Housing Analysis

AccidentalAnalytics said:
After 2 years and 30% appreciation later, you may finally be right!!!  You?re so smart!
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So after 2 years and 30% appreciation later, and then it drops 5% and LL goes, "See, Irvine dropped 5%!!! HUGE drop"
 
nosuchreality said:
Raise your hand if you want to go back to the convenience of renting.
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We tried to do this for a year to see if we could be renters.

It's great if you want to live in different places/neighborhoods but with younger kids, it's difficult to establish a "base" with your neighbors knowing that you are only guaranteed to be there as long as your rent agreement spells out.

The big problem was our landlord was a jerk... so the experiment was a fail for us.

I realize that other people are able to rent just fine, but that's a good question for LL and others who harp on rental parity and saving money renting instead of owning... how has renting been? I think it's harder on families but many of my kids friends live in apartments (and have moved several times) but after moving between several owned homes... I don't think I can do that on a regular basis.

I think bones is a renter now and they love it.
 
irvinehomeowner said:
nosuchreality said:
Raise your hand if you want to go back to the convenience of renting.
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We tried to do this for a year to see if we could be renters.

It's great if you want to live in different places/neighborhoods but with younger kids, it's difficult to establish a "base" with your neighbors knowing that you are only guaranteed to be there as long as your rent agreement spells out.

The big problem was our landlord was a jerk... so the experiment was a fail for us.

I realize that other people are able to rent just fine, but that's a good question for LL and others who harp on rental parity and saving money renting instead of owning... how has renting been? I think it's harder on families but many of my kids friends live in apartments (and have moved several times) but after moving between several owned homes... I don't think I can do that on a regular basis.

I think bones is a renter now and they love it.
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Timing the market? I hope everyone time the market and get what they ask for.

In the meantime, long term renting is suicidal, when you sell because you THINK you can do better renting. Given where the market is, many have little choice but to rent and you also got competition there too. Such a weird time.
 
Love renting!
Didn?t time the market. Just wanted out of the neighborhood I lived in prior. This is a safe space to say that out loud right? with all the hair splitting everyone does here about neighborhoods and all :)

Really not that much of an inconvenience. It?s all about perspective. But I acknowledge inconvenience is subjective. The degree of what one can and cannot deal with varies widely as evident by the last two years :)
 
It?s not completely suicidal. It?s just that, more often than not, people don?t invest the difference saved between a house payment and a mortgage.  Will some be better off renting vs buying? Yes.  But that?s few and far between.  Most will spend the difference on a nicer car, better vacations, (or rent a better place than they can buy), etc.


bones said:
Compressed-Village said:
long term renting is suicidal
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Is your issue here about not owning your primary residence or not owning any physical structures?
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So having more freedom to make different lifestyle choices is viewed as suicidal by some ?  :eek:

And on the financial side, there's more to consider than just cost of rent vs cost of owning.

In my industry, switching jobs every few years is the fastest way to increase your salary, especially early in your career.

Because hiring budgets are higher than raise/retention budgets industry wide.

If you are a homeowner, you are less likely to be seeking out these better job opportunities, especially out of your home area. And it's harder to pull the trigger even if the opportunity presented itself.

Renting provides more flexibility both financially and lifestyle wise. It's not suicidal.
 
Kenkoko said:
So having more freedom to make different lifestyle choices is viewed as suicidal by some ?  :eek:

And on the financial side, there's more to consider than just cost of rent vs cost of owning.

In my industry, switching jobs every few years is the fastest way to increase your salary, especially early in your career.

Because hiring budgets are higher than raise/retention budgets industry wide.

If you are a homeowner, you are less likely to be seeking out these better job opportunities, especially out of your home area. And it's harder to pull the trigger even if the opportunity presented itself.

Renting provides more flexibility both financially and lifestyle wise. It's not suicidal.
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Not really. You could move away and rent out your current home.

And how much financial flexibility do you have when the rent keeps going up while the mortgage payment doesn't?

I don't think renting is suicidal, but I would rather own than rent.

Also, most people don't own a home early in their career anyway because they don't have enough for the down payment, so that's a moot point.
 
ideally, when kids are older and move out, it is not a bad idea to rent so you can move around the country and have some flexibility.
But of course, it will be nice we still own a few rental properties so the tenants rent will pay for ours so we don't need to worry about rising rents >:D
 
CalBears96 said:
Not really. You could move away and rent out your current home.

