Reply to Question for renters..Aren't you tired of paying someone's mortgage?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I pay about $4000/month for my place.  Rent would be about $3,000.  For six years, there were reasons why nobody in our building could sell.  Many had children and wanted larger spaces in the meantime, others had to move for work.  This left them with a deficit of $1,000/month for many years.  Plus they had to do continual work to deal with being a landlord and several had renters who failed to pay their rent.  I think it is entirely understandable that people would like to invest that extra $1,000 elsewhere if they so chose.  Also, in order to buy now in my building, you need close to $100k downpayment.  Shockingly, some people don't have that. [/quote]

Wait, so you've lived there for 6 years and you still can't break even on mortgage and cover with rental income? Where are you located?[/quote]

The question as written is irrelevant, as I have lived there for much longer than that, and I currently have a 15 year loan that has the same cost as my former 30 year loan.  This is less than $4k, the $4k number includes condo fees and taxes.  If we were talking about a house, you wouldn't have the condo fee, but you would have upkeep that may far surpass the amount paid regularly in fees.

But, during the six years in question (2006-2012), I was paying that on a 30 year loan plus a bit more for a special assessment, the property did not go up in value, and financing for more than 50% was unavailable in our building (which essentially precluded refis and sales).  Most were actually renting at about $2,500, so they were taking a huge loss.  Those who were able to stick it out have now seen a large increase in value, but there was a lot of pain in the meantime and a lot of tough decisions.

On the other hand, most of the renters in the building have very good reasons for renting.  They are in jobs that they may not stay in forever, and they want to keep options open for different career paths (we have high international development and law firm representation) and family situations (many are single).

For me, owning has paid off and has actually helped me because it forced me to stay put when I might otherwise have moved to the suburbs, which I would have hated, but it is not the right choice for everyone at every stage of their lives.
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