Re: Buying vs renting

I thought I had friends here who knew all the things; I expect that they could spout off in depth at a moment's notice about 
anything!  I'm crushed.

Each law has to have a way of being applied to each type of entity.  I'll have to research it soon.  I suspect a lot of what 
actually goes on isn't clearly out there.  So far, this seems like it is an area where the useful details are between high-end 
accounts, attorneys, wealthy clients, and IRS agents who have no interest in sharing everything that is acceptable, possible, or 
beneficial.  A few well-known public cases that mention details I'd never heard of or seen reinforce that.

sdw

On 2/28/18 1:54 PM, Gregory Alan Bolcer wrote:
> 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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