Quote:
Originally Posted by biggus diggus
dtnphx is going to have a problem with me responding to your post but look...
renting is basically throwing your money away every month. You build no equity, you buy no tax shelter, and you have no net worth. Millennials are beginning to realize that and are making up some of the largest percentage of home buyers in a lot of markets around the country.
As for incentives, I'm not talking the usual "we'll discount your security deposit" or "free $350 TV". I literally saw a giant burst of apartments built in the mid 80's and about a year later some complexes were giving multiple months of free rent and one of them, yes, I remember the signs "lease today - Hawaii vacation included".
Just curious how young is the average person on this forum? You all seem pretty hard to convince of anything and a lot of the optimism and excitement makes me think you've never seen the bad side of business.
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Biggus. We all know that renting throws money away. That says nothing. People will still rent because:
A. They don't want to be tied down to living in one area the rest of their life.
B. They are single and the cost of home ownership is greater.
C. Home prices in Phoenix are expensive. Maybe not compared to Cali, but I consider $250,000 for a small 1 story 3 bedroom in an average neighborhood to be 'effing ridiculous. I could get the same home in Ohio for $90,000. That is no joke.
D. Home buying requires property taxes. Yes, rentals include this in the cost of taxes in rent, but it is easier to pay a few extra per month than one lump some per year.
E. Maintenance costs: Mowing your own lawn, landscaping, replacing your own appliances, etc. My AC broke down this summer. It would have cost me $1400 to fix it. Free with my rent.
F. More utilities: Water, trash, sewer which are normally included with most rentals.
G: HOA costs. I hate HOA's.
This all adds up in home ownership costs which a lot of people simply do not want to deal with which is why there will ALWAYS be rentals. Also, Millennials are primarily renters, not homeowners. I have no idea where that statistic come from.
Also, I am 47. So, I am not some young yuppie that has no idea between rentals and ownership. I choose to rent because it suits my lifestyle.
Also, again this is not the 80's man. You're basing everything on 30 years ago. A lot has changed since then and if it's one thing the last bubble bust taught Phoenix and surrounding cities is that Phoenix CANNOT afford another housing bust! This is why the emphasis is urban development and sustainability which is why the market favors multi-family over single-family right now.
No one is trying to bust your chops, but quit living 30 years ago and enjoy the ride Phoenix has going right now. If it bust, you can say "I told you so". But at least wait till it happens.
