3 ms·

The reason to rent is for the ability to move on demand. If a family is renting in the same place for decades, that is their problem. The moment you realize yo

The reason to rent is for the ability to move on demand. If a family is renting in the same place for decades, that is their problem. The moment you realize you are going to stay in one place for an extended period of time, there is no reason to continue renting. Sure, not everybody can purchase their dream home. But they can purchase something small, build equity, and upgrade in the future. The government also has programs to help first time buyers, especially those with less income. Again, the primary reason to rent is so you can relocate. If you are not planning on relocating in the 5-10 years, you should own, or be working on owning. Furthermore, the landlord is taking on risk (risk of the market moving against him, risk of the tenant not paying him or the place remaining unoccupied after a tenant leaves), is paying property taxes, insurance, is responsible for broken appliances, and is also often taking on a loan with higher interest rates. Should all of this be provided for free?

codydh 9y ago
It's common for people to get stuck below or near the poverty line. It's difficult to save for a house down payment (much less build up the credit to get a loan for the rest) when you're struggling to pay for rent, bills, and food. Ignoring this cycle is missing the reality for many, many people.
- reverend_gonzo 9y ago
  Absolutely. Some people definitely do have it a bit harder than other people. But, outside of medical/mental issues, or just a stream of bad luck, people generally make it harder on themselves due to certain choices in their life. My parents came to America without a dollar in their pockets. My dad's income was running a convenience store which barely made enough to pay his bills. So both parents worked, effectively minimum wage jobs, and saved for years so they could build their dream home and send their children to college. We never went out to eat, rarely went on vacation, and parents don't drink. So, they were able to fulfill their dreams. When people say they want to own a house, but are unwilling to find a cheaper location, stop drinking, stop eating out, drive older beat-up cars, well, then they've made their choice. The system has its issues, but no one deserves anything, and the system is not the problem here.
  - branchless 9y ago
    How much was land back then? Far less. He'd be in that cycle if he came over now.
  - CodeCube 9y ago
    You say "outside of ...", as if those things aren't common. So what, a stream of bad luck, or a sickness should relegate you to lifelong poverty?
wang_li 9y ago
Renters are also borrowing the credit score and down payment of the landlord.
- CodeCube 9y ago
  Yes, but it should be temporary (to be ethical) ... if a single entity is a long-term tenant, that should be proof that they are a responsible, and should begin to accrue equity in the asset they are paying tons of money into.
astura 9y ago
"You should own," no, everyone is different. Many people have no interest or ability to take care of a property. I watched my grandparents' house deteriorate and literally fall apart from neglect. [I used to think the roof leaking when it rained was a totally normal thing] They had literally every appliance in the house break over the years but they didn't have the wherewithal to replace anything so they just went without. They lived in total squalor for years, it was depressing (as well as very dangerous) visiting. If code enforcement stopped by they'd be homeless. For sure, there is many, many benefits to owning, I love being a homeowner (most of the time - though I did get a little sticker shocked at my first 4 figure repair bill), but don't believe for a second "everyone should own."
- ghaff 9y ago
  I don't disagree with your broader point. But I would point out that owning doesn't need to mean owning a standalone house. In addition, in general, renting starts to become problematic at some point in life where being forced to move because the landlord sold the property becomes a really unpleasant situation.
  - astura 9y ago
    Condos are another can of worms. I just very briefly touched on one issue with owning and why it may make sense for someone to rent for years (even if it might not be financially optimal[1]). Books could be written about the topic. The main takeaway is "everyone is different." And "one size does not fit all." Remember, many businesses still choose to rent over buying. [1] plus you only truly know in hindsight what was truly financially optimal
- giblaz 9y ago
  >don't believe for a second "everyone should own." You really should own if you're going to stay in the same place. If you can't take care of your place, and you rely on a landlord to do it, you're going to be in for a bad time when you have a landlord that doesn't give a shit. Which a lot of them are.
shamino 9y ago
I invite everyone on this thread to read "The Wealthy Renter" by Alex Avery. Also, no, the primary reason is not so you can relocate. Buying a home could be a very bad financial decision for most people, who don't realize it and just do it because everyone around them tells them to.

codydh 9y ago

It's common for people to get stuck below or near the poverty line. It's difficult to save for a house down payment (much less build up the credit to get a loan for the rest) when you're struggling to pay for rent, bills, and food. Ignoring this cycle is missing the reality for many, many people.

reverend_gonzo 9y ago
Absolutely. Some people definitely do have it a bit harder than other people. But, outside of medical/mental issues, or just a stream of bad luck, people generally make it harder on themselves due to certain choices in their life. My parents came to America without a dollar in their pockets. My dad's income was running a convenience store which barely made enough to pay his bills. So both parents worked, effectively minimum wage jobs, and saved for years so they could build their dream home and send their children to college. We never went out to eat, rarely went on vacation, and parents don't drink. So, they were able to fulfill their dreams. When people say they want to own a house, but are unwilling to find a cheaper location, stop drinking, stop eating out, drive older beat-up cars, well, then they've made their choice. The system has its issues, but no one deserves anything, and the system is not the problem here.
- branchless 9y ago
  How much was land back then? Far less. He'd be in that cycle if he came over now.
- CodeCube 9y ago
  You say "outside of ...", as if those things aren't common. So what, a stream of bad luck, or a sickness should relegate you to lifelong poverty?

wang_li 9y ago

Renters are also borrowing the credit score and down payment of the landlord.

CodeCube 9y ago
Yes, but it should be temporary (to be ethical) ... if a single entity is a long-term tenant, that should be proof that they are a responsible, and should begin to accrue equity in the asset they are paying tons of money into.

astura 9y ago

"You should own," no, everyone is different. Many people have no interest or ability to take care of a property. I watched my grandparents' house deteriorate and literally fall apart from neglect. [I used to think the roof leaking when it rained was a totally normal thing] They had literally every appliance in the house break over the years but they didn't have the wherewithal to replace anything so they just went without. They lived in total squalor for years, it was depressing (as well as very dangerous) visiting. If code enforcement stopped by they'd be homeless. For sure, there is many, many benefits to owning, I love being a homeowner (most of the time - though I did get a little sticker shocked at my first 4 figure repair bill), but don't believe for a second "everyone should own."

ghaff 9y ago
I don't disagree with your broader point. But I would point out that owning doesn't need to mean owning a standalone house. In addition, in general, renting starts to become problematic at some point in life where being forced to move because the landlord sold the property becomes a really unpleasant situation.
- astura 9y ago
  Condos are another can of worms. I just very briefly touched on one issue with owning and why it may make sense for someone to rent for years (even if it might not be financially optimal[1]). Books could be written about the topic. The main takeaway is "everyone is different." And "one size does not fit all." Remember, many businesses still choose to rent over buying. [1] plus you only truly know in hindsight what was truly financially optimal
giblaz 9y ago
>don't believe for a second "everyone should own." You really should own if you're going to stay in the same place. If you can't take care of your place, and you rely on a landlord to do it, you're going to be in for a bad time when you have a landlord that doesn't give a shit. Which a lot of them are.

shamino 9y ago

I invite everyone on this thread to read "The Wealthy Renter" by Alex Avery. Also, no, the primary reason is not so you can relocate. Buying a home could be a very bad financial decision for most people, who don't realize it and just do it because everyone around them tells them to.