Rent Forever, Don’t Buy A Home

[wawaweewa]

Originally Posted by hombrelobo

Originally Posted by 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?
 

1. Zillow is highly inaccurate.
2. Any SMART buyer/Realtor would know market conditions. Even in this case if the home initially depreciates the market is eventually going to change. Are you trying to imply that the RE market is never going to go back up? Right..
3.This article doesn't even mention what market this is from. Association president? Which Association? A HOA?
4. This article is poorly written.

 

C'mon, dude. I get it. It's not a good time to buy in Richtown, USA. But that doesn't mean it isn't a good time to buy somewhere else.

P.S. We've all come to the agreement that buying isn't for everyone. But for others it is.. right?

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Someone is still going to have to buy property for others to rent. I'm just going to say that again. Even in Richtown, USA.

I agree about buying to rent. I've said the same before. We're talking bout buying to own to here though.  Buying to rent is a business decision. Buying to own is not.
Most buyer's aren't in it for the business aspect and therefore not "smart" in the sense of doing thorough due diligence. 

The dude's market in the article is FL. He's made more money than the both of us combined (he sold off MCSnet to Winstar before the tech bubble popped and now trades full time) and he's usually spot on on things. The fact that the tax credit pulled demand forward sounds pretty spot on. 

 

[hombrelobo]

Originally Posted by Wr

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

That's quite the contrast from the days where all you needed to get a loan was to "state how much you make" with 0 documentation needed. These were the titles on the loan packets I used to see when I worked in the industry. 

Yeah, I still can't believe there was once a time where people could get away with stated income and get ridiculous loans

. If you don't mind me asking.. In what field of the industry did you work in?

 

[hombrelobo]

Originally Posted by Wr

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

That's quite the contrast from the days where all you needed to get a loan was to "state how much you make" with 0 documentation needed. These were the titles on the loan packets I used to see when I worked in the industry. 

Yeah, I still can't believe there was once a time where people could get away with stated income and get ridiculous loans

. If you don't mind me asking.. In what field of the industry did you work in?

 

[wawaweewa]

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

The average job search time is now around 10 mos. It's still +#*%%%.

They've tightened requirements quote a bit because they don't need to lend to potential homeowners to make the money now. They just borrow at ZIRP and buy treasuries out on the far end of the curve or pump it into the commodity market. 

 

[wawaweewa]

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

The average job search time is now around 10 mos. It's still +#*%%%.

They've tightened requirements quote a bit because they don't need to lend to potential homeowners to make the money now. They just borrow at ZIRP and buy treasuries out on the far end of the curve or pump it into the commodity market. 

 

[unbornseed]

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

 

[tim teufel]

Originally Posted by Wr

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

That's quite the contrast from the days where all you needed to get a loan was to "state how much you make" with 0 documentation needed. These were the titles on the loan packets I used to see when I worked in the industry. 

the good ol days. approving all those loans back in those days we feeling it now 

 i made so much money back then it was crazy

 

[unbornseed]

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

 

[tim teufel]

Originally Posted by Wr

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

That's quite the contrast from the days where all you needed to get a loan was to "state how much you make" with 0 documentation needed. These were the titles on the loan packets I used to see when I worked in the industry. 

the good ol days. approving all those loans back in those days we feeling it now 

 i made so much money back then it was crazy

 

[tim teufel]

Originally Posted by UnbornSeed

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

so you been in your home 3 years and you only owe 120k on it? how much money did you put down? and why would you get a 30 year mortgage? something isnt adding up fam

 

[tim teufel]

Originally Posted by UnbornSeed

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

so you been in your home 3 years and you only owe 120k on it? how much money did you put down? and why would you get a 30 year mortgage? something isnt adding up fam

 

[wr]

Originally Posted by hombrelobo

Originally Posted by Wr

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

That's quite the contrast from the days where all you needed to get a loan was to "state how much you make" with 0 documentation needed. These were the titles on the loan packets I used to see when I worked in the industry. 

Yeah, I still can't believe there was once a time where people could get away with stated income and get ridiculous loans

. If you don't mind me asking.. In what field of the industry did you work in?

I worked as an assistant to a mortgage broker for a little while before I got into REALTOR side. 

 

[wr]

Originally Posted by hombrelobo

Originally Posted by Wr

Originally Posted by hombrelobo

^I believe most banks are requiring home buyers have at least 5 months or so of reserves prior to purchase.

That's quite the contrast from the days where all you needed to get a loan was to "state how much you make" with 0 documentation needed. These were the titles on the loan packets I used to see when I worked in the industry. 

Yeah, I still can't believe there was once a time where people could get away with stated income and get ridiculous loans

. If you don't mind me asking.. In what field of the industry did you work in?

I worked as an assistant to a mortgage broker for a little while before I got into REALTOR side. 

