unbornseed
Banned
- 889
- 10
Actually they're good if you're intelligent with your money. You can refinance to a standard loan at any point in time. The first few years of your mortgage almost entirely goes to interest anyway.
Rent Forever, Donât Buy A Home
- Thread in 'General' Thread starter Started by DCAllAfrican,
- Start date
- 4,469
- 11
not sure if Im misunderstanding this, but I htink youre wrong.
owning a house means not paying rent and gettin some sort of return/loss. Assuming theres some sort of return on the house, your return on another investment would have to be more than the return on the house, even after subtracting the money you throw away on rent from it, to actually earn you more money than the house. Historically, that would have to be a pretty high return on your investment to outweigh both the return on the house and cover rent, depending on the house of course.
- 20,377
- 18,556
And you always got an out if your current location sucks.
- 20,377
- 18,556
And you always got an out if your current location sucks.
- 11,513
- 51
I've always told myself I'd rather own than rent but after reading this article I'll take renting into consideration.
- 11,513
- 51
I've always told myself I'd rather own than rent but after reading this article I'll take renting into consideration.
mr marcus
Banned
- 26,572
- 5,415
i hollered
mr marcus
Banned
- 26,572
- 5,415
i hollered
- 17,862
- 8,130
- 17,862
- 8,130
- 2,057
- 11
Fixed rates are stupid low right now though. I bought my house 1 year ago and the rates have fallen since then. What if the rates come back up in three years. You can refinance but you won't get the fixed rate you can get now.
- 2,057
- 11
Fixed rates are stupid low right now though. I bought my house 1 year ago and the rates have fallen since then. What if the rates come back up in three years. You can refinance but you won't get the fixed rate you can get now.
- 517
- 10
Owning a house does mean not paying "rent"
But owning a house means paying a mortgage, property tax, HOA fees, upkeep an unexpected maintenance (which can be steep, try replacing a heating system)
You point to historic home value as a good thing right? well it is but real estate is the slowest moving investment (other than cd's and other accounts etc) in history. Peep this:
http://www.jparsons.net/housingbubble/
Other than that CRAZY spike, which was complete nonsense and has been corrected back to where is belongs (and also screwed over millions) home prices are not movers, historically. This is economics/real estate 101 stuff. The goal of a real estate is investor is to flip or rent out to others and then flip. Once paid off the house is pure residual income....a great investment. In this last scenario you're buying an income stream, not one that sucks you dry over the course of 30 years and if you lose your job forget about it.
If you could hit 10% returns every year in the stock market, in three years you'd have crushed historical home price increases. 10% isn't even that crazy but it will over time DESTROY any true housing market (assuming you reinvest any gains, which you dont even have the option of with owning a house). Imagine it in 10 years.....no house will compete.
And what if you bought at the top of the peak in that graph? That'd be the worst thing ever! At least if you had stocks/bonds/mutual funds/ etc you could literally cash out in seconds.....house not so much.
I am a 100% advocate of buying a house for investment purposes, its a great idea. The price needs to be right and people need to live within their means. Again in my job I have countless examples of people who rented cheap while young, bought houses at the right time, had other people pay it off for them (via rent), took out an equity line on that house to buy another and another and another. Those people are now ballin. If you buy a house that prohibits other potentially better investments you are a sucker. Regular people buying houses are putting all their eggs in one basket. Never a good move and today you have concrete proof of everything I just said. End of story. Right?
- 517
- 10
Owning a house does mean not paying "rent"
But owning a house means paying a mortgage, property tax, HOA fees, upkeep an unexpected maintenance (which can be steep, try replacing a heating system)
You point to historic home value as a good thing right? well it is but real estate is the slowest moving investment (other than cd's and other accounts etc) in history. Peep this:
http://www.jparsons.net/housingbubble/
Other than that CRAZY spike, which was complete nonsense and has been corrected back to where is belongs (and also screwed over millions) home prices are not movers, historically. This is economics/real estate 101 stuff. The goal of a real estate is investor is to flip or rent out to others and then flip. Once paid off the house is pure residual income....a great investment. In this last scenario you're buying an income stream, not one that sucks you dry over the course of 30 years and if you lose your job forget about it.
