Home Ownership and Wealth Building

[HBCU.EDU]

Hmm. I'll send you a PM today!

Less than half of blacks own homes compared to more than three-fourths of whites.


With that said.. I’m here to do whatever I can to help you guys in your quest for wealth-building and home ownership.. if you are considering purchasing a home.. I can help you get an excellent deal anywhere in this country… a very dear friend of mine is an African American loan officer  and she works with all types of credit.. finds excellent deals in spite of student loans.. so if you’re interested.. feel free to PM me for further details…
Onward and Upward in the struggle!

Edit: As a barred attorney I can also help with some of the seller consession (ie builder/seller contracts)

[official2008]

I couldn’t get back onto the site after my last post yesterday, so let me finish what I started…


Made: just as I thought, you couldn’t answer my question. I’m sure you don’t even believe that *&^%. You’re going to make a profit off my one rent…enough to pay the mortgage on the place, and make a profit. Be for real.


Black: we’re not talking about the same thing. First, you’re not always going to make a profit on your house (that’s a fantasy). furthermore, if you’re buying homes every three years, then you don’t really *own* that female dog do you? The bank has a pretty serious lien on the mofo (you’re just in debt, with an investment that’s in a market that you have NO control over, lol). Second, if you’re buying and selling houses every three years, then you have business or something similar to it. Most people, and the house-buying that I’m against is the house-buying where you have a 20-something year loan, that you’re committed to and responsible for. What if you lose your job?

You do have control when you’re renting; you can do pretty much the same things you can do in places that you own. More really, you have options; if you want a bigger place, more rooms, a view…move. I can dispute your whole apartment theory/testimony with a single sentence: you can rent houses as well.

As far as me putting money in some homeowner’s pocket, well, that’s just not true. I’m putting money in the bank account of some businessman/woman or company who has several investments/properties, which allows them to make a profit off volume. The average homeowner that rents a room or a spare house is doing so only to ease the costs associated with multiple mortgages. And, if that homeowner, actually *owns* that second house (meaning the *&^% is paid for), and then they were already wealthy, in which case I endorse buying of real estate.


Drowles: say something meaningful.


I’ll end with an analogy similar to Blk_Rein’s silly car comment.

Take a business for instance, only the wealthy business actually build or own their offices. They rent, some lease…the point is, the business, its owners, and directors don’t try to by the office. They get their money elsewhere. Being bogged down with lengthy contracts and stringent obligations is counterproductive.

Stop trying to find little angles to get at my argument; you miss the point that way. What I’m saying is that if you’re wealthy and can afford it, then there’s nothing wrong with investing in real estate…if it’s a business for you, and you can make a little money off it on the side (which most people can’t or won’t if they try) they good. BUT, for the masses, for most people buying one home – over 30 years – is definitely not worth it.   

[Intuition]

official...

1. The possibility of losing your job impacts renters equally, if not more profoundly. If you lose your job, how will you pay the rent? It probably is actually worse for a renter because they have no equity to fall back on, whereas even someone with a mortgage has already been paying off that mortgage (and hopefully paying extra month into the principal, depending on rates) meaning they can sell the house or even use that equity to take out a loan to get them through until they find a new job (if they don't simply have savings).

2. I agree about renting one room of a house. That rent won't show a profit when compared to the mortgage.

3. I think there is a broader point that has yet to be addressed. When you rent, you are building the wealth of someone else. Of course, when you buy, you are building the wealth of a bank/lender and maybe the previous homeowner. But the point is that you are also building up your own equity at the same time. With housing being such a large portion of living expenses (probably the largest single expenditure each month), doesn't it make sense to try to use some of that large expenditure to build equity for yourself?

[official2008]

official...

1. The possibility of losing your job impacts renters equally, if not more profoundly. If you lose your job, how will you pay the rent? It probably is actually worse for a renter because they have no equity to fall back on, whereas even someone with a mortgage has already been paying off that mortgage (and hopefully paying extra month into the principal, depending on rates) meaning they can sell the house or even use that equity to take out a loan to get them through until they find a new job (if they don't simply have savings).

2. I agree about renting one room of a house. That rent won't show a profit when compared to the mortgage.

3. I think there is a broader point that has yet to be addressed. When you rent, you are building the wealth of someone else. Of course, when you buy, you are building the wealth of a bank/lender and maybe the previous homeowner. But the point is that you are also building up your own equity at the same time. With housing being such a large portion of living expenses (probably the largest single expenditure each month), doesn't it make sense to try to use some of that large expenditure to build equity for yourself?

good point about the job, but you get out of your contract. you see, if you lose your job under a mortgage, you're right you can take out a loan...but that's just more debt. debt takes years off lives; it's a constant stress. however, if you lose your job while renting, you can find a cheaper place, which works out better if you can't a as high-paying job as you had before.

mobility is a comidity that has been seriously undervalued in this discussion. we're talking about people who stay in the same house for 30+ years because they have to. i know some people like that, but i think most people would like the option to move around see different parts of the world if they could.

i hear so many people who after 30+ years say that they regret it.


i did neglet the equitly issue, and Anodduck made a good summary in his post. equity, sure, ussually won't be a total loss in a house that's sold...even those sold for a loss. but i think, again, that the benifits of lower costs associated with your housing can make up for that equity if you do the right things with it.

[Intuition]

i hear so many people who after 30+ years say that they regret it.

I can believe this. I think it's why so many people say they want to travel when they retire. I definitely agree that mobility is a great positive of renting. Sometimes it can take years to sell a house, depending on the market.

