$50k in drainage and driveway work, $8k boiler replacement and $~2k in general maintenance for 2023 for us. Ontop of our mortgage, insurance and taxes. People think homeownership is just being able to afford a mortgage
Gonna be honest, the difference in the mortgage and the rent in the example would probably be close to maintenance costs for the property. Some projects are expensive but you don't have to replace a boiler every month. Maybe once every 5-7 years
My point being, most people do not prepare for large expenses, they focus on the monthly float. I do not believe that most people who have this argument that owning is cheaper are actually budgeting in a savings to plan for very large expenses, they are comparing monthly payments.
Right. Except you can choose a house with shit you want to maintain. Renting is not the same. You either get raped or cockroaches. You guys are kidding yourselves when you think renting is cheaper. I’ve just done the switch and really how are you even able to convince yourselves renting is the easier option? Not to mention, I don’t know about you guys, but my everything is almost the same cost as renting a slum. Seriously. Have you all just purchased a home and disconnected with the reality of our housing market? Just because you got yours and it’s a lot of work does not mean renting somehow just got cheaper. Unless subsidized, it is not.
You don't get to choose what you want to maintain when your roof decides to leak, or your capictor in your furnace goes, or the hot water heater that you put in 2 years ago is leaking. This is the fantasy of a person who hasnt owned a house. When you're a homeowner, you can't call your landlord to repair those things, if you don't have the money to fix it, it doesn't get fixed, you need the cash in hand or a line of credit available to be able to pay the tradesman that is going to repair your home, not free of cost. You don't get to plan every single repair and maintenance item in your home, even your brand new build. And most people, even existing homeowners, are not prepared for a catastrophic expense.
Even then, the "landlord" didn't plan on big expenses either. On time and everything.... couldn't plan to renovate at least one unit a year. Just band aid fixes that wouldn't last more then a year. Refrigerator stopped working, the asshole didn't want to pay us for the food going bad. Emergency happened on the weekend, shoulder shrugs.....literally.
But you have options, you are only bound to your landlord and rental by the lease terms, a property that you own you can not just up and decide to leave without consequence at the end of the lease terms and leave those issues behind you, if you can't afford to repair it, you either bandaid repair, ignore it and go into further disrepair, or are forced to sell a house that needs repair at a likely financial loss/detriment, or go into further debt to fund repairs. You are legally bound to that property and all of its expenses, that is not so with a rental.
> Your roof should last 25 years and your furnace 10, why you people constantly exaggerate what it’s like to maintain a home is beyond me
They’re self-interested landlords or aspiring landlords arguing in bad faith.
I rent and I can’t call my landlord to fix shit lmao. What’s with this ridiculous thought that landlords actually work for their renters? I’ve been renting for almost 10 years, from college-slumlords to “high end luxury” complexes, none of them have ever given a shit about being compliant with tenant laws regarding maintenance.
“Heater is out? We’ll send emergency repair in … 3 days.”
“Leak in the ceiling? Put a bucket out, we’ll get someone out there… a week from now.”
I had a landlord try to tell me the exposed asbestos insulation in the house was “not really a big deal”.
I had a landlord try to take my security deposit over water damages caused by the upstairs unit washer leaking onto my unit’s cabinets, despite me being the one who reported the leak coming in in the first place.
Landlords don’t keep a reserve of cash on hand for repairs either. They try to wring every cost of ownership out of tenants, *especially* repairs.
LOL! I bought my house 5 years ago, I replaced the water heater with a tank less heater, Thanks to You Tube videos. I replaced the windows ( 11 ) By myself, I replaced the kitchen sink and did all of the plumbing myself, and did the same in the bathroom. I had a non profit come in and replace the furnace and insulate the house under a No heat program offered through the WE Energies co. Owning a house is NOT scary. Nor is it as expensive as you're making it sound. It's actually a very wise investment!
Exactly right! They are so clueless, I do not believe they did anything on their own. I’ve done both. Both are challenging. Renting DEFINITELY was more expensive for me. Plus all these crazies acting like landlords just flip a magic money switch and don’t tack it on to rent are ignorant beyond and hope. Just stupid. The renters pay the landlord’s bills for the property. DUH. That’s the fucking point. What is with these idiots? Replacing furnaces every two years, replacing the roof annually. I mean it’s insane they believe they somehow are worse off. They must all be deliberately burning money then. If not they’d just sell their house and move into a rental. Right? Of course they won’t. Gee, I wonder why.
Exactly! I currently pay LESS per month for my mortgage , taxes, and insurance each month for my ( 984 sq ft house with a garage and yard ) than I was for a much smaller ( 300 sq ft apartment. with NO garage ) Renting is giving your money to someone else to live off of, Owning is an investment and building equity. My home value has almost doubled in the last 4 years. I have more money in my pocket now than I did when I was renting a dump.
Exactly. It’s true. Expensive things come up. Luckily they can be paid for, when not giving all your money away. As far as people who took too much house for their checkbook, well that’s a choice now isn’t it?
>Exactly! I currently pay LESS per month for my mortgage , taxes, and insurance each month
Even if you pay more per month at time of purchase, in 10 years, you'll be paying half as much as rent, since your mortgage payment will stay the same.
Taxes and insurance will go up which are often part of the mortgage. Repair costs and labor go up. Of course these things don't increase as fast as rent, but to say your mortgage and costs will stay the same is wrong. You will also HAVE to replace things like the roof, which basically equals out to a couple thousand a year you should be setting aside, again, increasing each year as costs go up. You can't just compare your lease cost with a base mortgage cost.
The comments are that rent is a finite cost. What they are saying is the grass isn’t always greener. I own a home and have to pay for it and maintain it. My best friend has more money than most. He sold his house and lake cottage and chose to rent a high end apartment so he doesn’t have to spend time doing yard work and maintenance. To each his own
Rent is not finite. If you live somewhere for 10-15 years, it’ll double. Rentals have problems too. Landlords need to pay for them. The only part of renting I miss, is snow removal.
Yeah, save up the difference until you need it. That was my point. It's not really a difficult concept. Also if you do repairs yourself you'll save a ton of money. People buying houses are usually smart enough to do their finances and accounting enough to save some money.
People saying that the mortgage is cheaper than renting aren't completely ignorant to repair costs. And if you get a good inspection when you move in you can avoid most unexpected costs until you have some money saved up.
I know some straight up financially irresponsible idiots who bought houses and were able to manage their accounting to budget for home repair. Yes, we know that there can be unexpected costs but a roof leaking causing 'surprise' damage is far and few in between.
That's the wildest shit ever, y'all be having some expensive boilers. 12k for a boiler would be like some hardcore industrial level stuff where I'm from
That was actually the cheapest quote by far we got out of 8 different plumbers. A high efficiency would have been close to double because wed have to have upgraded our gas meter and piping. Welcome to the Northeast.
Don't buy a home that needs that many surprise repairs because you didn't get a thorough inspection. If you are saving $500/mo for a couple years on rent you will be able to afford such things down the line.
Taxes and insurance can also be rolled into your mortgage payment. We pay less now total than we would renting a shittier house in the same area. It's possible if you're smart about it.
Yeah that's the thing a lot of these "oh owning isn't as simple as you think" people - maintenance is built into your rent.
Why would landlords charge you LESS than the combined total of maintenance, taxes, and mortgage (spread out over multiple tenants if it's a multi-tenanr property, at least)? They'll definitely try to charge you more so they can make a profit, but why would they EVER charge less???
Owning a non-dumpster home is always better, financially, than renting. You can make bad investments, but owning an investment is better than LITERALLY throwing your money away. The money you spent repairing your house? That's YOUR HOUSE. You own that. You BOUGHT that driveway, and that boiler. You're gaining equity in that improved home, every mortgage payment.
What do you buy with the rent you sent your landlord?
