Economics of Renting vs. Owning

Quote from QuantPlus:

Also...

The ** psychological makeup ** of a Pro Trader and a Real Estate Investor...
Are 100% opposite and incompatible.

You can be very successful at one or the other... not both.

If everyone bought property INSTEAD of capitalizing a small business...
The economy would grind to a halt...
And we would all be freezing in the dark.

Also...
This is a trading forum...
Not a Real Estate investment forum.
More...

Well, this is a thread on owning vs. renting a house and its in the economics section. It isn't about real estate investing, except on a personal level.

And last time I checked, the accumulation of wealth comes from the difference between what you make and what you spend. Most know that, and are keenly interested in making sure that the money they spend is well spent so they can capitalize more investment.

Lastly, while this thread is not about real estate investing, you do realize that real estate investing *is* essentially a small business, right? Complete with capitalization, transaction costs, and leverage. Doesn't happen as fast as day trading, but it smells the same. And if you don't think someone can be successful at real estate investing and day trading simultaneously, then you don't understand real estate investing at all...

SM
 
Quote from rcanfiel:

What I find ignored in the rent vs. buy equation, is when my job changes locations, I (a renter) can move easily. Homeowners often commute 1-2 hours each way, since they are locked into their home. My commutes are usually 20 minutes each way, because I usually rent a couple of miles from work.

So how does losing 3 hours daily of your life on trains and subways figure into the equations??? I had 3 homes, and I see ZERO value of doing it if you have a job that moves you around more than once every 5 years (such as contractor/consultant, etc.)
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Yes. If you move a lot, the numbers don't make sense because you can't recoup your closing costs. But as for the commute, you can look at condos. Nobody says you can't own a place in the city.

SM
 
Quote from Smart Money:

Yes. If you move a lot, the numbers don't make sense because you can't recoup your closing costs. But as for the commute, you can look at condos. Nobody says you can't own a place in the city.

SM
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This is true. But somehow, there is an amazing number of people driving from eastern PA to NYC each day. You couldn't GIVE me a house that would make me do that every day for 15-20 years.

What is the point of working on Wall Street & having an "affordable" large home in Bucks County, if your quality time with your kids is mainly tucking them in at night after you crawl in from 11 hours at work and 4.5 hours roundtrip on I-78 ??
 
Quote from rcanfiel:

This is true. But somehow, there is an amazing number of people driving from eastern PA to NYC each day. You couldn't GIVE me a house that would make me do that every day for 15-20 years.

What is the point of working on Wall Street & having an "affordable" large home in Bucks County, if your quality time with your kids is mainly tucking them in at night after you crawl in from 11 hours at work and 4.5 hours roundtrip on I-78 ??
More...

I agree. If you're a day trader, it shouldn't matter. If you work too, well...I've been offered more $$$ to move to big cities but I won't do it...doesn't seem to compensate me for the commute. I guess it really boils down to how much you "need" a big city, and its attractions. I prefer a place that is "big enough". Quality of life has value too...you only get one.

SM
 
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