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The Rise of Renting in the U.S

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Re: The Rise of Renting in the U.S

#341

Post by siculars »

CajunAlexTrebec wrote: post #320
toomuchtodo wrote: post #140

Earlier quoted context omitted.

It's simple the same way exercise is simple: knowing what to do is easy, having willpower to do it is hard. Being financially independent can be done on a median wage, full stop. https://www.reddit.com/r/financialindependence http://www.mrmoneymustache.com/ "Is that all too fluffy and philosophical? OK, fine. Here’s how to cut your life costs in half. Start by getting rid of your Debt Emergency if you have one. Live…

I'd like to share my experience here in hopes that it inspires others. I'm 37 years old, single, never married, no children. A programmer recently turned sales guy. Through my 20s, I experienced an ever escalating salary as I moved up through the programming ranks. By the age of 29, I had accumulated about 25k of credit card debt and still have 35k of student loan debt yet to be repaid. At that time I was making arou…

It's alarming how similar my story is to yours. I also moved from a much bigger city to Dallas a year ago. A new job paid me to come here and I gotta say it was a great decision. My email is in my profile. Let's chat.

Re: The Rise of Renting in the U.S

#342

Post by Grishnakh »

themagician wrote: post #211
Grishnakh wrote: post #198

Earlier quoted context omitted.

The problem with your analysis is that you're forgetting that renters have no control over the amount they pay in rent. You can only control your rent price for the first year; after that the landlord is able to jack up your price almost any amount they want (subject to local laws), and you can either pay the jacked-up rent or move out (which is expensive) and find a new place. When you buy a house (err, rent from a…

Your monthly "rent" isn't fixed though. Most people have both HOA and propter taxes, both which increase year over year. Not only do these rates increase over time, but as the value of your home (which you often don't own in any significant way) rises, so too does the assessed value. Do they increase as dramatically as rent? No, but they do still increase. Then you've got the 10% or so of "homeowners" with variable r…

Oh please. It's easy to avoid variable-rate mortgages. That's like complaining about how buying a new car will force you to have an ignition-kill device installed so the lender can shut down your car remotely and repossess it. Only people with really horrible credit buy cars from places like that. Variable-rate mortgages are a really bad idea, and only a fool would sign up for one. They only exist because some people are fools.

As for HOAs, those only exist in some places, especially in southern states. Depending on what city you're in, they're easy to avoid. Besides, some of them are pretty cheap, and since as a member of the HOA you have voting rights (and can run for the board) you have some power over those rates, a lot more than you have over your local government.

As for property taxes, those are capped or limited in a lot of places, such as California.

So, for those last two points, as with many things, it varies dramatically based on location; you can't make blanket statements that hold true nationwide.

Re: The Rise of Renting in the U.S

#343

Post by restalis »

roymurdock wrote: post #185
taurath wrote: post #162

Earlier quoted context omitted.

This is a big generational thing. My brother and I have been there as our parents moved us out to the country to buy a big house, my dad work his life away for a bigco only to be laid off 3 years before his retirement, and now they sit in their house with a lot of stuff and very few hobbies and not much of a social group. We've seen how far striving can take you, and the real cost of the sacrifices you make for posse…

Well, they earned the financial stability to raise you and your brother and put you through school, which I'm they wouldn't consider a waste. It's a competitive world we live in, and I often feel like I'm wasting every minute that I'm not actively working towards learning something new/planning my next cool experience/my next job opportunity. I wonder when I'll have the time to settle down and raise a family. Hopeful…

"they earned the financial stability to raise you and your brother and put you through school"

That is something separate from the cost of paying a mortgage or renting, and his anecdote highlighted an involved cost of opportunity. One can earn even a higher financial condition (to raise kids or whatnot) by not being tied to a long term immobile project. You need the freedom to change (your place) if you have to. Change is important.

Re: The Rise of Renting in the U.S

#344

Post by kamaal »

taurath wrote: post #162
lowglow wrote: post #64

I've sorta turned my back on the standard american dream. Racing to new areas of growth, working to build someone else's dream, getting paid well immediately for performance, paying high rent, etc to afford the image of success, and making friends that participate in this same high ambition culture. Instead of making markets, markets start making you. All the rules, and "norms" we've collected around ourselves to par…

This is a big generational thing. My brother and I have been there as our parents moved us out to the country to buy a big house, my dad work his life away for a bigco only to be laid off 3 years before his retirement, and now they sit in their house with a lot of stuff and very few hobbies and not much of a social group. We've seen how far striving can take you, and the real cost of the sacrifices you make for posse…

>> We've seen how far striving can take you, and the real cost of the sacrifices you make for possessions.

It can make you financially stable, cover for your health expenses, give you decent retirement, put your kids through school and give them a decent shot at life.

