Renting vs Borrowing [homes]

uh, no its not retard. HOA fees arent exclusive to condos.

In scenario 2, you've paid $12,000 in HOA fees after 5 years and that's assuming that the fees stay at $200 per month. You're also going to have to pay property taxes and any MUD taxes that may exist where you live. I think the property tax rate in Georgia is about 1% so you've paid another $6,250 in property taxes in 5 years and that's again assuming that the appraised value of your home does not go up.

Your P&I payment is about $600/month based on what you've stated and an assumed 30 year fixed rate mortgage at 4.125%. That's $36,000 after 5 years.

So, after 5 years, you've paid a total of $54,250 to live in the condominium with about $12,000 of it going to equity. It makes more sense to buy than rent in your scenario but it does make me wonder why renting is $1,000/month for a 1 bedroom apartment.

kek

uhhhh no shit retard

regardless, you're still paying every month, probably more than what you would pay in rent, have a shitty contract and be liable for a lot shit that's not covered in your "HOA fees" and a lot of people end up getting fucked, especially on the fees. why the fuck do you think there's so many infomercials on "how to get out of your timeshare"?

glorified renting.

>pic
nice try dicklord, how about YOU do some research before you make a complete ass out of yourself again

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lmao @ this level of overthinking when the solution is so simple
>pic
361x60=$21,660 in equity

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also, here's a link for condo fees
for your research

investopedia.com/terms/c/condominium-fee.asp

>probably more than what youre paying in rent
imagine being so fucking stupid you'd think you'd pay LESS going through a middle man (landlord)

>imagine actually thinking your fees will stay at exactly the same rate
>imagine thinking the property owner ISN'T making a profit off your fees

cope more faggot

no one calls them "condo fees". its an association with a board. an HOA.

investopedia.com/articles/mortgages-real-estate/08/homeowners-associations-tips.asp

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>he actually believes the board of trustees get paid
hahahahaha holy fuck dude kys youre so fucking stupid

>toilet sprung a leak and flooded the entire condo?? ahh well that's inside your "property", looks like HOA fees don't cover that. you're on your own... hope you have flood insurance up here on the 24th floor! btw, there's a new surcharge we added to the contract..... you're new monthly fee is $1250. thanks!

youre a brown guy, arent you? brown people typically dont "do" insurance so I know the subject is very foreign to you but insurance does exist and you should give it a try

holy shit, imagine being this fucking retarded

>lmao @ this level of overthinking when the solution is so simple
>>pic
>361x60=$21,660 in equity

Agree that it's better than renting, obviously home and no HOA is a step up.
But how are you coming to a monthly payment of $1k per month if you have $200 HOA fees and $361 on the mortgage? You're the retard here dude lmao

Why are you making these threads every day? Yes buying is generally better if you hold for >= 5 years. If you don't, you get exposed to temporary volatility, the trouble of finding a buyers, and with closing costs, are unlikely to come out ahead.

If you're single at 22 and unsure about your current job, don't buy a house. It limits your ability to move to a different city and makes you disregard other opportunities. You'll have plenty of time to settle down.

Click the link you cunt. Work for condo developer you faggot. HOAs and Condos operate differently. You are an absolute moron

streeteasy.com/guides/buyers-guide/what-are-common-charges/

hahahaha you cant be serious.

PREPARE TO GET BTFO YOU FUCKING RETARD

take a look at that picture. what does that say? 0% interest? so thats NOT actually the mortgage? its just the amount going to principle? and youre just another dumb fucking retarded teenager? well color me shocked. how about you read the OP you god damn moron

suck on a shotgun jesus christ it hurts how fucking stupid some of the people here are. stop posting here. just stop. go color a fucking book or something

>work for a developer
I live in a condo you fucking moron. I PERSONALLY could be on the board of directors if I wanted to. its an HOA, I even provided a link showing condos have HOAs. im sorry that youre stuck on stupid, you dumb fucking wagie. jump off a building maybe?

