Comments on: Renting vs Buying a Home http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/ Lets clear the air from the data smog and neutralize misinformation Tue, 08 Nov 2011 15:36:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Malik Abdul Rasheed http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-9018 Malik Abdul Rasheed Wed, 27 Apr 2011 15:14:08 +0000 http://www.whyihatethejoneses.com/?p=693#comment-9018 Ammad, first I have to give you a lot of respect for being so forthright, clear, and honest about such a persona situation. That is an extremely touch situation. Housing has now become an extremely precarious situation. It wasn't always so. After the federal government got too involved in the housing market, this created an environment where the "assumed" value of the housing market was running away from it's intrinsic value. Unfortunately this is no different than the countless bubbles that have happened in the past. In this case there was Federal involvement coupled with Wall Street Banksters taking advantage of government involvement in the housing market. No time in history has housing become such a "required investment" for the populace. What's also changed is the perception of what a house is. People saw them as investments like a stock, but it should probably be viewed like car. Not that it's depreciation asset (it isn't) but housing should probably be viewed as just a place to live, not a place to live AND a place to create some "bulletproof" nest egg that will never ever go down in value. These are strange times my friend. May Allah be with you. Ammad, first I have to give you a lot of respect for being so forthright, clear, and honest about such a persona situation. That is an extremely touch situation. Housing has now become an extremely precarious situation. It wasn’t always so. After the federal government got too involved in the housing market, this created an environment where the “assumed” value of the housing market was running away from it’s intrinsic value. Unfortunately this is no different than the countless bubbles that have happened in the past. In this case there was Federal involvement coupled with Wall Street Banksters taking advantage of government involvement in the housing market.

No time in history has housing become such a “required investment” for the populace. What’s also changed is the perception of what a house is. People saw them as investments like a stock, but it should probably be viewed like car. Not that it’s depreciation asset (it isn’t) but housing should probably be viewed as just a place to live, not a place to live AND a place to create some “bulletproof” nest egg that will never ever go down in value. These are strange times my friend. May Allah be with you.

]]> By: Ammad http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-8989 Ammad Tue, 26 Apr 2011 07:19:30 +0000 http://www.whyihatethejoneses.com/?p=693#comment-8989 After completing my MBA degree I worked 14 years of my career in different credit departments of the #1 bank in Canada and being a staff my mortgage rate was P-1 which went to as low as 1.4% in total. I was counting myself as the happiest person on the earth having such a low rate and I had put down 50% down payment. My monthly payments of my $200K condo was about 500 p/m which was far better than renting a same apartment for $1200 dollars but after paying $480 in maintainance and $130 in Property taxes I was saving only $90. When I realized the difference is only $90, I spoke to my father overseas if he can lend me $100K to payoff my remaining mortgage so I can give him $500 per month which I pay to the bank which will also benefit him by extra income in a country where $500 per month is a substantial amount of money. Guess what? Just two months after I got money from my father and paid off my full mortgage, my wife applied for separation and claimed half of the the equity. Not only I lost my equity, I lost my father's money and paid crook lawyers for 4 years trying to proof that money was from my father. I ended up from such a strong position into severe debts because my wife was fighting on a legal aid which was also accumulating against the lien on house. MY BROTHER and SISTER I would never encourage anyone in Western society to buy a home and you will all agree that there are more than 50% official marriages end up in Divorce and another 25%-30% due to common law splits. Renting is better in that society, Today I do not even have my own 2 dollars in my pocket to buy a water of mineral water. After completing my MBA degree I worked 14 years of my career in different credit departments of the #1 bank in Canada and being a staff my mortgage rate was P-1 which went to as low as 1.4% in total. I was counting myself as the happiest person on the earth having such a low rate and I had put down 50% down payment. My monthly payments of my $200K condo was about 500 p/m which was far better than renting a same apartment for $1200 dollars but after paying $480 in maintainance and $130 in Property taxes I was saving only $90. When I realized the difference is only $90, I spoke to my father overseas if he can lend me $100K to payoff my remaining mortgage so I can give him $500 per month which I pay to the bank which will also benefit him by extra income in a country where $500 per month is a substantial amount of money. Guess what? Just two months after I got money from my father and paid off my full mortgage, my wife applied for separation and claimed half of the the equity. Not only I lost my equity, I lost my father’s money and paid crook lawyers for 4 years trying to proof that money was from my father. I ended up from such a strong position into severe debts because my wife was fighting on a legal aid which was also accumulating against the lien on house. MY BROTHER and SISTER I would never encourage anyone in Western society to buy a home and you will all agree that there are more than 50% official marriages end up in Divorce and another 25%-30% due to common law splits. Renting is better in that society, Today I do not even have my own 2 dollars in my pocket to buy a water of mineral water.

]]> By: Leah http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-8771 Leah Tue, 12 Apr 2011 14:18:48 +0000 http://www.whyihatethejoneses.com/?p=693#comment-8771 Malik, I cannot agree more with how home ownership is so commonly thought of when when the "American Dream" is discussed. It is almost similar to young girls who strive to look like supermodels and ultimately end up hurting themselves. They are trying to reach and unrealistic standard. The same goes for people who are trying to buy or hold onto a home they cannot afford, in order to keep up with others in their community. They also end up hurting themselves in the end by ruining their credit and financial stability! The comparison is dead on, both situations are started with an unrealistic example and usually end in failure Keep up the good work spreading the word and helping people to see things in a different light! Leah Malik,

I cannot agree more with how home ownership is so commonly thought of when when the “American Dream” is discussed. It is almost similar to young girls who strive to look like supermodels and ultimately end up hurting themselves. They are trying to reach and unrealistic standard. The same goes for people who are trying to buy or hold onto a home they cannot afford, in order to keep up with others in their community. They also end up hurting themselves in the end by ruining their credit and financial stability! The comparison is dead on, both situations are started with an unrealistic example and usually end in failure Keep up the good work spreading the word and helping people to see things in a different light!

