>Bought house almost 4 years ago >70K equity already >Scared of nearing economic collapse >Decide to sell, right as market appears to be rolling over. >Friends and agents all say, "It's only slow because of this time of year." >I "know" it's slow because things are rolling over. >Peter Schiff >"Mini ice age coming" >SHTF-o-meter seems to be screaming >Got a buyer somehow (Thanks God). Closing Dec 17th >If this deal goes through, I will be 100% debt free including college loans plus about 10K leftover in the bank. >Only risk is that I'm wrong, and just sold a house that's gonna keep going up in value. >Will be a renter now >Had a 3.5% interest rate
Its good to sell for a profit, my house is worth the same it was 10 years ago after dipping down from 08 then recovering to its old price. On the other hand you have to live somewhere. The longer you live in a house the more you risk a large expense coming up like hvac or roof replace.
Cameron Long
Stick this on your rented fridge. You can check yourself in 1-3-5 years.
Benjamin Young
I actually like this idea.
Nathaniel Jones
You and peter schiff will be laughing all the way to the fucking bank, You'll be able to buy 3 houses at least for what you offloaded this one for.
Nicholas Hughes
In how many years? You might want to sticky your comment on your fridge too.
Cooper Sanders
My dumbass friend bought a house this summer at the literal peak of the market, I told him to just wait
Carson Sullivan
>70k equity in 4 years Assuming you took out a standard 25-year mortgage and placed 35k deposit down at 90% LTV, that would value your house at 350k. If you paid 1050 per month in principal, then you would have had to pay approx 643 per month in interest payments. These payments amount to 30,870 and your equity increased by 35k (principal payments + deposit). This is a return of 16.6%, or 3.8% compounded yearly (4 years). If you simply put that 35k in the S&P 500, then you would have gained 33% over the same time frame, and that's not even counting dividends reinvested. That would have given you a profit of 11,550. With dividends reinvested, you would have gained 45%, and had a profit of 15,750. Paying 20% flat rate tax/fees/other expenses on this you would have still netted a 12,600 profit. So, in answer to how did you do: not good. HOWEVER if you saved on rent and used that money to reinvest then maybe you could have gained higher economic rents. This still does not take into account the various taxes and other expenses you will have to pay when you sell the property, though.
Wyatt Myers
Taxes alone, make owning a home a shit investment, I love when people talk about 200-300% profit after 20 years only to never mention a word about property taxes
Asher Watson
you housing crash fags are as bad as link cultists. quit coping over not being able to afford a house.
Connor Myers
tempted to do the same, but put a lot of work into my house and its comfy on top of a hill, with a bit of forrest behind. I dont think I will ever get a nice location like this again.
Aiden Foster
if your house is comfy and you can afford it, don't sell. It will be worth multitudes more to your grandchildren if you have a family.
Julian Davis
OP,
its good you paid off all your debt, with 10k in savings, but how much is rent in your area.
I think you did really well if you're making more than 50k a year, and end up paying less than $600 in rent.
Nice job, but having a house gives you more freedom than an apartment. I can't stand living in an apartment. I had to sell my house Dec 2016 because i moved, so i missed out on a $40k profit potential. It sucks.
Now am in a fucking apartment stuck at the peak of this god damn market, while all my hobbies need to wait until i get a fucking garage to do some fucking work. I miss having a fucking house.
Ayden Price
THEN YOU HAVE TO PAY RENT STILL. I don't see why people don't understand this. I've been in my house for 4 years, it's gone up 30k AND I haven't had to pay 50k in rent those 4 years. Taxes 1.5k, insurance 2k. 15 year mortgage 3% loan. Tell me how that isn't a solid deal. Even after closing costs, real estate agent, whatever. I'm gonna live here fucking forever and be the king of my own castle
Zachary Diaz
That’s is pretty good. Where do you live though? Around me average property taxes for a $200k home is about $5k a year. That’s a good $4-500 a month on top of mortgage, insurance and other shit. I’d love to get a house or even townhome but shit is all stupid expensive currently.
Wyatt Wilson
Florida. I just don't understand when people always say buying a house is for suckers, maybe I'm just in a weird spot. Rent would literally be $1500 a month where I live too. Florida state government is pretty good about taxes and shit, no state income tax. You guys should move down
Henry Bell
>You guys should move down Isn't there a bunch of negroes and cubans over there?
