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Leasing a car is an expense as you are paying for the use of the car, same for electricity, rent, etc. You can't legally sell the car, apartment or electricity to someone else.
A car payment (aka loan) is a liability against the car (asset) as you can sell the car (or house or washing machine).
The house and car are assets, the actual loans for each are the liability.
I'm not an accountant so I'm hoping this makes it clear.
Thank you. Understands the young grasshopper does.
I like to buy/sell houses, I just don't understand the legalities of it. I just pay or collect lol but I still say buying is better than renting. When all is said and done, with buying you have something to show for it.
You're more than welcome.
Buying versus renting is more about what you're looking to do and your situation. Like I said, buying ties up your liquidity, (and why people get home equity loans). So there is a trade off.
Maybe a single person can find a really nice one bedroom for rent for a great price in Rockville Center, Great Neck or Garden City. But for us, we considered renting when we start a family, and that’s not even possible. I’m not even sure how people on this thread consider renting cheaper/better. If you’re a married couple with one child, you at least need a two bedroom. A really nice 2/2 in RVC or Long Beach would run us $2500. We can get a mortgage for less than that and it’s ours. With inflation, we’ll be giving someone else $4000 for that same apt in 10 years. I didn’t see how renting was fitting for the future even though we would have loved to give it a shot.
Maybe a single person can find a really nice one bedroom for rent for a great price in Rockville Center, Great Neck or Garden City. But for us, we considered renting when we start a family, and that’s not even possible. I’m not even sure how people on this thread consider renting cheaper/better. If you’re a married couple with one child, you at least need a two bedroom. A really nice 2/2 in RVC or Long Beach would run us $2500. We can get a mortgage for less than that and it’s ours. With inflation, we’ll be giving someone else $4000 for that same apt in 10 years. I didn’t see how renting was fitting for the future even though we would have loved to give it a shot.
Don't confuse the cost of owning a home with the purchase price of a home. Two completely different numbers especially here on LI with high closing costs, property taxes, utilities, repairs, upkeep etc.
Location: Prince Georges County, MD (formerly Long Island, NY)
1,558 posts, read 2,727,312 times
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Quote:
Originally Posted by vision33r
If you're making $62k, you could hardly afford and maintain a decent home in Texas and you want to do this in LI? The OP is just asking for foreclosure in less than 2 years. Even in situations where the man makes $62k and wife makes $50k, it's still a struggle at $110k in LI with the taxes and just the cost of living.
Is it really that bad these days? A $62k salary can't sustain a mortgage in Texas? Me thinks you're exaggerating. Or maybe the people complaining about that are the ones who want stainless steel appliances in their "starter house."
Maybe a single person can find a really nice one bedroom for rent for a great price in Rockville Center, Great Neck or Garden City. But for us, we considered renting when we start a family, and that’s not even possible. I’m not even sure how people on this thread consider renting cheaper/better. If you’re a married couple with one child, you at least need a two bedroom. A really nice 2/2 in RVC or Long Beach would run us $2500. We can get a mortgage for less than that and it’s ours. With inflation, we’ll be giving someone else $4000 for that same apt in 10 years. I didn’t see how renting was fitting for the future even though we would have loved to give it a shot.
I don't think anyone said that renting is better for the long term. In fact, I think everyone who discussed renting as a favorable option discussed it being a good short term option until you're in a great position to buy.
Don't confuse the cost of owning a home with the purchase price of a home. Two completely different numbers especially here on LI with high closing costs, property taxes, utilities, repairs, upkeep etc.
The repairs and upkeep applies to every home in any city and state. Yes, property tax is high but not on all homes. And when I'm looking, I'm certainly not looking to buy a home w/$20K in property taxes. $2500 in rent can easily become $3500 in 5 years. That's much more than I'd pay for any mortgage w/up-keeps in my range.
I just think I'm defending my position to want to buy one day and people are defending the position to keep renting if you don't have the money. I say buckle down and save hard so that you can buy soon. Comments here seem like they're geared to convince people they can't ever afford to own a home.
...then look at that wad of cash and ask yourself, "what else could I do with it"? If you can't come up with anything better than sinking it into a house then do it.
...then look at that wad of cash and ask yourself, "what else could I do with it"? If you can't come up with anything better than sinking it into a house then do it.
True!! Great advice. Actually, I want to keep traveling so it's tough to be responsible....
Location: Prince Georges County, MD (formerly Long Island, NY)
1,558 posts, read 2,727,312 times
Reputation: 1652
Quote:
Originally Posted by ClarkStreetKid
...then look at that wad of cash and ask yourself, "what else could I do with it"? If you can't come up with anything better than sinking it into a house then do it.
This is the paradox I find myself in as I'm saving up. I still have several years before I buy (I'm in my early 20s, but started saving for a house last year with a high interest money market account). Then I look at property values and realize it's going to be a long road before I can buy. I initially shrugged it off since I was planning on moving out of New York where housing is cheaper, but some things have come into play that may cause me to stay.
Sigh, I'm not asking for a handout of any sorts, but I sure wish home ownership was more attainable for young people on Long Island like myself who are trying to make wise, responsible choices for the future
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