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Diosco t1_j2u9bhh wrote

Reply to comment by AstreiaTales in Home price increases weakened sharply in November, posting the smallest annual gain in 2 years -CNBC by wander9077

The supply that's decreasing is homes for sale, not rent. Renting is throwing money away for no gain.

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Velkyn01 t1_j2udbtm wrote

Don't you get a place to live when you rent?

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angrymoppet t1_j2uemzk wrote

Rent prices have become inflated to the point where it's crippling people's ability to save for a home. In my area, the same shithole 2 bedroom apartment that cost 1200 in 2017 cost 1800 in 2021. I'm sure it's even more now. It's crazy out there.

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Velkyn01 t1_j2ufdod wrote

That's true, but I'm asking what he means by saying you're throwing money away for no gain.

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angrymoppet t1_j2ufxnc wrote

Because it's true. After years on the renting treadmill I was lucky enough to be able to stay with family for awhile with my girlfriend to save the money to put down on a home. Every month that we pay our mortgage it's money going into an investment that we can later sell or own outright. You pay an obscene premium to rent and get no such long term security from it. It's money straight down the toilet. It used to be worth it to rent because the price gouging wasn't so bad that you couldn't set aside money while renting to save up for a home. That's no longer the case for most people, unfortunately.

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ItsCalledDayTwa t1_j2wfoos wrote

It really and truly depends where you live. In the city of Munich for example the cost of home ownership is so high the break even point is like 50 years out. Rental yields here are the lowest in Europe.

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Velkyn01 t1_j2uguq7 wrote

Just because your money isn't going toward equity doesn't mean that it's wasted. You spend money on a good, like shelter, and you get that shelter for x time. Food isn't a waste of money because you're hungry later. Neither is shelter. It's not suddenly a waste just because you can't use the money for shelter and as an investment vehicle.

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amlight t1_j2ui9fr wrote

And you are also at the mercy of the landlord. We are finding rent prices continuing in increasing exponentially while wages are not keeping up. So not only are people unable to buy a home to live/use as a financial asset (which is important for long term security), they they are also struggling to even make rent payments. Sure people can rent for life and have other assets, but it’s not likely to be viable for much longer if we don’t set boundaries on rent costs. You also have to potentially deal with slum lords. Don’t even get me started on those.

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angrymoppet t1_j2uidab wrote

It's a waste because that rental will always be at a premium over an equivalent mortgage. The mortgage payment I'm making today -- which is considerably less than that shithole apartment I was referring to -- will be the same mortgage payment in the year 2045, by which point I presume that same apartment will cost multiple times what it costs today. I've spent a considerable amount of time looking at both apartments and homes in a 40 mile radius from where I am. There are no apartments that are charging a "fair" price for what is being offered. The money is being vacuumed up by greedy corporate fucks intent on breaking the back of the working class to keep them in perpetual servitude. The funds spent on that rental premium is cash you can't divert to your own financial independence and security. Make no mistake, the money is a waste. It's a necessary waste for the millions who have no other option, but every second you're not calling it what it is provides unnecessary cover for the super rich to continue applying their boot heel to your neck.

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ItsCalledDayTwa t1_j2wfu59 wrote

"always" - not always. It depends on the ratio of the rental market to the cost of purchasing.

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usrevenge t1_j2uhwuz wrote

Renting a house is like renting a car except unlike a car the property increases in value constantly and every time it's time to renegotiate your terms the owner wants more money not less.

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Velkyn01 t1_j2ui6vy wrote

Why do people rent cars?

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dingosaurus t1_j2ve89h wrote

That’s also known as a lease, which is incredibly common.

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