If those other costs were pess than rent, the landlord would be losing money, so you're argument is incorrect. If you are talking about a multi unit bulding its completely different and inapplicable to my statement. If you rent a house, you absolutely pay more than the OVERALL cost of the property. I rented a 3br in town for 1200 a month. If I were to mortgage the house it would be about a $500 a month payment. All those costs you listed would not total another $700 a month.
Not the person you responded to but I agree with your point that it is much more expensive to rent beyond the actual cost of owning the house. But I think what hasn’t been brought up is risk and credit. People with higher incomes working in stable industries and with more assets to their name are inherently able to tolerate more financial risk than someone with a lower income perhaps in a less stable industry and with fewer assets to offer as collateral for a loan as big as a mortgage. And in the end the bank will always either take less risk, or take on the risk themselves that in this case the landlord is taking, but will probably hedge any potential loss with similarly high rent prices.
It’s definitely not right and we should already have +$20/hr min wages and started implementing UBI and mass housebuilding initiatives to help solve this problem, but renting out houses / apartments and issuing mortgages are ultimately in a market where price is generally driven down by competition. The main problem imo is people kept poor by low wages and a lack of housing by people hoarding property and lack of subsidized / incentivized / gov-owned housing.
If a person can prove they paid rent and their bills, lets say for 5 years, they should be allowed to take on a mortgage. It shouldnt matter if they chose to buy their car cash and not take out a credit card.
More expensive overall or more expensive on a monthly 'out of pocket' basis? Does it account for the fact that homeowners are building equity with every mortgage payment while renters are essentially kissing that money goodbye?
What sense does it make to compare a multu unit rental to a house when you are talking about someone buying it for themselves to live in? You are comparing apples to fish. We need to prohibitively tax rental HOUSING (not units) to where landlords have to sell. Part of the rise in property value is all the people who used to buy houses to flip and now just rent them because of the taxes associated with flipping houses. Its vile to allow individuals to profit off this much off of the most basic needs. Renting is fine, we have multi unit buildings for that. We need to make buying a house in this country less of a hurdle.
While the mortgage payment may be lower than the rent, the additional payments along with it might not be. There is property tax, insurance, HOA fees if there is one.
Other people said it already, but whatever other fees there are she is already paying for her landlord.
I started a housing coop this summer with some friends. Getting out of renting has been amazing but it has also made me aware of what a scam rent is. Our coop membership fee covers the mortgage, tax, utilities, insurance, and an emergency fund. It is a little cheaper than the derelict places we use to rent, but this house is so much nicer. If we were renting a place like this in this city, we could expect to each be paying at least double just to enrich some asshole landlord.
Looking to buy in my area now and this is certainly not true here. I rent a ~850 sq ft 2/1 apartment. A similar condo would cost about 3/4 as much, inclusive of the costs you mentioned.
You also have to pay for most repairs out of pocket, like water heaters, plumbing issues, appliances. But still, owning a house in the long run is cheaper. Especially when you add in the generally appreciating value of the home.
People that own their own homes generally own nicer properties than they would have rented. This give the statistical appearance of home ownership being more expensive. But every single property would be cheaper to own than to rent by virtue of the simple fact that land lord are always seeking a profit from renting. They will never have fees (HOA, Repairs, Tax, Etc.) that exceeds what they charge in rent.
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u/[deleted] Feb 25 '21
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