Paying rent is the single biggest waste of money that a normal person spends. You see absolutely none of that money back. Buying a house allows you to save money while you pay "rent" via equity.
The best part? A 130,000 home carries with it JUST a ~$615/month mortgage. after every "fee" and property tax you're looking at less than 800 bucks a month
oh, and you only have to put 3.5% down ($4,550) on an FHA loan. all other fees included (inspection, utility deposits, etc) you are looking at less than $6,000
the reason why most people are against this is because they have trapped themselves in NYC or the west coast or live unstable lives (switch jobs every year, move from city to city searching for prosperity)
in 10 years you can have either squandered away $80,000+ or have saved enough to refiance your house to
In my city it has become impossible to buy anything for 130K. The average house costs 250/300K here.
I'll never be able to buy a house and even renting a decent place is out of the option due to insane waiting lines for social housing 10/15 years on average.
meanwhile, i'm stuck in this absolute ghetto of a neighbourhood with trash littering the streets, obnoxious and loud neighbours and where nobody ever feels really at home.
what about Europe? even condos here in Belgium go for at least 400k€.
Camden Miller
enjoy your property taxes on a cube of air in the sky lmao
Logan Johnson
good news user, the mortgage on a $250,000 house is only $1,200 a month after escrow and all other fees. you just need to save up $12,500 to put 5% down which could be done in a year if you're making more than $40,000 a year. you'll absolutely be approved for a loan of that amount as long as you dont have a large car payment or any other debt
if youre not making that much and dont plan on going to school to make that much you should really leave that city as you're doomed
Levi Reyes
>he doesn't realize property tax on a 130k condo is literally $30 a month in most states
James Flores
She looks underage. Reported.
Matthew Morris
Paid off townhouse with Bitcoin which I bought in 2016 is now worth $175K. Hardly any in the market under $195K these days. Taxes are $1200 per year.
Maxed out 401K, Roth IRA in the beginning of the year and putting 50% of all money coming in to S&P 500 and the other 50% into crypto.
That chick is young. I wanna make it so I can bag one like her and piss my fatass ex wife off.
Jackson Mitchell
It's free if your a black guy i'm sure.
Jackson Morgan
I am sure even in your city you can find a $130,000 home. The problem is you don't think yourself a nigger, so are doubly afraid to move in close to them.
Luis Hill
stop selling biz homes they are not stupid. this is the peak its 2007 and you are shilling homes fuck off fggt
Connor Torres
What about interest rates?
You're most likely going to be renting a much lower tier place than if you were buying.
I'm renting for 950/month however, if I was buying, I'd shell out roughly 500k.
I feel like my renting cost is roughly equivalent to the interest rates over the medium term. I can just put all of my leftover money into VTSAX and not worry about things like repairs.
Be me. WFH. Check in to the office max 5 days per year. Max 401K and Roth. Paid off townhouse. Pouring rest into s&p 500 and crypto. Young GF waitress pays all utilities and food. Get prime young pussy every day.
Be you. NEET. Stay at home. Beg mom for money for vidya. Incel, masturbate to blacked. Laugh at me. Say you're comfy.
I'm from the Netherlands. 130K buys you a 10m2 garage box.
If you think US housing prices are bad... go take a look at holland.
Jaxon Thompson
Damn it I need a girlfriend.
Fucking nigger captchas. Literal cancer. Especially the ones that fade.
Matthew Thompson
I want to eat her asshole. Like I'd literally lick the shit off their assholes (okay, not really but I'd still stick want to stick my tongue in there a bit)
Brody Nelson
Housing prices crash everywhere you idiot. If you live in a city with more than 300k people you are doing it wrong. Even if the prices do crash thr banks wont be giving out loans again anyway.
Easton Reyes
*didnt*
Xavier Howard
>t. Real estate agent who sees sales drying up and prices falling i.e. less commission
Nice try
Carson Taylor
>I trapped myself in a shitty house with a 30 year morgage and now I want other people to do the same so i feel better about my situation.
