Re: Rising Food Costs

jmcquown wrote:
Nancy Young wrote:
"Pete C." <aux3.DOH.4@xxxxxxxx> wrote

Nancy Young wrote:
I see car leases where they want thousands down. I fail to see why
anyone would consider that. What's the point, buy a car.
Leasing is mostly good for businesses where they need to have a
relatively new vehicle for appearances and being able to simply
return one and pickup the next lease is good.
Of course I was not speaking of business use, that's different.

It wasn't so long ago you were expected to put money down if you
bought a house. No money down! was a joke real estate scam.
Now you see all these people getting 80/20 loans, they don't even
have to pay the closing costs. Gee, can't see how that could go
wrong. Arggh.
Yes, and no. Certainly there has been plenty of mortgage abuse from
all directions. I do strongly disagree with the size of a down
payment bearing any relation to the risk of the mortgage. That may
well have been the case in years past, when renters were actually
able to put food on the table and put aside savings for a down
payment on a house (and with a single income at that).

Today the world is a very different place and many renters are paying
nearly the same amount for rent as a mortgage payment, if they are a
family, dual incomes are required just to pay the rent and put food
on the table, and saving $20k for a mortgage down payment simply
isn't possible.

Simply looking at those renters history of paying the rent each month
will show pretty clearly if they can make the mortgage payment each
month. A requirement of a large down payment only serves to
discriminate against a large segment of the population that is hard
working and could readily pay a reasonable mortgage on a reasonable
house.
If they can't save a few bucks every month toward a house, what the
heck are they going to do when the furnace breaks and the roof leaks.
Lending standards went out the window and look at the mess we have
now, people who can't afford the house they live in.

nancy

That's one reason I rent. I don't have to worry about "do I have the
money?" if something breaks or needs replaced. I don't have to mow the
lawn. Granted, there are some apartment management places that are horrible
about any kind of maintenance. This hasn't been the case where I've lived
for the last 10 years, thank goodness.

They've replaced the central A/C, the dishwasher, garbage disposal and
refrigerator. I had my own fridge when I moved in; they took theirs out and
took $10 a month off my rent. When my fridge finally died they put one of
theirs in but never did add the $10 back.

They replaced the water heater (and the carpet & padding from when it broke
and flooded through to the dining room). Last year they replaced a good
part of the carpet and padding in my bedroom when the outflow drain from the
toilet in the master bath got blocked and water overflowed into the bedroom.
I've never had a problem with my washer & dryer (knock wood) but if they
should break (or a hose burst) I don't anticipate them giving me grief about
it.

They've never hemmed and hawwed about fixing or replacing *anything* and
they do it immediately. I've never gotten more than a $30 a year rent
increase. It's usually more like $20, although when the lease expired last
time it didn't go up a dime. Oh, and my trash can is in a small enclosure
off my patio so I don't have to haul my trash to the curb (or, heaven
forbid!) to a dumpster someplace in the complex.

For me renting (at least in this complex) has been a good deal.

Jill




If/When you get a job, buying is always better than renting. There are income tax breaks and appreciation (yes, even in today's market).

Your imaginary savings when something breaks is offset my your rent payment. Your landlord is in it for the money.
.

Relevant Pages

  • Re: Rising Food Costs
    ... payment bearing any relation to the risk of the mortgage. ... dual incomes are required just to pay the rent and put food ... They've never hemmed and hawwed about fixing or replacing *anything* and ...
    (rec.food.cooking)
  • Re: Rising Food Costs
    ... payment bearing any relation to the risk of the mortgage. ... payment on a house. ... dual incomes are required just to pay the rent and put food ...
    (rec.food.cooking)
  • Re: OT: Anyone a landlord?
    ... They're usually several days late with the payment, ... >>punctuality with rent payments always seemed to be a minor issue ... > mortgage company sure considers it one. ... that the current month's rent is racing to the mortgage company for the ...
    (sci.med.transcription)
  • Re: Rising Food Costs
    ... I do strongly disagree with the size of a down payment ... bearing any relation to the risk of the mortgage. ... dual incomes are required just to pay the rent and put food on ... Borrowing from relatives is the least likely of possibilities.. ...
    (rec.food.cooking)
  • Re: McCain on the economy
    ... Increasing the down payment may make them even more desperate to avoid loss of their investment, but it is mostly motivated by the lending industry to increase what they stand to recover when the family can no longer make the payments. ... Like it or not, for whatever reasons, the adjustable rate mortgage loan was created by the mortgage industry and these loans were aggressively marketed and sold. ... But be that as it may, a large down payment would differentiate those who have the means-- but not on the record-- and those who do not, of buying a home. ... In desireable locations prices continue to climb, but in other areas people who have a good income but no equity would like to buy now that prices have fallen. ...
    (soc.retirement)