Rent Forever, Don’t Buy A Home

[supermanblue79]

Originally Posted by TCERDA

Avg rent in San Antonio, TX is prolly around $700. I bought a 3 bedroom home for 60 grand. Spent another 10 grand remodeling (Pops and I did the work ourselves) Mortgage is 557.00 a month including property taxes and home insurance. FTW!

  Now I will at least have something to give my 2 boys when Im gone.

Amazing!
I've been hearing that Texas is amazing as far as cost of living goes. 

 

[wawaweewa]

Originally Posted by TCERDA

Avg rent in San Antonio, TX is prolly around $700. I bought a 3 bedroom home for 60 grand. Spent another 10 grand remodeling (Pops and I did the work ourselves) Mortgage is 557.00 a month including property taxes and home insurance. FTW!

  Now I will at least have something to give my 2 boys when Im gone.

I wish I could do that here. Outright owning a home at 25 would be awesome. 
I'm trying to think what type of property 60k can buy me and I'm literally drawing blanks. 

 

[seasoned vet]

Originally Posted by jordanhendrix

lol @ flipping brand new homes hahah

lol @ not reading hahah
 
......as i said, you dont live in a house for 5 years and call it a flip.

 

[seasoned vet]

Originally Posted by jordanhendrix

lol @ flipping brand new homes hahah

lol @ not reading hahah
 
......as i said, you dont live in a house for 5 years and call it a flip.

 

[wawaweewa]

Originally Posted by TCERDA

Avg rent in San Antonio, TX is prolly around $700. I bought a 3 bedroom home for 60 grand. Spent another 10 grand remodeling (Pops and I did the work ourselves) Mortgage is 557.00 a month including property taxes and home insurance. FTW!

  Now I will at least have something to give my 2 boys when Im gone.

I wish I could do that here. Outright owning a home at 25 would be awesome. 
I'm trying to think what type of property 60k can buy me and I'm literally drawing blanks. 

 

[wawaweewa]

Kind of fitting for this thread:
http://market-ticker.org/akcs-www?post=184512

http://market-ticker.org/akcs-www?post=184512
http://market-ticker.org/akcs-www?post=184512
http://market-ticker.org/akcs-www?post=184512Did The Realtors Screw You?
 

Yep.  They were pumping that $8,000 "credit" for buying a house, remember?  How'd it work out?

The median price of homes sold in March was $123,000, down from $136,000 in March 2010. Association president Bill Malkasian says buyers were "highly motivated" last year because of the federal homebuyer tax rebates.

Malkasian tells the Journal Sentinel that mortgage interest rates and income levels have remained about the same as last year.

Yeah, they were "highly motivated" all right, and the Realtors were jumping up and down there (and here) about how "it's a great time to buy with the nice tax credit!"

There's one problem, of course - they didn't mention that prices were going to fall another $13,000, which means your $8,000 credit in fact cost you$5,000.

Oops.

Now to be fair, they obviously didn't know that in advance.  But it wasn't hard to figure out that the bottom hadn't actually been hit in many if not most of these areas.  That didn't stop the pumping - around here we had the local Realtors saying "it's time to get in the game" (while holding a football on a local field.)

Locally, Zillow says our median was $202k was last year.  This year?  $187,000, so your $8,000 tax credit in fact cost you $7,000.  Oh, and let's not forget that this fine Realtor (and his cronies in the deal) who had "your" best interest at heart and was absolutely certain that it was time to "get in the game" pocketed $12,000 in commissions (at 6%) suckering you into overpaying by that same 15 large, which netted you a very nice $8,000 loss (of course he's not responsible for his puffery and you should trust him in the future, right?  Exactly how many times do you like getting kicked in the nuts?)

You got gamed all right....

Incidentally, for not much more than that loss, net-net, you could have rented the same house and owed nothing (same 2010 average rental for the same "median" house was $850, or $10,200 - and you didn't have to pay property taxes or hazard insurance on the house either.)

Given taxes and insurance rates around here you were way ahead to rent rather than buy.


[URL]http://market-ticker.org/[/url]

 

[wawaweewa]

Kind of fitting for this thread:
http://market-ticker.org/akcs-www?post=184512

http://market-ticker.org/akcs-www?post=184512
http://market-ticker.org/akcs-www?post=184512
http://market-ticker.org/akcs-www?post=184512Did The Realtors Screw You?
 

