Do you know people who have money but aren't buying a home?

[Anonymous]

Anonymous wrote:This is us. Mid 30s, have kids. We have more than half a million in the bank and a good income but rent a SFH. We still may move to be closer with family. Or not. We may buy a house. Maybe. Owning a home is a lot of trouble, and isn't always the greatest investment, depending on how the market goes, etc. Our family members do sometimes pressure us/"hint" that we "need" to buy a house. Oh well.

It may not be that great of an investment but it prevents you from paying rent when you're retired. Over 15 or 30 years you have full ownership of your house and never face a rent increase. The vast majority of people who rent do not have significant savings. You may be an exception.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Sounds like dumb landlords. I increase the rent in my rental property each year by $100. I know it won't cause them to move out because it would be more expensive to hire movers and put down another security deposit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Exactly. My landlords know that having us stay is preferable to turning the property over every few years. They save money by not raising the rent. Seems like some landlords need to run the numbers as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Exactly. My landlords know that having us stay is preferable to turning the property over every few years. They save money by not raising the rent. Seems like some landlords need to run the numbers as well.

Run the numbers for increasing the rent vs keeping rent the same? There's really no reason to NOT increase the rent unless you're stupid. Even just $50 a month. I take the increase and then increase my payments towards equity on the rental property.

You may not live in a desirable neighborhood which is why the rent has been the same for 7 years. My properties are in desirable areas so there's no reason for us not to increase the rent.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Sounds like dumb landlords. I increase the rent in my rental property each year by $100. I know it won't cause them to move out because it would be more expensive to hire movers and put down another security deposit.

God you sound like an ass.

Nope. I consider it a side business and I have a mortgage that needs to be paid off. I plan for the rental property to pay for my travel when I'm retired. It's nothing personal but I can't have someone living in my property for a below market rate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Exactly. My landlords know that having us stay is preferable to turning the property over every few years. They save money by not raising the rent. Seems like some landlords need to run the numbers as well.

Run the numbers for increasing the rent vs keeping rent the same? There's really no reason to NOT increase the rent unless you're stupid. Even just $50 a month. I take the increase and then increase my payments towards equity on the rental property.

You may not live in a desirable neighborhood which is why the rent has been the same for 7 years. My properties are in desirable areas so there's no reason for us not to increase the rent.

+1. The goal is to increase the rent but not so much that it causes the tenant to leave; I think anywhere between $25-75 does the trick. Most people will pay $300-900 extra per yr so as not to have to deal with the hassle of moving; frankly they'll pay more if they realize that a similar place would cost them much more.

[Anonymous]

My childless friends don't own--they value flexibility over stability at this point. It allows them to take better job offers either out of state or across town without worrying about the commute (you can just move if it's really that good of an offer), and it gives them tons of money to play the market with. We dumped $150k into our home as a down payment--friends who put that into the market have a lot better return than we do.

The only reason we purchased is because we wanted our son to grow up in the same house his whole childhood.

+1 Homeownership is not the be all, end all it once was, and there are areas of DMV that appear overvalued. OP should read some actual articles analyzing this issue rather than gossiping mindlessly.
http://www.nytimes.com/2016/04/02/your-money/to-buy-or-rent-a-home-weighing-which-is-better.html?_r=0

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Sounds like dumb landlords. I increase the rent in my rental property each year by $100. I know it won't cause them to move out because it would be more expensive to hire movers and put down another security deposit.

God you sound like an ass.

Nope. I consider it a side business and I have a mortgage that needs to be paid off. I plan for the rental property to pay for my travel when I'm retired. It's nothing personal but I can't have someone living in my property for a below market rate.

You still sound like an ass.

[Anonymous]

That's us. When we moved to the area, we wanted to rent until we find something suitable. While looking for a place to rent, found a great condo for a good price, near the metro and in a good school area. Few of the parents from my kids school who live in a large houses asked when we are planning to buy. They probably guessing that we do have money (we drive German cars, I have some designers stuff, mostly from my pre-kids age). The issue is, even though three years ago we had all intentions to buy the house, we fill so comfortable in the condo now that keep postponing it again and again.

[Anonymous]

I have 2 friend who all make upwards of 300K household incomes. They have little desire to own because they like to move around. Even within the same city they may spend a year at one place and then move to another area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Sounds like dumb landlords. I increase the rent in my rental property each year by $100. I know it won't cause them to move out because it would be more expensive to hire movers and put down another security deposit.

