Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
And what is this owner going to do when the roof needs to be replaced?
A prudent owner saves for the inevitable repairs and replacements. That is one reason lenders have ratio requirements, to ensure borrowers have sufficient money left after paying the mortgage.
Renting out one room should easily produce more than enough income for normal replacements like roof and furnace.
A prudent owner saves for the inevitable repairs and replacements. That is one reason lenders have ratio requirements, to ensure borrowers have sufficient money left after paying the mortgage.
Renting out one room should easily produce more than enough income for normal replacements like roof and furnace.
You can equally well argue then that a prudent renter has savings and doesn't live paycheck to paycheck either. And before you resort to your "How am I supposed to do it on a poverty level income?" line, realize that this is not a result of renting or owning but of employment and is thus irrelevant to the rent or buy question.
Odd. My take is 180 degrees different. I naturally spend less than I make, no matter how little it is, and do not have any stress where money is concerned. I don't worry about budgets or if I'll be able to pay the bills. Seems like it would be a lot more stressful if I did.
It's your *wants* that are the problem. It functions just like a drug addiction. You want something, you are briefly satiated when you get it, and then you are off to wanting the next thing. Having more money does not solve the underlying addiction. It's true that having more money will generally make you happier up to a point, but that is mostly because we tend to judge ourselves relative to other people. That's another thing that is good to let go of.
What do you really *need*? Food, water, insulation from extreme heat and cold. That's it. Everything else should be seriously questioned, to see if it's worth the trouble it takes to obtain and deal with it, and if there are ways to reduce the cost if possible.
Maybe try meditating. Once you learn how to be happy sitting quietly in a room alone, it gives a good perspective on all the other stuff.
I have no issue, I just want to make as much money as I can so I can buy nice things. I do save, inevst, etc. But saving money is not an option for ALOT of people. People just don't make enough money, they need to focus on making money.
Saving money is a no brainer. The problem is people will always buy what they choose. no matter how much we say save money.
You can equally well argue then that a prudent renter has savings and doesn't live paycheck to paycheck either. And before you resort to your "How am I supposed to do it on a poverty level income?" line, realize that this is not a result of renting or owning but of employment and is thus irrelevant to the rent or buy question.
You can't really argue that because renters have much lower incomes than homeowners - median renter income is half median homeowner income - and especially because a large proportion of renters have extremely low incomes. For example, there are SRO buildings which allow renters with income only 1.5 times rent. Surely these SRO managers do not expect their tenants to have savings.
Basically, whenever and wherever not prohibited by law, capitalists will serve low-income markets if they can do so profitably. They do not serve these markets until the more profitable market segments have been served (e.g. cell phones did not reach the poor until they were the only ones left for sales expansion).
You probably have one or more cost advantages not available to most of the poor. (e.g. no rent or mortgage payment). I don't have an underlying addiction, I spend $1200 a month at any income level.
No, that isn't it. I'm probably spending about the same as you currently, but only because I can... and my wife has more expensive tastes, so I have to keep up with whatever she wants. A big chunk (~$6k/yr) is going towards a mortgage, but ~$4k of that is principal (15yr loan), which is like money in the bank, so that isn't even a *real* expense. Taxes, insurance, utilities and upkeep definitely are, and total ~$2500 including cell phone and computer. Food and toiletries are ~$1500. I have '86 Toyota truck I drive ~3k miles/yr on average. $400 for insurance plus ~$800 to use it. I like bicycle riding, and maybe spend ~$1000/yr on that.
What am I up too? $12,200/yr if you include principal on the house. That leaves $2200 for fun and miscellaneous before I hit your total. Sounds about right. But I could pair that down a lot if I needed or wanted to.
You can't really argue that because renters have much lower incomes than homeowners - median renter income is half median homeowner income - and especially because a large proportion of renters have extremely low incomes.
You are conflating correlation with causation. The low income is caused by matters of employment, not of housing. IN fact the causation is the other way - it is the low income that causes the renting, not vice versa.
You therefore cannot argue that one should buy in order to get the improvements of financials that results from increased income - because to do so rests upon incorrect assumptions regarding causation.
No, that isn't it. I'm probably spending about the same as you currently, but only because I can... and my wife has more expensive tastes, so I have to keep up with whatever she wants. A big chunk (~$6k/yr) is going towards a mortgage, but ~$4k of that is principal (15yr loan), which is like money in the bank, so that isn't even a *real* expense. Taxes, insurance, utilities and upkeep definitely are, and total ~$2500 including cell phone and computer. Food and toiletries are ~$1500. I have '86 Toyota truck I drive ~3k miles/yr on average. $400 for insurance plus ~$800 to use it. I like bicycle riding, and maybe spend ~$1000/yr on that.
What am I up too? $12,200/yr if you include principal on the house. That leaves $2200 for fun and miscellaneous before I hit your total. Sounds about right. But I could pair that down a lot if I needed or wanted to.
so you really do have an advantage; we're both paying about the same for housing, but you're getting an entire house with land, plus you're enjoying principal reduction and appreciation...while I'm getting a basement room in an overcrowded house (plus fights and drunken rages) for my $6k.
No, that isn't it. I'm probably spending about the same as you currently, but only because I can... and my wife has more expensive tastes, so I have to keep up with whatever she wants. A big chunk (~$6k/yr) is going towards a mortgage, but ~$4k of that is principal (15yr loan), which is like money in the bank, so that isn't even a *real* expense. Taxes, insurance, utilities and upkeep definitely are, and total ~$2500 including cell phone and computer. Food and toiletries are ~$1500. I have '86 Toyota truck I drive ~3k miles/yr on average. $400 for insurance plus ~$800 to use it. I like bicycle riding, and maybe spend ~$1000/yr on that.
What am I up too? $12,200/yr if you include principal on the house. That leaves $2200 for fun and miscellaneous before I hit your total. Sounds about right. But I could pair that down a lot if I needed or wanted to.
Sure, I could get mine down if I didn't have a student loan to pay and if I wasn't paying $2500 for a storage unit to store my inventory that the resident drunken rent collector doesn't want in the house.
After rent, storage unit, and debt service, I'm living on about $200 a month.
You are conflating correlation with causation. The low income is caused by matters of employment, not of housing. IN fact the causation is the other way - it is the low income that causes the renting, not vice versa.
You therefore cannot argue that one should buy in order to get the improvements of financials that results from increased income - because to do so rests upon incorrect assumptions regarding causation.
Unless you are given a house, renting is the default starting condition in this country.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
