Rent vs Buy

[Anonymous]

I have been debating between buying a house vs renting in the Dulles area. With the prevailing rent and the listing prices of homes, and the mortgage rate, all the online calculators (nerdwallet, realtor.com, etc.) point to renting being the better option for a long time to come. Unless the mortgage rate is in the 3-4% rate, renting always comes out to be better.

Are these calculators reliable or do they miss something that would tilt the consideration in favor of buying?

[Anonymous]

Give me the numbers. I did the calculation on 2-bedroon in my building. Buying was never a better option than renting for me. Long story short, after 30 years, I could buy the unit I rent out cash and the one next door and have money left over.
It isn't even the interest rate. It is about the lost opportunity cost of the down payment and then the extra I would have to pay every month for 30 years. Not to mention, never a chance to downgrade for a year if money gets tight. I'd rather do that than get a roommate.
I know a lot about investing and my returns are very high. Not ready to tie down so much cash. If owning a home teaches you a lot about real estate and upkeep, go for it.

[Anonymous]

My Mom rented a long time but actually ended up buying after she retired because she got tired of landlords raising the rent or doing other things that made her want to move. Having control over your housing is worth something.

[Anonymous]

Anonymous wrote:Give me the numbers. I did the calculation on 2-bedroon in my building. Buying was never a better option than renting for me. Long story short, after 30 years, I could buy the unit I rent out cash and the one next door and have money left over.
It isn't even the interest rate. It is about the lost opportunity cost of the down payment and then the extra I would have to pay every month for 30 years. Not to mention, never a chance to downgrade for a year if money gets tight. I'd rather do that than get a roommate.
I know a lot about investing and my returns are very high. Not ready to tie down so much cash. If owning a home teaches you a lot about real estate and upkeep, go for it.

One sometimes overlooked benefit of owning is forced savings. This doesn't apply to you if you are a disciplined saver/investor. But if you are spendy, like my spouse, having money tied up in a home is more good than bad. The equity is significant, and it most likely wouldn't have been spent otherwise. They can max out a 401k, but anything else that hits the account somehow gets spent.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Give me the numbers. I did the calculation on 2-bedroon in my building. Buying was never a better option than renting for me. Long story short, after 30 years, I could buy the unit I rent out cash and the one next door and have money left over.
It isn't even the interest rate. It is about the lost opportunity cost of the down payment and then the extra I would have to pay every month for 30 years. Not to mention, never a chance to downgrade for a year if money gets tight. I'd rather do that than get a roommate.
I know a lot about investing and my returns are very high. Not ready to tie down so much cash. If owning a home teaches you a lot about real estate and upkeep, go for it.

One sometimes overlooked benefit of owning is forced savings. This doesn't apply to you if you are a disciplined saver/investor. But if you are spendy, like my spouse, having money tied up in a home is more good than bad. The equity is significant, and it most likely wouldn't have been spent otherwise. They can max out a 401k, but anything else that hits the account somehow gets spent.

*would have been spent

[Anonymous]

Anonymous wrote:Give me the numbers. I did the calculation on 2-bedroon in my building. Buying was never a better option than renting for me. Long story short, after 30 years, I could buy the unit I rent out cash and the one next door and have money left over.
It isn't even the interest rate. It is about the lost opportunity cost of the down payment and then the extra I would have to pay every month for 30 years. Not to mention, never a chance to downgrade for a year if money gets tight. I'd rather do that than get a roommate.
I know a lot about investing and my returns are very high. Not ready to tie down so much cash. If owning a home teaches you a lot about real estate and upkeep, go for it.

Here are the parameters I used:
House price: Anywhere from 650K to 950K, 20% down
Rent: 3,500/mo, appreciating 2% per year
Mortgage rate: 6.63% (default)
Investment return: 5%
Homeowners insurance: 300/mo
HOA: 300/mo

[Anonymous]

"better" meaning lower monthly payment? how do you factor in gaining "equity" when you buy?

[Anonymous]

Anonymous wrote:"better" meaning lower monthly payment? how do you factor in gaining "equity" when you buy?

"better" in which has more overall financial value at various years down the road. In the case of buying a home, it includes equity. In the initial years, home ownership is always expensive over renting but it comes down with time, reaches a minimum and increases with time. But does it break even and become more valuable over renting anytime in the future is the question. As one of the PP mentioned, the lost opportunity cost of plunking down large sum into the home (which could be earning more in the market) makes renting a better value, at least under the present mortgage rates.

[Anonymous]

Owning a home is better only if you know that you will stay put there at least 10 years. Else, the transaction costs alone aren’t worth it and you don’t build enough equity and mostly line the banks pockets with mostly interest in the initial years. Now, if you can manage a 10 or 15 year mortgage. A lot less is wasted on mortgage interest and goes into the loan principal.

[Anonymous]

Buying is almost always better than renting, provided it's a good buy and you take care of it.

People who rent are also often the types who destroy their own things via neglect and bad behaviors, which is why renting is often better for them, despite them never building equity.

[Anonymous]

Anonymous wrote:Buying is almost always better than renting, provided it's a good buy and you take care of it.

People who rent are also often the types who destroy their own things via neglect and bad behaviors, which is why renting is often better for them, despite them never building equity.

What are you talking about?! I have owned and am currently renting after my divorce. I live in a HCOL and the home I can get by renting is much bigger and nicer than if I bought.

[Anonymous]

Anonymous wrote:Buying is almost always better than renting, provided it's a good buy and you take care of it.

People who rent are also often the types who destroy their own things via neglect and bad behaviors, which is why renting is often better for them, despite them never building equity.

Unless you were born with a silver spoon, everyone is a person who rents at some point in their life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Buying is almost always better than renting, provided it's a good buy and you take care of it.

People who rent are also often the types who destroy their own things via neglect and bad behaviors, which is why renting is often better for them, despite them never building equity.

What are you talking about?! I have owned and am currently renting after my divorce. I live in a HCOL and the home I can get by renting is much bigger and nicer than if I bought.

LMAO, I'm assuming this is joking, but on here, who knows. If not a joke, then let us know.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Buying is almost always better than renting, provided it's a good buy and you take care of it.

People who rent are also often the types who destroy their own things via neglect and bad behaviors, which is why renting is often better for them, despite them never building equity.

Unless you were born with a silver spoon, everyone is a person who rents at some point in their life.

Not even close to true. You are pushing propaganda. How do you benefit from pushing it?