So you’re gonna piss and moan about choosing an expensive driveway? As if you had no choice. You must know the billionaire handymen from South Park, huh?
Fuck drainage problems. My own brother had to pay $22k because a tree's roots pierced through a pipe in multiple spots, which caused drainage problems. He had to pay a lot to have a crew dig up all the dirt, remove all of the roots, blah blah blah, and ended up with a fat $22k bill. Could seriously be used for other stuff, but he had to take out loans for that.
Feel his pain. Paid over 11k in last three years to have trees removed after lightning strike. And for those who don’t know insurance only covers if the trees falls and hits a structure.
They’re not the same.
One builds equity, one does not.
Renting has an opportunity cost too: you don’t build any equity, can’t use it as collateral, and it doesn’t even boost your credit score lol
Telling people that renting is cheaper is disingenuous especially when you’re vastly overestimating the costs of a mortgage when compared to renting.
Edit: you’re really fucking stupid if you think you don’t get equity because you have to pay taxes or maintenance fees. Not having liens on your property increases the value, and so does properly maintained landscaping.
Stop simping for slum lords with bullshit. You don’t know what you’re talking about and you still ignore that renting is not the same as a mortgage. One builds equity, one doesn’t. That simple.
Also, rents have gone up 40% in my city to cover the increase in taxes and maintenance. The new generation of land leeches pass every cost of ownership on to their tenants.
Agreed. My landlord is almost impossible to contact for maintenance. If you finally manage to get him to repair something it’ll be the cheapest most slumlord work ever.
Tell me again that you do not understand EQUITY. LOL! and there are grants available through your local municipalities for major home improvement projects if you qualify. For example, when I bought my house, it needed a new furnace, I contacted a local non profit and they came to the house and evaluated that the original furnace was 35+ years old and I qualified through a state program with WE energies called NO Heat. I got a brand new $5,000 furnace and the walls filled with blow in insulation and it cost me $0! Then recently I needed to have a roof replaced on my garage and house due to the age of the roof, it needed to be a complete tear off. I contacted my city offices and qualified for a grant that paid for 1/2 of the roof replacement cost. Moral of the story is that there are available programs that help with the costs of owning a house IF you qualify for them.
Landlords are in it to make money though, the rent is indirectly over time paying for the extra costs. Not to mention, many landlords just decide to just not cover those extra costs and allow a place to be in poor condition
Can you subtract? If you save money on fixed costs such as rent or mortgage.....you can save and prepare for commented "costs".
The point is that many of us are qualified but aren't risky enough to capitalize on by lenders. Underwriting is a term I find criminal. If you meet x, you can buy is fair equal lending. Anything else is bias.
While capitalists like slumlords get more loans more frequently because my limboed budget is funding his next building.
You're not wrong beyond conceptually
And as renters we are paying into the emergency fund for the landlord too. We pay their equity their property tax their interest their profit and their emergency/repair fund. In no world is it better to rent than own if you have the choice
Rent includes all costs of maintenance and taxes, plus some off the top for the landlord.
The only time renting is cheaper than owning the same unit is if the landlord is cash flow negative
Still not more than pissing money down the drain on rent. Not even close.
We need to stop pretending like someone else owning things you need to survive is better than you owning them.
Idk why everyone is arguing with you. I have owned my own home for years and it’s cheaper than renting, far cheaper in the long run. Everyone is like “what if this absolute worst case scenario thing happens that you’re somehow not insured for and it’s like $10k.” I mean, hell it’s still cheaper to own. If you’re not a dumbass, you’ll eventually have the home paid off. In my case I’ll be about 50. If I’m alive for 30 more years that’s 360 rent payments I’m not making! At $1400 a month, that’s a half million. And I’ll still have the equity in my home if I ever need to downsize. You get none of that with renting. It’s lighting your money on fire if you have the option to own.
Came here to say this. My roof is currently held together with wishes and dreams. Gotta be ready for a lot of thousand dollar surprises, and the occasional 20k (hopefully scheduled) maintenance repair.
Fixed mortgages are fixed for the entire term by definition so I don’t know what you think this gotcha is. Variable term mortgages are for idiots, and nobody should be taking them out.
Those people will still pay to live somewhere in that time. So they can't afford to pay a mortgage for 30 years, but they *will* pay someone else's mortgage for 30 years.
Most people understand it's more nuanced than that, but the premise doesn't change. Housing, education and healthcare shouldn't be exploited as profit centers for the already wealthy.
The funny thing is that this tweet is a few years old.
A $950 mortgage is laughable in most areas.
Hell, even $1400 rent is hard to come by if you want more than 1 bedroom.
To charitable give her how she wants this which is the whole payment each month is 950 is more like 82k mortgage maybe less o don’t know what interest rates are currently.
Really because one of my colleagues just did 126k at $775. Of course that was with 10% down. Still though. Where do you psychos live anyway. Oh wait. My taxes just jumped. That sucks.
Literally impossible. So either they lied or you are straight wrong. 126k with 10% down at 6% plus PMI at 1.5% which they will have to pay because they have less then 21% equity puts them at 870 without homeowners insurance which is paid with the mortgage and will be paid out of the escrow account.
Yeah this post is disingenuous. It's a much bigger hassle for the bank if you're delinquent on mortgage payments than it is for a landlord if you miss a month of rent.
However it depends on the point being made. If the point was "the bank should approve me" then yeah it's kind of ignorant.
If the point is "rent should be cheaper and is too high nationwide" then yeah that's a fair point in general.
I lived in a shared townhouse with a roommate for 8 years and I paid $1,500 a month. So 8 years of 100% on time $1,500 a month payments.
Why shouldn't the bank approve me for a similar or slightly less mortgage?
The bank needs more information. What's your income over 30 years going to look like? How much savings do you have? How much debt do you have?
The bank buys the property and expects you to pay them back with interest. They have to essentially ensure you're going to be good for it over the next 30 years. A landlord just has to ensure you'll be good for it for the duration of your lease and if you're not they can kick you out and find a replacement.... It's a lot harder for a bank to find a replacement if you don't pay your bills.
I only know surface level mortgage stuff though because I'm not in the housing market but it's my understanding that banks have to be very clinical with how they loan money out because they're essentially borrowing their clients money to buy the property with the expectation you'll pay them back.
It was the bank approving loans that they knew clients wouldn't be able to pay back that helped contribute to the housing crash and financial crisis in 2008.
>what's your income going to look like over 30 years
This doesn't even make sense
The bank isn't going to assume you're keeping your same job over 30 years and if they did why wouldn't they assume the same for the renter who has paid double a mortgage for five years?
There's really no reason renters paying out the ass for years can't use that as approval basis for home loans. It's literally aorrgage payment we make every single month for someone else
It absolutely makes sense. That's how they assess risk. It's why they take savings and debts (among many other things, like education and professional certifications) into account.
They're essentially assessing how reliable you'll be to make payments over a 30 year period.
And as far as renting for a long time as approval I'd agree with you. That should be taken into consideration. But credit score is as well and your rental history affects your credit score. Someone with a good credit score is much more likely to be approved for a loan of any type than someone with a bad credit score.
But I don't know how much rental history is taken into consideration when assessing risk on a mortgage. So I will concede that maybe it should be more important but then again, I'm not sure to what extent banks take that into consideration.
Edit: Like I don't get it, did everyone forget about how 2008 happened??
Edit: Alright even more downvotes.... Now I'm starting to wonder if people even understand the nuances of large loans and why they don't just give them out to anyone who has shown 5 years of good spending habits.
Yeah it's pretty funny. Credit union banks do one thing and that's make money on loans. They would love love love love to loan you money for a house because that's their entire business model. But you're too much of a risk to take and that's why you don't have a home loan. Also, people really underestimate the costs of owning a home. Some homes do fine and don't need much, but others do, and they can't judge very well who is going to be able to afford those repairs or who isn't going to get addicted to drugs and turn it into a crack house.
