Given some of the replies, me thinks not nearly as much as they should.
Renting vs owning a home and vehicles.
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Depends on when you buy. Our home is worth 3 times what we paid for it in 2011. We bought a short sale and got a killer deal. The house was not in terrible shape but I made quite a bit of improvements over the years and not close to finished with my plans. And it is fun working on the house. You gain experience, learn about electrical, painting, carpentry etc. It's like a hobby for me almost. I have no problem dumping 10k into the house every year via improvements vs throwing away 10k+ in rent for a half decent apartment. Good luck finding a garage for your cars in most apartment complexes.
Cutting the grass is fun and gives you some exercise. And you get some good sun exposure.
What if you have dogs? You're going to hole them up in an apartment?
No way would I ever go back to renting an apartment.
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So where do renters work on their cars? Never had an apartment.
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Apartments typically don't allow it, unless you found an apartment complex with a garage. Although they still may say don't do it in the renters agreement. You usually have to rent a townhouse or single family home if you want to work on your own cars, and rent.
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As we're discussing here, some folks have the options above. There are areas with HOAs, home owners associations, that won't allow working on cars only in the garage with the door closed. So most of the guys in apartments have to pay someone, rent a garage, or the like? By the time you opt for the above, you could put that into a house; an investment, good or bad.
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I'm going to take a wild guess and say leasing is involved
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Wow. That's going to mean less toys for the cars. OK. Thanks for the guess..
I am on my fourth cobra. I just bought my first home. 4 bed 2 bath fixer upper. Got it cheap, my DTI ratio was decent. Scraped to get down payment. What did i learn the hard way? CREDIT! Learn to leverage it.
For reference, I live in a Coastal city that's one of the number one tourist destinations in the country. It's been voted as such multiple times. Point is- it's expensive.
You can't touch a house for less then 240k let alone an apartment for less then 1200. Unfortunately I did not have a solid 20% down, but I had enough to secure FHA. When we bought, I managed to get in for 239k. Two months later, the house next to me sold for 275k. Improvements I've made and similar homes that have sold around me have gone to upper 200's pretty quickly. We have Volvo, Daimler, Google, Boeing, BMW, and others headed this way (if not already here). Business is growing quickly and housing has run out. I plan to let the house fluff up to 280-300k and then refi to kill the PMI.
Point is: When an area is in high demand, high development, and incoming large businesses, the influx of people run property values thru the roof (see California). Add in the beautiful landscape and area, it's pretty much a given that it's smart to buy now instead of later.
If in your case, you find yourself in a low demand area with not a ton of development, it might behoove you to rent. I just know that I specifically sold my S550 with the big note to buy the house comfortably. I then sold my beater truck and picked up a Tacoma with a much smaller monthly note a few months later.
You can't touch a house for less then 240k let alone an apartment for less then 1200. Unfortunately I did not have a solid 20% down, but I had enough to secure FHA. When we bought, I managed to get in for 239k. Two months later, the house next to me sold for 275k. Improvements I've made and similar homes that have sold around me have gone to upper 200's pretty quickly. We have Volvo, Daimler, Google, Boeing, BMW, and others headed this way (if not already here). Business is growing quickly and housing has run out. I plan to let the house fluff up to 280-300k and then refi to kill the PMI.
Point is: When an area is in high demand, high development, and incoming large businesses, the influx of people run property values thru the roof (see California). Add in the beautiful landscape and area, it's pretty much a given that it's smart to buy now instead of later.
If in your case, you find yourself in a low demand area with not a ton of development, it might behoove you to rent. I just know that I specifically sold my S550 with the big note to buy the house comfortably. I then sold my beater truck and picked up a Tacoma with a much smaller monthly note a few months later.
Speaking of raising home values, I missed the boat in Palm City FL. Could of bought a home from the builder for 300k in 2014. Same home is now actually selling by owner in the low to mid 400's 2-3 years later.
Place I ended up saw a nice jump in value, but not that type of jump.
I will say, after going through 2 hurricanes in the past 2 years, getting a tad lucky both times, it does suck a tad more being the homeowner and not the tenant lol.
Place I ended up saw a nice jump in value, but not that type of jump.
I will say, after going through 2 hurricanes in the past 2 years, getting a tad lucky both times, it does suck a tad more being the homeowner and not the tenant lol.
I worked on my cars in the parking lot of every apt I ever lived in with zero problems.
Not really, only if you buy new. I think when I was looking for a house a new house was approx. $100 a sq ft, and a used house was $50-$60 a sq ft. So yes you buy new and it immediately depreciates. Used houses typically appreciate after you buy them in normal stable parts of the country.
I bought my house which was built in 1974 for $142,000 back in 2007 before the recession. Its easily worth $160,000 today. My dad bought his house for $90,000 in the same neighborhood back in 1991, its valued at $200,000. This is in an older established neighborhood in a part of town that hasn't changed one bit in the 30 yrs I've been around so its no "property value boom."
In Kansas buying a house is an investment, if you buy it and maintain it, the house will continue to increase in value.
You're lucky then. I haven't heard of a single apartment complex out here that allows it.
nope, not always the case.
Thats not really the rule of thumb. New housing tracts can appreciate in value quickly when they are in an in demand area. Especially in socal where the upper middle class put a large amount of value in a home that is new and energy efficient.
The first phases of new housing tracts often sell for far less than the last phases of new housing tracts out here as well. One such place near me started around 250K plus land for a very basic house in phase 1, but by the final phase they were starting at 350k plus land in a very nice up and coming neighborhood. Even in phase 1, no one got in without spending over 300 when you included land and every other fee. And its a "cheap" area of socal.
That is what happened with my wife and I. Living in the Bay Area, we knew buying would be a stretch. However, we bought our first house (townhouse) young, at 24. We paid $400k for it, which was still low as it wasn't in the best area. However, we were able to sell it for $550k two years later. We took that profit and put it down on a single family home for $700k in a quieter suburb that I felt was going to boom.
Two years later, houses are selling for $1m all around us. When we refinanced earlier this year, it appraised for $870k.
Purchasing property at the right time in the right locations is the key. Not all people should buy a home, and not all homes are good investments. Just like anything else, you have to be smart about it, and have some luck.
Show me a better way that I could have invested my money 4 years ago (outside of bitcoin) for that kind of return.
Any of the bigger cities have similar situations. Dallas, austin, huston, NYC, miami, tucson, pheonix, Denver, etc. Anywhere there is an apparent desire for people to move to.
If you build a new house in an area that has had a population of 200 for the last 100 years, and no one has built a house in 10, ya thats not going to be a great investment.
California isn't really just a California example. It's more of a "Supply and Demand" example.
High demand for housing in the state, therefore supply runs low and price goes up. Doesn't matter if it's Charleston, California, or Denver. You're talking about a hot real estate market.
Own where people want to move to. That way you can sell if you need to. Most people that get in trouble with mortgages and homes tend to buy in the most obscure areas with little demand and cry afoul when they can't sell.
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