Buying v. Renting

**maxx** · September-07-10, 12:51 PM

Buying a house isn't as great a deal for most people as they think according to James Kwak. Of course, the tax code makes home ownership, including a second home, a great investment for the really rich. The rest of us subsidize their tax cuts.
http://www.hereandnow.org/

**East Detroit** · September-07-10, 06:20 PM

What a Kwak.

Is he trying to convince the great unwashed to be perpetual slaves to the man for housing?

How about buy a house/land and keep it in your family for generations? Then you're talking power.

**Patrick** · September-07-10, 06:24 PM

Originally Posted by East Detroit

What a Kwak.

Is he trying to convince the great unwashed to be perpetual slaves to the man for housing?

How about buy a house/land and keep it in your family for generations? Then you're talking power.

Death taxes will fix that for ya real quick...

**ghettopalmetto** · September-07-10, 07:10 PM

Originally Posted by East Detroit

How about buy a house/land and keep it in your family for generations? Then you're talking power.

Sure! Just ask any poor family in the South how rich and powerful they are! Inherit a piece of land, and boy howdy, you won't have to worry about anything else ever again.

**wolverine** · September-07-10, 10:32 PM

Originally Posted by East Detroit

What a Kwak.

Is he trying to convince the great unwashed to be perpetual slaves to the man for housing?

How about buy a house/land and keep it in your family for generations? Then you're talking power.

I guess I'm one of the great unwashed perpetual slaves....

But I'd really like this answered. In this day and age, how common is it to keep their home in the family for generations? I can understand if it was a valuable piece of property in say SF or NYC that was some cash cow apartment building that was handed down, but a single family home? No way, please sell that. Kids grow up, go to college, and go elsewhere.

**fryar** · September-08-10, 03:28 AM

It's always been a key to equity for people. Sh_t just went haywire in the last 10-20 years. It's still legitimate, though.

**gnome** · September-08-10, 05:04 AM

if yo don't think of your home like it is an ATM, but rather a place to live ... the concept of home ownership is very valid. And not just from an individual point of view. Home owners tend to respect their properties, tend to be more involved in civic organizations, more than renters which leads to a more harmonious and cohesive neighborhood.

In short, once the queen of england starts renting ...

**Papasito** · September-08-10, 07:30 AM

I've done both. Renting has it's perks, believe me.
Some of them are: If the AC breaks, it's not your problem, just call the landlord. If it's an apartment, you don't have to mow the grass or do yard work. You rarely to never need to go to a Lowe's or Home Depot. It's turn key living with few responsibilities.

I own a home right now, and my work is never, ever done.

**Johnlodge** · September-08-10, 03:17 PM

I bought my house, and my payment is less than a lot of people I know pay for rent. Maybe it's not for everybody, but at least I have something to show for the money I spend every month. Plus I enjoy working on things, so I can pursue that hobby while adding value to my home. It wasn't an investment so much as a place to live in a community I love. Maybe more an investment in the community than the house itself? To each their own, though. Do what's right for you.

**Downriviera** · September-08-10, 03:24 PM

Buying v Renting? Neither. Squatting is the way to go these days.

**wolverine** · September-08-10, 06:02 PM

Originally Posted by gnome

if yo don't think of your home like it is an ATM, but rather a place to live ... the concept of home ownership is very valid. And not just from an individual point of view. Home owners tend to respect their properties, tend to be more involved in civic organizations, more than renters which leads to a more harmonious and cohesive neighborhood.

In short, once the queen of england starts renting ...

I agree with that. It's usually always a matter a trust that your landlord will keep up the property. But it's a given that owners will take better care of their property. And they'd hope their neighbors do too.

**Patrick** · September-08-10, 06:05 PM

I guess it depends where you live and how much of a "return" you want to see when you sell. Perfect time to buy in SE Michigan if you are a first-time buyer, but not so good if you want to sell. Shit, my rent here in DC is more than what some people pay on their mortgage for their McMansions.

**Ray1936** · September-08-10, 07:18 PM

Wife and I rented an apartment when we first married. Hated it. Six months later we scraped enough together to buy our first home, and have been home owners and loving it ever since. That's 51 1/2 years this month. But to each his own.

**gazhekwe** · September-08-10, 09:10 PM

We've bought five homes and sold four, three at a loss, one even up. We like owning,, because we don't have to rely on someone else or be subject to their whims. We obviously aren't in it for the money. The one we have now is paid off, so even if we don't sell for what we have in it, we will clear a nice bit.

**Pam** · September-09-10, 08:12 AM

The monthly rental payment vs. mortgage payment comparison is misleading. Maintenance and utility costs in a home vs. apartment are going to be higher.

**wolverine** · September-09-10, 06:58 PM

In my hood condo fees run between $300-$800/month. Add in taxes and then maintenance and you get pretty darn close to what someone is paying in rent for almost the same square footage a block away in rent.....except that they don't have to pay an additional $400,000 - $1,000,000 to live there.

If you got the money, by all means buy. If you are just out of college and have other financial commitments, don't even think of it.