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Forum » Renting is a LOSING proposition 100% of the time.
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Thread: Renting is a LOSING proposition 100% of the time.

post 1631956133 02-21-2021, 07:08 AM
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Renting is a LOSING proposition 100% of the time.

Renters pay a landlord his profit and have no way to recoup rent money paid. Zero. You are paying out the nose for convenience.

Home buyers can usually profit from selling a home. At the very least they can recoup some monies invested.


Renting is a LOSING proposition 100% of the time. It's not even debatable. Paying for convenience is NOT a better deal even in the short term.
post 1631956173 02-21-2021, 07:09 AM
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I want to buy a house soon (hoping the bubble bursts) and I agree with you about building wealth, but not having to pay for repairs or maintenance can be nice sometimes.
post 1631956193 02-21-2021, 07:09 AM
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Brb breaking my lease
post 1631956203 02-21-2021, 07:10 AM
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So I go into debt to build a house. I have no cash to invest or do a thing with.

OR, rent and use my cash to invest and make more money.
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post 1631956283 02-21-2021, 07:12 AM
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Sure there is no ROI, but the minimal overhead and flexibility/mobility are advantages.
Ol' 71st street. The devil that birthed me.

606 G0D.
post 1631956293 02-21-2021, 07:12 AM
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Originally Posted By Coal
So I go into debt to build a house. I have no cash to invest or do a thing with.

OR, rent and use my cash to invest and make more money.
You'll never see that rent money again.

Is the math that hard? I mean really bro.
post 1631956353 02-21-2021, 07:16 AM
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Originally Posted By Brozef⏩
Renters pay a landlord his profit and have no way to recoup rent money paid. Zero. You are paying out the nose for convenience.

Home buyers can usually profit from selling a home. At the very least they can recoup some monies invested.


Renting is a LOSING proposition 100% of the time. It's not even debatable. Paying for convenience is NOT a better deal even in the short term.
"no way to re coup" but who was claiming rent on tax returns?
yeah "usually" profit but not until at least 5-10 years of ownership
how am i losing? im paying for shelter.
also, brb need 40k down payment, just lol if you think plebs have that kind of money
post 1631956393 02-21-2021, 07:16 AM
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Originally Posted By HayZues
Sure there is no ROI, but the minimal overhead and flexibility/mobility are advantages.
Covered in the paying for convenience part of the op.
post 1631956433 02-21-2021, 07:16 AM
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Renting is generally much cheaper than owning. That extra money can be invested. Also you are paying for convenience and flexibility. When you factor in saving money from no repairs and no stupid “home improvement” projects that you pay $10k+ more for but don’t add to the value of the home then yea renting often makes financial sense
post 1631956523 02-21-2021, 07:18 AM
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Originally Posted By Ir0nStrength⏩
"no way to re coup" but who was claiming rent on tax returns?
yeah "usually" profit but not until at least 5-10 years of ownership
how am i losing? im paying for shelter.
also, brb need 40k down payment, just lol if you think plebs have that kind of money
LOL @ tax returns

And not having money for a down payment doesn't make renting a better deal. It makes it the only option.
post 1631956613 02-21-2021, 07:19 AM
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Originally Posted By Brozef⏩
You'll never see that rent money again.

Is the math that hard? I mean really bro.
Say rent is 1000/month.

Buying a house 2k/month + 40k down.

Take that 40k down-payment and extra 1k/month and invest it seeing 10% growth and its over 300k within 10 years. Would take 20 to see that kind of equity in your house. That's also ignoring property taxes, and for people who live in places like Illinois or NY, that is easily 100k in 10 years.


So math isn't as simple as you say.
Ol' 71st street. The devil that birthed me.

606 G0D.
post 1631956653 02-21-2021, 07:20 AM
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Originally Posted By Ir0nStrength⏩
"no way to re coup" but who was claiming rent on tax returns?
yeah "usually" profit but not until at least 5-10 years of ownership
how am i losing? im paying for shelter.
also, brb need 40k down payment, just lol if you think plebs have that kind of money
5-10 yrs?
I’ve owned 4 homes & have only lived in one for max of 3 yrs. always have made at least 30k plus..
post 1631956743 02-21-2021, 07:22 AM
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Originally Posted By HayZues
Say rent is 1000/month.

Buying a house 2k/month + 40k down.

Take that 40k down-payment and extra 1k/month and invest it seeing 10% growth and its over 300k within 10 years. Would take 20 to see that kind of equity in your house. That's also ignoring property taxes, and for people who live in places like Illinois or NY, that is easily 100k in 10 years.


So math isn't as simple as you say.
Wtf at 40 k down lol?
Get a first time home buyers loan/FHA loan 1%-5% down..it’s not that hard
post 1631956823 02-21-2021, 07:24 AM
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Originally Posted By HayZues
Say rent is 1000/month.

Buying a house 2k/month + 40k down.