Yep.  They were pumping that $8,000 "credit" for buying a house, remember?  How'd it work out?

The median price of homes sold in March was $123,000, down from $136,000 in March 2010. Association president Bill Malkasian says buyers were "highly motivated" last year because of the federal homebuyer tax rebates.

Malkasian tells the Journal Sentinel that mortgage interest rates and income levels have remained about the same as last year.

Yeah, they were "highly motivated" all right, and the Realtors were jumping up and down there (and here) about how "it's a great time to buy with the nice tax credit!"

There's one problem, of course - they didn't mention that prices were going to fall another $13,000, which means your $8,000 credit in fact cost you$5,000.

Oops.

Now to be fair, they obviously didn't know that in advance.  But it wasn't hard to figure out that the bottom hadn't actually been hit in many if not most of these areas.  That didn't stop the pumping - around here we had the local Realtors saying "it's time to get in the game" (while holding a football on a local field.)

Locally, Zillow says our median was $202k was last year.  This year?  $187,000, so your $8,000 tax credit in fact cost you $7,000.  Oh, and let's not forget that this fine Realtor (and his cronies in the deal) who had "your" best interest at heart and was absolutely certain that it was time to "get in the game" pocketed $12,000 in commissions (at 6%) suckering you into overpaying by that same 15 large, which netted you a very nice $8,000 loss (of course he's not responsible for his puffery and you should trust him in the future, right?  Exactly how many times do you like getting kicked in the nuts?)

You got gamed all right....

Incidentally, for not much more than that loss, net-net, you could have rented the same house and owed nothing (same 2010 average rental for the same "median" house was $850, or $10,200 - and you didn't have to pay property taxes or hazard insurance on the house either.)

Given taxes and insurance rates around here you were way ahead to rent rather than buy.


[URL]http://market-ticker.org/[/url]

 

[pr0phecy718]

Originally Posted by JoseBronx

doing whatever you want in/to your house> rent

 

[pr0phecy718]

Originally Posted by JoseBronx

doing whatever you want in/to your house> rent

 

[jordanhendrix]

Originally Posted by seasoned vet

Originally Posted by jordanhendrix

lol @ flipping brand new homes hahah

lol @ not reading hahah
 
......as i said, you dont live in a house for 5 years and call it a flip.

then what is it? whats it called? Flips can be long term too, my company does it ALL THE TIME

 

[jordanhendrix]

Originally Posted by seasoned vet

Originally Posted by jordanhendrix

lol @ flipping brand new homes hahah

lol @ not reading hahah
 
......as i said, you dont live in a house for 5 years and call it a flip.

then what is it? whats it called? Flips can be long term too, my company does it ALL THE TIME

 

[seasoned vet]

Originally Posted by jordanhendrix

Originally Posted by seasoned vet

Originally Posted by jordanhendrix

lol @ flipping brand new homes hahah

lol @ not reading hahah
 
......as i said, you dont live in a house for 5 years and call it a flip.

then what is it? whats it called? Flips can be long term too, my company does it ALL THE TIME

 
.....i wouldnt call it anything.
 
- but i wouldnt be caught dead in a mortgage for 30 years, thats for sure.
 
.....what do you suggest?
 
 

 

[seasoned vet]

Originally Posted by jordanhendrix

Originally Posted by seasoned vet

Originally Posted by jordanhendrix

lol @ flipping brand new homes hahah

lol @ not reading hahah
 
......as i said, you dont live in a house for 5 years and call it a flip.

then what is it? whats it called? Flips can be long term too, my company does it ALL THE TIME

 
.....i wouldnt call it anything.
 
- but i wouldnt be caught dead in a mortgage for 30 years, thats for sure.
 
.....what do you suggest?
 
