Wtf?

[Silverback]

when you roll in maintenance, upkeep, insurance, taxes, etc. into the mix some people opt to not have to deal with any of that, and choose renting to be an easier option for them.

Not sure why that's hard to see that for some people renting is the better option than owning.

[Sean88gt]

Ahem. Is she into group activities?

For reasons of plausible deniability: I can't comment on that sir.

[slow99]

You're not willing to explain your statement?
Please explain how renting is better than owning. What am I missing

The #1 reason is if you aren't sure you'll be staying in a location for X number of years. Aside from that, it's all about modeling cash flows and figuring out the IRR, NPV, etc. - don't forget taxes, maintenance. Also figure in the benefits of ownership - the tax breaks and deductions and the time after the mortgage that you're saving a house payment but still paying taxes. Renting is cheaper in a lot of cases. You threw out one example. I know you can get a rental home in my area for a fraction of the mortgage/tax payment. Then it's about opportunity costs of that money you're using to purchase. What if I save 40% a month by renting and threw that into vehicles earning 8-10%.

You're talking about the lease vs own decision. Understand that huge corporations have team of financial analysts crunching these numbers to find out which option is best. These sophisticated businesses decide to lease assets all the time. It isn't true that owning is always better then leasing. Sometimes it is, sometimes it isn't.

[HarrisonTX]

If you're the type of person that works under contract basis, you'll be moving around quite a bit chasing money.
Renters can walk away from the house overnight with little to nothing in sacrifices.
Homeowners might have to take a hit in order to liquidate it.
If they keep it and only live there a couple months out of the year, then maintenance and upkeep is being taken care of by a third party. That can sometimes equal the monthly rent or exceed it.

That makes sense

when you roll in maintenance, upkeep, insurance, taxes, etc. into the mix some people opt to not have to deal with any of that, and choose renting to be an easier option for them.

Not sure why that's hard to see that for some people renting is the better option than owning.

Easier doesn't equal 'best option' in my eyes.

[Baron Von Crowder]

I see it like this. At the end of a year take your rent receipts and you can't even buy a cup of coffee. I'll take a year of equity and can physically show you what I own.

there are thousands of people in florida who would disagree with you.

[Ruffdaddy]

What if you aren't sure you'll be staying in a location for x number of years. Aside from that, it's all about modeling cash flows and figuring out the IRR, NPV, etc. - don't forget taxes, maintenance. Renting is much cheaper in a lot of cases. You threw out one example. I know you can get a rental home in my area for a fraction of the mortgage/tax payment. Then it's about opportunity costs of that money you're using to purchase. What if I save 40% a month by renting and threw that into vehicles earning 8-10%.

You're talking about the lease vs own decision. Understand that huge corporations have team of financial analysts crunching these numbers to find out which option is best. These sophisticated businesses decide to lease assets all the time. It isn't true that owning is always better then leasing. Sometimes it is, sometimes it isn't.

I absolutely agree that owning isnt always best...but


Youre never going to save 40% renting vs buying in like properties.

And the business decisions may be based on depriciating assets when it comes to leasing equipment vs owning. That means i have to tag that depreciation onto my overhead, which is ok if its a large department but can cripple small departments. Youre also looking at fiscal years and annual budgets with businesses that have a much different dynamic than a personal household. If i have to hit my annual budget, i may choose to lease since itll match my annual budget even though long term costs are lower to own. Ive seen loads of long term bad decisions made for the sake of hitting an annual budget.

[slow99]

I absolutely agree that owning isnt always best...but


Youre never going to save 40% renting vs buying in like properties.

And the business decisions may be based on depriciating assets when it comes to leasing equipment vs owning. That means i have to tag that depreciation onto my overhead, which is ok if its a large department but can cripple small departments. Youre also looking at fiscal years and annual budgets with businesses that have a much different dynamic than a personal household. If i have to hit my annual budget, i may choose to lease since itll match my annual budget even though long term costs are lower to own. Ive seen loads of long term bad decisions made for the sake of hitting an annual budget.

They lease properties/real estate. Again, just pointing out areas where it isn't ALWAYS the best case. Hell I own my house.
You can save 40% by renting in San Franciso, I did it.

[HarrisonTX]

I see y'alls business arguments, but we were discussing living, not a large scale business.
Good points, but having $250k in the bank and flushing money away on monthly rent is madness to me.

[Rreemo]

Money makes people think & do very stupid things, and I've learned that it is one of the top things that breaks families apart.

[slow99]

There was a long thread in Canada back in 2006. Don't know if you guys can still access or not, but here's the link. Good points made by Andrew and Al P in particular, on both sides. I'm just illustrating that it isn't always a slam dunk to own vs rent.

http://www.dfwstangs.net/forums/showthread.php?t=292285&page=2

[Ruffdaddy]

They lease properties/real estate. Again, just pointing out areas where it isn't ALWAYS the best case. Hell I own my house.
You can save 40% by renting in San Franciso, I did it.

Ok property specific sure....i took a much broader definition of the term assets. But again...business decisions are still much different than personal home.

And i still am not sure i believe saving 40% with the properties being truly equal.

[Ruffdaddy]

I see y'alls business arguments, but we were discussing living, not a large scale business.
Good points, but having $250k in the bank and flushing money away on monthly rent is madness to me.

Slow99 is saying that money will not just be sitting. Hes investing it...so if his earnings outpace the rent and theoretical equity he would have from owning...then investing is the fiscally better choice near term.

[slow99]

Ok property specific sure....i took a much broader definition of the term assets. But again...business decisions are still much different than personal home.

And i still am not sure i believe saving 40% with the properties being truly equal.

Rent was 3,500 a month, comps were $1MM. Payment on a 30 yr 4% for $1MM is 4,774 plus another $1,000 or so for taxes. 3500/5774 = 61%

[dsrtuckteezy]

let's take this thread in a third direction. what are yalls opinions on double penetration? would you bang a hot chick with your buddy at the same damn time?

i already know ruffdaddy likes to be double penetrated, so what say you, slow99 and harrison?

[Ruffdaddy]

Rent was 3,500 a month, comps were $1MM. Payment on a 30 yr 4% for $1MM is 4,774 plus another $1,000 or so for taxes. 3500/5774 = 61%

But theres an equity gain there. Its not all face value payment.