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  • Columnist asks, "Why Buy A House?"

    "behold one of the biggest myths of the American Dream"


    http://www.sfgate.com/cgi-bin/article.c ... 112108.DTL

  • #2
    Here's two things I wouldn't have if I still rented, as I did until 2002.

    First, and foremost, peace of mind that a landlord wouldn't just stroll in whenever he pleased(once while I was there - he used some lame excuse that the radiator was leaking - it was perfectly fine), or send "repair men" in without notifying me. Got him back when he asked why I didn't use him to help me find my house(he was also a realtor) - I told him because he couldn't stay the hell out of my apartment. The look on his face was priceless. Call me crazy, but I like to decide when I have people in my home.

    Second, I wouldn't have the six figures of equity I have already, even with the current housing market. Pick your neighborhood wisely(as they say, location, location, location), you'll have a nice nest egg in 15 years time. 30 year mortgages are for people who are buying more house than they should.
    There are no strings on me

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    • #3
      I think the author of this article just had some column inches to fill...

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      • #4
        The author has severe myopia.

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        • #5
          Guru, if your situation in any way resembles mine, you ALSO would have been paying at least as much in rent (in my area, way more) for the past 20 years or so, with interest payment and no property tax deductions on your income taxes (both expenses you can be sure your landlord passes on to you as a tenant).
          We refinanced three times, made extra principle payments and now we are making payments on a fixed mortgage that are about 1/3 what our house would rent for.


          IMHO, renting is like having a variable rate mortgage with limits on the yearly interest increases and no benefits of ownership. The last people I rented from owned the place free and clear and yet they put the rent annually based on whatever % the estimated market value increased. They wanted a 5% return on the market value because it was an "investment". And they wanted the 5% return despite the fact that their equity was growing by 10% plus per year. It was worth buying just to never have to deal with idiots like that again.

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          • #6
            All things being equal it is always better to own than to rent. Things are not always equal . . .

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            • #7
              Originally posted by jhc68
              IMHO, renting is like having a variable rate mortgage with limits on the yearly interest increases and no benefits of ownership. The last people I rented from owned the place free and clear and yet they put the rent annually based on whatever % the estimated market value increased. They wanted a 5% return on the market value because it was an "investment". And they wanted the 5% return despite the fact that their equity was growing by 10% plus per year. It was worth buying just to never have to deal with idiots like that again.
              If they got the rent that they asked for, I'm not sure they're such idiots.

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              • #8
                --------------------------------------------------------------------------------
                Tandfan said:
                " If they got the rent that they asked for, I'm not sure they're such idiots."

                Yeah, I got tired of being the greater idiot!!! But I live in Santa Barbara and here everyone in town is either fabulously rich or fabulously dumb for staying here. I live in a 1200 sq. ft. 1950's stucco tract house that would list (even now after the big bubble burstage) for about a million bucks. Only an idiot would buy it for that price but there seem to be no shortage of them.

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                • #9
                  Originally posted by bad hammy
                  All things being equal it is always better to own than to rent. Things are not always equal . . .
                  word... I know folks paying under 1k/month in rent, living in very nice neighborhoods saving away oodles of cash... I know folks nailed to 400k mortgages in neighborhoods I wouldnt stop to buy a coffee in... all things being equal own, things are not always equal.
                  ... nothing really ever changes my friend, new lines for old, new lines for old.

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