So investment firms buying SFH are actually helping you financially?!?!

[YoDoug]

How much would that have saved, if any, compared to the honest cost of 'ownership'?


yeah, the math is more complex than any of our examples given so far, as you also need to account for increasing rents over time and inflation eating away at the principle mortgage balance.

Renting should be more expensive since there is less risk, but it usually doesn't show up in the monthly payments.

I'd rather have the 1.25 million net worth from investing 1k/mo and renting than a paid for 600k house, but that's just me.

So if renting was cheaper than buying a home, then why do people invest in homes to rent them out? Wouldn't they just lose money? The short answer, renting cost more than owning.

[YoDoug]

How much would that have saved, if any, compared to the honest cost of 'ownership'?


yeah, the math is more complex than any of our examples given so far, as you also need to account for increasing rents over time and inflation eating away at the principle mortgage balance.

Renting should be more expensive since there is less risk, but it usually doesn't show up in the monthly payments.

I'd rather have the 1.25 million net worth from investing 1k/mo and renting than a paid for 600k house, but that's just me.

If you include the value of my house I am on track to be able to retire at 65 with my house paid off and $1m-$1.2m in my 401k depending on how bad dems keep effing up the economy. 6% average return will get me above the 1m mark. If we make the TN move we could up our monthly investment and up that retirement amount.

[YoDoug]

Heck you consider the statically improved health outcomes for me from my superior diet and active lifestyle and I should have $500/mo less prescription pills costs and countless less dollars spent at doctors.

[Del.]

If you cut out meat and eat only vegetables you could become a millionaire. 😆

[gcode]

So if renting was cheaper than buying a home, then why do people invest in homes to rent them out? Wouldn't they just lose money? The short answer, renting cost more than owning.

Historically that was true, but with the Dem's treating the US Treasury like a debutant with Daddy's
Black AMEX Card, the resulting interest rates have changed all that.
If you are wealthy Chinese businessmen trying to hide money from your commie overlords you can pay cash for houses and rent them out. That is an excellent investment.
Current interest rates have nearly doubled the cost of a 30 year mortgage so Joe SixPack is priced out of the housing market, for a home for his family, or as a rental property.

[gcode]

you could become a miserable millionaire. 😆

fixed that for you

[mkd]

So if renting was cheaper than buying a home, then why do people invest in homes to rent them out? Wouldn't they just lose money? The short answer, renting cost more than owning.

I thought we were talking about evil capitalists buying up all the houses forcing Ma and Pa to be renters and how politicians will be our saviors?
Investing is a game of finding undervalued assets, fixing them up in the case of RE, where previous owners weren't able to keep up with costs of ownership. A bit of a different discussion but you make a fair point, of course.

[Tim Johnson]

How much would that have saved, if any, compared to the honest cost of 'ownership'?


yeah, the math is more complex than any of our examples given so far, as you also need to account for increasing rents over time and inflation eating away at the principle mortgage balance.

Renting should be more expensive since there is less risk, but it usually doesn't show up in the monthly payments.

I'd rather have the 1.25 million net worth from investing 1k/mo and renting than a paid for 600k house, but that's just me.

I don't know what your age is but G-code made you sound older. If you haven't started investing yet you'll need to kick in a couple k a month to get caught up.

[YoDoug]

I thought we were talking about evil capitalists buying up all the houses forcing Ma and Pa to be renters and how politicians will be our saviors?
Investing is a game of finding undervalued assets, fixing them up in the case of RE, where previous owners weren't able to keep up with costs of ownership. A bit of a different discussion but you make a fair point, of course.

Except the actuality of the housing market in the last couple years was not investors buying run down houses to fix up and flip. They were being out bid by the big corps looking to rent those houses out.

[mkd]

I don't know what your age is but G-code made you sound older. If you haven't started investing yet you'll need to kick in a couple k a month to get caught up.

Having bought in an expensive market while not making much, and experimenting with business ownership, it really put me behind.
compound interest is crazy. Save $100/mo starting in your 20s or $3500/mo in your 50s to catch up

[Elmer Fudd]

I haven't paid rent or morgage for over 20 years. Had house paid off in 16 years. Fuck them 30 year loans and for fucks sake don't borrow against it for day to day expenses.

[mkd]

speaking of saving, has anyone seen the stock market today?

[gcode]

speaking of saving, has anyone seen the stock market today?

T'was only a scratch.

[RobertELee]

speaking of saving, has anyone seen the stock market today?

Only down 1850 for the month..... 

[MIL-TFP-41]

Looking at the 50+ year historical mortgage rate average, we are still below what that average is.
I don't believe we will ever see rates under 4 or 5% ever again. Here we are at 7% and people are still buying. Why lower rates when the demand dictates you keep them the same or higher?

Problem is every house being built are far from the 1000 sq/ft, single garage starter home that was popular 50 years ago. They have morphed into the 3000 sq/ft with a 3 car garage with every fucking amenity known to man. No wonder the shit costs so much.