Working on this right now. In my area there are a lot of run down and unoccupied homes in good neighborhoods. I have the skills and tools to do any sprucing up, and I have the capital for a down payment. Just got to get cleared for a loan and make offers to owners. Good luck OP.

Daily reminder that people who have to borrow money to get a house have room temperature IQ since they are bad at making money (otherwise they wouldn't need to borrow in the first place).
If you are intelligent you will never be a debt slave.

she have very nice boobies.
Boobs windows clothes, best clothes

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Also my home has apreciated about 25% the last 4 years. And i rent out one room, which covers mortage payment and electricity bill

reminder that if you have 100 grand in cash and spend it on a fucking house you should be euthanized

reminder that mutual funds return on average 12% and the interest on a home loan is 3.5%

stay at home lol :-)

I bought a house with 100 grand outright 10 years ago and now it's worth 2 million. U mad bro?

you could have financed the house, invested the 100 grand in mutual funds, paid a total (after interest) of $170,000 for the house and turned the 100k into close to 400k

so no, I'm not mad that you literally missed out on an additional $200,000 and im currently LAUGHING @ your retardation

Lol bank takes 80% of your equity for the first ten years in interest.

See a mortgage financing chart

If you were actually good at making money you could literally do both things without borrowing money. 100k into a house (but let's be honest, a house worth 100k is barely a house) and 100k into mutual funds. But let me guess it takes you a year or more to make 100k? Lol

essentially what youre saying is if you "were actually good at making money" (nice syntax you fucking hick) you could invest in less profitable ways simply because you make a lot of money anyways.

sound logic you po'dunk inbred

Imagine thinking timeshares are the same as a condo you actually own for yourself.

>buy duplex
>rent out other half
>rent covers my fees, bills, and hits a bit of the mortgage too

huh it was that easy to make it

i know one guy who bought condo.
lost his comfy job
struggled to find work (major: political economy)
spent absolutely all his cash
I had a boner the whole time bcos brappers

>be 22
>dishwasher breaks down
>call maintenance
>they repair/replace it that same day
>don't have to pay anything for it
>continue having clean dishes

>be 22
>own home
>dishwasher breaks down
>call repair man
>have to wait at least a week for the guy to come by because they are overbooked
>you have to take off from work waiting all day for him to arrive since he doesn't have a key
>he gets "lost" and comes only at the end of the 8 hour window you were scheduled for
>turns out he doesn't have the right tool/part so he has to reschedule for next week
>he finally fixes your broken unit after weeks without clean dishes
>that will be $499 + tip

Housecucks will defend this

oh shit you got me. that $500 dishwasher totally justifies losing out on 20 grand in equity

the inner machinations of rentcuck's minds are an enigma

A condo or house at a 120k
is a much more reasonable amount
of debt to take on at that age.
You can get a fair loan, and not have it
overwhelm you with expenses.
However, condo's have weaker property rights
than a house. You don't actually own land, you own some weird contract to part of a building.

Most idiots get their first job and kick
off a 30 year loan on a 350k house
with almost no money down.

> be 22
> live with roommates
> 300-400$ rent. Utilities included
> save money.
> invest 70% of salary at 7% stock returns
> call landlord to have him fix any problems

> other cucks my age sign up for giant house payment.
> their entire paycheck will be committed to this house until they are 55 years old.
> have to maintain
> pay utilities
> etc

>be 22
>buy condo
>niggers move in next door and play loud music all day
>can't do anything about it
>property value tanks 30%
>now $30,000 underwater

KEK

Real estate is a complex market. If it was a sure investment, investors would just dump all their money in every building they saw.

The reason why people think its an easy investment is because its a forced savings account. Boomer's can't save a dime, but retire because they had to make house payment all those years.

You can make money in real estate, but its hard work.

>roommates
thats adorable.