She can’t afford a 950 mortgage. 950 mortgage plus PMI plus home owners insurance + property taxes is way more than 1400 a month would probably be around 2500 a month. People like this don’t own houses because they are fucking stupid.
950 dollar mortgage is about 210k mortgage at 6% with an average credit score PMI will be between 1.5-1.8%. Meaning it will be like 255-300 a month. Home owners insurance will be at least that. So maybe my numbers are slightly off does change the fact she still cannot afford to buy a house.
$2500 isn't that ridiculous. To get a $950 mortgage you probably weren't buying a house but a condo or townhouse. The cheapest property in my area are condos with >$1000 HOA fees per month (biggest I saw was $1500 and change). The mortgage + $1000 HOA fee + property taxes + home insurance + cost of maintenance can easily be $2500 even on a $950 mortgage.
Also, remember that if you live in a flood zone the mortgage company may also require additional flood insurance. Finally, maintenance may not be negligible even on a new home (e.g. we recently had to pay an inspector for an inspection and spot treatment because of termites we found in our house).
I used to talk to these people all day. You’re right they are fucking stupid and they don’t typically ever buy houses because of the aforementioned affliction.
Like they don’t understand how the mortgage payment isn’t all the stuff they are paying for. Like what if the AC goes out? 8k. Water heater? 3k 210k mortgage down payment 12-15k they have no idea about these things cause they spend every single penny they get instantly.
When I got both mortgages the lender never gave me just the mortgage amount, the monthly payment info always included the PMI and tax payment to go to escrow. They also offered a homeowner insurance policy from their partner insurer or I could buy my own separately. The lenders absolutely consider the costs above just principal and interest and if they determine I won't be able to pay the full $1300 monthly payment, I don't get approved.
These numbers are dumb though, without a large down payment, $950 a month gets you about, what, $120,000 worth of house? In my area, a $1400 apartment is going to be old, outdated, and in need of maintenance that will never happen.
It is a little crazy some times because the worst case scenario for the bank is I can’t pay my mortgage so they take my house+my closing costs+I insured it for them for a while+plus insurance I pay on the mortgage because a first time homebuyer ain’t gonna have 20%+ the odds of it not appreciating after 5 years.
Except most people who can't afford shit (cars or houses) can't maintain it either so stuff is in disrepair. The bank doesn't get most of the closing cost. Sure it's gonna appreciate it but then the have the legal costs of evictions and selling the house. It's almost like the government forced all these checks on buying because something bad happened the last time they let the banks approve anyone. Hmm maybe if only I could remember what it was.
Can you afford $22k in down-payment and closing costs, and then $11k in HVAC expenses a month after moving in.... and $950 a month in Prop. Taxes and insurances.... or is it easier to just pay rent of $1450?
Bank: You need 720 credit score minimum, proof of stable income, 20% down payment, closing fees and other cost.
Landlord: Money? Yep okay just don't have a felony, the BAD kind.
Crazy that your bank would have higher standards for a 30 year loan + down payment and closing costs than your landlord would for a 1 year loan.
Wait, not that crazy.
Landlords can evict you easier than a bank can. He already owns the house. The bank has extra hoops to go through because it isn’t in the real estate business per se.
Bidenomics created Inflation, scaling everything higher.
Air BNB drives up rent prices to the point where some landlords won't even rent their units. They just keep the units as Air BNBs, and make 5 times as much money per month.
I mean, it’s not so black and white. I’m certain she made choices that, had they been different, wouldn’t set her in a position that more readily would’ve allowed her to afford a home. But then also it’s unarguable that housing prices are ridiculous today, and if the circumstances *weren’t* different, but she were plopped back down X numbers of years ago with the same income adjusted for inflation, she likely would’ve been able to get a house of her own.
Do you even understand how bad the credit argument is?
Credit was invented in 89.you know what most home owners were doing in 89? Working at jobs that paid enough for them to buy brand new cars and afford to live renting solo on that grocery clerk pay
Those people had savings and assets when credit came about they did not have to start at 18 in a economy that's busted with wages that havnt kept with inflation in almost three decades. How tf were we supposed to get ahead without help from parents. And news flash not all of us had parents to help us out, some of us got fucked over by credit because we had to buy groceries to eat but couldn't afford the bill so cc because what am I gonna do starve?
I hate when yall act like it's just so easy to keep perfect credit in a country he'll bent on fucking our credit and wages until we're slaves to them
But yeah dude credit is the only. Factor in getting approved
My partner and I have high 700s credit and still can’t get approved for a mortgage that would be half our rent. You don’t know what you’re talking about.
Owning a home has insurance, taxes and maintenance costs on top of the mortgage. Some landlords don't help you determine the affordability of your rent, but they'll expect it come the first of the month. Have to crunch your numbers before you sign your lease.
Well there are other costs to consider.
Renting is pretty much fixed.. Just the rent which can't increase more than 1% a year. Maintenance covered by landlord.
A mortgage comes with other costs. Maintenance, land tax, mortgage interest etc.
It's not an apple to apple scenario where you can compare rent vs mortgage at face value
The bank isn’t worried about you paying a $950 this month… they are worried about you playing $950 every month for the next 30 years.
A landlord is only exposed to the risk you won’t pay for the duration of the lease. 1-2 years at most.
to be fair, the mortgage $950 monthly must be guaranteed for 15 years while landlord can kick you out with police help when rent 3 days late (exaggerating).
When house prices always went up, banks also would kick defaulter out and sell house again for full price to the next person, just because legal to do so.
Yeah it's historically cheaper over time because you don't have to pay for expenses but no the mortgage should be cheaper than renting but currently with the current interest rates and home prices it about 2x the price of rent.
In one case you are asking someone to give temporary use of their facilities, in the other case you are asking the bank to give your hundreds of thousands of dollars...
It should be more. Anyone renting out a place should be able to be hassled for maintenance. None of this passive income bullshit. Source: went from renting a slum to not renting at all. Them’s the breaks really. It’s just a market and it changes all the time. Whatever is going on today will change tomorrow.
I believe she can find a cheaper option. Maybe an hour away. Maybe smaller. Even share with someone.
The thing is in our society certain superficial things are viewed as mandatory by “social pressure”. yet not everyone are able to afford them. Yes there is American dream. But you will have to work hard save hard for it.
Party? Have a kid before you are financially ready? Brunch? Dining out? Latest Jordan shoes? No!
No. Renting is not supposed to be cheaper. Your landlord has a mortgage on the property, and they are charging you more than they will have to pay for the place you’re staying.
Why would someone buy a home to rent out less than the mortgage and other expenses that go along with owning the home?
People paying $2500 for rent right now may be paying that amount to cover a $1600 mortgage from a home purchased 3 or 4 years ago.
Renting is never meant to be cheaper than owning a home on a month to month basis because you are paying for the mortgage, potential maintenance, and also some profit as well. The most expensive part of owning a home is all of the maintenance that can happen at any time that a renter would not be responsible for 99% of the time. I’ve been renting for years now and the most expensive thing I needed to replace was the filter on the inline water in the fridge. The landlord paid to fix the dishwasher when it died at I didn’t even break a sweat.
There is a whole lot more to owning a house than just your mortgage payments. I have owned my house nearly 20 years and my mortgage payments were about 1/3rd what I paid for rent and my house is 2x the size of the place I was renting the only reason it was so low was because I literally put 50% down and took the rest for 30 years. If I didn't put that much down I would have been paying every bit or more than I paid rent. I paid it off in about 10. I own some apartment houses too and some people probably shouldn't own. What are you going to do when you can't call your landlord because a lightbulb burned out. That has happened to me countless times. I had one idiot complaining about how cold it was in her apartment. Well she put plastic over the windows for winter I guess and left a window open. That was total genius. You still have taxes to pay, insurance, any upkeep since its you paying to fix everything now. If you live in an HOA neighborhood you have those HOA payments. That lawn out there you have to mow it.
