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Started By
Message
re: “You’re just throwing your money away on rent”
Posted on 8/20/19 at 2:32 pm to GreatLakesTiger24
Posted on 8/20/19 at 2:32 pm to GreatLakesTiger24
quote:
A lot of the poors on here act like owning a home is some huge accomplishment
Can you imagine being proud of owning a home in Livingston Parish...
0
Posted on 8/20/19 at 2:43 pm to Eli Goldfinger
I've been fortunate to net enough when I sold each of my homes to easily justify the purchase over renting (taking into account closing costs, improvements, and repairs). If the market declined, I may have lost money - but each market where I lived remained steady or gained in the 4-5 years I've owned each home.
Lately, rental prices have been pretty high.
My current home is in a high tax area that poses some risks - but it's a reasonably warm market and I intend to keep the home for a while. In the unlikely event that I have to move, I may opt to rent this place out.
I do not recommend buying if you think you will be staying in the home 5 years or less. In some markets, you may be able to pull off 4 years if you don't face unexpected major repairs.
Lately, rental prices have been pretty high.
My current home is in a high tax area that poses some risks - but it's a reasonably warm market and I intend to keep the home for a while. In the unlikely event that I have to move, I may opt to rent this place out.
I do not recommend buying if you think you will be staying in the home 5 years or less. In some markets, you may be able to pull off 4 years if you don't face unexpected major repairs.
This post was edited on 8/20/19 at 2:44 pm
Posted on 8/20/19 at 2:50 pm to Eli Goldfinger
Renting gets a bad rap. It's a good feeling to not have to fix the 865,202 things that go wrong in a home each year.
Posted on 8/20/19 at 2:52 pm to Eli Goldfinger
quote:
I suggested they rent and keep saving until there’s another dip in the market.
Good advice.
That doesn't mean that home ownership is not a great goal or that it isnt infinitely better than renting.
Telling someone to work the market and buy at the right time is a far cry from telling them not to be a homeowner.
Posted on 8/20/19 at 2:54 pm to IrishHammer
quote:
Recession doesn't automatically mean housing prices plummet.
OK fine. But most cities have over valued residential real estate and its due for a correction. I've seen the corrections happen 3 or 4 times in my adult life and it ain't pretty but it opens up great opportunities for people with the means to buy.
Posted on 8/20/19 at 2:55 pm to Tigerlaff
quote:
Renting gets a bad rap. It's a good feeling to not have to fix the 865,202 things that go wrong in a home each year.
Buy a decent place and this really won't be an issue.
Yeah if you buy a shithole then there will be a lot more wrong and lot more to fix.
Also helps to be able to diagnose and fix minor things myself.
Posted on 8/20/19 at 3:21 pm to GoIrish02
quote:
You can get diversified, liquid returns that average 11-12% without the volatility and high transaction costs of housing. Obviously you can't live in a mutual fund, but you can sell some of them to rent really nice houses, while your money grows too.
This right here.
Talking about putting 20% down to avoid PMI. On a 200k home, assume PMI is 150 a month that you save. Now invest that for 30 years at 9%. You get approx 250k. Now take the 20% down payment less 5% down. So 15% or 30k. Invest that at 9% for 30 years = approx 500k.
So are you going to make up that 250k difference IF and when you sell your home in 30 years?
Posted on 8/20/19 at 3:52 pm to Tigeralum2008
quote:
I managed to sell the home for a $30K profit after only 5 year
So did your neighbors
Posted on 8/20/19 at 4:02 pm to Eli Goldfinger
Two months ago I had to buy a whole new HVAC because the Compressor went ka-put and it had the old refrigerant. That was $9K
This weekend our water softener decided to empty it's entire load of resin into our plumbing, clogging everything with a screen. I broke a sink trying to get the aerator screen off, it plugged the washing machine line, causing it to flood, and then we didn't have hot water because it got into our hot water heater. Thankfully we weren't running the dishwasher, but all of that looked like $2K-3K to replace everything.