Xavier Murphy
Rent doesn't go down during depressions. You're supposed to sell investment properties, not the one you live in.
James Morgan
Not where I live, it's basically like the "South." It's pretty nice actually, a decent blend of rednecks and normal people
Evan Reyes
Why does everyone on biz pay a realtor when buying? The seller pays the commission. I feel like everyone is getting ripped off here.
Caleb Miller
>I just don't understand when people always say buying a house is for suckers
Buying at the peak of the market is for suckers when you could wait 2-3 years and get it for a steal.
Jayden Howard
No wonder houses seem cheap as fuck in USA. In Australia we have none of these property taxes for owner occupiers only a land tax for investment properties And that tax only applies for land values over 630k (land value only improvements not factored in). It was recently newsworthy that a run down house in Sydney in a bad neighbourhood sold for as low as 440k
Levi Peterson
This.
Everyone on this board stupid enough to shill renting over owning doesn't realize that people have to live somewhere. And when people can't afford to buy houses? They rent. And with higher demand for rentals, rent prices increase. Those already overpriced 1-br flats are gonna become even more expensive if recession really does occur soon.
Gabriel Foster
The seller pays their agent 6% and they split that with the buying agent so they both get 3, the buyer pays no commission. It's basically a fucking cartel, real estate business is shady as fuck and I can't wait for it to get replaced with smart contracts. They make a fuck ton of money just because they know all the laws and make the deal go smooth. It's bullshit, but my old lady's aunt is an agent. Yeah I wouldn't buy now. The dude I bought it from bought it in like 06 and ended up selling it to me like 30 grand cheaper than what he paid, and he made a bunch of good upgrades to the house
Landon Walker
>just sold a house that's gonna keep going up in value. hahahaha
no
Bentley Campbell
>I'm just in a weird spot Florida has homestead law, you can pull some shady ponzi scheme and so long as you bought the residence you live in with the money they can't sell your home to pay people off
Jaxson Bell
Lots of bad assumptions.
Thanks user. I make 70K and will probably be paying $500 a month for a room. I technically could go live with my dad for 6-12 months and just save... But fuck I'm 33.
No but home values do, which means I can upgrade my house at the bottom with cash in-hand, debt free, banks will crawl to me, I'd get a great rate on a new home better than the last one and probably 50% off.
Kayden Rivera
LOL LOL LOL who the fuck is stupid enough to think "smart contracts" are going to make it in the real estate biz. Dipshits.
Jacob Hernandez
Then who is buying the houses?
Brayden Thompson
People with capital. Those who have capital, during a housing crash, where banks tighten the lease on their loans, are the one who profit.
Christopher Scott
>Those already overpriced 1-br flats are cheaper than PITI on an entire house and will always be cheaper
You think the real estate industry is going to stay the same forever and you call me a dipshit. Back to the basement neet
Henry Stewart
So what is that guy talking about? Why is there any reduction in rental stock? Why are people being charged more to stay in the same house that cost the next guy less money?
Cooper Robinson
During a housing depression, new construction grind to a halt. Along with tightened loan standard, leading to decreased affordability, despite the lowered home price.
It means more renters competing for the same few houses.
Jaxson Bennett
It's all situational you black and white minded proles, and the problem with these discussions is you all project whatever the fuck you're trying to argue against onto every home owner/renter.
I need a place to live, I bought a house cous payments for me were $300 cheaper a month than appartment with the same number of baths and bedrooms. I'm handy so I can fix whatever breaks, some months I might be in the red others I'llbe in the green in comparison to renting. I'll be in my home for atleast 6 years and I'll benefit from whatever my house appreciates to when I sell it plus I'll get back whatever principal I paid off, I'm not depending on this but it will be a nice perk. If I wasnt handy I would be renting cous any little thing breaking would put me in the red as opposed to just renting.
Asher Jones
You did good OP but you'll do even 10x better if you put that equity gained into gold and silver. Then when the currency collapse hits you'll be able to buy 15 homes free and clear
Nolan Carter
I've already got 250OZ and convinced my dad to get 1,000 so I'm going to stop there for now I think. But I do agree with you user.
Actually maybe I will buy more because if SHTF for real, I'd be scared of my money being in the bank too. Man... it's hard to feel safe these days.
Justin Peterson
>he spent 30k on closing costs to buy and is about to spend them again Nice 70k equity
Easton Wright
they will just sell it if i ever have any, but yeah