 

 

[tim teufel]

well the mortgage bizz cleaned up very well since now you have to be licensed in every state if you arent a federally chartered bank. even on the commission side we are no longer allowed to charge points on loans we are closing. i make good money in the tri state area cause of the loan amounts. the state i hate the most is texas, so many houses in texas cali and florida the values come back way short making it impossible to refi. i remember this one client from cali won some money in a lawsuit over 400k he decided to dump the money into his house which was worth about 1.2 mill at the time and had a mortgage of 800 on the house. i take him from a  30 year to a 15 at a rate in the 3's the man was as happy as can be. few years later he calls me up and says he wants to go back to a 30 year cause the payments on the 15 were too much for him. we get an appraisal done on the house and from 1.2 it was now worth 610k 

  he still had equity but my dude lost that 400k like it was nothing smh

 

[tim teufel]

well the mortgage bizz cleaned up very well since now you have to be licensed in every state if you arent a federally chartered bank. even on the commission side we are no longer allowed to charge points on loans we are closing. i make good money in the tri state area cause of the loan amounts. the state i hate the most is texas, so many houses in texas cali and florida the values come back way short making it impossible to refi. i remember this one client from cali won some money in a lawsuit over 400k he decided to dump the money into his house which was worth about 1.2 mill at the time and had a mortgage of 800 on the house. i take him from a  30 year to a 15 at a rate in the 3's the man was as happy as can be. few years later he calls me up and says he wants to go back to a 30 year cause the payments on the 15 were too much for him. we get an appraisal done on the house and from 1.2 it was now worth 610k 

  he still had equity but my dude lost that 400k like it was nothing smh

 

[unbornseed]

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

 

[unbornseed]

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

 

[jordanhendrix]

^^^I agree with you but lets be clear, there are long term flips too anywhere from 3-8 years would classify.
THe idea is to buy a house thats beaten, rent it out, fix it over time, then flip after 3-5 years.
That is the best way to increase value in a home.
If its new you can only count on the market, barring some amazing additions, to add value.

 

[jordanhendrix]

^^^I agree with you but lets be clear, there are long term flips too anywhere from 3-8 years would classify.
THe idea is to buy a house thats beaten, rent it out, fix it over time, then flip after 3-5 years.
That is the best way to increase value in a home.
If its new you can only count on the market, barring some amazing additions, to add value.

 

[tim teufel]

Originally Posted by UnbornSeed

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

is that a loan with mortgage insurance? are you close to a flood zone? what are the annual property taxes and home owners insurance? is that an fha loan or conventional? how much money did you put down? 

 

[tim teufel]

Originally Posted by UnbornSeed

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

is that a loan with mortgage insurance? are you close to a flood zone? what are the annual property taxes and home owners insurance? is that an fha loan or conventional? how much money did you put down? 

 

[wawaweewa]

Originally Posted by UnbornSeed

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

The only fool is yourself.
"All Profit"? 

If you've spent 200k on that mortgage over 20 years and you sell the house for 250k (lets say; lets assume inflation adjusted), then that 250k isn't all profit my friend. That's a 50k profit over 20 years or selling @$*%*$%@ Chinese %$%% as a a side job on Ebay yearly profit. 

I'm not saying that it was a bad decision but saying "all profit" is very naive.  A primary residence should not be looked at as an investment. It was never meant to be. It is merely  a dwelling. A roof over your head. That's it. It's no different than food or clothes. 

Investment properties are another matter. 

 

[wawaweewa]

Originally Posted by UnbornSeed

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

The only fool is yourself.
"All Profit"? 

If you've spent 200k on that mortgage over 20 years and you sell the house for 250k (lets say; lets assume inflation adjusted), then that 250k isn't all profit my friend. That's a 50k profit over 20 years or selling @$*%*$%@ Chinese %$%% as a a side job on Ebay yearly profit. 

I'm not saying that it was a bad decision but saying "all profit" is very naive.  A primary residence should not be looked at as an investment. It was never meant to be. It is merely  a dwelling. A roof over your head. That's it. It's no different than food or clothes. 

Investment properties are another matter. 

 

[seasoned vet]

Originally Posted by jordanhendrix

^^^I agree with you but lets be clear, there are long term flips too anywhere from 3-8 years would classify.
THe idea is to buy a house thats beaten, rent it out, fix it over time, then flip after 3-5 years.
That is the best way to increase value in a home.
If its new you can only count on the market, barring some amazing additions, to add value.

 
- agree.
 
 

Originally Posted by wawaweewa

Originally Posted by UnbornSeed

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

The only fool is yourself.
"All Profit"? 