Take that 40k down-payment and extra 1k/month and invest it seeing 10% growth and its over 300k within 10 years. Would take 20 to see that kind of equity in your house. That's also ignoring property taxes, and for people who live in places like Illinois or NY, that is easily 100k in 10 years.


So math isn't as simple as you say.
Good post from someone who actually understands finance


The idea that renting and owning are the same cost is generally wrong, the idea that a landlord is making money because the rent exceeds the mortgage is really wrong. That comes from when you buy the property for cheap, and renovate it to make it rent for more, or it’s a multi family / apartment building. The idea that a single family home youd buy it and rent it out for more than your mortgage costs is so laughably stupid - especially with prices spiking due to interest rates

Renting is almost always the cheaper option. Better option? No. But cheaper, and because of that it’s a more nuanced conversation.
post 1631957063 02-21-2021, 07:28 AM
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Originally Posted By Paul
Wtf at 40 k down lol?
Get a first time home buyers loan/FHA loan 1%-5% down..it’s not that hard
Sure... if you're a first time home buyer.

40k isn't far from 5% down-payment on my house tbh.


Also some of the value your home goes up is usually directly tied with the value of the dollar going down. Bought for 500k, 10 years later sell for 600k. Unfortunately that 600k has same buying power as 500k 10 years ago. Now factor in the 150k in property taxes you paid over 10 years and you actually took a massive L.

Originally Posted By meanstringbean⏩
Good post from someone who actually understands finance


The idea that renting and owning are the same cost is generally wrong, the idea that a landlord is making money because the rent exceeds the mortgage is really wrong. That comes from when you buy the property for cheap, and renovate it to make it rent for more, or it’s a multi family / apartment building. The idea that a single family home youd buy it and rent it out for more than your mortgage costs is so laughably stupid - especially with prices spiking due to interest rates

Renting is almost always the cheaper option. Better option? No. But cheaper, and because of that it’s a more nuanced conversation.
Get u on recharge
Ol' 71st street. The devil that birthed me.

606 G0D.
post 1631957103 02-21-2021, 07:29 AM
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Originally Posted By HayZues
Say rent is 1000/month.

Buying a house 2k/month + 40k down.

Take that 40k down-payment and extra 1k/month and invest it seeing 10% growth and its over 300k within 10 years. Would take 20 to see that kind of equity in your house. That's also ignoring property taxes, and for people who live in places like Illinois or NY, that is easily 100k in 10 years.


So math isn't as simple as you say.
I've never seen a house for rent that is half of what the mortgage would be. What the fuk kind of example is that.

Do you really think a landlord isn't making money from your rent? You think they are running a charity?
post 1631957233 02-21-2021, 07:31 AM
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Originally Posted By meanstringbean⏩
Good post from someone who actually understands finance


The idea that renting and owning are the same cost is generally wrong, the idea that a landlord is making money because the rent exceeds the mortgage is really wrong. That comes from when you buy the property for cheap, and renovate it to make it rent for more, or it’s a multi family / apartment building. The idea that a single family home youd buy it and rent it out for more than your mortgage costs is so laughably stupid - especially with prices spiking due to interest rates

Renting is almost always the cheaper option. Better option? No. But cheaper, and because of that it’s a more nuanced conversation.
Have you ever owned a home? Every home I’ve owned I’ve made huge financial gains on. I just now started renting my cabin up in a ski resort in CA. My mortgage is 1,300 a month. I rent out my cabin anywhere from 500-800 for a weekend..and I’m always booked. Besides the fact that I’m gaining interest on the house, someone else is paying my mortgage 3x over.

Doing the same with a cabin in Utah soon. Renting is always a losing game
post 1631957283 02-21-2021, 07:32 AM
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Why are some so aggressive and biased with rent vs buy? It's not one-size fits all.

I own a home for the lifestyle, it's not some rocketship to wealth like some would have you believe.
post 1631957293 02-21-2021, 07:33 AM
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Originally Posted By Paul
5-10 yrs?
I’ve owned 4 homes & have only lived in one for max of 3 yrs. always have made at least 30k plus..
yeah bull****. i doubt your including closing costs and all that ****. if your just flipping them... then again your gonna need to have A LOT of money for financial backup
Originally Posted By Paul
Wtf at 40 k down lol?
Get a first time home buyers loan/FHA loan 1%-5% down..it’s not that hard
then your paying another few hundred/mth on mortgage insurance
Originally Posted By meanstringbean⏩
The idea that renting and owning are the same cost is generally wrong, the idea that a landlord is making money because the rent exceeds the mortgage is really wrong.
yeah and if you have 1 bad tenant you'll lose money fast. brb have to take him to court for monies owing, brb he might brick your windows
post 1631957323 02-21-2021, 07:33 AM
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Originally Posted By HayZues
Sure... if you're a first time home buyer.

40k isn't far from 5% down-payment on my house tbh.


Also some of the value your home goes up is usually directly tied with the value of the dollar going down. Bought for 500k, 10 years later sell for 600k. Unfortunately that 600k has same buying power as 500k 10 years ago. Now factor in the 150k in property taxes you paid over 10 years and you actually took a massive L.





