Why do people think home ownership is so important? At my current

Most people don't see themselves getting that rich, so they look at a mortgage kind of like a savings account.

>Throughout history land ownership has been critically important
>Home equity is the best source of collateral for stable credit at a low interest rate
>Even a moron can determine that paying a mortgage for partial equity is sometimes better than just renting your whole life for no returns

Because not everyone is as big of a dumbass as you kiddo.

Did you actually run the numbers on this?

If you're a millionaire you don't need a mortgage.

You put $250,000 towards a house instead of stocks.

Let's look over a period of 5 years.

You save $50,000 from rent but lose a possible 7% * $250,000 < $50,000 in stocks.

Basic math disagrees with you.

>>1127952

Ok actually my estimate is wrong.

If you account for cumulative interest:

($250000 * 1.07^5) - $250000 > $50000

If you want to be more realistic and consider a 3% or 4% ROI you barely cut even. Of course there is a greater risk with equities than with real estate.

Just read a book about this.

Basically home ownership is a shitty investment. But for poorfags it's a forced savings account, because god knows if a poorfag has 10 bux they'll fucking spend it. So it's babby's savings for retards and that's why investment advice geared for idiots calls a house "your biggest investment"--because for retards it's their only manageable investment. If you can get a decent rental for less than the mortgage interest + maintenance + taxes + amortized closing fees, it would be better to rent and invest the savings. A lot of homeowners who rent the place out actually lose money when you factor in other costs like the maintenance, taxes, and number of hours working on the place.

Personally, I can't be assed to take care of a house, so I'd rather rent. Also don't need an entire damn house when everything I own fits in one room. Some people like doing what they want with a house, some people like DIY improvements. But you wouldn't call owning a house an investment. It's a hobby if anything.

>>1127952
I'm not a millionaire now. At my current rate of investment I will have £1.6 million age 60.

The question isn't whether to buy a house at age 60, it's whether to buy a house in the near future instead of just pouring all of my savings into stocks.

>>1127961

Your false dichotomy sent me astray.

You are still putting money away to pay rent, so why not put that same money towards a mortgage instead?

How much you put towards stocks is actually irrelevant.

>>1127960
Interesting. I feel the same way - I just can't be arsed taking care of a house and I like freedom so renting sounds good to me.

What is the name of the book?

>>1127974
Because a mortgage would cost a lot more than my rent, and also require selling a large amount of stocks to pay for the deposit which is a huge opportunity cost.

>>1127960

>I read some claptrap's pop-economics celebrities opinion about something therefore I have the answer

Should you be interested, I have a bridge to sell you.

>>1127977

>Because a mortgage would cost a lot more than my rent,

Are you sure about that? Because that shouldn't be the case.

>and also require selling a large amount of stocks to pay for the deposit which is a huge opportunity cost.

Can you stop it with the "YUGE opportunity cost" please? You're only making 7% ROI at best and likely far less. If you want to maximize your real estate investment you can also rent out your house. You don't need it all to yourself. You can get up to 5% ROI that way.

>>1127985
Without accounting for maintenance... Which, especially when you rent it out, will be a significant cost. if you are renting it out just make sure you aren't gonna have reckless tenants

>>1127976

Pound Foolish. Just skim read it--it's not worth more. I've also been playing on a few calculators and reading various blogs about the subject. I was thinking of buying a house, but after researching more, it isn't a good deal. Easier to dump the cash in an index fund and not have to run around hounding tenants and repairing nigger damage to my rentals.

>>1127979

Nice rebuttal. Oh, wait, you don't have an argument.

My 5 to 10 year plan is to buy a rundown house in an up and coming neighborhood (there are many in my area) slap some paint, stone, and tile on it, do a little landscaping and rent for well over my mortgage. Rent is always rising in my area due to restrictive building laws and constant influx of people. Its hard to convince my wife this is a smarter plan than living in the house you bought and instead see it as an investment. I think because of the "common knowledge" that you buy a house to live in for some awful reason

One thing I think you are missing, OP, is that the ROI from your rental can then be invested every month.

For the simple reason of rent progressively goes up, mortgage payments stay the same.

You're putting money into equity, and even if your rent payment is less now, 10 years from now that won't be the case.
Only reason to rent is if you plan on moving around a lot

>>1128039
Fair point but how much can rents realistically increase by, and would it make much difference to a retired millionaire?

