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Those of you who BOUGHT your own place - Regret it?
- Thread starter pftek
- Start date
GuerrillaRed
Member
Not to be rude... but your friend is stupid. Think about it, you're literally just pissing money away for no gain in renting a place. If you buy a house, you can always sell that house and get a return on your investment. Not to mention the increased security of not having some dickhead landlord popping up unexpectedly.
pftek don't listen to your boy!
like stated above, if you rent, at the end of the month your money is gone... if you own your place, even if paid by credit loan, some of the value invested stays yours. and worst case, if you find out your place gives you too much trouble, you can still sell it and get at least some money out.
blessss
like stated above, if you rent, at the end of the month your money is gone... if you own your place, even if paid by credit loan, some of the value invested stays yours. and worst case, if you find out your place gives you too much trouble, you can still sell it and get at least some money out.
blessss
I would say it depends on your situation.
If you plan on moving in the next 5 to maybe 8 years, I would say rent. I don't think the prices of housing will go up during that time frame and if anything they will go down. (really depends on the area)
It also depends on how much money you have to spend. Most lenders now are wanting 20% down.
Also, with renting, you know for sure what your living expenses are for the year. If you buy a house there is always something that comes up that may cost you hundreds or thousands of dollars.
One thing that irritates me about buying a house is that if you get a 30 year loan, the bank makes more money than what you pay for the house. So if you can pay cash, you get a 50% discount.
If you plan on moving in the next 5 to maybe 8 years, I would say rent. I don't think the prices of housing will go up during that time frame and if anything they will go down. (really depends on the area)
It also depends on how much money you have to spend. Most lenders now are wanting 20% down.
Also, with renting, you know for sure what your living expenses are for the year. If you buy a house there is always something that comes up that may cost you hundreds or thousands of dollars.
One thing that irritates me about buying a house is that if you get a 30 year loan, the bank makes more money than what you pay for the house. So if you can pay cash, you get a 50% discount.
theres ups and downs...overall the feeling of knowing my monthly payment is going into my mortgage and value of the house and not being pissed away on gambling money for a landlord...is a good thing.
if i want to move, its easy...i move. then rent the house out for a few hundred more than my mortgage.
the only downsides....4k a year property tax, when something breaks i gotta fix it, bills for home insurance and other stuff that renters dont usualyl pay...
but in the long run, im happy as fuck to be in this. i can always rent this spot out until the mortgage is paid off, then i can sell the house and have a fat chunk of change for my land purchase down the road...
this is real important...getting into a ARM mortgage with terrible rates is almost worse than renting. i was at my friends house helping him crunch numbers on his house.....hes paid 240k already in mortgage, however its only knocked off 100k off the principal. he got into ARM and they are screwing him royally...hes basically paid 140k over the last 4 years in interest, which is a straight rip off!!
the banks are the real criminals here...dont let them push you around. put as much cash down up front and get a low rate. 10% down and ARM might sound attractice at first but you are gonna get fucked over bigtime in the long run..
if i want to move, its easy...i move. then rent the house out for a few hundred more than my mortgage.
the only downsides....4k a year property tax, when something breaks i gotta fix it, bills for home insurance and other stuff that renters dont usualyl pay...
but in the long run, im happy as fuck to be in this. i can always rent this spot out until the mortgage is paid off, then i can sell the house and have a fat chunk of change for my land purchase down the road...
this is real important...getting into a ARM mortgage with terrible rates is almost worse than renting. i was at my friends house helping him crunch numbers on his house.....hes paid 240k already in mortgage, however its only knocked off 100k off the principal. he got into ARM and they are screwing him royally...hes basically paid 140k over the last 4 years in interest, which is a straight rip off!!
the banks are the real criminals here...dont let them push you around. put as much cash down up front and get a low rate. 10% down and ARM might sound attractice at first but you are gonna get fucked over bigtime in the long run..
Just bought a new house. We close in a couple weeks.because of housing market, my mortgage, taxes and insurance on the new place is cheaper than my current rent and it's about twice the space.also brand new carpets, new appliances, a bigger fridge and a dishwasher (which my apartment lacks). Oh and were only putting five percent down. WINNING!
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also, the way mortgages are structured, for the first 10 years of a 30 year loan 85% of all those payments go straight to the bank. You don't really start paying for the house until after the bankers are satisfied.
Now, if you have a 15 year mortgage and pay additional onto the principle every month, you can reduce the bankers profit significantly.
Now, if you have a 15 year mortgage and pay additional onto the principle every month, you can reduce the bankers profit significantly.
M
Milhouse
Another benefit of owning is that you can modify the house any way you like! You dont have to worry about the LL getting pissy or not allowing something.