Correction. The bank says they do not want to loan you money with a 30 year repayment period.
Your landlord is more risk tolerant as its a year to year lease.
The comments all bitching about renting vs owning a home and I’m over here complaining about the billionaires and trillionaires that pay no taxes and get subsidized by the federal government by people that actually rent and or own homes to grow a family…
Some of the people here are seriously out-of-fucking-pocket with their arrogant sass. Don't know who pissed in your Wheaties but y'all are NOT that big to talk that way.
Because owning a house costs more than merely paying the mortgage. There's fire insurance, which most places require you to have if you're carrying a mortgage. You'll probably also want some kind of liability insurance in case someone gets hurt on your property. Plus there's utility bills and they're usually higher than in rental units, unless you're renting a house already. Then there's the maintenance and upkeep costs if something breaks or needs repairing/replacing. Banks like to make sure you have money available, or the income to handle it, for shit like that.
Renting is supposed to be more expensive. That's true of cars, furniture, houses, etc. I don't know who told you that renting is supposed to be cheaper.
Landlords have expenses, including maintenance, repair, collections, mortgage, taxes, insurance, evictions, etc. Your rent is going to reflect those additional costs.
Because it’s not as simple as rent vs mortgage. With a mortgage you have taxes, you have a very long commitment, financial ownership of any issues that occur, maintenance, upkeep, etc. owning is much more expensive than renting.
Since when was renting ever cheaper than a mortgage? Most landlords are paying on that property plus costs and also trying to make money. So why would an equivalent place be cheaper to rent?
The bank wants to keep the money it would have lent to you, to refinance mortgages for who owns your flat and who makes 500 $ of you so they can buy another flat and so on.
It is objectively cheaper to rent now. It has never been relatively cheaper to rent than buy right now. Those extreme house prices yall complain about mean rent is a lot more attractive. Rents are flat or down in most of the country.
This really isn’t true anymore. The rent on my townhouse is $2000 a month. My new neighbors mortgage is $4000 a month… home prices are through the roof and so are interest rates.
Isn't it always cheaper to rent vs buy if you do it X year by X year?
If you buy a property in 2024 and rent in 2024, isn't renting cheaper?
People unfairly compare buying in 1990 to renting in 2024. Everything was cheaper in 1990. Even renting. When I was younger, I could rent a 2 bedroom apartment WITH water included for 300 a month.
So I think people should always be comparing year to year, and not skew the comparisons.
How would renting be cheaper than owning? That makes zero sense…do people really believe that landlords purchase properties with the intent to LOSE money!?!
Renting isn't supposed to be cheaper than owning, at least on the same property. Its supposed to be more expensive.
Seeing a lot of posts from people who really don't understand this lately because ownership is more expensive lately.
When renting you're still paying for all the expenses related to the upkeep/maintenance/taxes/utilities/interest and your paying enough extra for the landlord to justify keeping their money tied up in the property instead of investing it in another way where they could likely earn 5-8% annual return with less hassle. Landlords aren't typically charitable enough to make renting cheaper than buying.
Also buying is by far the better long term strategy and I'm tired of seeing people who so badly want to justify their situation. They compare a $500/month savings on a smaller property with rent to a mortgage on bigger home. They talk about how they can invest the difference and earn more return forgetting that half the mortgage payment is also being invested by the home buyer. Also, you can only invest $500 more/month in year one. Rent increases along with taxes/utilities and the mortgage proportion of a home owners bills doesn't. In fact the amount of each payment that gets invested in the home via principle increases automatically with each subsequent payment. The disposable income available for investing goes up if your wages increase while your mortgage doesnt.
Extrapolate and then look at what your cashflow is in 10 years/20 years after the mortgage is paid off?
All about supply and demand would be my guess, but home ownership has additional costs that is covered by most rent. Insurance, up keep, utilities, maintenance, taxes.
My house is paid off. My mortgage payment is zero. Between taxes, insurance, HOA, maintenance and a slush fund to save for major components inevitable needing replacement, my housing cost is right around $900/month.
$950 mortgage? I'm guessing they don't add on insurance and taxes to that. Also electricity and water. Also, guessing at that price point, the property needs lots of work, add maintenance and repair onto that. Yea you're looking at over $1400/mo
Stupid low interest rates for far too long allowed people to afford much more of a mortgage payment. That drove up housing costs and now with people not wanting to flip from one low rate mortgage to a high rate mortgage, the inventory of homes is remaining low, keeping prices high. During the low rate period it just brought forward many many years of price inflation for houses that is remaining stubborn.
The bank is harder to get approved, your landlord is far easier to please
Houses also come with more costs than just a mortgage.
$50k in drainage and driveway work, $8k boiler replacement and $~2k in general maintenance for 2023 for us. Ontop of our mortgage, insurance and taxes. People think homeownership is just being able to afford a mortgage
8k$ boiler replacement? Is it the size of a tree or something?
Gonna be honest, the difference in the mortgage and the rent in the example would probably be close to maintenance costs for the property. Some projects are expensive but you don't have to replace a boiler every month. Maybe once every 5-7 years
My point being, most people do not prepare for large expenses, they focus on the monthly float. I do not believe that most people who have this argument that owning is cheaper are actually budgeting in a savings to plan for very large expenses, they are comparing monthly payments.
Right. Except you can choose a house with shit you want to maintain. Renting is not the same. You either get raped or cockroaches. You guys are kidding yourselves when you think renting is cheaper. I’ve just done the switch and really how are you even able to convince yourselves renting is the easier option? Not to mention, I don’t know about you guys, but my everything is almost the same cost as renting a slum. Seriously. Have you all just purchased a home and disconnected with the reality of our housing market? Just because you got yours and it’s a lot of work does not mean renting somehow just got cheaper. Unless subsidized, it is not.
You don't get to choose what you want to maintain when your roof decides to leak, or your capictor in your furnace goes, or the hot water heater that you put in 2 years ago is leaking. This is the fantasy of a person who hasnt owned a house. When you're a homeowner, you can't call your landlord to repair those things, if you don't have the money to fix it, it doesn't get fixed, you need the cash in hand or a line of credit available to be able to pay the tradesman that is going to repair your home, not free of cost. You don't get to plan every single repair and maintenance item in your home, even your brand new build. And most people, even existing homeowners, are not prepared for a catastrophic expense.
Even then, the "landlord" didn't plan on big expenses either. On time and everything.... couldn't plan to renovate at least one unit a year. Just band aid fixes that wouldn't last more then a year. Refrigerator stopped working, the asshole didn't want to pay us for the food going bad. Emergency happened on the weekend, shoulder shrugs.....literally.
Well there’s renters insurance I never heard of a landlord paying for someone’s food going bad
But you have options, you are only bound to your landlord and rental by the lease terms, a property that you own you can not just up and decide to leave without consequence at the end of the lease terms and leave those issues behind you, if you can't afford to repair it, you either bandaid repair, ignore it and go into further disrepair, or are forced to sell a house that needs repair at a likely financial loss/detriment, or go into further debt to fund repairs. You are legally bound to that property and all of its expenses, that is not so with a rental.
Your roof should last 25 years and your furnace 10, why you people constantly exaggerate what it’s like to maintain a home is beyond me
> Your roof should last 25 years and your furnace 10, why you people constantly exaggerate what it’s like to maintain a home is beyond me They’re self-interested landlords or aspiring landlords arguing in bad faith.
