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Originally Posted by Galapogos
Originally Posted by Hawkfan79
You laugh, but not many people can afford to buy a house at this point in life, but renting is just plain dumb and should only be a short term option at most (if at all possible).
I hope you didn't mean me, I wasn't laughing at anyone. Also renting is not dumb, it's dumb to rent if you're paying the same you would for a mortgage. But often renting is your best option. You pay less than you would for the same space by owning it, this allows you to save a lot of money to put towards owning property. People underestimate how important it is to be paying a very reasonable cost of living even if it means that money doesn't pay off as an investment later in life. There's better options for different situations.
I've done quite a lot of research in this area having bought some property myself, and I can say for 99% of cases in the USA now (or in fact Australia), renting is more cost efficient than buying. If you want to know why, simply work out the ROI of the house you're going to rent, and if it's lower than a fixed interest vehicle then you know the homeowner is losing out and by extension you're gaining. Buying is only profitable if the property can be reasonably expected to appreciate by at least 3 or 4 percent each year.
Remember when renting there are also no repair bills, land taxes, and transaction costs when you move.
eupho i don't think it's ridiculous idea and I'm rather impressed you came up with such a creative solution. But looking at the numbers I still think you're better off with the mobile home option or living in a ghetto.
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