\\ Post Your Car vol. Been a minute //

Cars said:
boywonder boywonder Absolutely. I'm just saying that the idea that one is expected to buy and live in a home at a certain age is not the smartest move financially and makes much less sense than most people seem to think it does. It pretty much doesn't matter how much a home is worth if you never sell it.

not going to be super long here but let's use #s
Screen Shot 2018-03-09 at 13.11.10.png

history says current owner just purchased in mid december for 238k.
Mortgage ~1150/month @5% 30yrs w/ 10% down.
Screen Shot 2018-03-09 at 13.30.47.png


1BR is 768 but let's say you like space and want the 3BR for $950 even though it's just you.
more than decent looking apartment for someone that's late 20s/early 30s.
Salary at 50k a year there's no way I'd put less than 3k a month toward paying off the house and move on from it as quickly as possible
3000 mgage payment -1825 rent = $1175 + $950 for larger than necessary apt = $2125/ out of pocket monthly housing expense which seems doable

All of this considering completely stagnant career trajectory at 50k, a far from cost cutting living situation, and an interest rate higher than what I saw for a 660 credit score. If this scenario were to start right this minute the house would be paid off in March 2025
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The question is why you intend on paying off the house so fast if you don't have to? Especially if a mortgage offers multiple tax benefits when you have it? In addition, no one typically stays at the same salary bracket for the rest of their lives. A normal career would show a person making more over time with career progression and adjustment for inflation. So in your example, you're paying $950 for rent for an apartment which typically goes up in rent every year versus a standard mortgage at $238K purchase price is roughly around $1200, let's say maybe $1300 if you factor in taxes and insurance. You're paying an extra $300 bucks a month for an asset. That monthly mortgage will stay the same for the entirety of the loan. Assuming your income goes up over time, you can use your raises to pay down the mortgage just a little bit faster if you wanted to. So while you have no tax benefits and rising rent costs from rent, your mortgage balance is going down, the house for the most part with either grow in value or at least sell for what you paid, and builds equity. During certain adjustments from the feds, you can then refi your house at a lower interest rate, lower your monthly payment and pay off the house more aggressively if you wanted to.

In addition, rather than dumping all that extra funds into paying off the house, I would have invested extra funds into other assets that pays dividends (stock market, bonds, whatever). So now you have a diversified portfolio. A house which provides equity and tax benefits, assets that can grow, and maybe a little bit extra for leisure.

Now, assuming you don't want to live in that house anymore and want to move, you can rent it out. Assuming you get the estimated rent from zillow $1700-$1800, you're getting a net income of $600ish (rent-mortgage) every single month. That's in addition to keeping all the tax benefits. None of which you'll achieve by renting.
 
boywonder boywonder mortgage loans compound. The longer it takes for you to pay off the more you end up paying. Drastically. If you wait 20 or 30 years to pay off that house you're looking at 175k+ in interest.

Also exactly my point. People typically don't stay at the same pay rate so if you can make 50k at let's say 28 when you start this process one would hope to be making more than that at 34. Making repayment even easier or faster

You also could invest that money and try to come out ahead against inflation and the rising costs of the loan but that's more work, more expenses, and more risk. My main point was that instead of being eager to jump into home ownership for the sake of it. You could pretty easily buy a house to rent, Pay it off quickly and either own it or sell it for a bigger house if that's really what you're dying to do. As opposed to being saddled with taking on 400k in debt over decades on a first home purchase.

Also the tax breaks you get from having a mortgage you could still get if you just buy Another home to rent out couldn't you?
 
$4219 for apple car play really put a smile on my face
 
ninjahood said:
common in NYC.

go to tribeca, or soho, or upper west side/east side...crazy Vee's in those indoor parking lots under luxury high rises.
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I mean it's NYC though. You can say this for a lot of major cities. But if you in a apartment building in the burbs with an exotic >D
 
ninjahood said:
common in NYC.

go to tribeca, or soho, or upper west side/east side...crazy Vee's in those indoor parking lots under luxury high rises.
Click to expand...

