Re: Buying vs renting

You do understand there are more laws in the world than just probate,
correct?  I mentioned a couple of them, but DYOR.

Greg

On Wed, Feb 28, 2018 at 1:40 PM, Stephen D. Williams <[email protected]> wrote:

> I learned a few years ago that it is often advantageous to place assets
> like real estate into revocable trusts, especially later in life and
> generally avoiding probate. The same can probably be done with stocks.  How
> does that change the legal situation?
>
> sdw
>
>
> On 2/28/18 12:59 PM, Gregory Alan Bolcer wrote:
>
>> Homes as an asset have certain legal protections, especially in tax and
>> bankruptcy codes. Stock assets do not share the same level of protections.
>> More importantly, I wouldn't make too many assumptions about FoRK culture.
>>
>> Greg
>>
>> On Wed, Feb 28, 2018 at 11:33 AM, Lucas Gonze <[email protected]>
>> wrote:
>>
>> This conversation has been surprising.
>>>
>>> The USA Today articles represent a pretty solid consensus. Home values
>>> rise
>>> more slowly than the stock market, therefore you should grow your net
>>> worth
>>> by moving assets over. I expected the hardcore rationalism in FoRK
>>> culture
>>> to reflect this.
>>>
>>> Instead, not a single person is living in accordance with it.
>>>
>>> Arbitrage opportunity? Or is original math wrong, and how?
>>>
>>>
>>> On Wed, Feb 28, 2018 at 8:09 AM, Lucas Gonze <[email protected]>
>>> wrote:
>>>
>>> That all makes sense but the last part. His friend's estate would have
>>>> been worth more if he'd taken the month by month savings and put them in
>>>>
>>> a
>>>
>>>> stock index fund.
>>>>
>>>> On Feb 28, 2018 7:24 AM, <[email protected]> wrote:
>>>>
>>>> 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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