Comments on: Should You Be a Lifetime Renter?

By: Matthew Amster-Burton

Matthew Amster-Burton — Tue, 21 Sep 2010 14:42:06 +0000

Mark, that seems like an odd objection. If I were to say, “I’m tired of handing my money over to greedy restaurant owners; I’m going to get rich by opening my own restaurant,” the fallacy would be clear.

Who owns rental properties? Landlords. Some of them are real estate titans and some are ordinary folks. Some are making money and some are losing money. Some have seen capital appreciation and some have seen capital loss.

If “everybody” decides to rent, to the point that being a landlord is an easy buck, people will rush in to make the easy buck, and the premium will disappear.

Best,
Matthew

P.S.: Don’t try to get rich opening a restaurant.

By: Reyna

Reyna — Tue, 21 Sep 2010 05:57:13 +0000

I love your question. If there’s a glut of renters in the market without homeowners or investors from whom to rent, some renters would be forced to buy in order to have housing. Unless this happens, do what’s best for you.

By: Mark

Mark — Mon, 20 Sep 2010 21:09:57 +0000

Interesting blog post – I never thought of credit as borrowing against my retirement. Great advice.

I have read many articles about how it is better to rent these days. What I want to know is if everyone rents (ok a lot of people rent) who is going to own all of these rental properties? In the end, I think I still want to own. Especially if I buy at the bargain prices of today. Sometimes this “rent don’t buy” philosophy seems short sighted.

By: brooklyn money

brooklyn money — Mon, 20 Sep 2010 18:37:12 +0000

Thank you for this! It’s nice to hear some reinforcement that all renters are not financially irresponsible losers.

By: Honey

Honey — Mon, 20 Sep 2010 16:50:17 +0000

My boyfriend and I consider ourselves perma-renters. We can upgrade, downgrade, or relocate at any time. We will never be responsible for a single repair. We will not pay HOA, property tax, etc. We do not have to worry about simultaneously trying to save 20% for a down payment on a house *and* enough money for a 6-month emergency fund, car replacement fund, travel fund, pet care fund, etc. Not having to save for a down payment enables us to accelerate our debt repayment (mostly student loans, I have a PhD and he has a JD). We do hope to eventually save enough over the course of our working lives to buy a house outright upon retirement if we want to, but a lot will depend on our needs, wants, and the economic situation at that time. We could just as easily decide to rent in retirement as well – how does spending 5 years apiece in our top 5 favorite cities sound?

By: Mortgage Calculator

Mortgage Calculator — Mon, 20 Sep 2010 06:06:28 +0000

It is daunting taking on a long term mortgage when you look at how much of your payments are going to interest. Make sure you shop around to get the lowest possible interest rate and put down as much of a down payment as possible. Use a mortgage calculator to figure out the numbers that work best for you.
The cost of renting may seem like it is worth it but in the long run you are better off investing that rent money into a house, as long as you don’t bite off more than you can chew.

By: Michele

Michele — Mon, 20 Sep 2010 02:13:12 +0000

Newly-single moms like myself are renting partly because of having no credit, and partly because if the a/c goes out, the sprinkler system is shot, there’s a leak from upstairs, or the garage doors need replacing (all of which happened in the first year) someone else is financially responsible. And I still have a beautiful home in which to raise my daughters…

By: Nina

Nina — Sun, 19 Sep 2010 01:04:10 +0000

When we look at reports for the housing industry, the focus is primarily on home owners- not renters. If there is a loss of income, you are affected whether you are renting or buying. It doesn’t matter if it’s a mortgage or rent payment, if there is no income to pay it you will most likely lose your home.

I do agree that one shouldn’t purchase a home until they are financially fit & when they do, the payment should ideally be no more than 20-25% of their gross monthly income.

It just makes more since to me that your monthly payment goes towards your own mortgage rather than someone else’s- especially in areas where renting is just as expensive as buying.

By: Kenny Nash

Kenny Nash — Sat, 18 Sep 2010 14:56:46 +0000

Great article ! Country artist Kenny Nash here……….. after owning 7 homes I now rent again. I was on the raod for 12 years and never enjoyed them anyway. So why own? Even if you get a home paid for before age 65 you still have to maintain the up keep. RENTING IS THE NEW AMERICAN DREAM!

Kenny Nash

youtube KENNY NASH “DESIRE” <<< TO RENT

By: Allie

Allie — Sat, 18 Sep 2010 03:23:23 +0000

I live “in the middle” Jen. I’m 52, self-employed and built “my dream home” a year ago. It was actually less expensive than the condo I lived in prior when you consider I no longer pay condo fees, this house is energystar compliant, etc. Here’s the dilemma in assuming you’ll have an asset worth something by buying: the possiblity that you cannot wait for the housing market to rebound. In the past year, many of my clients have gone out of business. The home I expected to stay in for many years (and figured I’d sell at retirement with a some increase in value), is now, for the first time in my state in many years…worth less than I paid to build it a year ago. A lot less. Add to that the 6 percent realtor’s fees if I sell, and I’m in a bind. A BIG one. I can essentially “walk away” losing about 18 percent of what I paid to build the home a year ago, or take in a renter, get a second job, cancel cable tv, etc. (you get the point) and HOPE to survive here until (if?) housing values improve. Had I chosen to rent instead of build, I wouldn’t be in this situation. So one thing not emphasized, but of great importance in this economy…is the uncertainty of employment and of housing values. Staying flexible would have been far wiser. But…I do hope you’re right, that at some point, assuming I can somehow manage to stay here long enough, I hope I’ll find that my home has increased in value.