No thanks desu. My job requires I travel alot. Putting 80% of my income into retirement so I can retire when im 35.
Andrew Nelson
Ok but what if you don't think you'll be living in one spot for 10 years.
John Carter
This thread is giving me an existential crisis. I am in the process of getting a Condo with a mortgage that would be about the same as renting(average). Seeing this shilled is bringing back bad memories of the end of 2017.
FHA is 3.5%. Where I live they have a 4.5% and 5% unconventional. It is a meme
Ian Barnes
T. Pharmaceutical sales rep By retire I mean keeping my annual withdraw
Jordan Hill
how do you live with yourself?
Nolan Myers
Leave please, this is a safe space for autists only.
Levi Bennett
$193,000k 30 year loan at 4.49% [3.5% down] $6k closing costs FHA route: $3500 MIP fee (1.75% up front MIP) $133 a month in MIP (PMI) costs (11 years) $150 a month in property tax (median 0.9%) total interest paid over 30 years, $223,000
$504k, -200k ownership = $304k costs add $30k if you wanted home insurance
vs $1000 a month renting $360k
Over 30 years renter is only paying $60k (20% more). Seems there's almost no reason to get locked up in a loan unless you really just want to own your own place to customize. and the renter can buy a house at any point in the 30 years with basically no penalty, if they're saving up for it. Also up front fees are $9783 minimum for the buyer, so if you used $8783 of that and instead got a 5% return in the stock market that's another net $30k gained.
So if you have home insurance and the renter used the stock market, you'd have identical costs over 30 years. real stock returns average 10%, so I'm even underestimating for the renter.
Gavin Baker
>30 year of no property price appreciation >30 year of no rent increase
Your calculation is off by at least a factor of 2.
Juan Edwards
This poast was made by a boomer faggot trying to offload his shit “muh real estate investment” before the next crash happens.
Benjamin Wood
Thats wrong. If you still have your job and good credit you'll be able to get a loan. Lending standards will tighten but someone making 60K+ in a stable job and 760+ credit will easkly get a loan. The government gaurantees it.
But yeah non conforming loan volume will plunge.
Parker White
> remember: always inverse BIZ Thanks, user. Putting my house for sale tomorrow. The amount of pajeets on here shilling: “why are millennials not buying houses” confirms that we are at the peak of the bubble. I will buy back in, in a few years, and get 2x the house. Thanks again, user for confirming that we are at the top and the bubble is about to pop.
Robert Cox
Now imagine that your kids will have a better start in life if you already provide them with a place to live. You would be glad if your parents would have done that. One person in your bloodline has to start. That start will give your future children/grandchildren an advantage in life.
I'm in the market right now and you guys are not including a fuck load of known and unknown expenses.
For one, closing costs are 3-5% of the purchase price and usually not included in the mortgage. You'll pay PMI which is absolutely throwing money away if you don't have 20% to put down.
My area a single-family home 1300 sqft is 300k+. Condos are available and closer to 200k but the association fees are usually $300/mo+ which pays for a pool or maintenance on the building (ie - more money you're throwing away).
I pay $1600 a month to rent right now and my mortgage will be around $1750/mo on a 300k house including taxes and pmi. Plus, utilities and maintenance that I will be responsible for since it is my own property
Luis Nguyen
the point is not that you should never buy a house. The point is there's no reason to buy early in the game. You can save for 5-10 years early in your career, then buy when you're ready. And you're going to get the same rate because you're paying less interest.
unless you really think home prices are going to surge in the next 5 years or so.