Leah

]]> By: Malik Abdul Rasheed http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-8705 Malik Abdul Rasheed Sat, 09 Apr 2011 11:53:40 +0000 http://www.whyihatethejoneses.com/?p=693#comment-8705 Leah, I agree with you. My wife and I have a Coop now and we are selling it. Not because we don't like it but the idea of renting gives us more flexibility. We are going down the renting road. As you can see in the housing market not all mortgages are created equal and a family should really consider the pros and cons of buying a house. It's a huge financial responsibility and requires a healthy amount of liquidity when things go wrong. I think people got swept away with the "Buying a house = American Dream" but didn't realize that even "dreams" cost money in America. It's saddens me to see so many people under-water in their mortgage. At the end of the day a house is like any other investment. You have to understand it's limitations and it's related risks. Leah,

I agree with you. My wife and I have a Coop now and we are selling it. Not because we don’t like it but the idea of renting gives us more flexibility. We are going down the renting road. As you can see in the housing market not all mortgages are created equal and a family should really consider the pros and cons of buying a house. It’s a huge financial responsibility and requires a healthy amount of liquidity when things go wrong.

I think people got swept away with the “Buying a house = American Dream” but didn’t realize that even “dreams” cost money in America. It’s saddens me to see so many people under-water in their mortgage. At the end of the day a house is like any other investment. You have to understand it’s limitations and it’s related risks.

]]> By: Delaware Rental Communities http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-8673 Delaware Rental Communities Thu, 07 Apr 2011 14:23:24 +0000 http://www.whyihatethejoneses.com/?p=693#comment-8673 I think that renting was commonly thought of as "throwing money away" in the past; however, the volatile state of our economy is pushing more people to rent. In Delaware, even some homeowners are packing up and moving into rental properties in order to save some money. The fact that they can save money will ensure that they can become homeowners again when the markets rebound. I think more people should consider this option instead of staying in a house they can't afford. Most times this causes foreclosure and can actually decrease your chances of homeownership in the future. Leah I think that renting was commonly thought of as “throwing money away” in the past; however, the volatile state of our economy is pushing more people to rent. In Delaware, even some homeowners are packing up and moving into rental properties in order to save some money. The fact that they can save money will ensure that they can become homeowners again when the markets rebound. I think more people should consider this option instead of staying in a house they can’t afford. Most times this causes foreclosure and can actually decrease your chances of homeownership in the future.

Leah

]]> By: Casino Capitalism http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-6245 Casino Capitalism Sun, 28 Feb 2010 23:41:24 +0000 http://www.whyihatethejoneses.com/?p=693#comment-6245 [...] As I said earlier, there are lawful ways to profit that don’t involve interest. I’ll use the example of buying a house, which is a business transaction that most people can relate to. I touched on the Islamic Financing option in my the First Part of Economics Made Simple Renting vs Buying a Home. [...] [...] As I said earlier, there are lawful ways to profit that don’t involve interest. I’ll use the example of buying a house, which is a business transaction that most people can relate to. I touched on the Islamic Financing option in my the First Part of Economics Made Simple Renting vs Buying a Home. [...]

]]> By: Recipe: Banana Coconut Porridge and PBHC http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-5480 Recipe: Banana Coconut Porridge and PBHC Mon, 30 Nov 2009 15:08:05 +0000 http://www.whyihatethejoneses.com/?p=693#comment-5480 [...] post about a month ago, and I’m still bringing the final touches on the last installment of Economics Made Simple, The Case for NO Interest. However there are other pressing issues that have just as much to do [...] [...] post about a month ago, and I’m still bringing the final touches on the last installment of Economics Made Simple, The Case for NO Interest. However there are other pressing issues that have just as much to do [...]

]]> By: Saving Money vs Serfdom http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-5304 Saving Money vs Serfdom Tue, 06 Oct 2009 10:46:08 +0000 http://www.whyihatethejoneses.com/?p=693#comment-5304 [...] Part I: Renting vs Buying a home [...] [...] Part I: Renting vs Buying a home [...]

]]> By: Why Can’t I Make Ends Meet? http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-5253 Why Can’t I Make Ends Meet? Mon, 28 Sep 2009 10:40:06 +0000 http://www.whyihatethejoneses.com/?p=693#comment-5253 [...] Lets clear the air from the data smog and destroy misinformation Skip to content HomeAboutWIHTJ Media Community « Renting vs Buying a Home [...] [...] Lets clear the air from the data smog and destroy misinformation Skip to content HomeAboutWIHTJ Media Community « Renting vs Buying a Home [...]

]]> By: Jorge http://www.whyihatethejoneses.com/2009/08/renting-vs-buying-a-home/comment-page-1/#comment-4650 Jorge Sat, 15 Aug 2009 19:54:58 +0000 http://www.whyihatethejoneses.com/?p=693#comment-4650 Great Post Mal :) Great Post Mal :)

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