>$400 rent
>is less than 30% of paycheck
>1000 mortgage
>is entire paycheck of borrower

this level of retardation in your obvious bias is some next level stuff. I bet you smoke pot on a daily basis lmao. addicts pls go

>rentcuck
>loud music next door
>call landlord
>landlord calls cops

>own condo
>loud music
>call the cops (because im not a fucking child that rents and calls mommy (landlord) when somebody is doing something they shouldn't be doing

>You're also going to have to pay property taxes and any MUD taxes that may exist where you live

You'll be paying those anyway for the landlord if you rent

I can't believe I'm seeing actual good advice on biz

enjoy having your renter next door

Took me 1.5 years to find a decent investment property with a cashflow that isn't in the negative after expenses in NYC.

>>call repair man
What manner of pussy are you?

Or you could just be me that pays $0/month in rent since I live with a pretty cool friend. From this I've invested and saved up a shitton of money, so I will buy my own house when I feel like it

So what is the fucking solution? It makes sense to get a mortgage and buy a cheap fucking house but faggots always say "That's a terrible idea!" without giving any alternatives?

What the fuck other options is there? Live with parents? Live in car? Live for free in low income?

VanLiving. Why the fuck do you need a house anyway? You're a single NEET.

Anyone who make generalization for something as vast as real estate is talking out their ass.

Take the homeless pill lad. Women love homeless men.

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you need to weigh out the pros and cons

if you have a nice job and dont plan on moving anytime soon, get a house. literally the only reason you should be renting is if you plan on moving in the near future

>star of David
Nice touch.

>buy a business
>need premises and equipment to operate
>put up drapes at night and live there

i actually do this.

>Implying 1BR for 1000 bucks is normal.
>Implying you should shackle yourself to one geographic location when you're 22

The fucking state of normies.

When you own a home, you don't actually own it. You are just renting it from the government. That's what property tax is. Stop paying property tax, and they take it. How can you call it ownership when the government can take it away so easily?

$21,000 in home equity, but you've already paid $24,000 in property taxes...

Why do so many people like Grant Cardone advise people to buy real estate then?

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youre paying your landlord's property tax you fucking retard

its more of a factor of what you think the house will be worth in the future

generally its pretty even between renting vs buying, assuming you take that extra money and you are investing it into mutual funds if you rent. but if you are in a period where housing costs are high and they go down, you are losing money vs renting, whereas if they are going to go up buying is better.

obviously in a place like rural america houses are quite cheap, and aren't too bubbly, but any kind of economic downturn would see renting being more cost effective.

if you live in any non redneck city then renting is 90% of the time going to be better for you right now, we are at the peak of a massive housing bubble.

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Sour grapes.

>Asset that both increases in value and can generate passive income through rent
>Fantastic tax breaks
>10-20x leverage for a low interest rate
>No margin call if it drops in value and you can still make payments

People don't realize that all the cost to running the house "But I don't have to pay for repairs/insurance when I rent" gets rolled into their rent, plus a generous amount of profit for their landlord as well.

And when you buy a house a generous amount of profit needs to go to the realtors.

Yeah and his margins are smaller than you think and on bad years he may not make any money. He hopes to be profitable in the long game. + the opportunity cost of capital he paid to acquire it.

Which are paid by the seller and rolled into the cost of the property. Again, you are still paying for when you rent.

So you plan on buying a property once in your life and never move?

Bruh I would not want to deal with tenants in NYC. The laws here are so fucked up for landlords.

> increases in value

This doesn't just happen. Only if you get lucky. Plenty of people have never gotten more than 1% growth in the value of their house.

Its a tough market once again. No free lunch.

> Fantastic tax breaks

True. Uncle sam loves for you to buy a house. Please borrow money from one of our sponsored lenders. Please stay docile and locked down to a single location we can keep track of.

> 10-20x leverage for a low interest rate

You can play the loan game well on good years, if you have enough money down. No disagreement here.

Most people don't though. Most mortgages are 30+ year and pay absurd amounts of interest over the life of your loan.

> No margin call if it drops in value

You also can't move in that situation, without taking a huge loss.