 

[unbornseed]

Originally Posted by tim teufel

Originally Posted by UnbornSeed

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

so you been in your home 3 years and you only owe 120k on it? how much money did you put down? and why would you get a 30 year mortgage? something isnt adding up fam

Paid 400..put 250k down and took a 50k loan out on equity for my sister who needed it for an emergency. Did 30 year because the payment was 800 a month plus tax and insurance and I got 5.75% apr cause it was a duplex so I wanted actually needed the breathing room and at the time I was alone but a few months later I rented out the other unit and been sending in more ever since. I loaned my sister money so its around 140k..I can show you screens if you dont believe me.
Paid off about 50k in 3 years. I have 142 and some change left so at the same rate of overpayment I'll be done in 7 years. 

 

[unbornseed]

Originally Posted by tim teufel

Originally Posted by UnbornSeed

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

so you been in your home 3 years and you only owe 120k on it? how much money did you put down? and why would you get a 30 year mortgage? something isnt adding up fam

Paid 400..put 250k down and took a 50k loan out on equity for my sister who needed it for an emergency. Did 30 year because the payment was 800 a month plus tax and insurance and I got 5.75% apr cause it was a duplex so I wanted actually needed the breathing room and at the time I was alone but a few months later I rented out the other unit and been sending in more ever since. I loaned my sister money so its around 140k..I can show you screens if you dont believe me.
Paid off about 50k in 3 years. I have 142 and some change left so at the same rate of overpayment I'll be done in 7 years. 

 

[goukiteg]

Originally Posted by UnbornSeed

Originally Posted by tim teufel

Originally Posted by UnbornSeed

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

so you been in your home 3 years and you only owe 120k on it? how much money did you put down? and why would you get a 30 year mortgage? something isnt adding up fam

Paid 400..put 200k down. Did 30 year because the payment was 800 a month plus tax and insurance and I got 5.75% apr cause it was a duplex so I wanted actually needed the breathing room and at the time I was alone but a few months later I rented out the other unit and been sending in more ever since. I loaned my sister money so its around 140k..I can show you screens if you dont believe me.
Paid off about 50k in 3 years. I have 142 and some change left so at the same rate of overpayment I'll be done in 7 years. 

Why didn't you save some of the down for breathing room until you could rent out and do a 15 year fix instead?

 

[goukiteg]

Originally Posted by UnbornSeed

Originally Posted by tim teufel

Originally Posted by UnbornSeed

in my case, I have a 30 year mortgage...3 years in and I'm 7 years away as of today to paying it off. I treat my house like my cars...send more when I have it. If I go 30 years that just means I'm paying double for loan essentially and that is not for me.

"all profit" because when I do sell I'll be in my late 30s with no mortgage and enough cash to move to a lower cost state and buy a house cash 100-200k max. My home at its peak was valued at 850k. I paid 400k in 2008 and right now its worth 380k as is. ( Ive remodeled extensively but have not reappraised to keep my taxes low). I have about 120k left on the mortgage. Knowing the market and locale of where I am at I know that I can push 650k in about 7-10 years at which point I wont have a mortgage and can move to texas or atlanta and live mortgage free for the rest of my life.

so you been in your home 3 years and you only owe 120k on it? how much money did you put down? and why would you get a 30 year mortgage? something isnt adding up fam

Paid 400..put 200k down. Did 30 year because the payment was 800 a month plus tax and insurance and I got 5.75% apr cause it was a duplex so I wanted actually needed the breathing room and at the time I was alone but a few months later I rented out the other unit and been sending in more ever since. I loaned my sister money so its around 140k..I can show you screens if you dont believe me.
Paid off about 50k in 3 years. I have 142 and some change left so at the same rate of overpayment I'll be done in 7 years. 

Why didn't you save some of the down for breathing room until you could rent out and do a 15 year fix instead?

 

[yg716]

Public Housing Administration.. Not going into all the details you can google how it came about but basically owning a home has never benefited the person buying it. Your kids are the ones who benefit.

 

[yg716]

Public Housing Administration.. Not going into all the details you can google how it came about but basically owning a home has never benefited the person buying it. Your kids are the ones who benefit.

 

[Betonblck]

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

 

[Betonblck]

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

 

[wawaweewa]

Originally Posted by cguy610

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

 

[wawaweewa]

Originally Posted by cguy610

Heck with paying rent your whole life. Many of you guys aren't factoring in the inflation in rent prices in your rent vs. buy arguments. 15 years from now, I'll be paying around the same monthly mortgage payment, no, my place will be paid off while rent will probably be double. Especially considering the Fed's current pace of making the dollar worth less than toilet paper.

There is absolutely no justification for renting long term unless you are in a place like NY, where the rent is fixed once you move in.

 

[wawaweewa]

Might be useful to some:

 

[wawaweewa]

Might be useful to some: