Quote:
Originally Posted by Chatbrat
Every time I see the topic of rentals come up, I have the same knee jerk reaction. Are you an owner? If you have a mortgage , you are a renter- you are renting from your lender !!!
To people who like to put down renters--be honest
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Absolutely not true. There is a huge difference between owning and renting. Number one, by law, you, not the bank, not the lender own the home. You are responsible for every aspect of it. It the water heater goes, you don't call the lender to have it repaired. When you pay the loan off, the house is yours. Renting is a dead end street. You never own anything and you'll keep paying rent for the rest of your life.
If you sell the house before the loan is paid off, much of what you paid back to the lender is recovered by you. You pay the lender interest but in return you get the appreciation.
Unless you have an arm, your mortgage will stay the same for the length of your loan. Rent can increase every year with a lease and at the whim of the owner without a lease.
A home owner has equity in a home against which he can borrow money. A renter has no such option unless you have a long term lease (100 years or so) on a commercial property.
An owner can opt to rent out his property. A renter cannot unless he gets permission from the owner to sub let.
There are many more differences between renting and owning. In many cases renters don't take as good care of a property as an owner might. The owner has something invested whereas the renter doesn't. A renter can trash a house and walk away. It is in the owners best interest to maintain a property as best they can so as to protect their investment. I'm not saying that all renters trash properties, in fact most don't. But if you own a home and rent it out, you are taking all the risk where the renter takes none.
And, even if true, your point would hold less water here where more people have sold their homes up north and paid cash for their homes. Because of this, I would think that there is a much higher than average, percentage of people who own their homes outright in The Villages, or any retirement community for that matter, than in other parts of the country.