If you could hit 10% returns every year in the stock market, in three years you'd have crushed historical home price increases. 10% isn't even that crazy but it will over time DESTROY any true housing market (assuming you reinvest any gains, which you dont even have the option of with owning a house). Imagine it in 10 years.....no house will compete.
And what if you bought at the top of the peak in that graph? That'd be the worst thing ever! At least if you had stocks/bonds/mutual funds/ etc you could literally cash out in seconds.....house not so much.
I am a 100% advocate of buying a house for investment purposes, its a great idea. The price needs to be right and people need to live within their means. Again in my job I have countless examples of people who rented cheap while young, bought houses at the right time, had other people pay it off for them (via rent), took out an equity line on that house to buy another and another and another. Those people are now ballin. If you buy a house that prohibits other potentially better investments you are a sucker. Regular people buying houses are putting all their eggs in one basket. Never a good move and today you have concrete proof of everything I just said. End of story. Right?
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I came from Southern California, and had been in escrow on an absolute dump for $185,000. There simply was nothing else even close to being in our price range that we were interested in. The market was much more competitive because everyone was going after the short sales and foreclosures like we were. We ended up being denied on our loan from WaMu because our loan agent never clearly communicated to us that we needed at least 6 months reserves. We had switched between FHA and a conventional loan so we were fronting 15% down and we were stretched pretty thin. My parents were totally open to helping us, but it was a case of bad timing. We fell out of escrow on the 45th day of a 45 day escrow, and were working so hard to secure a loan through a different bank. They tried to rush it through underwriting but it didn't happen. We lost about $2,000 from the failed transaction.
The upside to the story is that it got my wife thinking about moving out of state, she found a job in North Carolina, got a 20% increase, $5,000 signing bonus, full relocation, company covered the closing costs, temporary housing and meals in a furnished apartment, all we had to do was get on a plane. I transferred within the company I work for and took a 20% hit in salary, but have already recouped about 13% of that. We are making more money in a place with a lower cost of living.
The stats:
What we almost bought:
Built: 1966
Sq. Ft: 1,389
What we did buy:
Built: 2006
Sq. Ft: 3,159
Difference in price? $75,000.
We got a place that was 40 years newer, in a great neighborhood, more than double the size, substantially better finishing work (laughable). It's our dream house. Something we never could have afforded in California. Our property tax and homeowners insurance are tied into the monthly payment, which is all of $200 more than we were paying for a 1/5th of the square footage on a one bedroom apartment in Long Beach, CA.
Yeah, we would have qualified for the first time homebuyers credit if we had bought in California (time wise), but it would have been poured back into the house for repairs and renovations and even then the place wouldn't be half as nice as what we ended up with.
Home ownership might not be for everyone, and sure, it might not always make perfect financial sense, but there comes a certain sense of comfort, and it really doesn't feel the same to come to YOUR home instead of some apartment with arguing neighbors and crying babies and wall unit air conditioners. I like owning a home.
Pics:
Home we almost bought but fell out of escrow:
Home we did buy:
The upside to the story is that it got my wife thinking about moving out of state, she found a job in North Carolina, got a 20% increase, $5,000 signing bonus, full relocation, company covered the closing costs, temporary housing and meals in a furnished apartment, all we had to do was get on a plane. I transferred within the company I work for and took a 20% hit in salary, but have already recouped about 13% of that. We are making more money in a place with a lower cost of living.
The stats:
What we almost bought:
Built: 1966
Sq. Ft: 1,389
What we did buy:
Built: 2006
Sq. Ft: 3,159
Difference in price? $75,000.
We got a place that was 40 years newer, in a great neighborhood, more than double the size, substantially better finishing work (laughable). It's our dream house. Something we never could have afforded in California. Our property tax and homeowners insurance are tied into the monthly payment, which is all of $200 more than we were paying for a 1/5th of the square footage on a one bedroom apartment in Long Beach, CA.
