Quote:
Originally Posted by Red
Not sure what you are trying to say here.
They are renting because they figure that buying the same house would cost them $800 + $200 tax + insurance/maintenance etc. more every month.
The article illustrates how bad of an investment this house if for their owners.
In a normal market renting is more expensive than ownership or at least close to break even.
Here, the owner of the house gets 5% return on their $400K house. Negative cash flow and they get taxed for income at highest rate. They are left with 12K after tax and that's when they have no vacancy.
Getting 12K a year on a 400K investment is not a good return.
At the same time, the renters here are saving the 15K extra they'd be spending as owners. They are the winners here.
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Not sure which normal market you are in...
