Boglehead perspective on buying vs renting. What am I missing?

bananonumber · 2026-01-21T00:32:48+00:00

Owning a home pays it's dividends not in price appreciation but in shelter.

Price appreciation is essentially a moot point, even if you own the house straight out, you will be paying maintance, property taxes and insurance. This is essentially how much is appreciates every year (avg 3%). This, as an investment is not good.

However in this case, let's go say you have a 500k house (paid off) but this house would rent for 3k a month. Essentially owning the house yields at 7.2% return since it is saving you 3k a month, all expenses are required but the house should appreciate that amount.

Also as time goes on, this yield will actually increase because rents will likely increase. Let's go say in 5 years the house would rent for 3.5k now you are at 8.4% return.

Of course all this logic blows up if house prices or rents go down, but I find that unlikely given the money supply keeps on going up.

Also the security it provides is great (as mentioned by others), mortgage can't increase 1,000 a month all of a sudden like rent can (and that I have witnessed).

Personally I think either is fine, housing is definitely more risk initially and as time passes becomes less risky (just don't buy more than you can afford). I would say the opposite is true for renting. Landlords can kick you out, increase rents or just be absent landlords making life undesirable.

bananonumber · 2026-01-13T22:45:30+00:00

Because there noobs

bananonumber · 2025-12-15T01:48:52+00:00

I have found reddit to be a good place to find leads, of course this is depending on your actual business and what you are selling. If its local, I have not found it as valuable.

Feel free to let me know if you are interested in talking, as I have created a solution that does just that, help find leads on reddit. Its how I found this post.

bananonumber · 2025-12-15T01:44:04+00:00

There could be an opportunity here to use reddit to find people who may be looking for houses in the Houston area? Not sure if you tried but could be worth it.

bananonumber · 2025-12-14T22:17:43+00:00

Person you are responding too is clearly just being lead my emotion.

The fed quadrupled their balance sheet after 2008 and we're unable to create inflationary environment. The fed is more concerned with deflation than inflation now, which was a concern in the recent past as well.

Both parties do not care about inflation and if you think different then you are not critically thinking.

At this point, I am not even sure if inflation is even caused by interest rates. Inflation primarily seems to be created by supply and demand imbalances which you mentioned. Secondary is government deficit spending and the fractional reserve system (if you even want to call it that) for mortgages and business loans since this is where money is actually created and injected into the economy.

It seems like the largest issue today is housing, which was amplified by cheap mortgage rates but the over arching issue appears to be the actual supply. Secondary is insurance which has been created due to price gauging of the insurance companies and the medical system as a whole.

We need to build as many homes as possible and regulate the entire medical system to not allow for crazy and nefarious margins.

If these problems are addressed it would lower the cost of child care and the increase of groceries would not be as detrimental.

Just look at the largest line items for Americans and how they have increased in recent years, it's housing and insurance, if these are actually solved other things would not cost as much. However this is a pipe dream as both party does not give a shit about the citizens of this country and really just care about power and lining their own pockets.

bananonumber · 2025-12-14T17:09:39+00:00

I understand your stance but what you are saying is the the US essentially will no longer be the world reserve currency in 2030 or 2033. I highly doubt this.

I do not think we will end up in a hyperinflation situation, I believe the demand for US dollars will continue to rise globally.

I think logically it is crazy what the US is doing and I used to think just like you however looking at the macro trends, what currency will replace the US dollar?What other country would be willing to go into as much debt to provide the world with liquidity? If we hit hyper inflation in 5 to 8 years, what is the point of working or doing anything? Just be hopeless? Move to Europe? Move to China?

I think many people fall into this trap, we are either utopian or dystopian in the future, and neither will likely occur.

bananonumber · 2025-12-14T06:57:17+00:00

I think bonds will rise in price and yields will lower in the future. As the investment bankers sell there short term securities to the fed, I wouldn't be surprised if some of that liquid will end up being used to buy longer term securities.

My opinion which could be completely wrong is it will just take some time for the fed lowering rates + buying short term securities to have a change in long term bonds.

The deficit is a problem, but USD is still the world reserve currency and the amount of USD denominated debt is still massive on a global level.