And consider this: if you rent you can always move to a city or even country that is cheaper.

>>1128080
Because if you pick your investments correctly they snowball into a huge bulk. Especially when you are still single.

Buy a house that fulfills old.rent=house.expense in which your mortgage and maintenance bills would be equal to your current rent. Live in that house and buy another house to rent. Pick a small one in an accesible location. Rinse and Repeat.

>>1128039
>Only reason to rent is if you plan on moving around a lot

The average person moves every 7 years, and the younger generations increasingly more frequently. Jobs mang. You will never pay off a house that way, just switch from one mortgage to another. Considering the first few years of the mortgage, most of the payment is interest, not principal, you build little to no equity. And if you do, the maintenance, fees, taxes, and closing fees eat it.

I'll say it again. There's valid reasons to buy a house, but it's a hobby, not an investment.

>>1128115
>The average person moves every 7 years, and the younger generations increasingly more frequently. Jobs mang. You will never pay off a house that way, just switch from one mortgage to another.

Is this really a reason, though? I was playing with some numbers the other day, and figured that if I had a significant other who made about the same money I do, together we could pay off a modest house in just 2-5 years, depending on the house cost. Housing is relatively cheap in my area, but I still make less than $50k per year. Are most people just much more financially irresponsible?

>>1128115
Stop with "the average person" memes. It's what makes you index junkies so insufferable. Everyone knows their own situation. You cant make blanket statements like that. Either it's good for you or it isn't. There's lots of people doing very well off their real estate investments. There's plenty others underwater on their mortgages. Everyone's situation is different.

But guess what. Every renter rents from an owner. Renting wouldn't exist if rentals werent profitable

I'm 24 and I have a mortgage that is about $550 a month for a small 2 bed 1 bath house. If I wanted to rent anyplace other than the ghetto, I would be paying at least $750 a month in rent for a tiny studio or 1 bedroom apartment the size of my living room. Also at my current savings rate, I will have $1,171,058 by the time I turn 65 in today's dollars, excluding any interest gained from investments. Not to mention I can actually build equity and sell my house if I ever wanted to. Renting is just throwing money in the toilet allowing somebody else to profit off of you. You are a cuckhold. I would rather be a bank's cuckhold with a mortgage than having a landlord tell me what I can or cannot do in the place I live in. I can honestly care less if I rent or get a mortgage as a financial decision. The margins are currently negligible considering my income and how cheap my house is. The only reason people my age don't buy houses is because they wreck their credit living like consumerist retards.

>>1128135
That's fine if you want to stay in your cheap area but consider that if you moved to an expensive city you could earn a lot more (depending on your career).

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>2016
>Paying rent
>Buying houses stuck on land

Jesus fucking christ, do people know technology has advanced to the point where mobile homes are actually viable?

Equiped with solar panels and a couple batteries/Charge controllers/inverters/fridge/gas tank/shower.

Why are people still buying real estate?

>>1128147

Because the land is what you're buying, not the house. If you buy a house for $450K, more than half of that value is because of the land. Buying a little nigger home is no different than living in a trailer park.

>>1128151
Great, have fun with your land that you will make absolutely no use of and will be stuck on for the rest of your miserable life with no traveling opportunities.

I know because i live in a house. All it has is a patch of grass on one half and a pool on the other half.
Then theres the front yard that only serves to make my house look nice.

>>1128165

>he fell for the suburban neighborhood meme

You got cucked

>>1128127
>Are most people just much more financially irresponsible?

Do you need to ask this?

Also, opportunity cost, nigger.

>>1128128

>index junkie
>mfw I don't even index

Also, wrong.

>every guy who buys a used car buys from someone who bought a new car
>used cars wouldn't exist if buying new cars wasn't profitable

That is literally how retarded you are. Sometimes, oftentimes, people rent out a shithole that they are stuck with and can't sell. In a large number of markets renting is CHEAPER than owning, ever.

Home ownership is great if you got it on a really good deal like a tax sale or inherited it from someone, or if you honest to god need a house not a smaller place, like homesteaders. Far more people buy who should. Is homeownership sometimes better, in some regions, for some people, for some situations? Sure. But most of the time it's not, yet everyone is still told from birth to buy a house. I mean, I don't know about you, anon, but if a guy in the business of selling houses tells me how good a deal buying a house is, I'm a little skeptical.

