Will renting ever Die?

Windsor, CA (windsor) · Member since 2018 · 21 posts · 6 votes

You always hear "buying a house is the best investment you can make" "Renting is like throwing your money away". What if everyone starts to listen and renting becomes a thing in the past? Now you're stuck with a property with no cash flow coming in. You think this is possible BP?

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Chris Purcell

Investor · Philadelphia, PA · Member since 2010 · 739 posts · 372 votes

@Steven Coppola

Is this a serious post

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Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Steven Coppola no. There will always be people that have to, or want to, rent.
6 Reply
Scott Weaner
Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
8y
Probably won't happen...but if it does, we can sell!
8 Reply
Chris Purcell
Investor · Philadelphia, PA · Member since 2010 · 739 posts · 372 votes
8y
@Steven Coppola
Is this a serious post
9 Reply
Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
@Steven Coppola Not a chance it will happen. Many people simple cannot get approved for a mortgage. In a normal market renting is cheaper than owning. There will always be people who will take the cheaper short term option vs the better long term option.
3 Reply
Steven Coppola
OP
Windsor, CA (windsor) · Member since 2018 · 21 posts · 6 votes
8y
@Ned Carey thank you. Because where I live renting is the same as a mortgage. That's why I'm saying this
1 Reply
Steven Coppola
OP
Windsor, CA (windsor) · Member since 2018 · 21 posts · 6 votes
8y
@Chris Purcell don't reply to me. Thanks
3 Reply
Scott Williams
Member since 2018 · 27 posts · 12 votes
8y
Not everyone can afford to buy a house, at least during the start of their careers. There are always people who move from a different country or a state. So, renting will never die.
2 Reply
Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
8y
@Steven Coppola
There's absolutely no chance. Renting as a social institution has been around since the beginning of human history. I don't see it passing out existence any time soon.
5 Reply
Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
8y
@Steven Coppola @Chris Purcell
@Chris Purcell has a point @Steven Coppola, you need to get a hobby man.
0 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
8y
@Steven Coppola No only will it not die but it will increase . 80 million millennials assure that and 80 million baby boomers dying and also giving up their family home for downsizing reasons and health reasons . I predIct Apartments will be the way to go and there won’t be any vacancy problems as these people groups nestle in and the population increases each year
6 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Dennis M.:
@Steven Coppola
No only will it not die but it will increase . 80 million millennials assure that and 80 million baby boomers dying and also giving up their family home for downsizing reasons and health reasons . I predIct Apartments will be the way to go and there won’t be any vacancy problems as these people groups nestle in and the population increases each year
I think its highly regional.. in areas were there is little hope or history of price appreciation for SFR's I agree why own them.
in CA were this OP and Windsor specific Sonoma county wine country... Owning is far greater than renting.. Many millions of CA have retired just on their equity in their homes they bought 30 years ago.. or get that tax free 500k when they sell and move to the sunbelt etc. Keep in mind many SFRs in the SF peninsula went up well over 500k just in the last 5 years.. that and its not taxed.. that is why CA is a driver for so much mid western NE investment rentals.. you take CA investors out of the equation and were would values be in those cash flow rental dominated cities.. ?????
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
8y
@Steven Coppola
Renting may cost the same as a mortgage but the total cost of home ownership is double or more than that of renting.
As long as the majority of people choose to live pay check and the cost of home ownership continues to rise well above the cost of renting the number of renters will only increase.
We are in a very solid and growing business that will continue that way indefinatly.
0 Reply
Jenny Lalwani
Member since 2018 · 13 posts · 4 votes
8y
Their is not even .1% chance for renting to die. House buying is 50 years low at the moment and all the millennial are probably planning to rent more than buying so renting is one thing which will never die.
0 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
8y
The government subsidizes home ownership with favorable lending terms yet 35% of people still choose to rent. And the affordable housing shortage is the only undeniable market trend that we all seem to agree on. People rent everything now...housing, transportation, phones, music, software, rims, the list goes on...
1 Reply
Terron Holland
Member since 2018 · 3 posts · 2 votes
8y
Renting is usually a matter of consequence rather than a choice. Even if the general population grew more responsible somehow, there are simply people who can't afford to own over rent. Renting enables "freedom." People who own homes and businesses sometimes pay rent to be closer to a convenient location.