Get u on recharge
That’s all you need is the First house. Then you take the equity from that house & invest in another..and so on.
post 1631957353 02-21-2021, 07:34 AM
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Originally Posted By HayZues
Say rent is 1000/month.

Buying a house 2k/month + 40k down.

Take that 40k down-payment and extra 1k/month and invest it seeing 10% growth and its over 300k within 10 years. Would take 20 to see that kind of equity in your house. That's also ignoring property taxes, and for people who live in places like Illinois or NY, that is easily 100k in 10 years.


So math isn't as simple as you say.
There's a 0% chance that a $1000 a month rent equivalent would require 40,000 down
post 1631957443 02-21-2021, 07:36 AM
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Originally Posted By Ir0nStrength⏩
yeah bull****. i doubt your including closing costs and all that ****. if your just flipping them... then again your gonna need to have A LOT of money for financial backup



then your paying another few hundred/mth on mortgage insurance



yeah and if you have 1 bad tenant you'll lose money fast. brb have to take him to court for monies owing, brb he might brick your windows
You clearly have never owned a home. I don’t bullchit.

PMI is taken off once the value of the home appreciates 20%..2 yrs is when ours was taken off for our first home.
Once you profit from the first house, you can easily get a standard loan.
post 1631957503 02-21-2021, 07:38 AM
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Originally Posted By Paul
PMI is taken off once the value of the home appreciates 20%..2 yrs is when ours was taken off for our first home
In every market I look at the houses are appreciating faster than the stock market is.

Not owning a house = getting raped by inflation

Rents keep increasing faster than pay in this environment and you get nothing
post 1631957593 02-21-2021, 07:40 AM
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OP you do realize when you buy a home with a mortgage, you're practically renting it with the bank by paying a sh!t load of compacted interest, right?

All depends on where you live and your lifestyle. Both renting and owning have their pros and cons.
post 1631957643 02-21-2021, 07:41 AM
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Originally Posted By DizzySmalls⏩
In every market I look at the houses are appreciating faster than the stock market is.

Not owning a house = getting raped by inflation

Rents keep increasing faster than pay in this environment and you get nothing
Exactly. Here in CA, my friends that rent pay almost double of what my mortgage is, for a chit tier apartment/condo.
post 1631957673 02-21-2021, 07:41 AM
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Originally Posted By Paul
Have you ever owned a home? Every home I’ve owned I’ve made huge financial gains on. I just now started renting my cabin up in a ski resort in CA. My mortgage is 1,300 a month. I rent out my cabin anywhere from 500-800 for a weekend..and I’m always booked. Besides the fact that I’m gaining interest on the house, someone else is paying my mortgage 3x over.

Doing the same with a cabin in Utah soon. Renting is always a losing game
Lol I’m a landlord, but I also know that every place I’ve lived in was cheaper to rent than to own. You don’t make money as a landlord with single tenant family homes anymore unless you put in work buying cheap and renovating


Ski resort is more a vacation home and completely different. You aren’t making that kind of money with a suburb place which is more in line with what OP was talking about
post 1631957723 02-21-2021, 07:43 AM
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Renting + taking the deposit money and putting it into a REIT to offset the rent is the smart way to do it for maximum freedom brahs.

REIT basically makes you a high % return landlord minus a 10% fee.

Some condos are only 4-6% of the valuation yearly to rent. You can then buy a REIT that pays you 8-10% a year and enjoy the difference.

A REIT is also a liquid asset you can exit whenever you want, you don’t have to sit around for 2 years waiting to sell, paying estate agent fees, taxes etc
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post 1631957743 02-21-2021, 07:44 AM
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Not like you always have a choice, why would a young person buy when they’re not ready to settle down where they currently work?
post 1631957783 02-21-2021, 07:45 AM
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Originally Posted By meanstringbean⏩
Lol I’m a landlord, but I also know that every place I’ve lived in was cheaper to rent than to own. You don’t make money as a landlord with single tenant family homes anymore unless you put in work buying cheap and renovating


Ski resort is more a vacation home and completely different. You aren’t making that kind of money with a suburb place which is more in line with what OP was talking about
Yes, I would probably not rent out my house in the city, simply because of CA tenant laws. But friends do & they are making about a $300+ Profit a month, besides the fact the home is gaining interest itself.
post 1631957863 02-21-2021, 07:47 AM
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Originally Posted By 128⏩
Not like you always have a choice, why would a young person buy when they’re not ready to settle down where they currently work?
I regret not doing it sooner srs

Look into owner occupied rental properties. But a 2-4 family unit for 3.5% down, live in it a year, rent other sides out, move out, rent entire thing out, and repeat. Rental properties generally cost 20%+ down payment due to extra risk, but if you live in it at least for a year you can get financing like 3-5% down


If you do this a few times in your 20s this absolutely is the quickest way to build serious wealth
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