>>1128257
Is this a troll post. You just equated BUYING a car with RENTING a home. The vast majority of landlords are making money off the rentals. You can pretend this is not true, but I'm not sure why you want to.

>>1128637

No troll - a logical teardown of a false premise.

>The vast majority of landlords are making money off the rentals.

This is not true. Do you not remember what happened in 2008? All those people with their "investment" properties?

The fact of the matter is that most landlords are simply breaking even on their "investment" when you factor in taxes, maintenance, vacancies, etc. Many landloards are underwater on the home that they are renting out. A few are making decent return.

The vast majority of landlords are not making any money off their rentals.

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>>1128771

Provide statistics mate.

>>1127994
That's why you either A: get a property manager, or B: get really, REALLY picky with your tenants.

I own 4 houses in Columbia, SC (one I live in, 3 are rentals.) I've recently signed on with a prop manager but spent 6 years handling it myself. Best decision I ever made? ONLY renting to soldiers off of Ft. Jackson.

>Late on rent? Let me call your First Sergeant
>Tore up the place? Let me call your First Sergeant
>Loud parties? Let me call your First Sergeant

The only con is "Getting deployed/PCS'ed? Well, damn, going to have to turn and burn to get it flipped and ready for the next trooper." One of them was rented out by 5 different soldiers in a single year. BUT...again, all left it in excellent condition since they knew it's their ass/career if they get a bad credit hit for trashing a place and not paying.

>>1128890
Those statistics are for massive real estate corporations with lots of cash flow.. not Joe the plumber tries out real estate.

Chances are high that if you aren't already handy, you won't do well with rentals. If you want access to the housing markets take advantage of reits.

>>1127919
Because the Jews brainwashed all of society to think that every individual needs to own their own home and all kids need to move out at 18 and get massive debt by putting all their money into Jew pockets.

>>1127985
Not him but I can rent a room for $1-150 a week. But would be paying $300+ a week on repayments for a shit tier house or small apartment and have no costs associated with home ownership and can move every 6 or 12 months.

Its only worth it if I had a partner would be renting together.

>>1128944

Show your statistics. This isn't Reddit where you post something and it's automatically fact.

>>1128944
Show us any sort of evidence that backs your ridiculous claims.

>>1127938
>>Throughout history land ownership has been critically important
B-because it allowed you to grow food/have slaves grow food for you?
Sort of doesn't apply now that food is nearly free and slavery is heavily frowned upon. Also farming is basically unprofitable without government subsidy.

>>1128944
Negative gearing allows me to wipe any losses I'm generating and gets me my entire tax back.

My properties will be paid off in 8 years, and be generating $1,500 a week after that and they're paying themselves off.

>>1127952
>>1127957

Don't forget about the appreciation of the house over 5 years.

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PMI, Property Tax, and Mortgage interest are all tax deductible, meaning you essentially get 20-30% back. In my area the rent for a 2 bedroom apartment is around $1400, which is the same price as a 30 year mortgage on a 3 bedroom house with a decent yard (260k), except with the mortgage you're putting at least 300 towards principle in the worst years, 900 in the best years, and about 250/month gets returned on taxes. In the end you have more risk and more responsibility, but you have several benefits:

>Avoid 30 years of rent climbing (average US rent was 375 in 1985)
>Have 260,000 equity, plus 30 years appreciation (canceled by maintenance), plus an average of 90k in 30 years of tax benefits.
>Lived in a bigger place with no neighbors to give noise complaints
>Have your own yard to grow trees, play sports, let your giant dog run around, set up a smithy to piss off the neighbors.

In the end it really comes down to location, some places are still cheap enough in rent that you don't need to bother, but in the northeast you should buy when you're ready.

>>1127919
>Why do people think home ownership is so important?
>So what is the point of buying?

1) Rent goes up faster than property taxes.
2) Property owner can evict you for stupid reasons.
3) Have a consistent place to park your vehicle(s).
4) etc.

>>1127919
long story short, so far as i understand it, if the house gains 2%-3% in value then it is worth it vs renting. If you are confident that this will happen then it is worth it. Otherwise it could lose value or stay the same, it is a risk to buy a house no matter what you are told.

>>1131320
also if the value doesn't increase it is the same as renting, if the value decreases then you are better renting, if the value increases 2-3% then you are better owning