God you sound like an ass.

Nope. I consider it a side business and I have a mortgage that needs to be paid off. I plan for the rental property to pay for my travel when I'm retired. It's nothing personal but I can't have someone living in my property for a below market rate.

I don't think you're an ass, and no, I'm not a fellow landlord.

If I were the landlord, I would also raise the rent, at the very least at the rate of inflation or just 1% more. No way in hell would I let a renter reap the benefit of my fixed mortgage. Unless they're really awesome and maintaining the property like it's their own property..

[Anonymous]

I love how conversations like these end up going down the "must not be a desirable neighborhood" route. Either people aren't buying because they can't afford a "desirable enough neighborhood" or your landlords aren't increasing the rent for the same reason. It is entirely possible that not all of us are slaves to what others think desirable. It's entirely possible that not all decisions be based purely on making the most money, or showing off to others that you make the most money. If home ownership works for you, great! If raising the rent on your tenants every single year works for you, great! There are other roads, and sometimes the one not taken has benefits. You may not see them, and that's okay. I am quite content in my supposedly undesirable rental, banking my money in other ways. Seems like my landlords feel the same. We are all quite happy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Sounds like dumb landlords. I increase the rent in my rental property each year by $100. I know it won't cause them to move out because it would be more expensive to hire movers and put down another security deposit.

God you sound like an ass.

Nope. I consider it a side business and I have a mortgage that needs to be paid off. I plan for the rental property to pay for my travel when I'm retired. It's nothing personal but I can't have someone living in my property for a below market rate.

I don't think you're an ass, and no, I'm not a fellow landlord.

If I were the landlord, I would also raise the rent, at the very least at the rate of inflation or just 1% more. No way in hell would I let a renter reap the benefit of my fixed mortgage. Unless they're really awesome and maintaining the property like it's their own property..

This is us. We take great care of the place. Our landlords appreciate all that we do. It's symbiotic.

[Anonymous]

I used to believe renting was better. We moved around quit a bit. However, I eventually got frustrated how after moving out of an apartment I never received a check except for the return of my security deposit. Yet we were paying rent that was close or just as much as a mortgage. I then realized we needed to get our sh*t together and save for a downpayment. Or we would never have anything and be lifelong renters. I'm just glad we figured it out when we did. We are paying our mortgage off in 12 years. When we move out of this house we should receive a sizable check from the sale. If anything it's a vehicle for forced savings. We already invest over 100k a year in the market and we need the diversification.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We rent, by choice. We have great landlords, have been in the same place for 10 years, love our community. Our housing is a fixed cost and we save a ton of money every month - way over any equity, appreciation, or deductions we would be getting by buying. We plan to pay cash for a house in retirement, but not here. I work in finance-related field and often have people asking me why we've chosen this route - I have found that no one really ever runs the actual numbers to see what makes sense. There's all kinds of kool-aid out there, and you most likely are drinking a lot of it if you are puzzled about why someone with means would choose to rent.

This is not a normal situation for a renter. In fact, having your rent not go up for 10 years is a VERY UNUSUAL situation. Many renters end up moving out of places they love because they can't afford the rent anymore.

Not pp, but we rent a SFH and our rent has been unchanged in the 7 years we've been in the home. I would not rent from a homeowner who raised the rent every year. I'm paying down your mortgage and you have a stable long-term renter. Don't rock the boat being greedy.

Sounds like dumb landlords. I increase the rent in my rental property each year by $100. I know it won't cause them to move out because it would be more expensive to hire movers and put down another security deposit.

God you sound like an ass.

Nope. I consider it a side business and I have a mortgage that needs to be paid off. I plan for the rental property to pay for my travel when I'm retired. It's nothing personal but I can't have someone living in my property for a below market rate.

I don't think you're an ass, and no, I'm not a fellow landlord.

If I were the landlord, I would also raise the rent, at the very least at the rate of inflation or just 1% more. No way in hell would I let a renter reap the benefit of my fixed mortgage. Unless they're really awesome and maintaining the property like it's their own property..

This is us. We take great care of the place. Our landlords appreciate all that we do. It's symbiotic.

Maybe your landlord doesn't have a mortgage.