On the other hand, my news feed keeps offering articles from “people” telling me how much better it is to rent and it’s a sucker"s game to own. Usually it’s based on an overstated claim of convenience, but most recently one tried to use all sorts of hand waving to assert that it is also financially better. Extra rich that the author even admits he owns a lot of property that he rents out while simultaneously trying to make it sound stupid to actually own your own house (claimed he himself rented so that he’s not “stuck” paying his own loan). I’m sure these are very sincere and smart people, why would they steer anymore wrong?
Don’t know if it’s real or my imagination, but it seems there are times when there’s extra pressure to convince people that they want to eternally rent.
I think the only case where renting might make sense is if your rent is stupid low, and you can invest the money you’d be spending in something making stupid gains. But that’s very unlikely to happen.
It makes sense if your job isn’t very stable. For example, if you’re brought into be a consultant on a project that will last a guaranteed 18 months, but probably not much beyond that, it probably doesn’t make sense to buy a house. If you’re a construction worker working on a major project, like a bridge being built somewhere, or the construction of a data center, but when that project is done there isn’t likely to be any major local demand for your trade.
Even if you’re hoping that something is going to be a long-term move, sometimes it’s smart to start off renting until you can establish yourself. Like, if you’re the best actor Wyoming has ever produced, so you’re going to move to Hollywood to break into the industry, it might be smart to start out by renting rather than buying a house in LA.
The advantage with rentals is that your maximum commitment is normally a year, and often it’s less than that. When you buy a house, you owe upwards of 5% to the agent. On a $500k house, that’s $25k that just goes up in smoke as soon as the transaction closes. If you have to sell the house, move, and buy a new house 1 year later, you’re spending $25k per year on agents fees. It would be difficult to come up with a rental arrangement that’s financially worse than that.
Not that long ago you could just rent month by month, with first and last months rent as a deposit (Which they kept if you didn’t give 30 days notice).
Im showing my age but having to enter a fucking contract for an APARTMENT is insane to me.
On the other hand, my news feed keeps offering articles from “people” telling me how much better it is to rent and it’s a sucker"s game to own. Usually it’s based on an overstated claim of convenience, but most recently one tried to use all sorts of hand waving to assert that it is also financially better. Extra rich that the author even admits he owns a lot of property that he rents out while simultaneously trying to make it sound stupid to actually own your own house (claimed he himself rented so that he’s not “stuck” paying his own loan). I’m sure these are very sincere and smart people, why would they steer anymore wrong?
Don’t know if it’s real or my imagination, but it seems there are times when there’s extra pressure to convince people that they want to eternally rent.
I think the only case where renting might make sense is if your rent is stupid low, and you can invest the money you’d be spending in something making stupid gains. But that’s very unlikely to happen.
It makes sense if your job isn’t very stable. For example, if you’re brought into be a consultant on a project that will last a guaranteed 18 months, but probably not much beyond that, it probably doesn’t make sense to buy a house. If you’re a construction worker working on a major project, like a bridge being built somewhere, or the construction of a data center, but when that project is done there isn’t likely to be any major local demand for your trade.
Even if you’re hoping that something is going to be a long-term move, sometimes it’s smart to start off renting until you can establish yourself. Like, if you’re the best actor Wyoming has ever produced, so you’re going to move to Hollywood to break into the industry, it might be smart to start out by renting rather than buying a house in LA.
The advantage with rentals is that your maximum commitment is normally a year, and often it’s less than that. When you buy a house, you owe upwards of 5% to the agent. On a $500k house, that’s $25k that just goes up in smoke as soon as the transaction closes. If you have to sell the house, move, and buy a new house 1 year later, you’re spending $25k per year on agents fees. It would be difficult to come up with a rental arrangement that’s financially worse than that.
Not that long ago you could just rent month by month, with first and last months rent as a deposit (Which they kept if you didn’t give 30 days notice).
Im showing my age but having to enter a fucking contract for an APARTMENT is insane to me.