My bros rent is 5800/mo for a 2BR in Hollywood so I totally understand the sentiment there. He’s paying a mortgage to rent but starter homes out here are 1.3M in this crazy market not to mention 20% down liquid—At least to stay where he’s at and not sacrificing quality of life.

I was thinking along the lines of 1k apt in the hood and having an exotic. Lots of people actually do this cause they get more enjoyment out of a car than where they sleep at night.
 
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wear rare airs said:
My bros rent is 5800/mo for a 2BR in Hollywood so I totally understand the sentiment there. He’s paying a mortgage to rent but starter homes out here are 1.3M in this crazy market—At least to stay where he’s at and not sacrificing quality of life.

I was thinking along the lines of 1k apt in the hood and having an exotic. Lots of people actually do this cause they get more enjoyment out of a car than where they sleep at night.
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Y’all Persian / Jewish?
 
dirty said:
If you cant pay for it cash you shouldnt have it imo
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If you have sufficient cash flow, you can afford anything.
boywonder said:
The question is why you intend on paying off the house so fast if you don't have to? Especially if a mortgage offers multiple tax benefits when you have it? In addition, no one typically stays at the same salary bracket for the rest of their lives. A normal career would show a person making more over time with career progression and adjustment for inflation. So in your example, you're paying $950 for rent for an apartment which typically goes up in rent every year versus a standard mortgage at $238K purchase price is roughly around $1200, let's say maybe $1300 if you factor in taxes and insurance. You're paying an extra $300 bucks a month for an asset. That monthly mortgage will stay the same for the entirety of the loan. Assuming your income goes up over time, you can use your raises to pay down the mortgage just a little bit faster if you wanted to. So while you have no tax benefits and rising rent costs from rent, your mortgage balance is going down, the house for the most part with either grow in value or at least sell for what you paid, and builds lequity. During certain adjustments from the feds, you can then refi your house at a lower interest rate, lower your monthly payment and pay off the house more aggressively if you wanted to.

In addition, rather than dumping all that extra funds into paying off the house, I would have invested extra funds into other assets that pays dividends (stock market, bonds, whatever). So now you have a diversified portfolio. A house which provides equity and tax benefits, assets that can grow, and maybe a little bit extra for leisure.

Now, assuming you don't want to live in that house anymore and want to move, you can rent it out. Assuming you get the estimated rent from zillow $1700-$1800, you're getting a net income of $600ish (rent-mortgage) every single month. That's in addition to keeping all the tax benefits. None of which you'll achieve by renting.
Click to expand...

People always seem to forget property tax when factoring home ownership. In popular major cities, it can be several percent per year. None of which adds to equity, and with the new tax laws coming into effect you may not even be able to write these taxes off.

Edit, came across this sort of relevant:
 
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Depends what kind of apartments you live in tbh. I see nothing wrong if you have your own garage and live in a nice place. Not everyone wants a house. I actually appreciate all this house talk even if off topic since I’m looking into buying one myself. My kids need a yard to play in bros :lol:
 
E40 - “Why mother****ers can't be broke sometimes?
Sometimes it's cool to floss
But don't buy an eighty-five thousand dollar car
Before you buy a house”
 
BURRack Obama said:
E40 - “Why **********ers can't be broke sometimes?
Sometimes it's cool to floss
But don't buy an eighty-five thousand dollar car
Before you buy a house”
Click to expand...
40 water bonified legend b
Most def top 3 hes always spitting game and has always been 40 never changed puts his people on in the v :pimp:
 
What are everyone's thoughts on new Volkswagen vehicles? Scared of reliability? Was looking at a 2018 Tiguan with my girlfriend and just not sure how it will hold up long term. Interior though was nice and the larger body style is a lot better than in the past.
 
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