Tyler Hill
this sounds like it was written by a 15 year old
Ryan Anderson
Situation in Belgium
> want to buy medium sized house for €350k > 20% downpayment is needed to cover 10% costs and 10% own input which is around €70-80k > still have to pay €1250 each month for 25 years > studies show that a house costs an additional 3000 euro a year on average in taxes/repairs > have to handle everything yourself > can't move since selling house and buying a new one would cost you around 15% extra since you lose the cost of old house and need to pay new cost for new one > 'ye but houses keep raising in price LOL free money' forgot about costs and inflation > when you wanna break up with your wife she will use the house to financially ruin you > no money left each money to invest, less quality time with family or friends because you need to pay mortage
rent > pay €850 each month for same house > get to keep your savings so you can enjoy life in your most healthy years > no costs or taxes > landlord has to solve problems > when you wanna move you gtfo and rent somewhere else > when you break up you gtfo and rent somewhere else without losing money (apart from maybe some decoration/furniture) > the surplus in money you keep every month you put in an index fund if you don't wanna actively invest
If you have a shitload of money buying might be a better option, if not I would say that renting is the optimal financial/comfort choice there is at the moment. Also, houses are 7% overpriced in Belgium at the moment, if you wanna buy atleast wait till the next house bubble pop and save in the meantime/or/and invest.
Ethan Ross
Nice
Elijah Kelly
guys we are about to slide into a huge recession. didn't you see the market indicators yesterday? Just wait and buy them during the summer sale when they're 50% off
Jordan Cruz
> pharma sales rep fuck outta here you turbonormie
Samuel Brown
property taxes will increase more than rent houseless zoomers and browns will vote that in ;)
Ian Wilson
I agree with the rent part. I refuse to pay rent. I plan on living with my parents for at least a few more years. I have $60,000 saved right now. I'm trying to open a money market account.
Ethan Martin
How much you think your rent is going to be in 10 to 20 years...
Jacob Miller
>thinking I’m a neet >tfw I live off passive mobile app $$$ Feels good man. Someday you’ll save enough to be able to retire and enjoy a somewhat similar experience before the dementia kicks in. Kek.
Ian Ortiz
>condo Fuck that. Same thing as renting. Still have to pay fees to the condo board and you’re not allowed to do any remodeling. I lived in a condo for about a year and got a fine from the condo board for $200 (haven’t paid it, will never pay it) for parking in my own driveway.
Lincoln Ortiz
Ok you terminal brainlet, I didn't respond to you in any of your other threads but you keep posting this shit.
***Buying your primary residence is a lifestyle choice that shouldn't be decided upon based on financial benefit, because in all likelihood it will be a wash, IF YOU INVEST. At the end of the day, no matter what you do will likely cost you money, because it costs money to live, and your mental gymnastics will not save you from this fact.***
When people decide on where they want to live, they don't compare the prospect of buying a property to renting that very same property. As a single 26 year old, I can only reasonably compare renting an apartment, purchasing a condo/townhome, or purchasing a single detached family home. If I were to choose between an apartment that costs $700 per month and a $200k house with 20% down and $1100 PITI, the house does not win. Not because the PITI is higher, but because the $400 saved every month, plus the 20% downpayment is invested in securities that will OUTPERFORM THE APPRECIATION IN THE PRICE OF THE HOUSE. Your primary residence should not be considered an investment. It is merely a place to live your life. If your house makes up the majority of your net worth, you are a mediocre schmuck that will share the same fate as most Americans; a lifetime of suburban mediocrity.
Escorting would be pretty simple if it was legal like it should be
Aaron Martin
>OUTPERFORM THE APPRECIATION IN THE PRICE OF THE HOUSE >*in this hypothetical scenario because it suits my argument
Josiah Cook
Condos are a bigger scam
Leo Collins
>hypothetical scenarios are unacceptable even though realtor OP is spewing blanket statements on this board multiple times per day
you're right though, the price of rent doesn't necessarily track the price of inflation or even the real return of houses even in the same town even if your throw those assumptions out, my central point stands; you shouldn't treat your primary residence as an investment unless you're prepared to be a live-in landlord
John Brown
>$504k, -200k ownership = $304k costs
> add $30k if you wanted home insurance
> vs $1000 a month renting
> $360k
>Over 30 years renter is only paying $60k (20% more).
You think your $1,000 rent is still going to be $1,000 for 30 years moron?