If you've spent 200k on that mortgage over 20 years and you sell the house for 250k (lets say; lets assume inflation adjusted), then that 250k isn't all profit my friend. That's a 50k profit over 20 years or selling @$*%*$%@ Chinese %$%% as a a side job on Ebay yearly profit. 

I'm not saying that it was a bad decision but saying "all profit" is very naive.  A primary residence should not be looked at as an investment. It was never meant to be. It is merely  a dwelling. A roof over your head. That's it. It's no different than food or clothes. 

Investment properties are another matter. 

Originally Posted by tim teufel

.  is that a loan with mortgage insurance? are you close to a flood zone? what are the annual property taxes and home owners insurance? is that an fha loan or conventional? how much money did you put down? 

 
 
- the excuses people come up with for NOT buying a house amaze me.

....i used to supervise this clown (we both made 50K/year at least). dude was doing research on buying a better safe to buy, to keep...AT HIS MOMS HOUSE. if ever someone says to him "hey man, you wouldnt have to buy that safe if you had your own place".........

......then here he goes with the:

"i dont want the responsibility"

"ill do that when i get married"

"i dont wanna pay the insurance"

"the flood zones around here are crazy"

"what about closing costs?"
 
etc.....

....oh? but he's looking for a new boat....and just bought a motorcycle. just had a new lock installed on his door because moms and little brother or someone keeps taking things out of his room. he's looking to put beats and rims on the ride.

....yeah, i see where this thread is going. nah man, im good.

  

 

[seasoned vet]

Originally Posted by jordanhendrix

^^^I agree with you but lets be clear, there are long term flips too anywhere from 3-8 years would classify.
THe idea is to buy a house thats beaten, rent it out, fix it over time, then flip after 3-5 years.
That is the best way to increase value in a home.
If its new you can only count on the market, barring some amazing additions, to add value.

 
- agree.
 
 

Originally Posted by wawaweewa

Originally Posted by UnbornSeed

Here is an example of paying 200 more on 150k mortgage

adding $200

that 200 shaves off a little over 10 years. 

Once you've paid off your house it becomes an asset. All profit when I decide to sell. I dont care if I paid x amount of dollars for the house because when I move...Im afforded something that renting doesn't...a return on the monthly payments I've been making.

If you have the savvy and intelligence then you would own a home...why wouldn't you want to? Cause of tax and insurance? Thats like walking or taking the bus because you dont want to insure your car. You make choices and weigh out the pros and cons. Most you guys wouldnt hesitate at dropping 3 bills on a Jordan shoe but complaining about tax?

And you kids who think because they took a prerequisite in finance/math/business etc, who now think they know market trends and assets, spare me because you come off foolish.  

The only fool is yourself.
"All Profit"? 

If you've spent 200k on that mortgage over 20 years and you sell the house for 250k (lets say; lets assume inflation adjusted), then that 250k isn't all profit my friend. That's a 50k profit over 20 years or selling @$*%*$%@ Chinese %$%% as a a side job on Ebay yearly profit. 

I'm not saying that it was a bad decision but saying "all profit" is very naive.  A primary residence should not be looked at as an investment. It was never meant to be. It is merely  a dwelling. A roof over your head. That's it. It's no different than food or clothes. 

Investment properties are another matter. 

Originally Posted by tim teufel

.  is that a loan with mortgage insurance? are you close to a flood zone? what are the annual property taxes and home owners insurance? is that an fha loan or conventional? how much money did you put down? 

 
 
- the excuses people come up with for NOT buying a house amaze me.

....i used to supervise this clown (we both made 50K/year at least). dude was doing research on buying a better safe to buy, to keep...AT HIS MOMS HOUSE. if ever someone says to him "hey man, you wouldnt have to buy that safe if you had your own place".........

......then here he goes with the:

"i dont want the responsibility"

"ill do that when i get married"

"i dont wanna pay the insurance"

"the flood zones around here are crazy"

"what about closing costs?"
 
etc.....

....oh? but he's looking for a new boat....and just bought a motorcycle. just had a new lock installed on his door because moms and little brother or someone keeps taking things out of his room. he's looking to put beats and rims on the ride.

....yeah, i see where this thread is going. nah man, im good.