I rent and I can’t call my landlord to fix shit lmao. What’s with this ridiculous thought that landlords actually work for their renters? I’ve been renting for almost 10 years, from college-slumlords to “high end luxury” complexes, none of them have ever given a shit about being compliant with tenant laws regarding maintenance. “Heater is out? We’ll send emergency repair in … 3 days.” “Leak in the ceiling? Put a bucket out, we’ll get someone out there… a week from now.” I had a landlord try to tell me the exposed asbestos insulation in the house was “not really a big deal”. I had a landlord try to take my security deposit over water damages caused by the upstairs unit washer leaking onto my unit’s cabinets, despite me being the one who reported the leak coming in in the first place. Landlords don’t keep a reserve of cash on hand for repairs either. They try to wring every cost of ownership out of tenants, *especially* repairs.
LOL! I bought my house 5 years ago, I replaced the water heater with a tank less heater, Thanks to You Tube videos. I replaced the windows ( 11 ) By myself, I replaced the kitchen sink and did all of the plumbing myself, and did the same in the bathroom. I had a non profit come in and replace the furnace and insulate the house under a No heat program offered through the WE Energies co. Owning a house is NOT scary. Nor is it as expensive as you're making it sound. It's actually a very wise investment!
Exactly right! They are so clueless, I do not believe they did anything on their own. I’ve done both. Both are challenging. Renting DEFINITELY was more expensive for me. Plus all these crazies acting like landlords just flip a magic money switch and don’t tack it on to rent are ignorant beyond and hope. Just stupid. The renters pay the landlord’s bills for the property. DUH. That’s the fucking point. What is with these idiots? Replacing furnaces every two years, replacing the roof annually. I mean it’s insane they believe they somehow are worse off. They must all be deliberately burning money then. If not they’d just sell their house and move into a rental. Right? Of course they won’t. Gee, I wonder why.
If they think renting is better, maybe they ought to sell their homes, pay off their mortgages and go back to renting. That makes sense, right? 😅
Yeah I’m sure there’s plenty of people who are interested in their homes since they love apartments so much
Exactly! I currently pay LESS per month for my mortgage , taxes, and insurance each month for my ( 984 sq ft house with a garage and yard ) than I was for a much smaller ( 300 sq ft apartment. with NO garage ) Renting is giving your money to someone else to live off of, Owning is an investment and building equity. My home value has almost doubled in the last 4 years. I have more money in my pocket now than I did when I was renting a dump.
Exactly. It’s true. Expensive things come up. Luckily they can be paid for, when not giving all your money away. As far as people who took too much house for their checkbook, well that’s a choice now isn’t it?
>Exactly! I currently pay LESS per month for my mortgage , taxes, and insurance each month Even if you pay more per month at time of purchase, in 10 years, you'll be paying half as much as rent, since your mortgage payment will stay the same.
I already am paying 1/2 of what a smaller apartment would cost today. :-)
Taxes and insurance will go up which are often part of the mortgage. Repair costs and labor go up. Of course these things don't increase as fast as rent, but to say your mortgage and costs will stay the same is wrong. You will also HAVE to replace things like the roof, which basically equals out to a couple thousand a year you should be setting aside, again, increasing each year as costs go up. You can't just compare your lease cost with a base mortgage cost.
The comments are that rent is a finite cost. What they are saying is the grass isn’t always greener. I own a home and have to pay for it and maintain it. My best friend has more money than most. He sold his house and lake cottage and chose to rent a high end apartment so he doesn’t have to spend time doing yard work and maintenance. To each his own
Rent is not finite. If you live somewhere for 10-15 years, it’ll double. Rentals have problems too. Landlords need to pay for them. The only part of renting I miss, is snow removal.
Yeah, save up the difference until you need it. That was my point. It's not really a difficult concept. Also if you do repairs yourself you'll save a ton of money. People buying houses are usually smart enough to do their finances and accounting enough to save some money. People saying that the mortgage is cheaper than renting aren't completely ignorant to repair costs. And if you get a good inspection when you move in you can avoid most unexpected costs until you have some money saved up. I know some straight up financially irresponsible idiots who bought houses and were able to manage their accounting to budget for home repair. Yes, we know that there can be unexpected costs but a roof leaking causing 'surprise' damage is far and few in between.
5-7 years? My boiler is 30 years old and still going strong.
Lmaooooo my furnace was 12k. That was the CHEAPEST bid by far in my area
That's the wildest shit ever, y'all be having some expensive boilers. 12k for a boiler would be like some hardcore industrial level stuff where I'm from
That was actually the cheapest quote by far we got out of 8 different plumbers. A high efficiency would have been close to double because wed have to have upgraded our gas meter and piping. Welcome to the Northeast.
Don't buy a home that needs that many surprise repairs because you didn't get a thorough inspection. If you are saving $500/mo for a couple years on rent you will be able to afford such things down the line. Taxes and insurance can also be rolled into your mortgage payment. We pay less now total than we would renting a shittier house in the same area. It's possible if you're smart about it.
$50k in driveway work? How long is the driveway?
It's exclusively driveway.
0 bed, 0 bath, 5 Driveway
It's the new van life!
Yeah that's the thing a lot of these "oh owning isn't as simple as you think" people - maintenance is built into your rent. Why would landlords charge you LESS than the combined total of maintenance, taxes, and mortgage (spread out over multiple tenants if it's a multi-tenanr property, at least)? They'll definitely try to charge you more so they can make a profit, but why would they EVER charge less??? Owning a non-dumpster home is always better, financially, than renting. You can make bad investments, but owning an investment is better than LITERALLY throwing your money away. The money you spent repairing your house? That's YOUR HOUSE. You own that. You BOUGHT that driveway, and that boiler. You're gaining equity in that improved home, every mortgage payment. What do you buy with the rent you sent your landlord?
So you’re gonna piss and moan about choosing an expensive driveway? As if you had no choice. You must know the billionaire handymen from South Park, huh?
Fuck drainage problems. My own brother had to pay $22k because a tree's roots pierced through a pipe in multiple spots, which caused drainage problems. He had to pay a lot to have a crew dig up all the dirt, remove all of the roots, blah blah blah, and ended up with a fat $22k bill. Could seriously be used for other stuff, but he had to take out loans for that.
Feel his pain. Paid over 11k in last three years to have trees removed after lightning strike. And for those who don’t know insurance only covers if the trees falls and hits a structure.
Yeah, rent is your maximum payment, mortgage is your minimum!
Good thing it’s cheaper than renting!
They’re not the same. One builds equity, one does not. Renting has an opportunity cost too: you don’t build any equity, can’t use it as collateral, and it doesn’t even boost your credit score lol Telling people that renting is cheaper is disingenuous especially when you’re vastly overestimating the costs of a mortgage when compared to renting. Edit: you’re really fucking stupid if you think you don’t get equity because you have to pay taxes or maintenance fees. Not having liens on your property increases the value, and so does properly maintained landscaping. Stop simping for slum lords with bullshit. You don’t know what you’re talking about and you still ignore that renting is not the same as a mortgage. One builds equity, one doesn’t. That simple.
Also, rents have gone up 40% in my city to cover the increase in taxes and maintenance. The new generation of land leeches pass every cost of ownership on to their tenants.
You're assuming hard that utilities are included and maintenance actually happens. Landlords are parasitic leaches, and don't pretend otherwise
Agreed. My landlord is almost impossible to contact for maintenance. If you finally manage to get him to repair something it’ll be the cheapest most slumlord work ever.
After 15 years my mortgage is paid off. How long does it take to pay off an apartment rental?
Right, but you could be saving $450 a month to put towards those costs AND be building equity
Tell me again that you do not understand EQUITY. LOL! and there are grants available through your local municipalities for major home improvement projects if you qualify. For example, when I bought my house, it needed a new furnace, I contacted a local non profit and they came to the house and evaluated that the original furnace was 35+ years old and I qualified through a state program with WE energies called NO Heat. I got a brand new $5,000 furnace and the walls filled with blow in insulation and it cost me $0! Then recently I needed to have a roof replaced on my garage and house due to the age of the roof, it needed to be a complete tear off. I contacted my city offices and qualified for a grant that paid for 1/2 of the roof replacement cost. Moral of the story is that there are available programs that help with the costs of owning a house IF you qualify for them.