Going back to an earlier point you made about building your wealth through other means (other investments, entrepreneurship, etc.)...I agree that there are many ways to build wealth and it's a good idea to be diverse across the board (not just have a diverse portfolio) while you're building wealth.

One thing I wonder about is the average difference between mortgage payments and rent in comparable areas. If you can rent for X less than mortgage payments and that difference will allow you to build wealth equal to or even greater than the equity you'd build through homeownership, then I think there would be a solid argument for renting. Obviously this will depend on the market, interest rates, etc. I honestly don't have much of an idea how these numbers will work out for most areas.

I agree that long term debt can lead to stress, but I think a case can be made that if you budget well, you will feel little more stress than someone who has to pay the rent every 30 days.

[angmill08]

One thing I wonder about is the average difference between mortgage payments and rent in comparable areas. If you can rent for X less than mortgage payments and that difference will allow you to build wealth equal to or even greater than the equity you'd build through homeownership, then I think there would be a solid argument for renting.

 This is a crucial point. The only way a renter is fully paying the landlord's mortgage is if the monthly rent paid is more than the monthly mortgage payment. I'm going to rent my house out soon, and the rent will be $100/mo more than the mortgage. So as  long as I have a tenant in the house, they will be paying my mortgage. And the tenant cannot leave at any time -- most leases obligate the tenant to pay rent every month, even if they vacate the rental unit, until a replacement tenant is found or until the lease period ends.

[HBCU.EDU]

I'll work in your firm as a summer associate until I get my *&^%.

I'm going to attend a meeting for solo practitioners fairly soon..so I'll get back to you on that... HBC and I will probably start our own practice after he finishes law school.. unless i kick it off before then...
   

I have a question and since I am the most influential poster on this damn board, I want you people to pay attention to what I have to say.

How risky is it to start your own practice and what do you think about it in general? Would you guys ever do it? Thanks in advance for the copious suppy of thoughtful responses that will undoubtedly ensue. 

[MsJay9]

I am sitting here reading this thread and its a little disheartning.  I can not understand why anyone would argue that renting is better than buying.  I will assume that you grew up in a family where everyone was renting and not owning.  An apartment that you rent is not HOME its just where you are staying for now.  You are very limited in what you can do to it b/c you have rules to follow b/c of the owner.  Most of the time when you purchase a home you look at an area that you want to stay in and grow.  Personally I'm looking for a home that I can afford right now, as my first one not somewhere I'm going to live for the next 30years.  I'll probably get a two-family to cover majority of the mortgage through the tenant who rents the other portion and if I go to ls outside of my city then I can rent out the second portion and the home can pay for itself and probably make enough to cover minor things that may happen. 

Everyone who lives somewhere and pays money to be there is paying a mortgage.  The only difference is that the people who are renting are paying someone elses.

[blk_reign]

well said..and if a renter isn't paying for a mortgage to the property that they're staying in.. they are at the very least paying the property taxes

I am sitting here reading this thread and its a little disheartning.  I can not understand why anyone would argue that renting is better than buying.  I will assume that you grew up in a family where everyone was renting and not owning.  An apartment that you rent is not HOME its just where you are staying for now.  You are very limited in what you can do to it b/c you have rules to follow b/c of the owner.  Most of the time when you purchase a home you look at an area that you want to stay in and grow.  Personally I'm looking for a home that I can afford right now, as my first one not somewhere I'm going to live for the next 30years.  I'll probably get a two-family to cover majority of the mortgage through the tenant who rents the other portion and if I go to ls outside of my city then I can rent out the second portion and the home can pay for itself and probably make enough to cover minor things that may happen. 

Everyone who lives somewhere and pays money to be there is paying a mortgage.  The only difference is that the people who are renting are paying someone elses.

[drowles]

official...

1. The possibility of losing your job impacts renters equally, if not more profoundly. If you lose your job, how will you pay the rent? It probably is actually worse for a renter because they have no equity to fall back on, whereas even someone with a mortgage has already been paying off that mortgage (and hopefully paying extra month into the principal, depending on rates) meaning they can sell the house or even use that equity to take out a loan to get them through until they find a new job (if they don't simply have savings).

2. I agree about renting one room of a house. That rent won't show a profit when compared to the mortgage.

3. I think there is a broader point that has yet to be addressed. When you rent, you are building the wealth of someone else. Of course, when you buy, you are building the wealth of a bank/lender and maybe the previous homeowner. But the point is that you are also building up your own equity at the same time. With housing being such a large portion of living expenses (probably the largest single expenditure each month), doesn't it make sense to try to use some of that large expenditure to build equity for yourself?

good point about the job, but you get out of your contract. you see, if you lose your job under a mortgage, you're right you can take out a loan...but that's just more debt. debt takes years off lives; it's a constant stress. however, if you lose your job while renting, you can find a cheaper place, which works out better if you can't a as high-paying job as you had before.

mobility is a comidity that has been seriously undervalued in this discussion. we're talking about people who stay in the same house for 30+ years because they have to. i know some people like that, but i think most people would like the option to move around see different parts of the world if they could.

i hear so many people who after 30+ years say that they regret it.


i did neglet the equitly issue, and Anodduck made a good summary in his post. equity, sure, ussually won't be a total loss in a house that's sold...even those sold for a loss. but i think, again, that the benifits of lower costs associated with your housing can make up for that equity if you do the right things with it.

I have come to the conclusion that your posts are serious..

SERIOUSLY RETARDED!!!