Robert Shiller disagrees.Originally Posted by Zippyjuan
http://www.cbsnews.com/news/history-...ad-investment/
so what's the problem? if nobody's entitled to anything, why is overpriced houses any worse than underpriced houses?
the same reason silver and gold will always retain a fixed ratio of value, the same reason your wedding ring needs to cost 3 months salary.
Until it depreciates
Until you hit rent controls.As a renter, you get nothing and pay the owner's taxes for him. The rest is profits for him-
Sell and then what? buy another house?if you are the owner, you get to keep that portion yourself. Then you end up with an asset you can sell.
I hope you're happy with what you have, and not use that as an excuse to dig yourself even deeper.Me- I am glad I bought and paid mine off. If I rented, I would be paying at least three times as much for a similar place to live- that leaves a lot more money every year I can save or spend on other things. And its current worth is far more than the money I spent paying for it.
You mean like you?
Until you hit rent controls.
No; the owner just won't fix up your place. I lived in a rent stabilized apartment. The carpet was getting thread bare, the paint was really old, the grout was coming up, etc.
Owners also show each other's apartments and then charge a finder's fee to the new tenant. There are all kinds of ways around rent control/stabilization.
Last edited by NorthCarolinaLiberty; 07-26-2017 at 10:50 PM.
Disrupt, Deny, Deflate. Read the RPF trolls' playbook here (post #3): http://www.ronpaulforums.com/showthr...eptive-members
what does finders fee have to do with rent stabilization? rent stabilization applies mostly to people living and staying.
as far as repairs, they can refuse to repair until it becomes a habitability issue.
things like carpet and paint aren't habitability issues unless it becomes safety or health concern.
They find ways to make money to circumvent government laws.
Disrupt, Deny, Deflate. Read the RPF trolls' playbook here (post #3): http://www.ronpaulforums.com/showthr...eptive-members
Uhhh, could it be that government is the reason for supply not rising? I take it you've never built anything brick and morter. After each time I have I come away with the feeling that it's not worth it. This is anecdotal, but my last project, my business buildout moving into a new space, it has cost maybe 50k extra for things to satisfy code but are completely unnecessary. There has been about 2.5 months in construction delays because of permitting (split in several different points in the project). Work is constantly stopping and starting because of the order of government inspections, and we're
at mercy of their schedule. It's all so tiresome and costs a huge amount of money to do anything.
Tax is theft. War is murder. Conscription is slavery. Government is organized crime.
Just think of all the federal/state and local regulators you have helped stay on the dole....
Their children thank you too.
If you're here arguing that renting is better than owning for financial reasons, you're just being silly.
My husband moved us around the country too much so I never got to realize any big profit on my homes. But looking back at the current property values vs what I paid then, there's no doubt that we would have made money on every single one.
Apples to apples -you're paying property taxes. Either to the local authority or via your landlord...you're paying taxes. Monthly mortgage payment vs monthly rent payment - you're paying someone's mortgage.
People arguing otherwise are either landlords, or people seeking to justify their own circumstance.
Yep. Illegal sublets, illegal duplexes, illegal basement apartments.....every city with rent controls is filled with people who circumvent rent controls. But the retarded liberals keep tryng the same things over and over.
Ron Paul will totally agree with you on that. Making anything illegal only creates a Black Market that no one has any control over. Not that control is such a good thing, but what isnt illegal in this country any more?
1776 > 1984
The FAILURE of the United States Government to operate and maintain an Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.
The Elimination of Privacy is the Architecture of Genocide
Belief, Money, and Violence are the three ways all people are controlled
I got my wedding ring for under 1/3 of a days salary. Hers cost more .
Do something Danke
I got Mr Animal one at Big Lots for 7.00. I actually got it when I returned a laundry basket that had a broken handle. That was his second wedding band. He lost his first one because it bothered him when he played golf and thinks he lost it on the golf course. He loves his 7.00 band. He says it's comfortable and he can open beers with it.
gay marriage
Do you think there is any interest in Mr. Animal's saga? Is Mr. Animal a composite character or a purely fictional one?
We got ours at JCP. I think we paid $80 for the pair.
But my first engagement ended partially because he gave me a factory-seconds visibly flawed diamond ring. Then the week after that he bought a bunch of expensive scuba gear for himself. That was kind of a rip-off...when we were taking lessons they pushed us hard to buy the gear. I'm more of a "let's wait to see if we're going to stick with this before we spend $1500 on gear" kind of a person but he got suckered.
I did not hate the ring immediately, and we weren't even living together so it wasn't really any of my business how he spent his money, but it planted some seed. Every time I saw the blemish in the stone...
I was sort of wild back then too. He's probably better off without me.
WTF?
Yes. There is interest in Suz's life. Move along.
We already have a thread for this - http://www.ronpaulforums.com/showthr...hrifting-hauls
Well go read it then, silly!
Don't you think it is too easy to get you off your rocker?
Found this rocker at a yard sale in Saginaw for $10. I like it because it fits my butt.
I know in my neighborhood it makes sense to own. The smaller homes sell for 100K and rent for 1K. So with a 30 year 4% mortgage your payments with insurance and tax is about $700 a month. So you save about 3,600 a year vs renting. I probably average 2K a year max on maintenance so it's still cheaper than renting and in 30 years you have a 100k asset assuming stable prices(ha ha).
I'm guessing this mortgage/rent ratio is not the historical norm. I'm assuming it's normally cheaper to rent and if you save/invest the difference you may come out ahead.
Check out the related thing krugmanator posted earlier in the thread. It's interesting: http://www.cbsnews.com/news/history-...ad-investment/
Most people are too dumb to invest in anything else. Being a landlord is the height of most people's ambitions.
Renting is much better from a financial standpoint. The return on residential real estate is slightly negative over the very long term when factor in taxes, insurance, selling transaction costs, mortgage interest, indoor and outdoor maintenance and everything else that goes along with owning a home like furnishing it. A house is a depreciating asset. Only the land underneath the house has a positive return.
That isn't my opinion. That is from the data Nobel Prize winning economist Robert Shiller compiled. Some people like Zippy and Donald Trump get lucky and get the right side of the bell curve. That isn't a financial strategy.
As far as justifying a circumstance, I choose to rent. I have zero debt. I made low six figures last year. Already made more than I did last year. My monthly rent bill is $575. Owning a home is a luxury good not an investment. Not to mention I don't want to mow, snow blow, fix plumbing, change light fixtures, paint, etc. I also don't want to be tied to living in one area.
Now that's just silly. If you rent, you are still paying all those costs.
It was also written in the depths of the most recent real estate crash. Which is when I bought my house. I paid $60 k. Taxes are $2.5k per year. I could literally sell it tomorrow for $130K. If I wanted $150k I'd have to wait.
If I had rented instead of bought, and paid $1000 per month in rent, in roughly the same amount of time I would have spent the original $60k. Add another couple of years to break even on the taxes. Then explain how I'm better off spending $1000 a month than $2500 a year.
My parents bought their house 53 years ago. They paid 9k. Taxes aside, they have lived rent-free for 33 of those years. If they died I would sell their house for $170k.
You can try but I can't imagine you saying anything that will have me believing that they would somehow be better off paying $1000 / month for rent in perpetuity than $1000 a year in taxes.
Last edited by angelatc; 07-27-2017 at 11:21 PM.
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