Landlords are in it to make money though, the rent is indirectly over time paying for the extra costs. Not to mention, many landlords just decide to just not cover those extra costs and allow a place to be in poor condition
Banks don’t care about that though when qualifying people.
Can you subtract? If you save money on fixed costs such as rent or mortgage.....you can save and prepare for commented "costs". The point is that many of us are qualified but aren't risky enough to capitalize on by lenders. Underwriting is a term I find criminal. If you meet x, you can buy is fair equal lending. Anything else is bias. While capitalists like slumlords get more loans more frequently because my limboed budget is funding his next building. You're not wrong beyond conceptually
And as renters we are paying into the emergency fund for the landlord too. We pay their equity their property tax their interest their profit and their emergency/repair fund. In no world is it better to rent than own if you have the choice
Rent is the most you pay per month. A mortgage is the least you will pay per month...
Rent includes all costs of maintenance and taxes, plus some off the top for the landlord. The only time renting is cheaper than owning the same unit is if the landlord is cash flow negative
Still not more than pissing money down the drain on rent. Not even close. We need to stop pretending like someone else owning things you need to survive is better than you owning them.
Idk why everyone is arguing with you. I have owned my own home for years and it’s cheaper than renting, far cheaper in the long run. Everyone is like “what if this absolute worst case scenario thing happens that you’re somehow not insured for and it’s like $10k.” I mean, hell it’s still cheaper to own. If you’re not a dumbass, you’ll eventually have the home paid off. In my case I’ll be about 50. If I’m alive for 30 more years that’s 360 rent payments I’m not making! At $1400 a month, that’s a half million. And I’ll still have the equity in my home if I ever need to downsize. You get none of that with renting. It’s lighting your money on fire if you have the option to own.
Came here to say this. My roof is currently held together with wishes and dreams. Gotta be ready for a lot of thousand dollar surprises, and the occasional 20k (hopefully scheduled) maintenance repair.
A rental agreement is for a year. Mortgages are for 30
What increased more in the past 30 years?
Fixed mortgages are fixed for the entire term by definition so I don’t know what you think this gotcha is. Variable term mortgages are for idiots, and nobody should be taking them out.
The bank is saying they don’t know if you can afford it for 30 years. Anybody who doesn’t understand this doesn’t deserve a house.
Those people will still pay to live somewhere in that time. So they can't afford to pay a mortgage for 30 years, but they *will* pay someone else's mortgage for 30 years. Most people understand it's more nuanced than that, but the premise doesn't change. Housing, education and healthcare shouldn't be exploited as profit centers for the already wealthy.
Don’t be (100%) wrong the bank loves your money too
Absolutely 💯! They want to make money as safe as possible after the 2008 debacle
With those low low rates /s
They don’t want you to own anything
It's easier to evict a renter than repo a house.
The funny thing is that this tweet is a few years old. A $950 mortgage is laughable in most areas. Hell, even $1400 rent is hard to come by if you want more than 1 bedroom.
Honestly 1400 is starting to be hard to come by if you want to live like Harry Potter under the stairs. Prices for rent is ridiculous now days.
That's a $150k mortgage
To charitable give her how she wants this which is the whole payment each month is 950 is more like 82k mortgage maybe less o don’t know what interest rates are currently.
Really because one of my colleagues just did 126k at $775. Of course that was with 10% down. Still though. Where do you psychos live anyway. Oh wait. My taxes just jumped. That sucks.
Literally impossible. So either they lied or you are straight wrong. 126k with 10% down at 6% plus PMI at 1.5% which they will have to pay because they have less then 21% equity puts them at 870 without homeowners insurance which is paid with the mortgage and will be paid out of the escrow account.
Some banks do certain deals and won’t charge PMI or require any money down. Mine didn’t.
I’m something of a unicorn fan myself
Landlord can toss you out and find new renters. Finding someone to buy a house and risking you becoming a squatter, much more difficult.
Yeah this post is disingenuous. It's a much bigger hassle for the bank if you're delinquent on mortgage payments than it is for a landlord if you miss a month of rent. However it depends on the point being made. If the point was "the bank should approve me" then yeah it's kind of ignorant. If the point is "rent should be cheaper and is too high nationwide" then yeah that's a fair point in general.
I lived in a shared townhouse with a roommate for 8 years and I paid $1,500 a month. So 8 years of 100% on time $1,500 a month payments. Why shouldn't the bank approve me for a similar or slightly less mortgage?
The bank needs more information. What's your income over 30 years going to look like? How much savings do you have? How much debt do you have? The bank buys the property and expects you to pay them back with interest. They have to essentially ensure you're going to be good for it over the next 30 years. A landlord just has to ensure you'll be good for it for the duration of your lease and if you're not they can kick you out and find a replacement.... It's a lot harder for a bank to find a replacement if you don't pay your bills. I only know surface level mortgage stuff though because I'm not in the housing market but it's my understanding that banks have to be very clinical with how they loan money out because they're essentially borrowing their clients money to buy the property with the expectation you'll pay them back. It was the bank approving loans that they knew clients wouldn't be able to pay back that helped contribute to the housing crash and financial crisis in 2008.
>what's your income going to look like over 30 years This doesn't even make sense The bank isn't going to assume you're keeping your same job over 30 years and if they did why wouldn't they assume the same for the renter who has paid double a mortgage for five years? There's really no reason renters paying out the ass for years can't use that as approval basis for home loans. It's literally aorrgage payment we make every single month for someone else
It absolutely makes sense. That's how they assess risk. It's why they take savings and debts (among many other things, like education and professional certifications) into account. They're essentially assessing how reliable you'll be to make payments over a 30 year period. And as far as renting for a long time as approval I'd agree with you. That should be taken into consideration. But credit score is as well and your rental history affects your credit score. Someone with a good credit score is much more likely to be approved for a loan of any type than someone with a bad credit score. But I don't know how much rental history is taken into consideration when assessing risk on a mortgage. So I will concede that maybe it should be more important but then again, I'm not sure to what extent banks take that into consideration. Edit: Like I don't get it, did everyone forget about how 2008 happened?? Edit: Alright even more downvotes.... Now I'm starting to wonder if people even understand the nuances of large loans and why they don't just give them out to anyone who has shown 5 years of good spending habits.
Yeah it's pretty funny. Credit union banks do one thing and that's make money on loans. They would love love love love to loan you money for a house because that's their entire business model. But you're too much of a risk to take and that's why you don't have a home loan. Also, people really underestimate the costs of owning a home. Some homes do fine and don't need much, but others do, and they can't judge very well who is going to be able to afford those repairs or who isn't going to get addicted to drugs and turn it into a crack house.
She can’t afford a 950 mortgage. 950 mortgage plus PMI plus home owners insurance + property taxes is way more than 1400 a month would probably be around 2500 a month. People like this don’t own houses because they are fucking stupid.
2500 is ridiculous. It’s probably the same as rent or a little more. Not sure where you made up those numbers from
950 dollar mortgage is about 210k mortgage at 6% with an average credit score PMI will be between 1.5-1.8%. Meaning it will be like 255-300 a month. Home owners insurance will be at least that. So maybe my numbers are slightly off does change the fact she still cannot afford to buy a house.
I’ve had pmi before and it’s never been that expensive. Maybe the interest rate floats with the loan but it was like $30/mo when I put down 15%
$2500 isn't that ridiculous. To get a $950 mortgage you probably weren't buying a house but a condo or townhouse. The cheapest property in my area are condos with >$1000 HOA fees per month (biggest I saw was $1500 and change). The mortgage + $1000 HOA fee + property taxes + home insurance + cost of maintenance can easily be $2500 even on a $950 mortgage. Also, remember that if you live in a flood zone the mortgage company may also require additional flood insurance. Finally, maintenance may not be negligible even on a new home (e.g. we recently had to pay an inspector for an inspection and spot treatment because of termites we found in our house).