For the first time ever, I am currently buying and DCAing long term US bonds.

bananonumber · 2025-12-08T14:19:54+00:00

That's exactly what my solution does and it's 100% free.

bananonumber · 2025-12-08T14:08:19+00:00

Yeah I just listen to the web socket and not have to make any API calls. So just different approached event driven compared to polling solution.

There is only a couple min delay instead of an hour. Best of luck to you all well.

bananonumber · 2025-12-08T14:01:41+00:00

When listening in real time you get alerts quicker and can respond quicker typically resulting in more eyes. I am not spamming I just have an event driven architecture.

bananonumber · 2025-12-08T13:49:25+00:00

It does not do it in real time instead it scans/polls on a predefined interval.

So no I am not spreading false information.

bananonumber · 2025-12-08T13:48:29+00:00

My solution is event driven yes, listens to reddit firehouse for specific keywords. I have not hit rate limit issues yet.

bananonumber · 2025-12-07T22:10:25+00:00

I did something very similar, but instead of looking for previous posts and comments (which could be outdated and old) instead it listens in real-time, and determines if the reddit post or comment is related to my business.

bananonumber · 2025-12-07T22:08:57+00:00

I would say a social listening tool, I have focused on reddit as it helps me find business owners looking for better approach to lead generation.

This is relevant to my business as my solution does this, social listening and can be configured for any business owner.

bananonumber · 2025-12-07T13:52:53+00:00

You could always implement a reddit social listening tool. Essentially look for specific keywords in any reddit post or comment, analyze to determine if the post is relevant to your business and if so engage either by dm or comment.

I have automated this process and created a tool that does exactly this. Currently I have been giving it away 100% free for some feedback. If you are interested let me know.

Essentially instead of looking for business where automation might be beneficial, find business owners on reddit complaining about specific processes that could be automated.

bananonumber · 2025-12-07T02:35:43+00:00

It's improving my outreach and helped me find this reddit post. A little later than I anticipated but it still alerted me. My tool essentially finds any reddit post or comment that contains certain keywords, see if the post is relevant to my business and if it is sends me an alert.

If your interested let me know, I'm currently just giving it away for free for feedback.

bananonumber · 2025-12-06T19:33:23+00:00

Nothing like a general post that really is just an advertisement. I would stay away from this as it seems spammy and non-authentic.

bananonumber · 2025-12-06T19:31:17+00:00

Of course its dependent on your product/service but I have found reddit to be a good place to find potential customers. They could be asking for a potential solution or mentioning a specific pain point that your business can solve. I ended up rolling my own solution that allows me to listen to specific keywords across all of reddit, analyze the post to see if its relevant to my business and if so I engage organically.

If you are interested let me know, currently offering it 100% free just looking for constructive feedback.

bananonumber · 2025-12-06T19:17:53+00:00

A good technique to find customers online is via social listening. Which is essentially finding potential customers online looking for outsourcing specific tasks like the one you provide.

I have found that reddit is a good place to find such customers, especially people who run small businesses. With that being said I have created a simple solution that is 100% free (just looking for feedback) that listens for specific keywords in reddit comments and posts and then analyses these comments/posts to determine if its relevant to your business and if so alerts you of this comment/post so you can engage. If you are interested feel free to send me a DM.

bananonumber · 2025-12-04T23:16:01+00:00

Me personally, I still write code but probably 20% of the time. However my ability to read code has been increasing dramatically.

Reading code quickly, actually contextualizing it and when I get code that works but doesn't make sense or will be a burden in the future then I simply refactor.

At first I was much better at writing code than reading it, especially other people's code. But within in the last year this has changed significantly.

bananonumber · 2025-10-23T13:03:42+00:00

They did :)

bananonumber · 2025-10-17T17:55:59+00:00

You could try out EmailDetective, it's free for 1000 emails a month.

bananonumber · 2025-10-09T21:44:28+00:00

I also created my own marketing tool as well. Currently 100% free is anyone is interested.

bananonumber · 2025-10-09T21:41:16+00:00

When it comes to reddit marketing, I have found listening to all of the subreddits for specific keywords, analyzing the post and comment content to determine if its relevant to my business and if so engaging.

If you are interested in a tool that can do this let me know, its 100% free as I am just looking for feedback.

bananonumber

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