I already own property, and when I want to move I'll save up and buy something there. Then I'll rent out the house I'm living in now.

If I was wanting to move more than once every 7-8 years then yeah renting makes more sense. But you pay a dollar cost for that flexibility.

strong irrelevant schizo post

>he sells his house instead of renting it out
hahahaha found your problem, youre retarded

>thinking you can compete with billion dollar property management companies that have economy of scale on their side

The national average over the past 50 years is a lot higher than 1%, so it's less you have be lucky - more like you have to do your research and not get unlucky. And even a 1% gain isn't too bad when you're leveraged up the ass.

People use FB/Google/Amazon services because they are willing to trade traceability for $$$ savings. If you want to live off-grid there are options, but it doesn't really make the most sense financially.

Finally you're right - you take a risk in getting locked in. But you pay a price for flexibility.

I sacrificed my margin in the short term to offer market rates. When rents go up, I'll raise mine accordingly.

Sure I won't make as much as a huge firm that owns blocks of luxury apartments, but I'll make more than I would have renting. Plus in my area (Southern CA) it's not like there's a lack of demand from people who want to rent.

aunt owns 13 rental properties and sees 18% back on her money annually

how irate are you right now?

>Actually buying property this late in the credit cycle

If you're trying to get fucked in the ass there's an easier way you know

I see 30% back on my stocks annually.

>real proud of my boy, workin the rigs outsida Fargo

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Huh, I just walked over there with my strap and asked politely

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did I say 18% I meant 180%

user, I'm not going to tie myself down to any one location for 5 years.
Renting is the way.

my buddy rented a 2 bed for $1500/m about the time I put $60k down on a $250k 4 bed, mortgage+ tax+ insurance was $1125/month. fast forward 4 years. my buddys landlord raised the rent to $2400/month. my monthy is still $1125. meanwhile my neighbor just sold his house for 600k and Zillow says my house is worth over $500k. but my buddy tells me "at least I'm free" lmao. and now he's thinking of moving to another 2 bed apartment for $3k/m still a lot shittier than my 4bed single family.

literally multi level marketing.

get rich quick faggots in real estate are making bank......off selling you a pack of lies.

nice pubic mound

>in hindsight you could have made more money
If that's your argument I could have bought multiple houses and made a shitton more than any dumb (((mutual fund))). You must be pretty mad you haven't made an investment that's made life changing returns. Cheer up, I'm sure (((crypto))) will work out for you. Kek

You don't tell the renter you're the landlord

>hindsight
try: "if i hadn't been a total retard"

Yep. I must be a total retard for turning 100k into 2000k. You've sure figured me out. Kek

youre on the internet, Jow Forums at that. no one gives a fuck about you or what you say you've made because its in all likelihood bullshit. what we CAN discuss and compare are ideas and strategy.

you yourself admitted to using a retarded strategy of buying a house outright instead of investing that money. so suck it, retard

>He still doesnt know
kek, enjoy your bags retard. You gonna get shit on soon, sooner than you think.

Rent-hacking & House-hacking are the only ways to not be a cuck. Honestly, if I can find a house with a casita, I'll live in the casita and rent out the main house.

I think what a lot of people don't understand is that borrowing a bunch of money has an opportunity cost. If you had borrowed $130K 5 years ago and put it into the stock market I can guarantee you you would have more than $21K in returns (probably 4x as much depending on the sector).

People will say "but the stock market can go down", but so can house prices (which I can forgive you not believing in if you didn't experience 2008) and in general there are very very very very few 5 year spans where the stock market was significantly down from where it started unless you cherry pick literally the day before a crash.

In fact, after the closing fee's and taxes on profits (and maintenance) I would be surprised if you had remotely close to 21K to show for your time after you exit your position. Not to mention to cost of being locked into a pretty intangible asset during your youth.

It can work out and it definitely does for some people, but you should be more careful with your investment comparisons -- that is, if you plan on having a serious job and are not just shitposting to pass the time (which I am)