Re: Buying vs renting

you can't predict the future, but you can certainly crunch the numbers to
see if rent-vs-buy is better for someone who is selling now.
i just lost a bid for a 2 unit property where the owner lives on one unit
and rented out the other.
the owner held for nearly 30 years. even given the best of situations (eg
no maintenance, zero cost for refinance, 2nd unit rented100%of the time
etc), my maths showed that tenants would do much better if he simply
invested the downpayment and extra savings in sp 500 index fund.
anyways, after that exercise, i felt lucky that I lost. :-)


On Tue, Feb 20, 2018 at 7:43 PM, Lucas Gonze <[email protected]> wrote:

> Yet I'll bet you own your house.
>
> Are there any FoRKers who could own who choose to rent?
>
> On Feb 20, 2018 3:50 PM, "Gregory Alan Bolcer" <[email protected]> wrote:
>
> > Location, location, location.
> >
> > The answer is some combination of what's your income, where's your home,
> > what tax bracket are you in, what are your deductions, what is your
> capital
> > gains situation if you don't turn it over into a like-for-like asset etc,
> > etc, etc.
> >
> > In Orange County, it's been renter's market for at least 10 years (not a
> > rentee's market).
> >
> > Greg
> >
> > On 2/20/2018 3:36 PM, Lucas Gonze wrote:
> >
> >> Dear FoRKie,
> >>
> >> If I sell my home (with another 15 years of mortgage left to pay), put
> the
> >> money in the market, and pay rent instead, will I earn more?
> >>
> >> By choosing to own, am I being sentimental in the face of my single
> >> biggest
> >> opportunity to profit?
> >>
> >> =====
> >>
> >> https://www.usatoday.com/story/money/columnist/2018/02/18/wh
> >> y-your-home-lousy-investment-when-you-think-its-great/340516002/
> >>
> >> "Having a family home and yard for the kids and dogs is great.
> Home-owning
> >> neighbors can be wonderful, too, creating community. But the real value
> >> isn’t the investment, it’s the roof over your head, the satisfaction it
> >> brings and the memories it creates. Home ownership doesn’t compare with
> >> real saving and real investment, where real retirement millions compound
> >> over your lifetime.  "
> >>
> >> https://www.usatoday.com/story/money/columnist/2018/01/28/40
> >> 1-k-savings-buying-home-what-prioritize/1066728001/
> >>
> >> Buying isn’t always wise. Many cite tax benefits, but Congress just
> >> downsized those, limiting property tax deductibility. Mortgage interest,
> >> too. By doubling the “standard deduction,” Congress shrunk home
> deduction
> >> attractiveness. These reduced benefits raise the bar on whether a home
> is
> >> a
> >> good investment. But 401(k) saving remains just as tax friendly.
> >>
> >>
> >> Investing in your 401(k) with a globally diversified stock portfolio
> >> likely
> >> renders returns of 5% to 10% annually over the decades. Not spectacular,
> >> but your fortunes won’t be tied to one Zip code.
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