Rent priced at $1,000 in 2000 $1,736.21 in 2018
> According to the U.S. Bureau of Labor Statistics, prices for rent of primary residence were 73.62% higher in 2018 versus 2000 (a $736.21 difference in value).
Your rent is going to cost more and more and more. Meanwhile, those who bought in a decent area will have they homes appreciate in value. Instead of having a mortgage that doesn't increase over decades or a house that is paid off allowing you to invest money, you'll have continuously have to pay more for a place to live. Worse, while a brainlet that was at least smart enough to buy a small place has it paid off in retirement, you'll constantly be worried about increasing rent when you're an old fag and has no income.
Money is a meme. Take the nihilist pill. It literally doesn't matter. Finding an occupation that you like is all that's relevant really. Unless you want to be on vacation 3 months a year. Otherwise, there's no good means on spending money (This little rant is assuming you don't knock anyone up)
Ian Baker
>you shouldn't treat your primary residence as an investment My property value increased 13% last year and is expected to do so again this year; property can be a great investment if you know where to look. I also paid cash for mine so I pay less monthly for tax/bills for a 1500sqft house on a half acre property than I paid rent in my previous living situation (a basement apartment, which the family above’s kid was allowed to come down and watch tv when he wanted)
Parker Gomez
I don't understand, you expect it to go up in value this year or to increase by 13% again? If you expect your house to appreciate like that every year you might as well sell now while you're ahead, after selling costs you'll have made ~6%
realistically you will make 1% real annualized long term
Jonathan King
>if you expect your investment to keep rising you should sell it now
Belgium is a golden cage, too good to leave but will never make one truely happy.
Julian Sanders
Regardless I do not understand what you are trying to say? In your cucked neck of the woods, it is only worth it to be a rent slave... That doesn't sound like much of a life.
Elijah Hughes
> having a mortage is less slavery than renting
Brandon Wood
In my city there are literally no 130k homes. You cant even buy a box on the street in the country for 130k
Cooper Foster
McMansions are literally made of cardboard lmao. Imagine paying more than $10k for that shit.
Lincoln Bailey
Never disagreed. Again you aren't making any sense. If you can't reasonably pay it off in 10 years not sure what to tell you. I am talking about OWNING something. Making your home your home.
Zachary Watson
the housing market is doomed. its been boosted by globalisation and the next western election cycle is gonna crack down hard on tax avoiders and inequality.
house prices will get hammered. then there is the recession ontop.
wew lads.
Chase Phillips
This strategy is not for everyone. But, one of the best ways to win the game, is to cut the bank out altogether. This means buy outright, if possible. There are a lot of cities with economies that are not doing so good and losing population, aging population issues, high median age. If you work online, can create your own business, trade, etc it can work to your advantage. A great economic area is easy on the budget and if you are flexible you can travel with the money that is saved, or save it and buy a second place. Find a place near, not in one of those cities that is economically lagging. RE will be very favorable as it will be a buyers market. Don't overlook non traditional housing ,especially if you have cash.Banks will not lend to someone buying a "house" if it is not a real house, usually. They want to be able to sell it if they foreclose, oddball building are harder to sell. Don't over look things like the fact that religion is slowly going out of business, so buildings like small churches can be had for a steal in some communities. I bought a building for 30K outright, well kept, just needed to upgrade the bathroom, needed a shower, DIY cost $1K to do. Property taxes are $1400/yr. That is a tad more than I was paying MONTHLY on a house with a mortgage that I would still not have paid off, until next year, and the taxes then would be still 4X. I grabbed the equity out of the house and took this deal as it was a total win-win.
Henry Lee
this is me bursting your delusional bubble yes property values can rise sharply in one year you're an idiot if you expect them to just keep doing that
Luke Stewart
gtfo schlomo
Blake Sanchez
or I could make gains and buy a house in cash in 5 years. while also having the flexibility to live wherever i want in my 20s
enjoy your 25 yr debt slavery
Noah Carter
buying a house outright when you arent making atleast 1mil/year is absolutely fucking retarded.
brb financing @ 4% brb investing that money @12% brb its literally more profitable