Yeah, we would have qualified for the first time homebuyers credit if we had bought in California (time wise), but it would have been poured back into the house for repairs and renovations and even then the place wouldn't be half as nice as what we ended up with.
Home ownership might not be for everyone, and sure, it might not always make perfect financial sense, but there comes a certain sense of comfort, and it really doesn't feel the same to come to YOUR home instead of some apartment with arguing neighbors and crying babies and wall unit air conditioners. I like owning a home.
Pics:
Home we almost bought but fell out of escrow:
Home we did buy:
- 2,216
- 13
I came from Southern California, and had been in escrow on an absolute dump for $185,000. There simply was nothing else even close to being in our price range that we were interested in. The market was much more competitive because everyone was going after the short sales and foreclosures like we were. We ended up being denied on our loan from WaMu because our loan agent never clearly communicated to us that we needed at least 6 months reserves. We had switched between FHA and a conventional loan so we were fronting 15% down and we were stretched pretty thin. My parents were totally open to helping us, but it was a case of bad timing. We fell out of escrow on the 45th day of a 45 day escrow, and were working so hard to secure a loan through a different bank. They tried to rush it through underwriting but it didn't happen. We lost about $2,000 from the failed transaction.
The upside to the story is that it got my wife thinking about moving out of state, she found a job in North Carolina, got a 20% increase, $5,000 signing bonus, full relocation, company covered the closing costs, temporary housing and meals in a furnished apartment, all we had to do was get on a plane. I transferred within the company I work for and took a 20% hit in salary, but have already recouped about 13% of that. We are making more money in a place with a lower cost of living.
The stats:
What we almost bought:
Built: 1966
Sq. Ft: 1,389
What we did buy:
Built: 2006
Sq. Ft: 3,159
Difference in price? $75,000.
We got a place that was 40 years newer, in a great neighborhood, more than double the size, substantially better finishing work (laughable). It's our dream house. Something we never could have afforded in California. Our property tax and homeowners insurance are tied into the monthly payment, which is all of $200 more than we were paying for a 1/5th of the square footage on a one bedroom apartment in Long Beach, CA.
Yeah, we would have qualified for the first time homebuyers credit if we had bought in California (time wise), but it would have been poured back into the house for repairs and renovations and even then the place wouldn't be half as nice as what we ended up with.
Home ownership might not be for everyone, and sure, it might not always make perfect financial sense, but there comes a certain sense of comfort, and it really doesn't feel the same to come to YOUR home instead of some apartment with arguing neighbors and crying babies and wall unit air conditioners. I like owning a home.
Pics:
Home we almost bought but fell out of escrow:
Home we did buy:
The upside to the story is that it got my wife thinking about moving out of state, she found a job in North Carolina, got a 20% increase, $5,000 signing bonus, full relocation, company covered the closing costs, temporary housing and meals in a furnished apartment, all we had to do was get on a plane. I transferred within the company I work for and took a 20% hit in salary, but have already recouped about 13% of that. We are making more money in a place with a lower cost of living.
The stats:
What we almost bought:
Built: 1966
Sq. Ft: 1,389
What we did buy:
Built: 2006
Sq. Ft: 3,159
Difference in price? $75,000.
We got a place that was 40 years newer, in a great neighborhood, more than double the size, substantially better finishing work (laughable). It's our dream house. Something we never could have afforded in California. Our property tax and homeowners insurance are tied into the monthly payment, which is all of $200 more than we were paying for a 1/5th of the square footage on a one bedroom apartment in Long Beach, CA.
Yeah, we would have qualified for the first time homebuyers credit if we had bought in California (time wise), but it would have been poured back into the house for repairs and renovations and even then the place wouldn't be half as nice as what we ended up with.
Home ownership might not be for everyone, and sure, it might not always make perfect financial sense, but there comes a certain sense of comfort, and it really doesn't feel the same to come to YOUR home instead of some apartment with arguing neighbors and crying babies and wall unit air conditioners. I like owning a home.
