Re: Buying vs renting

I've read the responses and the best example I have is the following:

My father joined the US Navy straight out of High School along with
his best friend.  They both served in the USN for 20 years and both
retired with full benefits. They both got married at around the same
time and they both had 2 kids.  They both were rotated around the
country every 2 years.  The major difference is my father always
bought and sold a private home (every 2 years) when changing duty
stations.  His friend always stayed in on-base family housing paid
for by the USN.  When they both retired to their original home town,
my father had bought his home outright ($185,00.00).  He didn't have
a monthly house payment for a 1600 sq/ft house on a wooded 1 acre lot.
His friend also bought a similar house ($165,000.00) 5 miles away on
similar property and had to pay $1024.00 month out of his
retirement,  (which my father  didn't have to do).  My father, with
the savings, was able to  buy a boat and RV, his friend just scraped
by.  When my dad died his estate was worth approximately $425,000.00
and when his friend died, his estate was worth around $35,000.00.  
I find this was the best argument for buying over renting (when
renting was free in this situation).

Regards

Sent from my IBM Selectric III

----- Original Message -----
From: "Friends of Rohit Khare" <[email protected]>
To:"FoRK Rohit Khare" <[email protected]>
Cc:
Sent:Tue, 27 Feb 2018 22:00:27 -0800
Subject:Re: [FoRK] Buying vs renting

 > On Feb 27, 2018, at 3:03 PM, Marty Halvorson <[email protected]>
wrote:
 > 
 > Despite Tom's excellent thoughts on the subject, my observation is
this: All the money spent renting is benefiting only the owner of the
rental unit.

 Presumably you get use of the unit you are renting. The common
fallacy of renting as “throwing away money” is predicated on the
renter and the owner having an identical cost basis for the same
place. This assumption is rarely true. Renting is often a way to split
the difference between your cost basis to buy and the owner’s lower
cost basis. In such cases, there is literally no way for you to come
out ahead by buying the same place no matter how you try to explain
the numbers unless you are loaded with cash (which is probably a bad
investment of said cash). And this is the case more often than not in
the US.

 I find the arguments that some people gain emotional or psychological
benefits from buying more compelling than arguments for financial
benefits. Of course, the calculus is a bit different if you plan on
living in the place you buy for the rest of your life. Admittedly, I
have not gotten to the “last place I am going to live” stage yet. 

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