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  #31  
Old 05-27-2016, 01:41 PM
MrPots MrPots is offline
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I think perhaps also interesting are rents, Both my kids have apartments that cost more per month than the monthly mortgage payment on my home. Yes, you can buy a home cheaper than you can rent. They have average to low quality apartments in decent areas.

Oddly, they don't make enough to qualify for a mortgage but month in and month out they manage to make payments higher than a mortgage on a nice house.
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Last edited by MrPots; 05-27-2016 at 01:44 PM.
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  #32  
Old 05-27-2016, 02:06 PM
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Rent needs to cover the property owner's mortgage, or an approximately equivalent amount as return on investment if the home is owned free and clear. This alone will equal the 'principal and interest' of a mortgage payment. Then it needs to cover taxes and insurance. Finally, it needs to cover maintenance cost, to keep the property livable and preserve it's value, and management cost of the work needed to find tenants, collect rent, and contract for and supervise maintenance work.

Rent ordinarily has to be higher than a mortgage payment for the same property.
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  #33  
Old 05-27-2016, 02:19 PM
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Quote:
Originally Posted by donquixote99 View Post
Rent needs to cover the property owner's mortgage, or an approximately equivalent amount as return on investment if the home is owned free and clear. This alone will equal the 'principal and interest' of a mortgage payment. Then it needs to cover taxes and insurance. Finally, it needs to cover maintenance cost, to keep the property livable and preserve it's value, and management cost of the work needed to find tenants, collect rent, and contract for and supervise maintenance work.

Rent ordinarily has to be higher than a mortgage payment for the same property.
True enough but this argument pertains largely to single family or single occupancy rentals. When one considers multi-unit properties, the carrying costs get spread around so that each tenant pays only a portion thereof, plus a profit for the landlord.
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  #34  
Old 05-27-2016, 02:43 PM
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Originally Posted by barbara View Post
Right..... It has it's pros and cons.

Medicaid will liquidate the house if there is extended family living in it or not. Either way, no inheritance for offspring.

And, it's true that elder care is hard on those doing the caring. But, data tells us that having a family member care for the elderly in the home provides the best and most economical care...up to a point.
Yes you make good points. One thing that my wife's country the Philippines has going for it is that the house stays in the family through generations. However not every family has a house, and the alternative of government paid long-term health care like Medicaid and Medicare does not exist there.
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  #35  
Old 05-27-2016, 02:56 PM
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True enough but this argument pertains largely to single family or single occupancy rentals. When one considers multi-unit properties, the carrying costs get spread around so that each tenant pays only a portion thereof, plus a profit for the landlord.
I was describing a cost-driven model of rent. Of course, rent is really market-driven, with costs only providing a sort of floor.
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  #36  
Old 05-27-2016, 06:15 PM
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Quote:
Originally Posted by donquixote99 View Post
Rent needs to cover the property owner's mortgage, or an approximately equivalent amount as return on investment if the home is owned free and clear. This alone will equal the 'principal and interest' of a mortgage payment. Then it needs to cover taxes and insurance. Finally, it needs to cover maintenance cost, to keep the property livable and preserve it's value, and management cost of the work needed to find tenants, collect rent, and contract for and supervise maintenance work.

Rent ordinarily has to be higher than a mortgage payment for the same property.
True, There is a lot more to housing costs when you own your own home than the mortgage payment. I don't even have a mortgage payment but I've been in my current home for two years and I just did a quick tally and came up with $8,400 in maintenance and repairs and I probably missed some things. Some of that was due to the former owners letting some things go during the last few years because they knew they were going to sell so hopefully the next few years will be less but there is no guarantee of that. If my AC or Hot Water Heater or some appliance goes out or whatever ,that will be on me. And that doesn't count the $2600 a year in taxes and insurance that I pay.

Jesus Christ! Housing is costing me a good $500-$600 a month plus another $400-$500 in utilities. That's about a grand a month and I own the place free and clear! Dayum, I wish you hadn't brought this subject up! I was perfectly happy before I started crunching the numbers!
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Last edited by Tom Joad; 05-27-2016 at 06:24 PM.
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  #37  
Old 05-27-2016, 06:23 PM
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Originally Posted by Tom Joad View Post
True, There is a lot more to housing costs when you own your own home than the mortgage payment. I don't even have a mortgage payment but I've been in my current home for two years and I just did a quick tally and came up with $8,400 in maintenance and repairs and I probably missed some things. Some of that was due to the former owners letting some things go during the last few years because they knew they were going to sell so hopefully the next few years will be less but there is no guarantee of that. If my AC or Hot Water Heater or some appliance goes out or whatever ,that will be on me. And that doesn't count the $2600 a year in taxes and insurance that I pay.
Yeah you are in Florida. AC is serious business in Florida.
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  #38  
Old 05-27-2016, 06:31 PM
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Yeah you are in Florida. AC is serious business in Florida.
Actually I've moved to Mobile, Alabama.

But AC is even more serious here.

The humidity in the summer makes going outdoors feel like you're stepping into a fucking sauna.
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  #39  
Old 05-27-2016, 06:31 PM
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Originally Posted by Tom Joad View Post
True, There is a lot more to housing costs when you own your own home than the mortgage payment. I don't even have a mortgage payment but I've been in my current home for two years and I just did a quick tally and came up with $8,400 in maintenance and repairs and I probably missed some things. Some of that was due to the former owners letting some things go during the last few years because they knew they were going to sell so hopefully the next few years will be less but there is no guarantee of that. If my AC or Hot Water Heater or some appliance goes out or whatever ,that will be on me. And that doesn't count the $2600 a year in taxes and insurance that I pay.

Jesus Christ! Housing is costing me a good $500-$600 a month plus another $400-$500 in utilities. That's about a grand a month and I own the place free and clear! Dayum, I wish you hadn't brought this subject up! I was perfectly happy before I started crunching the numbers!
Youch! Didn't mention utilities because that's usually the same whether you rent or own a house.

Anyway, if you own that house free and clear, see a lawyer tomorrow (if you haven't already) and get a way going to keep the doctors or hospital or nursing home or medicaid from getting their hands on that value. They will pull that money right out from under you, first chance they get, if you don't do something to stop them.
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  #40  
Old 05-27-2016, 09:16 PM
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Originally Posted by donquixote99 View Post
Youch! Didn't mention utilities because that's usually the same whether you rent or own a house.

Anyway, if you own that house free and clear, see a lawyer tomorrow (if you haven't already) and get a way going to keep the doctors or hospital or nursing home or medicaid from getting their hands on that value. They will pull that money right out from under you, first chance they get, if you don't do something to stop them.
I got a trust done back in 2004 instead of a will. I hope that will help me.
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