And how much financial flexibility do you have when the rent keeps going up while the mortgage payment doesn't?

I don't think renting is suicidal, but I would rather own than rent.

Also, most people don't own a home early in their career anyway because they don't have enough for the down payment, so that's a moot point.
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Of course you could, but we are not talking in absolutes here. You're less likely to. It's still more cumbersome than walking away from a rental.

Still more financial flexibility because you could easily adjust by rent a cheaper unit, get a roommate etc.

I chose to become a homeowner too because I see many pros in owning. But I'm not blinded by the cons and the potential opportunity costs.

Most Asians I know have family help with the down payment when they bought their first homes. It's the cultural norm. Last I check, Irvine is closed to 50% Asian. So the point is not moot.
 
Kenkoko said:
CalBears96 said:
Not really. You could move away and rent out your current home.

And how much financial flexibility do you have when the rent keeps going up while the mortgage payment doesn't?

I don't think renting is suicidal, but I would rather own than rent.

Also, most people don't own a home early in their career anyway because they don't have enough for the down payment, so that's a moot point.
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Of course you could, but we are not talking in absolutes here. You're less likely to. It's still more cumbersome than walking away from a rental.

Still more financial flexibility because you could easily adjust by rent a cheaper unit, get a roommate etc.

I chose to become a homeowner too because I see many pros in owning. But I'm not blinded by the cons and the potential opportunity costs.

Most Asians I know have family help with the down payment when they bought their first homes. It's the cultural norm. Last I check, Irvine is closed to 50% Asian. So the point is not moot.
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I'm not sure on the more cumbersome part since you could either sell the house or keep it as a rental and get a good cash flow.

As for renting a cheaper unit, that's not what I consider a financial flexibility considering you're sacrificing something to save money when you could have lived in your dream home without having to worry about increase in payment. And as for getting a roommate, again, that's another sacrifice to make. And I think we're talking about married couples or families here, so that probably doesn't apply. Either way, these two conditions you're talking about pretty much are strikes against the lifestyle flexibility you're talking about.

Different people have different priorities. Some people don't want to be tied down to a burden, so that's understandable. For me, owning a home means you  don't have to worry about rent increase or having to move if the landlord decides to take back the home.

If someone asked me for advice, I would advise him/her to own rather than rent, but I wouldn't say it's suicidal to rent.
 
Good to know it?s not suicidal to rent.
Because I like living!
Phew.

This board is so much about absolutes. Just because someone rents today doesn?t mean they can?t be homeowners tomorrow. Just because someone doesn?t own their primary residence doesn?t mean they don?t own any real estate. I know the consensus on this board is that slice of the pie is ?very few and far between?. But in Irvine? I?m not so sure.
 
To me the biggest benefits are tax deduction when owning a home and having a stable roof to stay under on my term.

I am getting a new construction home and decided to do a mortgage. We are getting screwed by uncle Sam every year big time.  Sure we can easily pay off our new home but I rather get tax deduction from mortgage than giving it to government for stupid entitlements.  We paid off our current home few years ago and it was a bad move.

 
The tax deduction benefit is gone.  The 2017 tax changes limited SALT to 10k and MITD to 750k basis.  Most homeowners now take the standard.

Danimal said:
To me the biggest benefits are tax deduction when owning a home and having a stable roof to stay under on my term.

I am getting a new construction home and decided to do a mortgage. We are getting screwed by uncle Sam every year big time.  Sure we can easily pay off our new home but I rather get tax deduction from mortgage than giving it to government for stupid entitlements.  We paid off our current home few years ago and it was a bad move.
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AccidentalAnalytics said:
The tax deduction benefit is gone.  The 2017 tax changes limited SALT to 10k and MITD to 750k basis.  Most homeowners now take the standard.

Danimal said:
To me the biggest benefits are tax deduction when owning a home and having a stable roof to stay under on my term.

I am getting a new construction home and decided to do a mortgage. We are getting screwed by uncle Sam every year big time.  Sure we can easily pay off our new home but I rather get tax deduction from mortgage than giving it to government for stupid entitlements.  We paid off our current home few years ago and it was a bad move.
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I was referring to mortgage interest deduction. I am fully aware of SALT cap at $10k which applies to property taxes. It?ll expire in 2025 😀 hopefully.
 
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