Money matters wrote:
Bought first house for $200k and sold for $300k. Bought 2nd house for $350k and sold for $450k. Built current house for $400k and paid off mortgage. House is worth about $600k now with no mortgage payment forever.
Now that's optimal.
ccrryypptt wrote:
You can't just get up and leave to another state when you want. You're trapped into a $1K /week job (give/take) to often times barely meet expenses with none left over. Same city, places, people, 365 days/year, YOY. Parts of the country/world, you never see, except during your 2 week vacation.
But having a family and/or building a 401K & retirement usually requires this.
It's just another example of systemic oppression by the elites. Average people are struggling, in need, saddled with enormous debt just to keep their families with a roof over their heads to protect from them from the elements. And yet, pro-Trumpers could care less that millions of Americans are struggling day after day, year in and year out, with crippling, crushing mortgage debt - the average mortgage debt is 30 years!
ccrryypptt wrote:
Flagpole wrote:
1) You absolutely can leave to another state if you want. Sell the house and move, or do what a friend of mine just did...she rented her house, moved, and the rent she gets covers the mortgage payment on both houses.
2) If you want to be a nomad, then you don't HAVE to buy a house. Live in an apartment. Even there, you typically sign a lease for a year, so, unless you want to eat some rent money, you can't just "up and leave" when you are in an apartment either.
You can usually rent rooms, month-month. Sure, many would find it too small, etc.. But to me, free to do what I want is what I value most. I've worked years, saved... and am not retired yet, but have secured my future. I could never go back to what I was.
Ok, that's pretty extreme, but do what you gotta do, brother.
Money matters wrote:
Bought first house for $200k and sold for $300k. Bought 2nd house for $350k and sold for $450k. Built current house for $400k and paid off mortgage. House is worth about $600k now with no mortgage payment forever.
bought a house, waited 3 years as it appreciated in value by over $300k, used the difference to renovate the house, buy a new car AND a second property, and our mortgqge payment is lower than when we started.
Mortgage payment is now lower than what we used to pay in rent.
Try 15k/week and house worth 2.8 million. Not trapped at all and if I need a break I head up to my apartment in Tahoe
The OP’s issues are things to consider before you buy a home. You should always ask yourself, “do I want to live here for at least a decade?” If the answer is no, then don’t buy. Keep renting until the answer is yes. You shouldn’t buy a home without thinking long term. Other reasons to buy could be you want to rent the home after a few years or if you buy at a market bottom sell after a few years. But over the long term it’s usually better to just rent it out. Even if the rent only pays the mortgage, guess what? Someone else bought you a free home!
Why does the crypto idiot hate owning a house? I can see sometimes it makes sense not to have a house and sometimes it’s a good deal to take advantage of low rates. Usually crypto people have sht credit so that could be part of it
30 year fixed mortgages make a lot of sense on rental properties.
go ahead and 'stick it to the man'
quit your job and bum rooms off friends for 3 months at a time
be a cool guy, bro
take awesome pix for insta, get tons of likes
keep bumming off people and the gov't until you're 75 and die
very cool and trendy/hip, stickin it to the man
live in a van, very edgy and cool rn
bio Domer wrote:
Owning a home is more expensive (mortgage, insurance, taxes, repairs, needless home improvement projects your wife insists on doing., etc.) than renting, and there are massive transactions costs to sell a house. Sure, you could get lucky and your leveraged investment appreciates in value, but then what do you do when you sell? The house you’ll buy will be just as expensive, or more so (unless you’re downsizing).
In general, it’s probably a better financial decision to rent unless you know you’ll live in a house for at least 10 years.
Terrible advice.
Although, there are lots of cons to owning a home, financially, it’s better than renting unless you’re comparing like renting for $1000 vs mortgage of $4000.
Even if you don’t live at the house you bought it for long term, you can still rent it out. My first home is being rented out and I have about $130K in equity plus rents for $500/month more than my 15 year mortgage. My current home, I have about $250k in equity and that’s after taking two HELOCs and refinancing. Home is a great place to borrow money against at low interest rates if you use it responsibly.
Yes, those are my examples and won’t be true for everyone. But anyone who’s held their home for long term has done better than renting. Even if you move, you don’t have to sell it right away.
terrible advice wrote:
bio Domer wrote:
Owning a home is more expensive (mortgage, insurance, taxes, repairs, needless home improvement projects your wife insists on doing., etc.) than renting, and there are massive transactions costs to sell a house. Sure, you could get lucky and your leveraged investment appreciates in value, but then what do you do when you sell? The house you’ll buy will be just as expensive, or more so (unless you’re downsizing).
In general, it’s probably a better financial decision to rent unless you know you’ll live in a house for at least 10 years.
Terrible advice.
Although, there are lots of cons to owning a home, financially, it’s better than renting unless you’re comparing like renting for $1000 vs mortgage of $4000.
Even if you don’t live at the house you bought it for long term, you can still rent it out. My first home is being rented out and I have about $130K in equity plus rents for $500/month more than my 15 year mortgage. My current home, I have about $250k in equity and that’s after taking two HELOCs and refinancing. Home is a great place to borrow money against at low interest rates if you use it responsibly.
Yes, those are my examples and won’t be true for everyone. But anyone who’s held their home for long term has done better than renting. Even if you move, you don’t have to sell it right away.
If you’re in a position to pay a $4K mortgage, yeah, there may not be a to of suitable rentals. However, keeping an old house and renting isn’t a free lunch. You could do well just selling it and investing the proceeds into, say, equity mutual funds, A lot less work, and less risky due to due to being diversification.
bio Domer wrote:
terrible advice wrote:
Terrible advice.
