You can build wealth without owning a home.

[Harpy Eagle]

Or, get married, delay having kids, live cheap, both work and save for big down payment on a modest home to start with. Make a plan and stick to it.

There is no one path to success. What works for one may not for the next.

Some people struggle to understand this.

 

[Woodznutz]

There is no one path to success. What works for one may not for the next.

Some people struggle to understand this.

For most saving money will require sacrifice and possibly a second job. Sharing rent with others is a time-honored way of reducing living costs. I lived with roommates up until I got married at age 32. Always had plenty of jingle.

 

[Harpy Eagle]

For most saving money will require sacrifice and possibly a second job. Sharing rent with others is a time-honored way of reducing living costs. I lived with roommates up until I got married at age 32. Always had plenty of jingle.

There is no one path to success. What works for one may not for the next.

Some people struggle to understand this.

 

[progressive hunter]

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.

what does owning or renting have to do with building wealth??

your home is not an investment,, its where you live,,

home values increasing only helps the tax man,,

 

[MarathonMike]

Even when we rented we had our own furniture, I have never rented a furnished place, but we probably will when we move to Panama.



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.

Home ownership is great for some, but it is not for everyone



I agree the wealth building part will not be the same.

Furnishings are not nearly as impactful as property taxes and HOA fees since those are recurring.

 

[Harpy Eagle]

Furnishings are not nearly as impactful as property taxes and HOA fees since those are recurring.

Indeed. Where I am now living, even with taxes and the HOA fee it is still less than I was paying in rent from where we moved from. And as I said, it is a brand new house so there will be few big expenses before we sell it when we retire.

I have calculated the proceeds from selling the house if invested at just a 4% growth should cover a rent payment for roughly 12 to 14 years. If we do better than 4% then it will last even longer. I do not plan to ever own again as we plan to be rather mobile in our retirement years, and a house restricts you to one location as far as living goes.

 

[Woodznutz]

what does owning or renting have to do with building wealth??

your home is not an investment,, its where you live,,

home values increasing only helps the tax man,,

Depends on how you manage it. A house can be a financial asset or a liability.

 

[Moonglow]

Hard to have a family without 6 figures.

All yous need is a penis and a vagina....

 

[Moonglow]

I own two homes and 44 acres, a truck, and a car, and am a high school and college dropout.

 

[Woodznutz]

I own two homes and 44 acres, a truck, and a car, and am a high school and college dropout.

I'm a high school grad and I can buy all of the above with cash.

 

[progressive hunter]

Depends on how you manage it. A house can be a financial asset or a liability.

exactly,, its an asset not an investment,,

those two thigs are handled completely different,,

you take care of an asset to maintain its value to avoid it from becoming a liability,,, you should never expect to profit from it,,

 

[Woodznutz]

exactly,, its an asset not an investment,,

those two thigs are handled completely different,,

you take care of an asset to maintain its value to avoid it from becoming a liability,,, you should never expect to profit from it,,

That depends on how you buy it. If I bought a house now it would be an investment and an asset, that I live in.

 

[progressive hunter]

That depends on how you manage it. If I bought a house now it would be an investment and an asset, that I live in.

how much do you intend to profit from it??

and is it profit if you spend that much over time to maintain it??

 

[Harpy Eagle]

how much do you intend to profit from it??

and is it profit if you spend that much over time to maintain it??

depends on how much it cost to maintain and how much the value goes up over the time you own it.

 

[Moonglow]

I'm a high school grad and I can buy all of the above with cash.

I am not selling.

 

[progressive hunter]

depends on how much it cost to maintain and how much the value goes up over the time you own it.

you just explained why you should never go into it thinking your home is an investment,, or expect it to be one,,

 

[Woodznutz]

how much do you intend to profit from it??

and is it profit if you spend that much over time to maintain it??

3-1/2 to 5 percent appreciation per year, tax free at time of sale. Also, property taxes would be much less than rent, so that can be figured in as well. Maintenance costs are minimal if the house is in good shape when bought.

$300,000 purchase price, paid in cash, annual property taxes=$6,000.
Same house if rented, $2,000/month minimum = $24,000/yr.
Same $300,000 invested safely at 4 percent = $9,000/yr. after taxes.
So, if you rent and subtract the $9,000 from the rent of $24,000 you are ahead by $9,000/yr. by owning.

Plus, you can dig up the backyard for garden.

 

[progressive hunter]

3-1/2 to 5 percent per year, tax free. Also, property taxes would be much less than rent, so that can be figured in as well. Maintenance costs are minimal if the house is in good shape when bought.

$300,000 purchase price, paid in cash, annual property taxes=$6,000.
Same house if rented, $2,000/month minimum = $24,000/yr.
$300,000 invested safely at 4 percent = $9,000 after taxes/
So, if you rent and subtract the $9,000 from the rent of $24,000 you are still behind by $9,000/yr.

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,,

 

[Harpy Eagle]

3-1/2 to 5 percent appreciation per year, tax free at time of sale. Also, property taxes would be much less than rent, so that can be figured in as well. Maintenance costs are minimal if the house is in good shape when bought.

$300,000 purchase price, paid in cash, annual property taxes=$6,000.
Same house if rented, $2,000/month minimum = $24,000/yr.
Same $300,000 invested safely at 4 percent = $9,000 after taxes.
So, if you rent and subtract the $9,000 from the rent of $24,000 you are still behind by $9,000/yr.

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

 

[progressive hunter]

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

how often do people pay 300K up front??