Paid the car off, finally!

[Benzadmiral]

Originally Posted By: surfstar
Can't buy a 1br apt
Condos (of any size) are overpriced even before HOA fees
A "house" here is laughably priced
Don't want to commute 2 hours a day to own a "home"
Happy renting
Owning doesn't always make financial or practical sense.

Most of these points go right to why I've never bought. On the other hand, I'm getting REALLY tired of my "neighbors" and the sounds of their tromping around above me, and of the yearly water leak all over my kitchen floor because some moron can't keep from putting grease and hair down his drain. It may be time to look at condos again.

 

[another Todd]

I get it that buying isn't for every circumstance. Years ago CA passed a bill that only allowed the Gov. to collect 1% of the home value in property tax, so our taxes are lower than some. But to sell a house just because of the taxes does not make sense to me. Eventually you would pay off the house and then only pay taxes, a very cheap way to live. Owners or rental properties pay the tax too ( rent will cover that and then some) . So even renting, you are still paying the tax. Now if you over bought and have way more house/property then you need or now want, that is a different scenario completely.

 

[hattaresguy]

Historically owning real estate is how wealth is built and kept. Its been true since humans started farming so I don't see it changing anytime soon. Modern money changers have built fortunes but statistically even today they are still a small group, most large fortunes were either started with RE, are RE based, or end up largely invested in RE.

Henry Ford for example made his money building cars, than he started buying lots and lots of land. The Ford's still own a lot of land.

Renting provides wealth to the Lord of the Land.

Buy RE, lots of RE.

 

[Jarlaxle]

Originally Posted By: LT4 Vette
Originally Posted By: Jarlaxle
Dumping my house was the best thing I ever did. It was at the point where the taxes were as much as the mortgage. Not worth it.


Was you wife unhappy about selling the house and moving to an apartment ?


She had no objections.

 

[KitaCam]

OP....Congrats....after 2 years, I'm half-way there this month with no major repairs so far...fingers crossed...

 

[JHZR2]

Originally Posted By: hattaresguy
Historically owning real estate is how wealth is built and kept.


Perhaps. Its something that they dont make more of, and is always needed. Population is growing, but farming advances require less to feed them to some extent.

Collecting rent is a good way to build wealth, if money is made at the buy and the use of others' money to pay off the investment is long-term feasible.

But in the age of false-baseless currencies and a razor-focus on business, RE hasnt done that well.

Quote:
...However, making decisions based on such evidence means falling prey to the mistake of recency bias, which is the tendency to give too much weight to recent experience while ignoring long-term evidence. ... For the period 1890-2005, inflation-adjusted home prices rose just 103 percent, or less than 1 percent a year.


http://www.cbsnews.com/news/history-says-home-real-estate-is-a-bad-investment/

So there can be far more attractive investments, but the use of others' money can be good, as is diversity in your portfolio.