You can build wealth without owning a home.

[Woodznutz]

youre leaving out at the end of it you have a house worth 300K that can be handed down to your children,, but if you rent you have zero,,

youre considering it from greed POV to make more money now,,

life is a long game not a short game,,

Of course, and the kids will also inherit all the profits from the house if they sell it.

I'm near the end of that long game.

 

[Harpy Eagle]

youre leaving out at the end of it you have a house worth 300K that can be handed down to your children,, but if you rent you have zero,,

assuming your kids want to live wherever it is your house is.

Could just leave them cash and let them live where they want.

how often do people pay 300K up front??

Just about never, which was sort of the point.

 

[Woodznutz]

how often do people pay 300K up front??

I'm guessing that investors often do, if the numbers point that way.

 

[Woodznutz]

assuming your kids want to live wherever it is your house is.

Could just leave them cash and let them live where they want.



Just about never, which was sort of the point.

The kids can sell the house or rent it out.
Investors aren't 'normal' people.

 

[progressive hunter]

Of course, and the kids will also inherit all the profits from the house if they sell it.

I'm near the end of that long game.

to them its all a profit,,


my point is you buy home to be a home for you and your family,,

you should never go into it expecting a profit other than the memories created there,,

 

[Woodznutz]

The numbers do not work out as well if you do not have 300k in cash to pay for the house upfront.

I was using myself as the example. If I bought it would be cash. However, anyone can start small and build equity by leveraging equity into better homes. A friend of mine did that back in the 1970's. He started with small $8,000 house, traded up to a $24,000 house within two years. Two years later he leveraged the appreciated equity into a 40-acre hobby farm worth $50,000.

 

[progressive hunter]

I'm guessing that investors often do, if the numbers point that way.

we rent talking about investors,, we are talking about family homes building wealth,,

nd as I pointed out owning creates more wealth for you nd your family and renting is a 100% loss in wealth,,

 

[progressive hunter]

assuming your kids want to live wherever it is your house is.

Could just leave them cash and let them live where they want.



Just about never, which was sort of the point.

if you leave them cash who do you leave the house too??

 

[Woodznutz]

we rent talking about investors,, we are talking about family homes building wealth,,

nd as I pointed out owning creates more wealth for you nd your family and renting is a 100% loss in wealth,,

Once the kids are gone people often downsize or maintain the family home as an investment in their retirement.

 

[progressive hunter]

Once the kids are gone people often downsize or maintain the family home as an investment in their retirement.

ok,,not sure what that has to do with the topic or what I said,,

keeping the house as a rental investment is the smart thing to do and shows that in the long run it helps build wealth,,

the topic is owning or renting to build wealth,,

renting is a 100% loss in wealth,,

 

[Harpy Eagle]

if you leave them cash who do you leave the house too??

I will not have a house to leave to our kids. We plan to retire overseas and thus will sell our house when that time comes.

I doubt we will buy property where we end up as we plan to be pretty mobile and not do have any desire to live in the same place till we die.

 

[Woodznutz]

ok,,not sure what that has to do with the topic or what I said,,

keeping the house as a rental investment is the smart thing to do and shows that in the long run it helps build wealth,,

the topic is owning or renting to build wealth,,

renting is a 100% loss in wealth,,

We mostly agree. I guess it's up the individual how they see home ownership. In my friend's example each home was an investment steppingstone. The family knew that from the getgo, so those houses weren't really "home", just a temporary dwellings.

 

[progressive hunter]

I will not have a house to leave to our kids. We plan to retire overseas and thus will sell our house when that time comes.

I doubt we will buy property where we end up as we plan to be pretty mobile and not do have any desire to live in the same place till we die.

thats nice,,

can we get back on topic??

 

[progressive hunter]

We mostly agree. I guess it's up the individual how they see home ownership. In my friend's example each home was an investment steppingstone. The family knew that from the getgo, so those houses weren't really "home", just a temporary dwellings.

I would like to see the numbers and actions taken to prove a profit was made,,

did they buy older houses and fix them up or buy ready to live in homes,,

if they bought them with the intent to fix them up and sell them youre right thats not their home and not what is in discussion,,

 

[Harpy Eagle]

thats nice,,

can we get back on topic??

I responded to your question.

If you did not want me to, why did you ask it?

 

[Harpy Eagle]

the topic is owning or renting to build wealth,,

renting is a 100% loss in wealth,,

If your rent would be less than your mortgage/taxes/upkeep and you put the difference into an investment account you could come out ahead by renting vs buying.

 

[progressive hunter]

If your rent would be less than your mortgage/taxes/upkeep and you put the difference into an investment account you could come out ahead by renting vs buying.

in all my yrs I have never seen a comparable house rent for less than a mortgage,,

and depending on the area that includes taxs,,

and at the end of yrs of renting you have nothing to show for it,,

 

[g5000]

Home ownership is expensive, much more than renting. Of course, there are many benefits of home ownership but there are better ways to build wealth. Just save and invest the difference between owning and renting and watch your fortune grow. It will grow faster if you're single as you can share space with others and save even more.

Invest in a S&P 500 index.

In the long run, index funds outperform every mutual fund.

Mutual funds are run by average and low-IQ fools who think they are smart just because they are in charge of a lot of money. But as the 2008 collapse demonstrated, these idiots are easily seduced by Wall Street with hookers and blow and box seats to ballgames.

 

[g5000]

Being a Marine stationed at 7 different duty stations in 20 years it never made sense to buy for us. The house we are in now is only the 2nd we have ever owned.

Yeah, we lived in base housing. I did not buy a house until after I retired from active duty. And with a VA loan, of course.

 

[Rigby5]

Home ownership is expensive, much more than renting. Of course, there are many benefits of home ownership but there are better ways to build wealth. Just save and invest the difference between owning and renting and watch your fortune grow. It will grow faster if you're single as you can share space with others and save even more.

Strongly disagree.
While mortgage payments may exceed rent at first, rents will increase while mortgages will not, so rent is eventually much higher.
The other thing is appreciation.
Real estate doubles in value every 10 years, so is huge profits without labor.

Even better is to be a landlord and rent it out.
Then you get huge tax breaks, like depreciation allowance.
All you need is to supply the credit rating for the mortgage, and the tenant buys the property for you