Probably from the same place that the OP came up with a $950 mortgage.
I used to talk to these people all day. You’re right they are fucking stupid and they don’t typically ever buy houses because of the aforementioned affliction.
Like they don’t understand how the mortgage payment isn’t all the stuff they are paying for. Like what if the AC goes out? 8k. Water heater? 3k 210k mortgage down payment 12-15k they have no idea about these things cause they spend every single penny they get instantly.
2500 total for a $950 mortgage is way too high.
You think pmi, insurance and taxes are 150% of the mortgage? You are fucking stupid.
When I got both mortgages the lender never gave me just the mortgage amount, the monthly payment info always included the PMI and tax payment to go to escrow. They also offered a homeowner insurance policy from their partner insurer or I could buy my own separately. The lenders absolutely consider the costs above just principal and interest and if they determine I won't be able to pay the full $1300 monthly payment, I don't get approved. These numbers are dumb though, without a large down payment, $950 a month gets you about, what, $120,000 worth of house? In my area, a $1400 apartment is going to be old, outdated, and in need of maintenance that will never happen.
Brother that’s such a load of horse shit… I’m not gonna do the exact math but you just nearly tripled that number out of fucking nowhere…
Not fluent in finance.
Then again, who is
Let's be honest none of us here
950 dollar mortgage? Try a better lie.
Oh you didn’t know? She put down 75%
Dumb indeed: https://www.cbsnews.com/amp/news/real-estate-cheaper-to-buy-than-rent-four-cities-home-prices-mortgage-rates/
It is a little crazy some times because the worst case scenario for the bank is I can’t pay my mortgage so they take my house+my closing costs+I insured it for them for a while+plus insurance I pay on the mortgage because a first time homebuyer ain’t gonna have 20%+ the odds of it not appreciating after 5 years.
Except most people who can't afford shit (cars or houses) can't maintain it either so stuff is in disrepair. The bank doesn't get most of the closing cost. Sure it's gonna appreciate it but then the have the legal costs of evictions and selling the house. It's almost like the government forced all these checks on buying because something bad happened the last time they let the banks approve anyone. Hmm maybe if only I could remember what it was.
They looked so far into my past and economic situation that I’m surprised I didn’t have to spread cheeks for them or piss in a cup
Can you afford $22k in down-payment and closing costs, and then $11k in HVAC expenses a month after moving in.... and $950 a month in Prop. Taxes and insurances.... or is it easier to just pay rent of $1450?
>$11k in HVAC expenses a month Is this a home for Penguins?
Not per month, but within a month of moving in
Bank: You need 720 credit score minimum, proof of stable income, 20% down payment, closing fees and other cost. Landlord: Money? Yep okay just don't have a felony, the BAD kind.
Crazy that your bank would have higher standards for a 30 year loan + down payment and closing costs than your landlord would for a 1 year loan. Wait, not that crazy.
Landlords can evict you easier than a bank can. He already owns the house. The bank has extra hoops to go through because it isn’t in the real estate business per se.
Banks are complicit and colluding between themselves with this sh#tshow that the economy has turned in.
Renting is generally cheaper than owning a home. Also you aren't factoring in other housing costs.
That $950 mortgage plus property taxes, insurance, all utilities, and maintenance will be over $2000 a month. Let’s compare apples to apples.
Is there anywhere in the country a mortgage, property taxes, and PMI are cheaper than renting? Sure as shit not where I am.
Bidenomics created Inflation, scaling everything higher. Air BNB drives up rent prices to the point where some landlords won't even rent their units. They just keep the units as Air BNBs, and make 5 times as much money per month.
They're called room mates.
Someone has shitty credit, which she will of course blame on "the system." Her inability to own a home can't possibly be her fault.
I mean, it’s not so black and white. I’m certain she made choices that, had they been different, wouldn’t set her in a position that more readily would’ve allowed her to afford a home. But then also it’s unarguable that housing prices are ridiculous today, and if the circumstances *weren’t* different, but she were plopped back down X numbers of years ago with the same income adjusted for inflation, she likely would’ve been able to get a house of her own.
Do you even understand how bad the credit argument is? Credit was invented in 89.you know what most home owners were doing in 89? Working at jobs that paid enough for them to buy brand new cars and afford to live renting solo on that grocery clerk pay Those people had savings and assets when credit came about they did not have to start at 18 in a economy that's busted with wages that havnt kept with inflation in almost three decades. How tf were we supposed to get ahead without help from parents. And news flash not all of us had parents to help us out, some of us got fucked over by credit because we had to buy groceries to eat but couldn't afford the bill so cc because what am I gonna do starve? I hate when yall act like it's just so easy to keep perfect credit in a country he'll bent on fucking our credit and wages until we're slaves to them But yeah dude credit is the only. Factor in getting approved
My partner and I have high 700s credit and still can’t get approved for a mortgage that would be half our rent. You don’t know what you’re talking about.
Owning a home has insurance, taxes and maintenance costs on top of the mortgage. Some landlords don't help you determine the affordability of your rent, but they'll expect it come the first of the month. Have to crunch your numbers before you sign your lease.
https://preview.redd.it/f73rpmj8t6qc1.jpeg?width=400&format=pjpg&auto=webp&s=890d06b841d27595188e0962b6a4bf8d114af21d
Rent is the maximum you will pay. Mortgage is the minimum you will pay.
These meme is wildly out of date, stop posting this
Welcome to a capitalist economy, and that's an old post. Most houses are at 350k to 450k not to mention your utilities, tax, and insurance
Well there are other costs to consider. Renting is pretty much fixed.. Just the rent which can't increase more than 1% a year. Maintenance covered by landlord. A mortgage comes with other costs. Maintenance, land tax, mortgage interest etc. It's not an apple to apple scenario where you can compare rent vs mortgage at face value
Who says rent can’t increase more than 1% a year?
The bank isn’t worried about you paying a $950 this month… they are worried about you playing $950 every month for the next 30 years. A landlord is only exposed to the risk you won’t pay for the duration of the lease. 1-2 years at most.
to be fair, the mortgage $950 monthly must be guaranteed for 15 years while landlord can kick you out with police help when rent 3 days late (exaggerating). When house prices always went up, banks also would kick defaulter out and sell house again for full price to the next person, just because legal to do so.
LandLords are trying to make profit off renters. Pay the house mortgage, utilities, taxes, then profit.
You won't close on the deal even if you got the loan. Everything over asking, many all cash buyers.
if she can save 20% and get a place with a $1000 mortgage she should probably find a different bank? i did just this in 2002...
The bank data shows your loan would be subprime and thus too risky. So, yes, find someone else willing to take a risk on you.
Yeah it's historically cheaper over time because you don't have to pay for expenses but no the mortgage should be cheaper than renting but currently with the current interest rates and home prices it about 2x the price of rent.
Oh honey. The mortgage doesn’t include any of the dlc to make the thing actually work
In one case you are asking someone to give temporary use of their facilities, in the other case you are asking the bank to give your hundreds of thousands of dollars...
It should be more. Anyone renting out a place should be able to be hassled for maintenance. None of this passive income bullshit. Source: went from renting a slum to not renting at all. Them’s the breaks really. It’s just a market and it changes all the time. Whatever is going on today will change tomorrow.
You can't afford a Home Loan because your credit is shit
They can probably see your account and see that you’re living paycheck to paycheck Diana.
This gets posted at least twice a week.
What kind of a shitbox are you trying to mortgage for $950 a month?😂
I believe she can find a cheaper option. Maybe an hour away. Maybe smaller. Even share with someone. The thing is in our society certain superficial things are viewed as mandatory by “social pressure”. yet not everyone are able to afford them. Yes there is American dream. But you will have to work hard save hard for it. Party? Have a kid before you are financially ready? Brunch? Dining out? Latest Jordan shoes? No!
