Renting can be smart. Key is cheap.

If you pay up you might be better to buy. But if you buy you are essentially locked in as an advanced renter. Paying the landlord[ieeE the bank]. If people bought in cash then your arguments on making the landlord richer would be more accurate. But who buys a house in cash?

So that leaves them buying with a loan from the bank and paying over the term of that loan at least 2 to 2.5 times the purchase price over the term. Yes, you will argue the interest writeoffs on the loan which is another way the gov’t stimulates and actively promotes home ownership. It’s pretty brilliant IMHO.. pay $1 in interest to get back maybe a 3rd of that in tax credits. Yes… you are so right on this… a pathway to wealth and prosperity. LOL [some would refer to it as buying your own money??]

Yes… by your logic I’m a chump. As such, I don’t have to worry about housing prices collapsing when the stimulus ends. I don’t have to worry if I need to move as 1 month notice and I am gone. I don’t have to worry about maintenance. And I do have privacy and a nice neighborhood to live in. And - it’s cheap-. Real “Chump” stuff here.

Regarding your last comment about own nothing and will never own nothing! Are you joking? Since I’m a renter you are saying I will never own anything? LOL

I owe nothing to anyone. I can just buy whatever I want from those around me who fell for the “have it now on payments” crack. They would include just about all thems around me [advanced renters along with maintenance and upkeep costs/labor] who barely are able to make their payments on that home they “OWN” and not really as time goes on with the pay”ments” outrunning their pay”checks”. So you see, I throw some money away to landlord. Sure. Ongoing till I decide to change that because for now it’s the cheaper way to go.

Life brings with it expenses and you have to live somewhere. And when the housing market falls much further, which it must and which it will because a house is worth only what someone’s willing to pay and as the banks cut back on loans issued the “what someones willing to pay and the loans received based competition therein goes away” will determine future prices and dare I say ??? There YOU will be in your house… still making your ADVANCED RENTER payments with your precious “equity”[same as me… mine paid to landlord and yours paid to the bank} GONE and you crying the blues about woe betides me and…………

And you will be wanting a bailout. And who knows… maybe these jerkstores in gov’t will award you one at that time. Like they are currently awarding unearned monies to home buyers with the tax credits.

Lets be positive here… maybe I will buy “YOUR” house at it’s final devaluation. LOL Real chump stuff. My landlord will be happy to talk to you at that time….

- curvecrazy

Related Posts:

• Trying to bail out housing is a nightmare.
• Real estate is the BEST investment still and always, IF you hold for the long term, in case you buy at the top. Here is why:
• The empty big-box retail stores
• There is a huge risk of double dip recession is the government is not careful.
• Here’s Fitch analyzing what’s about to happen to Residential Mortgage-Backed Securities values once the fed pulls out the scaffolding:

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