Pics:
Home we almost bought but fell out of escrow:
Home we did buy:
- 21,151
- 37
Agreed. I love my house, and I enjoy doing different projects around the house. I'm getting ready to stain my deck now that spring is here.
beautiful house u did end up buying eaalto....
- 21,151
- 37
Agreed. I love my house, and I enjoy doing different projects around the house. I'm getting ready to stain my deck now that spring is here.
beautiful house u did end up buying eaalto....
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The real comedy is that owing a bank for 30 years is what people call "owning" a home. You miss three payments and see how fast the bank takes THEIR house back.
To me, I don't care if I'm renting I'm free to roam the earth as long as I keep making cash. If business is good, I rent a penthouse. If it slows down I rent a smaller condo. Unless you buy a house in cash you are still renting, except now you pay property tax which adds no equity to your house. Some areas in NY and CA have property tax 7 to 8k a year plus. Thats almost rent money alone.To those that can buy properties with a huge amount of money down or cash in neighborhoods with very low property tax, it may be worth it.
To me, I don't care if I'm renting I'm free to roam the earth as long as I keep making cash. If business is good, I rent a penthouse. If it slows down I rent a smaller condo. Unless you buy a house in cash you are still renting, except now you pay property tax which adds no equity to your house. Some areas in NY and CA have property tax 7 to 8k a year plus. Thats almost rent money alone.To those that can buy properties with a huge amount of money down or cash in neighborhoods with very low property tax, it may be worth it.
- 1,263
- 11
The real comedy is that owing a bank for 30 years is what people call "owning" a home. You miss three payments and see how fast the bank takes THEIR house back.
To me, I don't care if I'm renting I'm free to roam the earth as long as I keep making cash. If business is good, I rent a penthouse. If it slows down I rent a smaller condo. Unless you buy a house in cash you are still renting, except now you pay property tax which adds no equity to your house. Some areas in NY and CA have property tax 7 to 8k a year plus. Thats almost rent money alone.To those that can buy properties with a huge amount of money down or cash in neighborhoods with very low property tax, it may be worth it.
To me, I don't care if I'm renting I'm free to roam the earth as long as I keep making cash. If business is good, I rent a penthouse. If it slows down I rent a smaller condo. Unless you buy a house in cash you are still renting, except now you pay property tax which adds no equity to your house. Some areas in NY and CA have property tax 7 to 8k a year plus. Thats almost rent money alone.To those that can buy properties with a huge amount of money down or cash in neighborhoods with very low property tax, it may be worth it.
- 11,315
- 57
im buying.
- 11,315
- 57
im buying.
- 39,330
- 19,775
That's not smart either, unless you plan on living there at least half of the year, perhaps if you are close to retiring that would be awesome...doubt any NTer is at that stage...you don't nessesarily have to buy a HOUSE...I have no aspiration to ever at least not now or at least till I can afford a brand new one....till then a nice situated Luxury condo or Co-op will do...most of te benefits of being a home owner and very little of the headechs....being a renter all your life is what you guys look forward to?...damn...
- 39,330
- 19,775
That's not smart either, unless you plan on living there at least half of the year, perhaps if you are close to retiring that would be awesome...doubt any NTer is at that stage...you don't nessesarily have to buy a HOUSE...I have no aspiration to ever at least not now or at least till I can afford a brand new one....till then a nice situated Luxury condo or Co-op will do...most of te benefits of being a home owner and very little of the headechs....being a renter all your life is what you guys look forward to?...damn...
- 517
- 10
^^^ no making more money than people buying homes as their primary investment is what they look forward to. Dont offer straw men and knock them down. Aspiring to be renter. LOL no one is talking about that, they are talking about making the most money. Youre not "smarter or better" for owning a home. Its like people are totally disregarding the last 5 years. RENTERS WON BIG!!!!
Now all those people who bought homes and got crushed are aspiring to RENT a better property.....do you think they will buy homes now?
Do you son but dont be arrogant about something that you cant back up.....just silly
Now all those people who bought homes and got crushed are aspiring to RENT a better property.....do you think they will buy homes now?
Do you son but dont be arrogant about something that you cant back up.....just silly
