I've got a 3 bedroom in Mishawaka I bought for 12 grand.
I forgot. INGO statistics say that a sample set of n=1 is an acceptable sample size to use for drawing conclusions/making generalizations about trends.
I've got a 3 bedroom in Mishawaka I bought for 12 grand.
I forgot. INGO statistics say that a sample set of n=1 is an acceptable sample size to use for drawing conclusions/making generalizations about trends.
I forgot. INGO statistics say that a sample set of n=1 is an acceptable sample size to use for drawing conclusions/making generalizations about trends.
MIBOR.com. There are currently 23 residential properties in Marion County for under $12,000. 67 total in the MIBOR directory (all locations).
Unless your landlord is REALLY bad at math, renting is always more expensive than owning the same home. But for some folks, that is perfectly fine. I don't knock folks that rent (we did for years). If you are highly mobile, or don't want to deal with owning your own, it is a great idea. What irks me are folks that over-buy a home (finance more than they can afford), and then complain about it.
Hi, I'm Kelly, I'm an Analyst (that's pretty much a statistician with people skills). I could show correlation between a company's workforce and the number of employee parking spots. That doesn't mean the company has the right number of employees to accomplish the job. I'll now read the story.
I tell sellers this all the time when they're trying to make a profit after 3 years of ownership. Owner occupied homes are NOT investments. Not in the sense of making more than you paid in.
However, comparing renting to owning, they are. Renting is literally (compared to owning) throwing your money away because the only thing you have to show for your payment is the immediate benefit of shelter. When you stop paying rent, you cease having that shelter.
With a mortgage payment, not only are you paying for your shelter, but you have a hard asset that contributes to your NET value and the equity can be leverage for other purposes than can become real investments that supply a concrete ROI. And you at some point, you own (property taxes aside) the property and continue to benefit from the shelter without having to pay for it.
Renters do pay a portion of the costs of homeownership. Though I doubt that the renter for a particular property ever pays what an owner of that same property would pay, when all the expenses are added up. And I'm not included the extras that translate into property improvement. Just the costs to maintain the status quo. Rent for a given home is usually more than what the mortgage might be (depending on financing terms, of course).
I've got one 2bd/1ba renting for $675/month. Assuming a 100% LTV and no deductions on the property taxes, 30 year term at a 5.00% rate, the PITI would be $582/month.
I've got a 3bd/2ba renting for $900/month. Same terms as above, PITI would be $718.
So renters absolutely bear the costs of taxes and insurance, as well as the costs of financing the mortgage if it exists. And then some.
I don't want to think it, but I almost wonder if this is a push for government rental properties.
If owning a home is so expensive and as noted above renters pay the extra costs plus profit to the landlord, then obviously the only civilized solution is to nationalize the housing market.
/tinfoilhat.
For most people who buy on a 30yr with very little down, owning IS renting. The payments are almost all interest and since most folks will move in 7 years or so, the principal sees little if any actual pay-down.
The difference between renting and buying is the difference in value between liability and flexibility. Renting gives you more ease of relocating, and this commands a price premium, all else being equal. Buying that home is a huge liability, and the owner takes on upkeep and all that.
I would never consider residential real estate to be much of an "investment." Commercial real estate, yes, but not so much with residential.
When interest rates are low, it would theoretically make owning a better deal than renting. But when owning is easier, it drives down rent. That's why, in the long run, the ratio of rent vs own is pretty stable.
Real estate can be a reasonably good place to PRESERVE wealth, but I don't see it as an appealing means of CREATING wealth.