The Diane Rehm Show

It is still the economy, there isn't a positive outlook, deficit spending, and 7.8 % unemployment. I own several rental homes but choose to rent to allow me more flexibility. When the mortgage and tax deductions are taken away, owning a home loses it's advantages. Until i see improvement in the economy, balanced budget efforts, reduced deficit spending, i will not be buying a home, rather will continue to increase my rental homes.
Rich
dallas, TX

My parents didn't have this problem. They built a new house in 1955 for $4000. It was paid off in 10 years at $80 per month. Boy, were we fooled when the "experts" were telling us about the importance of "growing the economy" (we're still falling for that one).

If, looking back over 60 years, this is what people still call "progresss", it seems that a little "regress" would be in order.

But not to worry! We can't maintain the current pace, so eventually we will start going "back to the future".

What am I saying?? We are already headed in that direction. Everyday I see college graduates walking between two or more part-time jobs.

And yet people say we need to "prepare for the future". They don't realize that the future is the march to the past.

With a growing population and the disappearance of jobs, there is no other choice.

Please address buses by mortgage servicers, which really have not been stopped by the attorney generals' settlement. Pleae also address broken chains of title caused by the mortgage securitization debacle. Real estate is not as sound as it used to be.

Your guest mentioned the "unprecedented" decline in home prices during the past few years. No one has mentioned that the rapid rise in home prices during the several years prior were totally UNPRECEDENTED. Consequently it seems all statistics as to the supposed future rise of home values AND therefore the length of time it takes to acquire any equity in the home are erroneous. Please comment.

The last e-mail you read on the air was absolutely the wrong view of renting versus owning. Renting is NOT the only logical way to go. Renting is the right choice for some, but most people would benefit from owning if they did it properly. The problem we have gotten into is directly related to greed. The entire complex of government and the financial industry has dangled the carrot of owning the largest, most fancy home you can possible squeeze out of a monthly paycheck! The reality is, if you follow common sense rules on borrowing and saving, we would all be fine. A proper monthly mortgage/ payment is one fourth of ones total household income...always has been, always will be! It's not okay to buy more before you get that raise you THINK you will get! People MUST save money, a down payment keeps you above water in a down market. And most important?...It's NOT okay to continue getting a 30 year mortgage every time you buy a different home!...the proper goal is to have your primary home PAID OFF by the time you retire! Why would anyone want to be paying a mortgage/rent out of their retirement money? Insane! Most people live 20 years after retirement...do you really want to pay rent with no income and very low savings, as most people are in that situation?

We purchased homes early in our marriage when home prices were rising. We got out of the market in 2007, much to the disappointment of family, until the crash made our decision look very wise. We rode out the crash in employer provided housing, similar to a rental situation. I preferred not owning and I wanted to consider renting for many years to come. However, when we left that employer and had to find our own housing, we found that we would have to pay significantly more to rent in the Houston suburbs for far smaller and run-down homes than we would pay for a mortgage. So we ended up buying again. It seems that the market is keeping eager-renters with good credit out of the rental market.

Jennifer
Houston, TX

Please talk about the problem of renting itself. In Charlottesville, VA (a college town) rentals tend to come on the market in relation to school terms. As a renter, you must give 60 to 90 days notice of termination in order to move AND you must have not one, but two deposits (usually one months rent) because you aren't going to get your deposit back for 45 days. The cost of moving (deposits, moving vans, time, etc.) is tremendous and one that requires a cushion + good credit plays a part in whether you get the place. It ain't easy being a renter. I took advantage of a low interest loan and bought this past summer. My mortgage costs less than the rent I was paying. It is a consumptive decision, but one I am willing to make to be the master of my destiny.