Although, there are lots of cons to owning a home, financially, it’s better than renting unless you’re comparing like renting for $1000 vs mortgage of $4000.
Even if you don’t live at the house you bought it for long term, you can still rent it out. My first home is being rented out and I have about $130K in equity plus rents for $500/month more than my 15 year mortgage. My current home, I have about $250k in equity and that’s after taking two HELOCs and refinancing. Home is a great place to borrow money against at low interest rates if you use it responsibly.
Yes, those are my examples and won’t be true for everyone. But anyone who’s held their home for long term has done better than renting. Even if you move, you don’t have to sell it right away.
If you’re in a position to pay a $4K mortgage, yeah, there may not be a to of suitable rentals. However, keeping an old house and renting isn’t a free lunch. You could do well just selling it and investing the proceeds into, say, equity mutual funds, A lot less work, and less risky due to due to being diversification.
You’re young and probably haven’t made much money or don’t have much money yet.
You’ll probably understand when you’re older that buying a house was much better option than continuing to rent.
When you finally buy, you’d be thinking why you didn’t buy it sooner.
Ha. not looking to get into a pissing match, but I am old enough to have bought and sold multiple residences, and yes, i'm currently a homeowner. In some places i've lived, a mortgage payment is certainly more attractive than paying rent for less space. I'm sure you're a smart guy and bought good properties, so the leverage inherent in a mortgage means that you make enviable returns on your investment. I've seen plenty of examples contrary to your success though, and I still maintain that the transaction costs to sell a house (close to 10% of the purchase price!) is something buyers should take into account when deciding whether it make sense to buy or rent. Again, this is more for someone younger than you (and me!). I've got kids and pets - I wouldn't be a great renter...
Just be careful using your home as a piggy bank. That was one of the things that contributed to the GFC...
I think me and you agree more than disagree. I definitely agree to consider the large transaction cost involved. There are lots of “hidden” costs involved and there are many times where I wished I never bought dealing with issues.
However, compared to renting, financially, it’s performed much much better buying. Your point about if you bought a place and appreciated and decide to sell, you’d need to buy something more expensive to replace it. Problem is, if you’ve been renting the entire time, you would’ve experienced significant increase with your rent. The place I used to rent for $1900/month, it’s about $2600/month in 5 years.
My home that im renting went from $1200 to $1500/month in about 6 years.. They’re very small samples, but if houses appreciate, most likely the rents are increasing as well.
I may be going little off topic now, but at least if you buy, advantage is that you’re locking in fixed monthly cost if you get fixed mortgage. You’ll get increase in taxes and insurance but increase will be gradual. With renting, there could be rent control, but it will still most likely be going up.
OP if you were actually a stable successful individual you would realize the flaw in your logic
"You can't just get up and leave to another state when you want. "
1. When you have kids in school, you don't want to just get up and leave to "see the world" when they have friends, social circles established, involvement in sports team and ecs, and are being successful with their academics at a strong school. Kids need stability.
"You're trapped into a $1K /week job (give/take) to often times barely meet expenses with none left over."
2. Are you implying if I pay 4k a month on a mortgage I will have nothing left over? Some of us make more than 4k a month......also renting a 3 or 4 bedroom home to raise a family in also costs 3-4k a month as well (often more depending on the area).
"Same city, places, people, 365 days/yea"
3. That's generally what happens when you ATTEND SCHOOL. Since your kids are forced to attend the same place day after day with the same teachers and students day after day, year over year, its not a big deal to have a consistent job to support that.
Sure, if your a over the hill grifter/loser runner that no stable woman would want to start a family with, then yeah you should probably just rent a small apartment and travel around at will (Lord knows you will have a lot of free time as no employer wants to keep you around long and no women wants let you father their children).
As with many things in life, arson is your answer.
ccrryypptt wrote:
You can't just get up and leave to another state when you want. You're trapped into a $1K /week job (give/take) to often times barely meet expenses with none left over. Same city, places, people, 365 days/year, YOY. Parts of the country/world, you never see, except during your 2 week vacation.
But having a family and/or building a 401K & retirement usually requires this.
You are blaming on mortgages problems that can more reasonably be explained by you being a filthy poor.
ccrryypptt wrote:
You can't just get up and leave to another state when you want. You're trapped into a $1K /week job (give/take) to often times barely meet expenses with none left over. Same city, places, people, 365 days/year, YOY. Parts of the country/world, you never see, except during your 2 week vacation.
But having a family and/or building a 401K & retirement usually requires this.
I'm so glad there are special snowflakes like you in this world. I really appreciate the rent you pay me.
Kerouac wrote:
Tech is literally the most boring job in the world. It's the definition of getting a boring job so you can get a morgage and have a boring career.
tech isn't a job...it's an industry.
Big OP Fail wrote:
fansofonly wrote:
It is possible to sell a house and move on to another place. And some of us get 6+ weeks a year of vacation to go explore the world. OP fail.
Big OP Fail. I guess the alternative to a mortgage is living for free as a homeless person under a bridge? If you're renting you're locked into a typically year long contract, and often a two bedroom apartment rent is the same as a mortgage payment. The difference is the mortgage payment helps pay for the house which you keep, the apartment rent is never seen again. And yes, a person can move to a different location if they want and sell the house. Or they could go on these things called vacations. Or in my case, continue to work somewhere remotely before returning to the house.
Yes, I rent my apartment in one city on a 2 year contract, and spend half the year elsewhere travelling or visiting my elderly mother. Seems a waste paying for rent on a place I'm not there for 1/2 the time. At least if I was paying a mortgage I would still be investing in something.
However, my city has the highest house prices/rent prices ratio in Europe at the moment, so I'll wait a while longer before I buy.