #12 on: November 20, 2016, 01:34:14 PM »
This story scares the shit out of my inner bag lady. One of my crazy-ass dreams is to buy an apartment building, convert one of the units to communal space and then affordably rent the other units out to single women, primarily friends. Don't know if it's feasible, but I can't let go of the idea.

I think this is a brilliant idea! Can't see it ever happening in Australia unless our housing market blows up, but globally there has to be pockets somewhere in the world where this is possible.


FIFoFum

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Re: Better To Own Than Rent?
« Reply #13 on: November 20, 2016, 01:38:18 PM »
I feel like there is false security in the "I should have owned" mindset as well.

I know retired people living in on a fixed income in their owned/paid off home in a HCOL who are looking at ginormous property tax bills that only go up and up each year. There is always a breaking point where people may need to sell to make ends meet (and may be unable to buy/downsize in that same HCOL).

The reality is that if there aren't structural supports creating new housing in high demand areas or other caps/safety net protections, this can happen to anyone who rents OR owns.

Yes, however, if you own and pay ginormous property taxes, generally your house also has a ginormous value. If you combine that with a paid of house, you might still have to move, but it would give you a lot more options where to.

Just as someone who was paying $2300 in rent and could afford that could move elsewhere, but not afford $3500/mo.

mustachepungoeshere

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Re: Better To Own Than Rent?
« Reply #14 on: November 20, 2016, 01:51:25 PM »
One of my crazy-ass dreams is to buy an apartment building, convert one of the units to communal space and then affordably rent the other units out to single women...

I think this is a brilliant idea!

That's one way to meet women. :P

marty998

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Re: Better To Own Than Rent?
« Reply #15 on: November 20, 2016, 02:01:14 PM »
One of my crazy-ass dreams is to buy an apartment building, convert one of the units to communal space and then affordably rent the other units out to single women...

I think this is a brilliant idea!

That's one way to meet women. :P

Naaaaw cheeky. That might attract the wrong sort!

WootWoot

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Re: Better To Own Than Rent?
« Reply #16 on: November 20, 2016, 02:23:52 PM »
I think that's an excellent idea. Provide the right kind of security/safety features, and you will have no trouble getting tenants.

This story scares the shit out of my inner bag lady. One of my crazy-ass dreams is to buy an apartment building, convert one of the units to communal space and then affordably rent the other units out to single women, primarily friends. Don't know if it's feasible, but I can't let go of the idea.