Is renting a house one of those bad idea money traps like leasing a car?
>>1068839
Yes and no.
Yes, it's better to get a mortgage, or better yet, buy the house outright.
But not everyone has the credit score to get a mortgage, or the cash to buy a $200,000 house outright.
Renting is done by poor and rich people- rich people, sell their $ 2 million house, and rent a $2 million house for a year or two, because they are hoping the housing prices will collapse and they can buy it back in a year for 1.5 million$.
Poor people rent because they don't like being homeless
>>1068841
>$200,000 house
I wish, bro. Try $600,000.
>inb4 move to Oklahoma.
>>1068877
600k, try a million in major cities these days for anything other than a shit apartment
>>1068839
Renting can be good if a combination of the following:
>houses are overpriced and/or going to drop soon
>you're not going to be able to stay in that location for a number of years
>you can bear to rent a significantly cheaper place than you'd buy for a while and invest the difference in cost wisely (the first few years of a mortgage you're not really building much equity [i.e. you're mostly paying interest])
>>1068896
A million? Pfft try a trillion Earth Bux MINIMUM if you want to find a place to live that isn't on our shitty planet
>>1068841
If you can simply buy the house outright, having a mortgage would still be better since you can write it off on taxes, no?
>>1068924
A reasonable response?
On my /biz/?
>>1068839
lets say you wanted a 2016 lexus rx350
you would actually save money by leasing and then buying it at the end of the term vs just buying a 2016
>>1069107
yah write off the 3.64%...
>>1068839
yes is a big waste of money
tp me anything over $750 a month is a waste
>>1068841
>better yet, buy the house outright.
The opportunity cost of buying a house vs. investing in stocks is pretty huge. 200k compounded over 40 years in the stock market would be millions. 200k mortgage over 40 years is nowhere near that amount.
It would be better to take a mortgage and invest the rest.
>>1068839
Its usually better than buying
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0
>>1069107
No if you can pay in cash do the math and realize that buying in cash costs less than a 30 year mortgage
>>1068924
>you can bear to rent a significantly cheaper place than you'd buy for a while and invest the difference in cost wisely
See pic
>>1068839
That white door is fucking killing me. Paint it dark blue already fuck
Here is the secret to owning your own house.
1) Buy a house that has a few bedrooms
2) Rent the spare bedrooms out
3) Have them pay rent and bills, don't ass rape them, but have them pay enough to cover their shit plus a little more.
4) After the house is paid off, kick them out
>>1069107
>If you can simply buy the house outright, having a mortgage would still be better since you can write it off on taxes, no?
It depends if you have a better use for the money. If you think your can earn more deploying that money elsewhere (e.g., in the markets) then holding a mortgage is a wise financial decision.
Debt isn't necessarily evil, and mortgage debt is the least evil of them all. It's usually cheap, its tax deductable (as you note), it improves your credit score, and it looks god on your financial and employment profile (homeowners are seen as more stable, reliable and dedicated).