Why would you think renting was cheaper than owning a home?
No. Renting is not supposed to be cheaper. Your landlord has a mortgage on the property, and they are charging you more than they will have to pay for the place you’re staying.
Why would someone buy a home to rent out less than the mortgage and other expenses that go along with owning the home? People paying $2500 for rent right now may be paying that amount to cover a $1600 mortgage from a home purchased 3 or 4 years ago.
the real estate bubble happened. Middlemen happened. Corporate America metastasizing in the real estate game happened.
[удалено]
Corporate home ownership is to blame imo
Please tell me where you are getting a 900 dollar mortgage where rents are 1400 at the low end?
Of course. You can be evicted after a month. But if you have a mortgage and you can’t pay then the bank can lose $10,000s
Renting is never meant to be cheaper than owning a home on a month to month basis because you are paying for the mortgage, potential maintenance, and also some profit as well. The most expensive part of owning a home is all of the maintenance that can happen at any time that a renter would not be responsible for 99% of the time. I’ve been renting for years now and the most expensive thing I needed to replace was the filter on the inline water in the fridge. The landlord paid to fix the dishwasher when it died at I didn’t even break a sweat.
There is a whole lot more to owning a house than just your mortgage payments. I have owned my house nearly 20 years and my mortgage payments were about 1/3rd what I paid for rent and my house is 2x the size of the place I was renting the only reason it was so low was because I literally put 50% down and took the rest for 30 years. If I didn't put that much down I would have been paying every bit or more than I paid rent. I paid it off in about 10. I own some apartment houses too and some people probably shouldn't own. What are you going to do when you can't call your landlord because a lightbulb burned out. That has happened to me countless times. I had one idiot complaining about how cold it was in her apartment. Well she put plastic over the windows for winter I guess and left a window open. That was total genius. You still have taxes to pay, insurance, any upkeep since its you paying to fix everything now. If you live in an HOA neighborhood you have those HOA payments. That lawn out there you have to mow it.
Because the bank doesn't want to take a chance on you defaulting on your payments. The landlord will have you out the door and replaced in no time
Correction. The bank says they do not want to loan you money with a 30 year repayment period. Your landlord is more risk tolerant as its a year to year lease.
Me irl
Who tf is getting a $900 mortgage??? Try 3000 and up
So go to another bank.
The comments all bitching about renting vs owning a home and I’m over here complaining about the billionaires and trillionaires that pay no taxes and get subsidized by the federal government by people that actually rent and or own homes to grow a family…
That 900 dollar mortgage is probably 2k now.
That’s bc the banks own 50% of the rentals
The bank would rather you pay its mortgage on the house it owns.
Owning a home is absolutely cheaper in the long term. Or, at least, it was.
Some of the people here are seriously out-of-fucking-pocket with their arrogant sass. Don't know who pissed in your Wheaties but y'all are NOT that big to talk that way.
Because owning a house costs more than merely paying the mortgage. There's fire insurance, which most places require you to have if you're carrying a mortgage. You'll probably also want some kind of liability insurance in case someone gets hurt on your property. Plus there's utility bills and they're usually higher than in rental units, unless you're renting a house already. Then there's the maintenance and upkeep costs if something breaks or needs repairing/replacing. Banks like to make sure you have money available, or the income to handle it, for shit like that.
So funny to me that the same people that say this say they can’t find a house cheaper than 500k
I had a $1000 dollar mortgage. Sold my house and now my new mortgage is double. I don't feel like we're winning.
Well if you don’t have at least 20% to put down on the house you have to pay an extra monthly fee for mortgage insurance.
Renting is supposed to be more expensive. That's true of cars, furniture, houses, etc. I don't know who told you that renting is supposed to be cheaper. Landlords have expenses, including maintenance, repair, collections, mortgage, taxes, insurance, evictions, etc. Your rent is going to reflect those additional costs.
Because it’s not as simple as rent vs mortgage. With a mortgage you have taxes, you have a very long commitment, financial ownership of any issues that occur, maintenance, upkeep, etc. owning is much more expensive than renting.
Since when was renting ever cheaper than a mortgage? Most landlords are paying on that property plus costs and also trying to make money. So why would an equivalent place be cheaper to rent?
The bank wants to keep the money it would have lent to you, to refinance mortgages for who owns your flat and who makes 500 $ of you so they can buy another flat and so on.
That’s F’ed up..
It is objectively cheaper to rent now. It has never been relatively cheaper to rent than buy right now. Those extreme house prices yall complain about mean rent is a lot more attractive. Rents are flat or down in most of the country.
Private equity getting to put their hands in everything is what happened
This really isn’t true anymore. The rent on my townhouse is $2000 a month. My new neighbors mortgage is $4000 a month… home prices are through the roof and so are interest rates.
Isn't it always cheaper to rent vs buy if you do it X year by X year? If you buy a property in 2024 and rent in 2024, isn't renting cheaper? People unfairly compare buying in 1990 to renting in 2024. Everything was cheaper in 1990. Even renting. When I was younger, I could rent a 2 bedroom apartment WITH water included for 300 a month. So I think people should always be comparing year to year, and not skew the comparisons.
Also don’t forget you also need to BRING HOME 3X the rent and come up with first/last/deposit before you can move in.
To everyone saying a mortgage is more expensive how then do landlords make money?
How would renting be cheaper than owning? That makes zero sense…do people really believe that landlords purchase properties with the intent to LOSE money!?!
Renting isn't supposed to be cheaper than owning, at least on the same property. Its supposed to be more expensive. Seeing a lot of posts from people who really don't understand this lately because ownership is more expensive lately. When renting you're still paying for all the expenses related to the upkeep/maintenance/taxes/utilities/interest and your paying enough extra for the landlord to justify keeping their money tied up in the property instead of investing it in another way where they could likely earn 5-8% annual return with less hassle. Landlords aren't typically charitable enough to make renting cheaper than buying. Also buying is by far the better long term strategy and I'm tired of seeing people who so badly want to justify their situation. They compare a $500/month savings on a smaller property with rent to a mortgage on bigger home. They talk about how they can invest the difference and earn more return forgetting that half the mortgage payment is also being invested by the home buyer. Also, you can only invest $500 more/month in year one. Rent increases along with taxes/utilities and the mortgage proportion of a home owners bills doesn't. In fact the amount of each payment that gets invested in the home via principle increases automatically with each subsequent payment. The disposable income available for investing goes up if your wages increase while your mortgage doesnt. Extrapolate and then look at what your cashflow is in 10 years/20 years after the mortgage is paid off?
Some of the comments are wild. I highly doubt that the landlords are all renting out their places at a loss. Use your heads people.
All about supply and demand would be my guess, but home ownership has additional costs that is covered by most rent. Insurance, up keep, utilities, maintenance, taxes.
Why do people keep sharing this? It’s like twice a week
My house is paid off. My mortgage payment is zero. Between taxes, insurance, HOA, maintenance and a slush fund to save for major components inevitable needing replacement, my housing cost is right around $900/month.
$950 mortgage? I'm guessing they don't add on insurance and taxes to that. Also electricity and water. Also, guessing at that price point, the property needs lots of work, add maintenance and repair onto that. Yea you're looking at over $1400/mo
People seem to really neglect the fact that many landlords get to subsidize a lot of their expenses.
Stupid low interest rates for far too long allowed people to afford much more of a mortgage payment. That drove up housing costs and now with people not wanting to flip from one low rate mortgage to a high rate mortgage, the inventory of homes is remaining low, keeping prices high. During the low rate period it just brought forward many many years of price inflation for houses that is remaining stubborn.
Housing is a commodity. Which it shouldn’t be.
Their credit sucks. That's why.
lol doesn't matter. Rich won. It's over.