1960s
environmental concerns
urban sprawl

1980s
MacMansions
zero lot line houses-no land or yard
gas guzzling RVs
more urban sprawl

2010
Mega homes
zero lot line houses-no land or yard
gas guzzling cars
more urban sprawl

sustainability?
recycling of glass, aluminum, metals, paper, cardboard, packaging, plastic
frackwells Texas, Colorado, NY, Pennsylvania, Ohio
oil sands-Arkansas, KY, Indiana, Colorado, Wyoming, Utah, Kansas
more pipelines
more carbon
more cars
houses that get torn down withing 20 years-new owner-no land for
garden, water conserving,
RENT what is the difference between a zero lot line megahome and a mid rise planned community rental or condo

And please--tornadoes, hurricanes, earthquakes, and drought within USA will destroy many homes, ranches, farming communities and rivers.-- absolutely no mystery there-
please include these problems in city planning for greenery, oxygen, sustainability, and future
Helen Bush

I own a home, for years, but leaning on the side of going back to renting as no one has touched on "Property Taxes"?
This continually drives up your mortgage payments although you have a fixed rate mortgage, this is a key factor our of your control

I think that some things to take into consideration when buying a home are:

-The interest you pay on a 30 year fixed loan (or other loan). That interest is money out the window.

-Maintenance

-Home Owners Association

-Property Tax

Overall for myself renting is a better choice.

In the past decades the balance of power has steadily gone more in the landlord's favor at the expense of the renters. Today it is common practice to require deposits 6 months before the apartment is rented, prices have skyrocketed, and renters rules (conditions and limitations), which used to be reported on a single page, are frequently booklet size manuscripts. Where I live most of the workers in the city can't afford city rent and have to commute from 10-20 miles away where rents are not as steep. Something that 20 years ago would have seemed crazy. This is a common problem nationally. There no longer is a middle class, but only rich, working class, and poor, and renters are being bled for profit enjoyed by the few.

John Doe wrote:
"In the past decades the balance of power has steadily gone more in the landlord's favor at the expense of the renters. Today it is common practice to require deposits 6 months before the apartment is rented, prices have skyrocketed, and renters rules (conditions and limitations), which used to be reported on a single page, are frequently booklet size manuscripts. Where I live most of the workers in the city can't afford city rent and have to commute from 10-20 miles away where rents are not as steep. Something that 20 years ago would have seemed crazy. This is a common problem nationally. There no longer is a middle class, but only rich, working class, and poor, and renters are being bled for profit enjoyed by the few."

As an owner of rental property, I call BS. First, maybe that's true "where you live" but to extrapolate to "This is a common problem nationally" is falacious. Six months rent in advance? I wish! I get first and last (security deposit) and a pet deposit if they have a pet. That's it. An applicant must pay for his background check - but it gets refunded to him if he becomes the renter. That's fair. As for the "booklet size" leases (I doubt it - the one I use is 7 pages legal size), renters have no one but themselves to blame. Property owners have to look out for their interests whether the tenant is the best ever or a scum who doesn't care about the property or the neighborhood. It's not the property owners who make things bad for the renter, it's other renters - the scum. Go own some rental property for a few years, then see if your opinion changes.

Given the experience of the three guests, I would have expected a more interesting and informative discussion. Instead I felt like I was listening to a repetition of the same common points.

To wit: Some people are better off renting, some are better off buying. If you buy, there are risks and rewards. This can be a good time to buy and a good time to rent. It's harder to get mortgage loans now because the banks are "skittish." If you rent, things like broken dishwashers are the landlord's problem, not yours. If you buy, you can build up equity, so it's like an investment. If you rent, it's easier to move. People can "make it work" either way. People should be "careful." There isn't one right way for all people; it's a personal decision. Renting is not the "stigma" today that it used to be. In some parts of the country, rents and home prices are cheap, and in other parts they are expensive. If you rent or buy far from where you work, the money you save may be at least partly offset by the additional transportation expenses. And so on.

I wonder what the discussion would have been like if Diane were hosting. Did anyone learn anything new, or am I just being a grouch because Diane wasn't there? :-)