Am always in the balance between these two options. Luckily, never had to rent for long term, nor buying ever seemed to me the right option. Just sharing and thinking about what stackers think about this topic. Thanks for leaving your thought or experience below!
5 sats \ 1 reply \ @orange_crush 1 Mar
It should be more expensive to gain equity in a scarce asset than to rent. And this is with US subsidy of fixed rate loans.
I would really like to see performance of investing in bitcoin the saved difference from renting compared to the small monthly equity gains from owning. Considering compounded interest of mortgages will eat into your real estate valuation gains and bitcoin's current growth in buying power, the two strategies could be pretty close. Time for an excel sheet.
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0 sats \ 0 replies \ @supratic OP 1 Mar
Well, one thing is highly regulated and you are kind of forced to split the benefit of owning a RE. In the other side, if done properly, you keep all the gains and no one knows about it :)
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45 sats \ 1 reply \ @Undisciplined 1 Mar
This is the most fascinating market, to me, right now. It's clear that something unsustainable is going on, which means something is going to change.
It looks like rent is spiking to close the gap with mortgage payments. I was expecting mortgage payments to fall towards rent, so I still don't have the situation figured out.
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31 sats \ 0 replies \ @supratic OP 1 Mar
it's pretty hard to figure out the whole situation, as is also constantly changing. As @0xbitcoiner mentioned, it's worth to evaluate the personal situation and decide accordingly
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35 sats \ 3 replies \ @0xbitcoiner 1 Mar
Should I rent or buy a house? The answer to this question depends largely on the individual or family's circumstances, needs, and financial situation. When starting this process, many other questions arise, along with all the uncertainties that it entails. Should I stay in the area where I currently live? Will I need more rooms for a possible family expansion? Do I have a stable source of income? Will I be able to progress in my career and have to move to another city? Will I have unexpected expenses? The questions are endless... There is no one-size-fits-all answer to this situation, nor is there a manual that can answer all of these questions for you.
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42 sats \ 1 reply \ @jakoyoh629 1 Mar
I think these questions would be interesting to explore in a post.
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0 sats \ 0 replies \ @0xbitcoiner 3 Mar
good idea
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16 sats \ 0 replies \ @supratic OP 1 Mar
I fully agree, there are so many factors that can lead one person to take one decision or the other. Thanks for sharing your thought
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10 sats \ 3 replies \ @m00ninite 1 Mar
That first graph has my head spinning. How is it that most of the time, renting is cheaper than owning? That doesn't even make any sense, but there it is.
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0 sats \ 2 replies \ @supratic OP 1 Mar
Well it's cheaper but if you look at what you have after X decades, when renting you're basically throwing money out of the window, when instead for buying at least you have an asset you can sell. That's maybe why it's more expensive, just a guess.
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10 sats \ 1 reply \ @m00ninite 1 Mar
When I sit down and think about it more, it's probably because most places that get rented have been owned by the landlord for a decade or more. So they're paying 2010 mortgage prices monthly, rather than what today's number is.
So say they got a house in 2010 they're paying $1k/mo for, and are renting it out today, they're able to set their rent according to that price. The current market rate for a new house could be $3k/mo, but it doesn't really matter
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0 sats \ 0 replies \ @supratic OP 1 Mar
That's exactly that, especially with the subletting boom, most RE has become a source of income, but are few of the places where isn't regulated and always become harder to manage.
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0 sats \ 0 replies \ @Bell_curve 2 Mar
If you can afford the down payment and monthly payments then you should buy
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0 sats \ 1 reply \ @hodlpleb 1 Mar
I don't know for a fact, but my guess would be that it takes time for the rental market to catch-up to the owneship market - housing prices could run away over the course of a summer (see: 2020-2021), but rent for a given unit usually get reset once per year, and if you have good tenants there is incentive to not run up the rent too much to scare them away - so a given rental unit could stay in the same price range for several years, depending on the circumstances.
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210 sats \ 0 replies \ @supratic OP 1 Mar
true, good tenants should be always rewarded somehow! Agree and thanks for the reminder
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0 sats \ 1 reply \ @hodlpleb 1 Mar
I think there are a lot of benefits to home ownership, if you plan to stay put for 10+ years - But one thing that most people don't consider, when buying a house, is the property taxes. That is an additional cost, you will pay every month forever and it will continue to go up, in dollars, forever.
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210 sats \ 0 replies \ @supratic OP 1 Mar
Well, taxes are one thing, the other is maintenance and sometime, along the years, there's always some surprise coming up. When renting, this is never an issue if not for the inconvenience of having some disruption to the usual routine.
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0 sats \ 1 reply \ @Signal312 1 Mar
I'm not in the market for a home right now, but when I was, I searched online for something like "rent vs buy calculator". Look at a couple of these, see what factors they include in their calculations.
It's definitely different for different areas.
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0 sats \ 0 replies \ @supratic OP 1 Mar
Agree, location make the difference... and neighborhood too (if any)
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0 sats \ 1 reply \ @go 1 Mar
Looks like 2010-2020 was an anomaly. Probably when most of us bought our houses too. It will be difficult to shift a generational mindset to the new paradigm.
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0 sats \ 0 replies \ @supratic OP 1 Mar
Definitely not an easy task. We can definitely do our bits to change it around and within our environment. What will be for you the new ideal paradigm?
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0 sats \ 9 replies \ @Nuttall 1 Mar
Get to know local people in an area. Ask these questions. Find out their histories. Generally this topic is too vague for an international or even national discussion. The area makes a big difference.
This is why central planning is ignorant.
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10 sats \ 8 replies \ @supratic OP 1 Mar
Ahaha, great point. I agree we are going into localization more and more and leave this globalization concept behind. Finally!
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0 sats \ 7 replies \ @Nuttall 1 Mar
Globalism is a new concept. We're much older than the trending central planning ghouls.
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10 sats \ 6 replies \ @supratic OP 1 Mar
A new concept? Globalism = globalization! Whatever you want to call it, I think it's pretty old and It's also expiring soon! Or I hope so... Pro localization/localism
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0 sats \ 5 replies \ @Nuttall 1 Mar
Globalism is all about one thought process for everyone except for the ones who want to be on the top.
We've always been moving around the globe. For about 50,000 years. In between ice ages and globe corrections. Probably a lot longer... Modern history is Marxism. Strip everyone off their heritage, generational wealth and get permission from the state.
Always looking outside and never considering that we are all participants who give power away.
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10 sats \ 4 replies \ @supratic OP 1 Mar
I totally agree, but I assume globalism as a modern ideology at the sacrifice of local smaller communities and free market. The illusion that it imply no borders it's a lie has been sold for decades, it implies more control over borders, we are watching the results of it just right now. Moving around the globe is not as free as it was before, and travelling a bureaucratic nightmare. Maybe just my impressions.
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0 sats \ 3 replies \ @Nuttall 1 Mar
Something to get us all spun up over.
When we bought our house we talked to the neighbors and we were familiar with the neighborhood.
That was 20 years ago. I can complain but mostly I'm near the water and it's a small city near a lot of things but mostly water.
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10 sats \ 2 replies \ @supratic OP 1 Mar
waves too?
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