From when was all this a bad thing?

>> Both of us orient ourselves towards experiences over possessions.

God forbid only a health interruption, a major market crash or any other unforeseen financial difficulty can leave you far worse off compared to your peers.

Not to mention, compared to your very own parents you don't want to be homeless when you are old.

Re: The Rise of Renting in the U.S

#345

Post by grecy »

SeanDav wrote: post #318
grecy wrote: post #304

Earlier quoted context omitted.

I'm very similar. I wound up spending two years driving from Alaska to Argentina [1], and now I'm setting off to spend two years driving around the perimeter of Africa. I strongly believe time is much more important than money, and I'm very careful about how much money (time) I spend on "things". [1] http://theroadchoseme.com is my blog of the trip(s)

Driving around Africa should be considered carefully and researched even more carefully. There are very real dangers and complete no-go areas. Good luck out there!

Absolutely, I've been planning for years, and I'm in contact with multiple people doing my same route right now. They're having the time of their lives.

Re: The Rise of Renting in the U.S

#346

Post by brianwawok »

recursive wrote: post #164
brianwawok wrote: post #17

Earlier quoted context omitted.

Why are people getting closer to death every day called living instead of dying?

They're doing both. It's not a contradiction, like between "owning" and "not owning".

Except in the example above they are doing both. They both "Own "but not "Fully Own" their house. They are "Partial Owners".

Re: The Rise of Renting in the U.S

#347

Post by mercutio2 »

phamilton wrote: post #284
hkmurakami wrote: post #207

Earlier quoted context omitted.

fwiw you do get to deduct property taxes from your taxable income.

Not under AMT.

[edit] I misread your post, my bad! I originally responded to HELOC vs. mortgage interest, sorry.

Yes, the AMT interaction with municipal taxes is a sizable pain point.

Re: The Rise of Renting in the U.S

#348

Post by bgaid »

CajunAlexTrebec wrote: post #320
toomuchtodo wrote: post #140

Earlier quoted context omitted.

It's simple the same way exercise is simple: knowing what to do is easy, having willpower to do it is hard. Being financially independent can be done on a median wage, full stop. https://www.reddit.com/r/financialindependence http://www.mrmoneymustache.com/ "Is that all too fluffy and philosophical? OK, fine. Here’s how to cut your life costs in half. Start by getting rid of your Debt Emergency if you have one. Live…

I'd like to share my experience here in hopes that it inspires others. I'm 37 years old, single, never married, no children. A programmer recently turned sales guy. Through my 20s, I experienced an ever escalating salary as I moved up through the programming ranks. By the age of 29, I had accumulated about 25k of credit card debt and still have 35k of student loan debt yet to be repaid. At that time I was making arou…

Thanks for sharing! I'm interested in learning a bit more about your lifestyle at home; I'd love to see the pictures you mentioned about creative use of IKEA.

I'm currently downsizing possessions to a point where my 1100 sq.ft apt is starting to feel too big.

Re: The Rise of Renting in the U.S

#349

Post by phamilton »

mercutio2 wrote: post #347
phamilton wrote: post #284

Earlier quoted context omitted.

Not under AMT.

[edit] I misread your post, my bad! I originally responded to HELOC vs. mortgage interest, sorry. Yes, the AMT interaction with municipal taxes is a sizable pain point.

"fwiw you do get to deduct property taxes from your taxable income."

property taxes != mortgage interest

EDIT: OPs ninja edit/delete makes this comment seem quite confusing. It was in response to OP getting confused and talking about mortgage interest.

Re: The Rise of Renting in the U.S

#350

Post by hwstar »

melted wrote: post #283
toomuchtodo wrote: post #140

Earlier quoted context omitted.

It's simple the same way exercise is simple: knowing what to do is easy, having willpower to do it is hard. Being financially independent can be done on a median wage, full stop. https://www.reddit.com/r/financialindependence http://www.mrmoneymustache.com/ "Is that all too fluffy and philosophical? OK, fine. Here’s how to cut your life costs in half. Start by getting rid of your Debt Emergency if you have one. Live…

>> on about 24k per year Horseshit. A family of 4 will spend about 2/3rds of that amount on healthcare (meaning insurance + deductibles and copays) alone. Then there's real estate tax as well, utilities, food, necessities. I'd say $50K is bare minimum, and $75k could actually be quite comfortable after some belt tightening.

24K is a magic number. You qualify for an enhanced silver ACA policy with very low premiums, deductibles and copays.

I do own a home and rental property, and pay property taxes annually.

I did my first year at a 24K annual income with a slight assist from after-tax savings after being employed for 30+ years. Being 55 in San Diego, and getting an electronics engineering position ain't happening right now.

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