Demand for rental apartments in and near cities across America is soaring, as more millennials believe it's cheaper than owning a home.

[tacobell fan]

• Apartment demand in the second quarter of this year spiked 11% from a year ago.
• That pushed rents up an average 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company.
• Despite the increase, a record 82% of renters say renting is more affordable than owning, according to a new survey from Freddie Mac, up from 67% just a year ago.

[Spartan]

50% of Paycheck vs 80% of paycheck...

[tacobell fan]

I totally agree, there's no point in owing a house. It's no brainier. When you calculate the interest and total payments at the end of the ownership it's a big disaster. For instance $500k house with 4% interest will cost you $960k at the end of 30 years.

[tacobell fan]

1 minute ago, Spartan said:

50% of Paycheck vs 80% of paycheck...

Owing is BS to me. Unless you have ability to down the large amount and clear the loan, paying 10+ years to a house/condo is just insane. 

[dasara_bullodu]

housing is overrated

[Hitman]

కాని మన వాళ్ళు అందరూ house buying better అని ఎందుకు decided 

[tacobell fan]

Just now, Veeraveera said:

Yearly property tax include sesinava?

Yea including everything to fully own that property. 

[babu_bangaram]

15 minutes ago, tacobell fan said:

I totally agree, there's no point in owing a house. It's no brainier. When you calculate the interest and total payments at the end of the ownership it's a big disaster. For instance $500k house with 4% interest will cost you $960k at the end of 30 years.

Assume that the house doubles in 20 yrs ....to 1Mn then you are just paying tax per year say 5K-8K ..... which is less than monthly rental for a large house (500K house) .... that is the logic of owning the house..............
yearly you pay 12K for rental house (much smaller ....like 25% of the size you will own)
appreciation yearly ...... so you will be paying 350K for 20 yrs for 25% of teh house and you will own nothing at the end of 20 yrs .......

that is the logic in USA ..... 

In India it appreciates exponentially ....

[AndhraneedSCS]

Adi depends on what you are going to own/buy. If it is 2012, it's a no brainer. Just buy it and you should be making money too 

 

If it is now, you just have to do the calculation for Rent Vs Own 

[boeing747]

sometimes Buying has its own advantages especially when you have kids. 

[tacobell fan]

Just now, babu_bangaram said:

Assume that the house doubles in 20 yrs ....to 1Mn then you are just paying tax per year say 5K-8K ..... which is less than monthly rental for a large house (500K house) .... that is the logic of owning the house..............
yearly you pay 12K for rental house (much smaller ....like 25% of the size you will own)
appreciation yearly ...... so you will be paying 350K for 20 yrs for 25% of teh house and you will own nothing at the end of 20 yrs .......

that is the logic in USA ..... 

In India it appreciates exponentially ....

I can argue that you can save more money by not owing a house. You can invest in a business or commercial property if it's matter of appreciation of money. By pushing your self to pay $1000 just to own a house won't end anytime soon until you pay off, if its the risk you wanted to take then invest on something much bigger than just a house. 

[tacobell fan]

Just now, boeing747 said:

sometimes Buying has its own advantages especially when you have kids. 

Scene lo ki nuvvu enter ayyaka inka matter over

[boeing747]

Just now, tacobell fan said:

Scene lo ki nuvvu enter ayyaka inka matter over

[tacobell fan]

6 minutes ago, AndhraneedSCS said:

Adi depends on what you are going to own/buy. If it is 2012, it's a no brainer. Just buy it and you should be making money too 

If it is now, you just have to do the calculation for Rent Vs Own 

Investing is different than owing a house. There are people buying houses purely for investment and they don't live there. 

[r2d2]

22 minutes ago, Hitman said:

కాని మన వాళ్ళు అందరూ house buying better అని ఎందుకు decided 

peer pressure.. especially from the wife...