Why is it the worst thing in the world to rent for life?

amother

Blush

Thu, Oct 07 2021, 9:55 am

amother [ IndianRed ] wrote:

I know. It's awful. It comes up in almost every conversation. We recently moved and the 1st question people ask is if we bought. Why is it an appropriate question to ask? Bh bh we moved to a block where everyone rents, no one owns their houses here. It's so pressure free and we love it bh.

Hate the question. We bh recently bought a house but I feel it’s so judgmental to ask. Like suddenly they’re going to evaluate your lifestyle and try to figure out how we afforded this and who helped us (just Hashem!).

amother

Lilac

Thu, Oct 07 2021, 9:57 am

amother [ Wine ] wrote:

I agree with both of you. I've seen people literally killing themselves to buy a house and it didn't help them much in the end anyway.

What I WOULD do though, is buy an investment house. You can buy a really cheap house with very little downpayment, and then you have your hedge for inflation plus you're left with equity when you need it later on. I wish I would have done this 10 years ago.

I know someone who did this while continuing to rent. They rented out the house they bought, and the rental income they earned covered its own monthly mortgage plus upkeep. Meanwhile, they are renting a smaller place. Over time, their family grew and their landlord raised the rent, so they will be moving into the house they bought, which has now appreciated to a point that they would not have been able to afford it if they were buying it now.

Hatzlocah to everyone, Hashem sends parnassah in all different ways.

amother

Canary

Thu, Oct 07 2021, 9:57 am

amother [ Hydrangea ] wrote:

Renting is great if you can't afford to buy. However, be prepared to have to move after living somewhere 30 years when your landlord suddenly needs the space or sells the house. I know people who had this experience and v it was very traumatic and challenging

Depends where. I like in a building in nyc where the only way the landlord can get rid of the tenants would be to buy them out

amother

Bone

Thu, Oct 07 2021, 10:01 am

amother [ Blueberry ] wrote:

I think it depends a lot on if you plan on staying where you are for a long time. My parents bought a nice sized house 30 years ago. They're almost done paying it off. During that time they were able to get home equity loans, and now that they're older, they can cut down on work since they won't be paying housing costs anymore.

In 5 years, when a 1.5 bedroom apartment is really too small (and that's all that's available here) I'll have a house to live in at 3k a month instead of having to rent at 3.5k. Might as well start that process earlier (and whether it's right or wrong, if it's in the bank account, the school claims it, if it's in the house, it's mine)

You can’t compare buying a house 30 years ago to buying a house today. At least in Brooklyn.

amother

Quince

Thu, Oct 07 2021, 10:03 am

Maybe it’s different in the US, but where I am, we can’t make any changes to the house we are renting. Like I can’t hammer a hook into the wall.
I’d love to be able to choose the colour of walls, or the curtains, to change the tiles in the bathrooms.
I’d love to be able to feel like it’s really my home.

If I asked and got permission, the landlord might agree to let me change the curtains, by why would I want to invest all that money in someone else’s property that I might be kicked out of in a years time.

I really don’t enjoy the constant temporary feeling.

amother

Stoneblue

Thu, Oct 07 2021, 10:05 am

I know many people who own but rent and live somewhere else. There's more freedom when you rent, if that's what you are looking for. You can move next to your child's school, you can get a job somewhere else and move close to your job, it's more what fits your living style. Some people like being in the same place and that's okay too.

mfb

Thu, Oct 07 2021, 10:06 am

I know 2 people who had to move cuz the landlord got older and wanted to sell. This was when they were close to 70 years old and had lived in the same place for 30 - 40 years.
This was very hard for both of them.

amother

IndianRed

Thu, Oct 07 2021, 10:08 am

amother [ Quince ] wrote:

Bh we can do whatever we want in our rental. The landlord doesn't care. The last time he probably stepped foot in any of the houses he owns was 15 years ago.

amother

Bluebonnet

Thu, Oct 07 2021, 10:08 am

amother [ Bone ] wrote:

You can’t compare buying a house 30 years ago to buying a house today. At least in Brooklyn.

This. Real estate is not the same anywhere now and 30, 40 years ago. My parents bought a house in teaneck 40 years ago for 76,000 dollars. Its unbelievable, right?
Its like that in many places and not just in america.

amother

IndianRed

Thu, Oct 07 2021, 10:09 am

mfb wrote:

Many many home owners sell their homes when they hit their 70's and downsize to something smaller, closer to their kids..... elderly people may need to move for many different reasons.

mfb

Thu, Oct 07 2021, 10:11 am

amother [ IndianRed ] wrote:

Many many home owners sell their homes when they hit their 70's and downsize to something smaller, closer to their kids..... elderly people may need to move for many different reasons.

Yes but here they were forced not because they wanted.
And I also know of an 80+ year old that was told to move because he was making to much noise!!!! Not sure how.

watergirl

Thu, Oct 07 2021, 10:12 am

mfb wrote:

This, for me, was the hardest part of renting. Being at the whim of your landlord. For me, having the security of owning my home is worth every bit of the stress that comes with broken appliances. But that's me.

OP, who says renting is the worst thing in the world? This is a personal decision to make and to each their own.

amother

IndianRed

Thu, Oct 07 2021, 10:17 am

watergirl wrote:

You're right. But in many circles, people are made to feel less then because they don't own their homes.

amother

Lilac

Thu, Oct 07 2021, 10:18 am

amother [ Bluebonnet ] wrote:

This is true, but the concept is still the same, because we will always have inflation. So while your parents' home might be worth $1 million today, in 30 years from now who knows maybe it will be worth $6 million? And your children will be shocked to hear that you bought it for a mere $1 million.

If the rate of inflation is higher than the interest rate, then it's probably a good investment. Whether or not it makes sense on an individual basis is a different question.

amother

Sapphire

Thu, Oct 07 2021, 10:26 am

Ok, but I am in Teaneck as well and if you bought in the early 2000s, about 15 years ago, and you sell now, depending on the neighborhood and size of your house, you are getting about 20-30% more. You have also spent years paying property tax, interest on your mortgage, and maintenance on your home.

amother

Viola

Thu, Oct 07 2021, 10:28 am

It’s not the worst thing in the world to rent
But it doesn’t allow your money to grow
If you could afford it you should invest your money in something
I think it’s an old way of investing
But with today’s real estate prices it may not make sense.

I bought a house about 35yrs ago
$125,000
Recently sold for $1,000,000
I bought 3 small condos
Living in 1 and the other 2 I rent. It gives me a nice income and I still have my money

You can’t think of future investment if you are struggling now

amother

IndianRed

Thu, Oct 07 2021, 10:31 am

amother [ Viola ] wrote:

What you did isn't really possible to do nowadays in the tri state area. Buying a home now is very expensive. Prices might drop in the next few years. Houses that are selling now for 1 million, aren't really worth that amount.

amother

Wine

Thu, Oct 07 2021, 10:35 am

amother [ IndianRed ] wrote:

Noone has nevuah and nobody knows what will be 30 years from now. Generally speaking, because of inflation, houses always go up. But as they say in the investment/finance world "past performance does not guarantee future results".

amother

Viola

Thu, Oct 07 2021, 10:37 am

amother [ IndianRed ] wrote:

That’s why I said today it might not make sense

You could buy an investment property, rent it out and pay your rent with that money

You need to speak with someone that is savvy in finance

amother

Lilac

Thu, Oct 07 2021, 10:39 am

amother [ Wine ] wrote:

Right, you have to constantly reevaluate. No one is committed to not selling for 30 years.