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re: “You’re just throwing your money away on rent”
Posted on 8/20/19 at 10:51 am to Eli Goldfinger
Posted on 8/20/19 at 10:51 am to Eli Goldfinger
quote:
1. The housing market is super inflated in our area (Nashville).
There are plenty of decent houses in Nashville and the surrounding counties.
quote:
2. They don’t have much of a down payment.
While this sucks and I always suggest putting 20% down, it just isn't feasible for most. Luckily, there are specific programs, and lenders don't require it anymore (you'll just be paying PMI).
quote:
On top of these things, they’d be SOL if their AC went out or there were other expensive repairs.
This is the main thing that should dissuade someone from buying a home. If you can't afford any repairs, you are essentially living month-to-month, ande are simply "surviving" at that point. They should take a little more time off and specifically save.
0
Posted on 8/20/19 at 10:51 am to Eli Goldfinger
I agree with the OP.. my last two homebuying /selling experiences have soured me on the whole thing.. we are renting at the moment , and it’s extremely nice to not have to sweat it out (literally) when your AC breaks in July.. when you own, you have to put $5k-$10k on your credit card and hope they complete the work in a timely manner.. when you rent, you call the leasing office, and BY LAW they have to fix it in 24-48 hrs , and it costs me nothing in addition to rent... That’s just one example.. Plus it’s just so damn permanent .. if renting and you have issues with neighbors or anything else, you can just wait a few months and move.. when you own, it’s a whole other ballgame.
Posted on 8/20/19 at 10:51 am to celltech1981
quote:
I pay $350 a month in rent
Jesus man!! Where and in what do you live???
Posted on 8/20/19 at 10:52 am to Eli Goldfinger
quote:
Am I the only one who thinks homeownership isn’t the greatest goal which we can achieve?
Unless you get lucky and buy in right before a market gets hot it's definitely not good from a pure investment standpoint
I'm contemplating selling in a couple years and renting again
Posted on 8/20/19 at 10:52 am to celltech1981
quote:
pay $350 a month in rent (not making the 350 up) That's $4200 a year. I don't even have to cut my own grass. I can leave for 10 days and have nothing to worry about. Bills are all included in that. I don't feel as if I'm throwing my money away, freedom is valuable to me.
Trailer park or 3 roommates?
Posted on 8/20/19 at 10:52 am to Eli Goldfinger
Would rather be debt free
Posted on 8/20/19 at 10:52 am to Eli Goldfinger
quote:
Am I the only one who thinks homeownership isn’t the greatest goal which we can achieve?
Name me one other investment/place to store money that you can actively use while holding said investment
This post was edited on 8/20/19 at 10:57 am
Posted on 8/20/19 at 10:53 am to scott8811
quote:
Jesus man!! Where and in what do you live???
I live in a 40 ft sea can with an outdoor kitchen north of Lafayette.
Posted on 8/20/19 at 10:53 am to Eli Goldfinger
The threads where people tell single 24 year olds to buy a 3 bedroom, 2500 square foot house with a 50 minute commute to their jobs and a 15 minute drive to the nearest non-chain restaurant or bar are among my favorites on this site, particularly when they ignore the cost of property taxes and homeowner’s insurance.
“I’m a single 24 year old working in downtown Houston. I just broke up with my college gf and am looking for a fun social scene. Where should I move?”
“Spring, Kingwood, or Cypress.”
“I’m a single 24 year old working in downtown Houston. I just broke up with my college gf and am looking for a fun social scene. Where should I move?”
“Spring, Kingwood, or Cypress.”
Posted on 8/20/19 at 10:53 am to ulsaint
quote:
If you can only afford 5% of a down payment, you can't afford the house. Period.
That's a foreclosure waiting to happen.
Afford? Maybe
Choose? Nah
I put down 5% because I was making more than the bank was charging me
Posted on 8/20/19 at 10:53 am to Eli Goldfinger
What did you advise them their return was on the amount they are paying for rent?
Posted on 8/20/19 at 10:53 am to Displaced
quote:
Trailer park
no way in hell, that's trashy.
Posted on 8/20/19 at 10:54 am to Eli Goldfinger
How's the rental market there? Can they rent something similar for a similar price (or lower) than the anticipated mortgage?
Usually rent is higher than a mortgage, even with a low down payment and a higher rate.
If they are paying more than $1,350/month in rent now, then they should save that difference until they can have a decent savings for when things happen like the AC breaking.
Also, how long do they plan on staying in the area? The market is almost certainly going to go up long-term, if not short-term.
Too many variables to just make a blanket statement.
This is probably true.
Usually rent is higher than a mortgage, even with a low down payment and a higher rate.
If they are paying more than $1,350/month in rent now, then they should save that difference until they can have a decent savings for when things happen like the AC breaking.
Also, how long do they plan on staying in the area? The market is almost certainly going to go up long-term, if not short-term.
Too many variables to just make a blanket statement.
quote:
Plus buying a home as an unmarried couple isn’t a great idea.
This is probably true.
Posted on 8/20/19 at 10:54 am to celltech1981
quote:
I pay $350 a month in rent
Bawcomwville?
This post was edited on 8/20/19 at 10:55 am
Posted on 8/20/19 at 10:54 am to Keys Open Doors
quote:
“I’m a single 24 year old working in downtown Houston. I just broke up with my college gf and am looking for a fun social scene. Where should I move?”
“Spring, Kingwood, or Cypress.”
There's a lot of accuracy in this statement.
Posted on 8/20/19 at 10:57 am to celltech1981
quote:
pay $350 a month in rent (not making the 350 up) That's $4200 a year. I don't even have to cut my own grass.
Yeah but you either live in a rat hole or have to give bj’s to the landlord
Posted on 8/20/19 at 10:57 am to Eli Goldfinger
Acting like there is a cookie cutter solution for every person is a mistake. If owning a home began and ended at the payment, that would be great. It doesn't. People have to weigh their individual circumstances when deciding on homeownership. I know people who have no business owning a home. Sure, they can afford it, but they spend a ton of money on things they shouldn't have to because they literally cannot fix a damn thing. Fortunately, they are doing okay right now, but one change in their lives can mess that up in a hurry.
Posted on 8/20/19 at 10:58 am to Thib-a-doe Tiger
quote:
Yeah but you either live in a rat hole or have to give bj’s to the landlord
Both.
Posted on 8/20/19 at 10:59 am to Eli Goldfinger
Now this is how it’s done.
Bravo!
Bravo!
Posted on 8/20/19 at 11:00 am to Eli Goldfinger
quote:Your analysis is at least plausible, but you left out what they would have to pay in rent for something comparable. What is that number?
Their 30-year payment would be about $1,350 after mortgage ins, escrow, and interest.
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