In areas where renting = mortgages, people either don't know, or can't get approved for mortgages. Or in small cases just don't want the extra head drilling of actually owning a home. Homeowners have to pay to fix toilets, renters pay to use them.
1 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
“renting is cheaper than owning”.....BS, otherwise landlords would Always lose money.
1 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
8y
@Wayne Brooks
“renting is cheaper than owning”.....BS,
There is no way you can be serious about that statement. Landlords make money by using leverage. If you are not using leverage, considering all factors, you most likely are losing money.
Homeowner ship is little more than forced saving except in very high appreciation markets. Most home owners don't make a dime on the appreciation of their properties when they liquidate at old age.
On a long term monthly bases renting is less expensive than home ownership. All factors considered associated with owning a "Personal Home" will prove out those numbers. Remember a rental property is not a personal home it is a business, costs are different.
This is also one of the primary reasons the vast majority of SFHs would never have positive cash flow. They prove the fact that renting is cheaper.
1 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
@Thomas S. If a person buys that house they are renting from you, for the same price and finance it the same.....how are they losing money if the rent You receive is Higher than the expenses and mtg you are paying....even on a “cash flow” basis? Let alone they also get tax savings on the interest, principle pay down on their mtg payment, even without appreciation
0 Reply
Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Wayne Brooks you're assumptions are why you cant see the answer. 1) My mortgage was 65% of my homes value, so my payment is considerably less that that of someone that purchases it a retail price. 2) Expense writeoffs make an investment home less expensive than a private residence, more so now with the SALT Cap on tax deductions. 3) Depreciation that you get from an investment property. Owning a primary residence costs more, long term, than renting, without a doubt.
1 Reply
Gabrielle Martin
Rental Property Investor · Los Angeles, CA · Member since 2015 · 73 posts · 55 votes
8y
Doubt it. I see it as a cycle of life. At the very least, most people have to rent in the beginning until they've saved enough to own.
1 Reply
Anthony GaydenPro Member
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
8y
@Steven Coppola
I don't believe that renting will die. I think that government regulations such as rent control will cause a lot of people to no longer want to deal with renting their properties and there will be a further decline in available units. The big players of course will survive, but the smaller players will not be able to handle the additional burdens.
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
Originally posted by @Steven Coppola:
@Ned Carey thank you. Because where I live renting is the same as a mortgage. That's why I'm saying this
Oddly enough you can buy for about 1/2 to 1/3 LESS that renting in Baltimore. Despite that many rent because they just don't have the credit to buy or any money for a down payment.
0 Reply
Account Closed
Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
8y
@Steven Coppola I am a renter and I actually prefer renting. I am probably in the minority but I like Grant Cardone's philosophy "rent where you live, own what you can rent out". So I own rental properties and I rent where I live.
There are several reasons why I do this, but mainly I prefer the flexibility to just up and move when I want, change jobs, move to a new city, etc. I know all the debates of throwing money away on rent vs owning but for someone like me who doesn't want to be locked into anything it makes more sense for me to rent.
Personally I think in the future people will require more flexibility in their lives with things like gig economies, rapidly changing technology and the nature of work, etc, so this could even be a growing trend over time. Either way, renting is not going away in fact I think the demand could increase greatly in the future if I am correct.
4 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
8y
People today can’t even save up enough dough to buy a 300$ flatscreen tv . They go to rent a center ! No way are they able to save 20 grand for a down payment and most don’t have the credit because of astronImcal student loan debt . In a poll they found 83% of the millennials feel they can’t qualify for a home loan because of this and there’s 80 million millennials .. there’s only a little over 300 million in the entire country . Sadly peoples Financial illiteracy is what makes us successful
1 Reply
Steven Coppola
OP
Windsor, CA (windsor) · Member since 2018 · 21 posts · 6 votes
8y
@Thomas S. Read the book the wealthy barber.... that's where I got that from and got the idea....
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