They need to get the 20% down payment and they need to prep a 5-10K nest egg.
This weekend our water softener decided to empty it's entire load of resin into our plumbing, clogging everything with a screen. I broke a sink trying to get the aerator screen off, it plugged the washing machine line, causing it to flood, and then we didn't have hot water because it got into our hot water heater. Thankfully we weren't running the dishwasher, but all of that looked like $2K-3K to replace everything.
They need to get the 20% down payment and they need to prep a 5-10K nest egg.
Posted on 8/20/19 at 4:30 pm to Eli Goldfinger
Yup...the market is even beginning to fall out on Seattle metro. Thousands of homes hitting the market and devalued as well.
Posted on 8/20/19 at 4:31 pm to GoldenGuy
quote:
20% down payment
People are so dumb. Read a few posts to above to avoid throwing away hundreds of thousands of dollars. Or do it and be a dumbass
This post was edited on 8/20/19 at 4:32 pm
Posted on 8/20/19 at 4:43 pm to celltech1981
quote:
pay $350 a month in rent (not making the 350 up)
Where do you live?
Posted on 8/20/19 at 4:44 pm to GreatLakesTiger24
Really I see the real poors on here who can’t afford to buy a house condemning the institution as though they are some financial wiz kid. Buying a home is just a common occurrence.
It’s not about bragging, it’s just buying a home. What most people do when they have families.
It’s not about bragging, it’s just buying a home. What most people do when they have families.
Posted on 8/20/19 at 4:47 pm to VerbalKint
quote:
Where do you live?
Around laffy in the basin. I'm in a 40 ft sea can with an outdoor kitchen.
I'm there maybe 3 nights a week. Gone every weekend to fish or hunt and stay with the gf a couple nights a week
This post was edited on 8/20/19 at 4:51 pm
Posted on 8/20/19 at 4:49 pm to Eli Goldfinger
quote:
but they’d probably be looking at a 6% rate or more.
While I doubt it would be that high and could be bought down it still isn't that bad.
Hell early 80's mortgage rates were 10-15%..
Posted on 8/20/19 at 4:53 pm to Eli Goldfinger
I just recently moved to Springfield, MO and decided to rent for at least a year. Single so I got an apartment for $499 a month and thats utilities included. Decent neighorhood, tons of college kids and so far no problems. Plenty of space for me and no worries for me.
Posted on 8/20/19 at 4:58 pm to ConfusedHawgInMO
quote:
Real world example. Bought house in 2001 for $116k, decent home, raised 3 kids in it, kept it up pretty decent, nice neighborhood. House is probably worth $160k today. Most folks would think you did ok on it.
That's less than 2% appreciation a year. It's very market dependent but around 4% is more the average. At this rate, you're more in the $230k range, which looks like a much better investment. But it's your home, so IMO it's a balance of living in a place you enjoy coming back to every day while not sinking your family financially.
Posted on 8/20/19 at 5:02 pm to RealityTiger
Who can’t afford to buy a house? You barely need a down payment anymore
Posted on 8/20/19 at 5:03 pm to celltech1981
does mama bring you meatloaf down in the basement?
Posted on 8/20/19 at 5:21 pm to ConfusedHawgInMO
quote:
Real world example. Bought house in 2001 for $116k, decent home, raised 3 kids in it, kept it up pretty decent, nice neighborhood. House is probably worth $160k today. Most folks would think you did ok on it.
Over the last 19 years you've probably paid $15k in RE taxes, $50k in interest, $20k in repairs. That makes you all in the house for $201k on a house worth $160k.
While that is still cheaper than rent over the entire 19 years it isn't the pot of gold at the end of the home ownership rainbow. The way I see it I spent 201k on a stock that is only worth 160k. That's a pretty crappy investment.
But you still have the 160k after 19 years whereas renting for 19 years you have $0.
You would have had to find a rental for $702 cheaper per month to have saved the 160k
This post was edited on 8/20/19 at 5:26 pm
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