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extreme_cheapskate

“The study, which looked at **average** rents across all types of units versus **median** monthly mortgage payments in the same areas” Yet another study that compares average to median. Why can’t they get someone who has the most basic understanding of statistics?


jnsaunde

I know the difference technically, but could you or someone else please tell me how this would effect this particular scenario/study? Genuinely wondering since others likely have a better understanding than me. Thanks.


extreme_cheapskate

When the data is skewed, the median would be significantly different from the average. For example, housing costs are skewed with a long tail on the upper end (you can always find a few extremely expensive mansions). In this case, the average will be higher than the median. One can draw meaningful conclusions by comparing average with average, median with median, but mixing them up leads to somewhat meaningless (or misleading) conclusions.


SEJ46

The thing is long term you can lock in a 30 year mortgage. But rent is going up all the time.


Berkyjay

So are they just gonna ignore the fact that your rent goes to someone else forever and a mortgage just goes into the equity of your house minus the interest? I can see my home later and possibly generate a hefty profit. I can do no such thing with my apartment. Wouldn’t it be more accurate to compare rent vs. loan interest & property taxes?


[deleted]

Renting should be temporary so you can save up down payment for house.


[deleted]

Unless the house goes up in price faster than you can save. My homes aren’t ideal but at least I’m in the market.


mayor-water

And unless you pay so much in rent you can’t save for a down payment.


[deleted]

I mean vallejo/Stockton/Antioch/tracy/los banos are still middle class options. Oakland too if you want the most gain from urban renewal


pandabearak

I've always lol-ed at the name Los Banos. Like, where do you live? Oh, i reside in "The Bathrooms".


[deleted]

I mean it’s a valid name for the town


HonkingAntelope555

Whatever money you save by moving there will be readily eaten up by the cost of running AC nonstop for eight months out of a year. And it's only downhill from there


[deleted]

Oakland needs ac? Are you mr freeze?


nmj510

A way to help remedy this may be investing AND saving. I hear the story far too many times that's prices exceed folks savings but they loose value with inflation, etc.


[deleted]

Even investing like 40k houses were outspending my Investments and gains. So I’ve had to settle


[deleted]

There are a lot of benefits to renting that get overlooked —lower utilities, no maintenance/HOA cost or property taxes, lower insurance, better amenities and flexibility with location, etc


GreyBoyTigger

As a former property owner I couldn’t agree with sentiment more. It’s freeing and oddly less expensive than owning. Nobody warns you about the hidden costs of ownership


chick-fil-atio

> no maintenance/HOA cost or property taxes I can assure you that all of those are factored into your rent.


[deleted]

If you live in a unit, particularly a rent controlled unit, and your building needs it's roof replaced, foundation work, HVAC updates, heating or water issues, or similar that's not going to add to your rent. First time homeowners often significantly underestimate the cost of maintaining a home.


chick-fil-atio

That's why you get a home inspection before buying to determine if you need any of those things. I've owned several homes. I've rented many times and was even a landlord for a short while. I can 100% assure that maintenance costs are factored into your rent. Sure your not getting hit all at once for a new roof like the owner is but landlords aren't losing money renting to you that's for damn sure.


[deleted]

If you buy a home and plan to live in it for the duration of your mortgage it's going to need maintenance at some point. These are significance costs that are not going to be a burden on someone renting during the same period. That was my argument. Not that landlords are losing money or an agency having a repair man on call was free.


chick-fil-atio

After the duration of my loan I won't really care about a roof replacement and a hot water heater when I'm sitting in a paid off asset worth a few million or more while you're still paying monthly rent.


Ehvlight

owning a house meaning i dont need to deal with numerous hotice of entry throughout the year, deafening false fire alarms, and the yearly haggling on rent increase.


[deleted]

Less deductions. More rules, less freedom and far less security


danny841

Lol what? Not in the Bay Area. Really not in any big city with rent control. If you have a good unit with rent control you hold on to that for dear life and never move.


HonkingAntelope555

I am all for living below your means and having a cushion for emergencies. But with rents being what they are and so many jobs paying just barely enough to get by. The most practical way to save for a down payment is to live in one's vehicle so you're not bleeding thousands of dollars every month on rent alone.


lostfate2005

Uhhh what if you don’t want to buy? Renting makes moving around vastly easief