4 ms·

I've always been an opponent of the "throwing money away" argument. In fact, the argument played right into the housing bubble. There was a sense of urgency t

by ssharp 17y ago

I've always been an opponent of the "throwing money away" argument. In fact, the argument played right into the housing bubble. There was a sense of urgency that you HAD to buy a house now or else. Renting provides you near elasticity in where you want to live. Besides your lease (which could be month-to-month) you have nothing binding you to an area. You also don't face the risk of a declining asset. While housing typically increases in value, we've certainly seen the opposite happening a lot lately. When you're young, you probably don't want to be tied down to an area. Things change quickly at this stage in your life. Ironically, a lot of these people who were afraid they were "throwing money away" while renting got into situations where they literally were throwing money away to PMI and too large of interest rates. If renting was such a god-awful idea, it wouldn't exist. There are tons of reasons to rent instead of buy and anyone who insists that home ownership is the only way is foolish.

ahoyhere 17y ago
Renting in the US also means you are not responsible for: * leaky roofs * broken appliances: clotheswashers, water heaters, etc * maintenance of a/c, heat, etc. * maintenance of water pipes, electricity, etc., etc. * upkeep of lawn, sidewalks, driveways (except in rare cases) * building safety compliance * fixing damage from floods, storms, earthquakes, etc. * worry about termites, the foundation, the well, property line disputes from faulty surveys (the latter occur ALL THE TIME in the US) * building insurance (renter's insurance always a good idea tho) * personal liability for visitors hurting themselves on the lawn, sidewalks, driveway, inside stairs (anywhere outside your actual unit) I could go on and on... if you own a condo, you are subject to surprise "assessments" to care for the building/property amenities, but there's insurance for it. If you own a house, it comes out of your pocket. And if you make claims against accidents (tree falling, storm ripping off siding, etc.) on your homeowners insurance policy for damages, their habit of late is that they will drop you. (Lots of scandals about this.) Renting means very little exposure to this kind of risk, or surprise housing costs, in addition to flexibility to leave. Homeownership pr0n is really out of control.

by ssharp 17y ago

ahoyhere 17y ago

Renting in the US also means you are not responsible for: * leaky roofs * broken appliances: clotheswashers, water heaters, etc * maintenance of a/c, heat, etc. * maintenance of water pipes, electricity, etc., etc. * upkeep of lawn, sidewalks, driveways (except in rare cases) * building safety compliance * fixing damage from floods, storms, earthquakes, etc. * worry about termites, the foundation, the well, property line disputes from faulty surveys (the latter occur ALL THE TIME in the US) * building insurance (renter's insurance always a good idea tho) * personal liability for visitors hurting themselves on the lawn, sidewalks, driveway, inside stairs (anywhere outside your actual unit) I could go on and on... if you own a condo, you are subject to surprise "assessments" to care for the building/property amenities, but there's insurance for it. If you own a house, it comes out of your pocket. And if you make claims against accidents (tree falling, storm ripping off siding, etc.) on your homeowners insurance policy for damages, their habit of late is that they will drop you. (Lots of scandals about this.) Renting means very little exposure to this kind of risk, or surprise housing costs, in addition to flexibility to leave. Homeownership pr0n is really out of control.