Greenwich Pope
Member
No forget financial leverage and personal freedom, yah?
No forget financial leverage and personal freedom, yah?
Aloha, pftek
Got tired of buying houses for landlords.
Put down 10% on a 100K home in N. Ca. in the early '80s.
Best damn move I ever made!
Got a fixed percentage mortgage and wrote the loan interest off on my income tax.
I will repeat that very important point for my more medicated brothers.
wrote the loan interest off on my income tax.
So , with a 10k, investment, I controlled a 100k asset.
That asset increased in value. (location X3), to 600k in under 20 years.
My , um "rent", was an average of $600 per month for a 3B 2b home in a great neighborhood.
Did I mention that a portion of that is paid by the income tax break?
Property taxes were OK until the Jarvis/Gann ripoff. but were still less than my income tax savings.
That cost me about $170k. total over 20 years including repairs and insurance, but excluding property taxes.
I sold it about 8 years ago and bought a sweet home on the Kona coast for $375K.
All cash. No mortgage. Big chunk of cash in hand because the first $250k of real estate profit is tax exempt.
Then, when this RE market peaked, I placed a reverse mortgage on this 3B 2b home in Hawaii and not only live "rent" free for the rest of my life, they send me over $1k per month and keep a large "line of credit" in reserve for emergencies.
In my opinion, at this time, in most of N America, there simply is no wiser investment than the right home.
Jus' my 60,000,000 cents.
Wee, tiny, 'zard
@Ddrew. Spot on! And double yeah that!
No forget financial leverage and personal freedom, yah?
Aloha, pftek
Got tired of buying houses for landlords.
Put down 10% on a 100K home in N. Ca. in the early '80s.
Best damn move I ever made!
Got a fixed percentage mortgage and wrote the loan interest off on my income tax.
I will repeat that very important point for my more medicated brothers.
wrote the loan interest off on my income tax.
So , with a 10k, investment, I controlled a 100k asset.
That asset increased in value. (location X3), to 600k in under 20 years.
My , um "rent", was an average of $600 per month for a 3B 2b home in a great neighborhood.
Did I mention that a portion of that is paid by the income tax break?
Property taxes were OK until the Jarvis/Gann ripoff. but were still less than my income tax savings.
That cost me about $170k. total over 20 years including repairs and insurance, but excluding property taxes.
I sold it about 8 years ago and bought a sweet home on the Kona coast for $375K.
All cash. No mortgage. Big chunk of cash in hand because the first $250k of real estate profit is tax exempt.
Then, when this RE market peaked, I placed a reverse mortgage on this 3B 2b home in Hawaii and not only live "rent" free for the rest of my life, they send me over $1k per month and keep a large "line of credit" in reserve for emergencies.
In my opinion, at this time, in most of N America, there simply is no wiser investment than the right home.
Jus' my 60,000,000 cents.
Wee, tiny, 'zard
@Ddrew. Spot on! And double yeah that!
what you'd rather your rent went to some elses mortgage????????
LeeROI
Member
An investment advice book I read decades ago said, if you want to own a home it is a good investment.
I think that advice still holds true. The prices are still going down (Seattle area) and the banks still have tons of foreclosures to get rid of. Your initial mortgage payments will be mostly interest but that means you can itemize your deductions on federal income tax. However, that tax break may be history before long. Or not.
I think that advice still holds true. The prices are still going down (Seattle area) and the banks still have tons of foreclosures to get rid of. Your initial mortgage payments will be mostly interest but that means you can itemize your deductions on federal income tax. However, that tax break may be history before long. Or not.
You're going to live somewhere. Unless you live at home with your parents for free, you're going to have to PAY to live somewhere.
In my example, even though I am mostly just paying interest for the first decade, I am spending money that I would OTHERWISE BE SPENDING ON RENT. In that decade, even if I don't pay the principal down very much, the VALUE of the home will rise (unless the US economy goes into THE GREATEST DEPRESSION) and if I sell it - even without ever paying a dime toward the principal of the loan - I will make a profit.
If I rent over the same decade there is a 0 percent chance that I will get any of that money back. And my rent will go up by $50-$100 a month every year... while my mortgage stays the same.
In my example, even though I am mostly just paying interest for the first decade, I am spending money that I would OTHERWISE BE SPENDING ON RENT. In that decade, even if I don't pay the principal down very much, the VALUE of the home will rise (unless the US economy goes into THE GREATEST DEPRESSION) and if I sell it - even without ever paying a dime toward the principal of the loan - I will make a profit.
If I rent over the same decade there is a 0 percent chance that I will get any of that money back. And my rent will go up by $50-$100 a month every year... while my mortgage stays the same.
