Question: RENT vs. BUY

for those who argue renting is superior to buying a home, why is it that when a UFC fighter becomes a champ and gets some $$$ they buy a house?

And other people too, when they achieve success, they buy a home. Why is that? If renting is superior, wouldn't intelligent/successful people rent instead of buy?

There are situations where it's smarter to rent and others where it's smarter to own. There's no single right or wrong answer.

cause when you're rich you don't want to pay rent to some asshole.

Sagiv Lapkin -

There are situations where it's smarter to rent and others where it's smarter to own. There's no single right or wrong answer.

Pretty sure this is how you end a thread Phone Post

who says renting is better than buying a home?

there are times/situations where renting can be better, but financially, renting isnt a good long-term investment.

basing whether something is smart or not by what fightes do is NOT a good idea

TheEssence - 
Sagiv Lapkin -

There are situations where it's smarter to rent and others where it's smarter to own. There's no single right or wrong answer.

Pretty sure this is how you end a thread Phone Post


there is truth in the statement but it does not adequately explain the question of why is it that when people achieve success they generally buy instead of rent.

There are tons of advantages to owning.  You get to do what ever you want to the property without having to ask someone.  There's also something called "pride in ownership".  You tend to take better care of things that are yours.  But owning is usually more expensive in terms of annual cash flow.

Renting gives you a lot of freedom.  You can move whenever you want (almost) and you don't have to worry about caughing up big chunks of cash for new water heaters, etc.

If I was single, no question - I'd rent. 

If my income wasnt predictable and suddenly I had 400000 in my pocket id buy a house and pay off my car. That way no longer would I have a monthly payment of rent and a car payment. All id have to worry about from that point on would be insurance and tax.

Seems like a no brainer. Phone Post

kungfugrip - basing whether something is smart or not by what fightes do is NOT a good idea

although it is an 'attention-getter' I believe it is a good example, but read the second sentence:

".......intelligent/successful people........."

Of course some fighters are intelligent too and will be smart enough to realize fighting may not have long-term potential, and so the intelligent ones will plan accordingly.

Nexuscrawlers - 


who says renting is better than buying a home?



there are times/situations where renting can be better, but financially, renting isnt a good long-term investment.



owning a home shouldn't be considered an investment unless you plan to sell your property at some point and live somewhere else that costs significantly less.

sourcheese - 

If my income wasnt predictable and suddenly I had 400000 in my pocket id buy a house and pay off my car. That way no longer would I have a monthly payment of rent and a car payment. All id have to worry about from that point on would be insurance and tax.

Seems like a no brainer. Phone Post



taxes and insurance on a $400k home can add up.  In Texas for example, that could cost you as much as 15k/ year.  that's 1,250/ month.  Parts of the NY or DC metro areas could be more.  In other places it might only be $3,000, but my point is it's tough to escape the annual obligation unless you move out to the sticks and buy an inexpensive house.

myersei - 


There are tons of advantages to owning.  You get to do what ever you want to the property without having to ask someone.  There's also something called "pride in ownership".  You tend to take better care of things that are yours.  But owning is usually more expensive in terms of annual cash flow.



Renting gives you a lot of freedom.  You can move whenever you want (almost) and you don't have to worry about caughing up big chunks of cash for new water heaters, etc.



If I was single, no question - I'd rent. 


Part 1.

"But owning is usually more expensive in terms of annual cash flow."-----

Do you own a home paid-in-full and have you compared it to renting?

I do/have. After paying off my home I relocated. Since being a homeowner I had not rented and wanted to compare quality of life/expense. It was not comparison.

I paid WAY more in rent than I did in keeping up the paid-in-full property.

Rent for an old, small, old appliances that did not work cost me $12,000 plus per year!

The fix-it's + taxes + insurance on the paid-in-full home never came close to that! Total costs were less than $3,000 per year.

Rent or Buy you have to pay to live, but by quickly paying off a home you can see in this real life example how much money it can save you.

myersei - 


There are tons of advantages to owning.  You get to do what ever you want to the property without having to ask someone.  There's also something called "pride in ownership".  You tend to take better care of things that are yours.  But owning is usually more expensive in terms of annual cash flow.



Renting gives you a lot of freedom.  You can move whenever you want (almost) and you don't have to worry about caughing up big chunks of cash for new water heaters, etc.



If I was single, no question - I'd rent. 


part 2.

"You can move whenever you want (almost)"----

moving is never easy, it's a hassle, so in theory it sounds good but constantly moving sucks.

Also, you are stuck in a lease so you cannot move whenever you want.

It is a myth that home-owner's are stuck. When I wanted to move I secure renters for my home. Not only could I move but the home now provides extra-income

In the same amount of time it takes to pay-to-end of lease and prepare to move from apartment I could secure renters and move too.

Renting vs. Buying a home:

Renting vs. Buying a home (part 2):

Renting vs. Buying (detailed analysis):

karasu - 
myersei - 


There are tons of advantages to owning.  You get to do what ever you want to the property without having to ask someone.  There's also something called "pride in ownership".  You tend to take better care of things that are yours.  But owning is usually more expensive in terms of annual cash flow.



Renting gives you a lot of freedom.  You can move whenever you want (almost) and you don't have to worry about caughing up big chunks of cash for new water heaters, etc.



If I was single, no question - I'd rent. 


Part 1.

"But owning is usually more expensive in terms of annual cash flow."-----

Do you own a home paid-in-full and have you compared it to renting?

I do/have. After paying off my home I relocated. Since being a homeowner I had not rented and wanted to compare quality of life/expense. It was not comparison.

I paid WAY more in rent than I did in keeping up the paid-in-full property.

Rent for an old, small, old appliances that did not work cost me $12,000 plus per year!

The fix-it's + taxes + insurance on the paid-in-full home never came close to that! Total costs were less than $3,000 per year.

Rent or Buy you have to pay to live, but by quickly paying off a home you can see in this real life example how much money it can save you.



but your opportunity cost are greater when you own.  you've just dumped 100k or more into a house that's going to appreciate at an average clip of 4%.  you can invest that money elsewhere into the market, or a business, or your education and get a much larger return on your investment that buying a place.



it's a Cash Flow vs. P&L debate.

myersei - 


There are tons of advantages to owning.  You get to do what ever you want to the property without having to ask someone.  There's also something called "pride in ownership".  You tend to take better care of things that are yours.  But owning is usually more expensive in terms of annual cash flow.



Renting gives you a lot of freedom.  You can move whenever you want (almost) and you don't have to worry about caughing up big chunks of cash for new water heaters, etc.



If I was single, no question - I'd rent. 


"If I was single, no question - I'd rent."-----

Being a homeowner on the dating scene is like driving a ferrari vs. the city bus. It definitely gives one and advantage.

It really depends, I would rather rent if it's a luxury townhouse in walking distance to whole foods vs. owning a house in a crime ridden ghetto.

I bought a house a couple years ago so you can guess where I stand but for some people the stress of worrying about a house is not worth it. You hear stories of people living in the same apartment for 50 years for that very reason.

I own, but LOL @ doing what UFC fighers do.  

Would you take advice from Nick Diaz?