I just can’t convince myself to buy a house.

08mojo

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Keep renting OP. If that fits your lifestyle and you're happy then I don't see the problem. A lot of people have missed the point, but some have pointed it out: interest is expensive! So, unless you have the cash to buy a home, don't forget about how much interest is paid on a mortgage. Talk about throwing away money...interest payments always have a guaranteed zero return.

While yes, buying post recession was killer for those who did. I was told repeatedly by friends that I was buying my first house at the top of the market. I was there 2 years to the day, and made $140k in profit and put next to zero into it.

I rolled that money into my 'forever home' and haven't looked back. I once again thought I was buying at the top, but have added another few hundred thousand in equity.

This is the exact situation my wife and I are currently debating. We bought our home at the absolute right time: post recession when the market pretty much hit the bottom. The value of our home has nearly doubled since we bought in 2010. The home we're in is great, but not perfect and it's not my dream location. We're debating on selling the current home for our (as of right now) forever home.

I'm not sold on the idea because our mortgage is low and the next home would definitely have a jump in the mortgage, even with rolling over the equity of our current home. It's very nice to not worry if one of us loses our job. It's also nice to have additional expendable income (while still being responsible for savings/retirement/etc...).
 

Grabber

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There are pros and cons to both.

Renting Pros:

Little to no maintenance costs
No property taxes (included in your price of rent)

Renting Cons:

No equity
Cannot modify or change the interior/decorate 99% of the time
Paying someone else's mortgage
Cannot truly call it your own

Owning Pros:

Equity after 4-6 years
Do what you want to your house
Actually being able to call it your own
Not losing money paying someone else's mortgage
Tax breaks/write-offs


Owning Cons:

Maintenance costs
Landscaping/Snow Removal
Property Taxes

Rentin to me is still the worst option. It is truly money wasted unless you rent-to-buy. I rented for close to 10 years before buying my home. If I had to do the math, I probably paid over $150,000 in rent alone that I will NEVER get back. THAT is a huge number.
 

Blown 89

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It's a terrible time to buy right now. Dang near every market is well above 2008 bubble prices thanks to hgtv turning every Tom, Dick, and Harry into an "investor". Wait for it to come crashing down soon and take advantage then.
 

roadracer247

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It's in the owners best interest to pay it off quicker unless someone really can't afford more than the monthly payment. Holding for 30 years is not a good idea. You get raped big time on interest. I put 30% down and paid off an additional $36k over 2 years in addition to the monthly payments. Plan to pay off within 10 years.

That’s the classic SVTP standard baller response.
 

jpro

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It's a terrible time to buy right now. Dang near every market is well above 2008 bubble prices thanks to hgtv turning every Tom, Dick, and Harry into an "investor". Wait for it to come crashing down soon and take advantage then.

Exactly. We are waiting. How long we will wait, IDK. But I'm not paying inflated prices. We have owned two homes and I would rather buy than rent, but timing is everything.

That’s the classic SVTP standard baller response.

Exactly. LOL
 

blownstang4.6

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There are pros and cons to both.

Renting Pros:

Little to no maintenance costs
No property taxes (included in your price of rent)

Renting Cons:

No equity
Cannot modify or change the interior/decorate 99% of the time
Paying someone else's mortgage
Cannot truly call it your own

Owning Pros:

Equity after 4-6 years
Do what you want to your house
Actually being able to call it your own
Not losing money paying someone else's mortgage
Tax breaks/write-offs


Owning Cons:

Maintenance costs
Landscaping/Snow Removal
Property Taxes

Rentin to me is still the worst option. It is truly money wasted unless you rent-to-buy. I rented for close to 10 years before buying my home. If I had to do the math, I probably paid over $150,000 in rent alone that I will NEVER get back. THAT is a huge number.

Nicely put. Pay your own sh*t not someone else's.
 

Rct851

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Until I bought a few weeks ago I had been prepared to buy for about 3 years but hesitated because I thought I was going to “time” the next housing collapse.

I would have been far better off if I pulled the trigger earlier. The amount of rent I paid in the last 3 years is greater then the bottom of any perceivable evaluation of my new house if the housing market falls off. If I am wrong and by some disaster my houses loses half it’s value or something crazy then I’ll ride it out until it rebounds. Live below your means and dont overreach and you will be fine.


All this talk of dollars and cents but right now I can’t put a price on having my own 3 car garage. Like most of y’all I have car and motorcycle hobbies. I spend more time in the garage then anywhere
 
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Acehigh1305

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The apartment people will always try to justify it...but no matter how you look at it the money you spent on rent is WASTED. You will never see that money again. Whereas buying a house you will not only get your money back when its time to sell (if you even decide to sell), 95% of the time you will make money on it. If you end up staying in the house, then you eventually own it...no endlessly paying for something that will never be yours that you have to be told what to do with
 

jrandy

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It's a terrible time to buy right now. Dang near every market is well above 2008 bubble prices thanks to hgtv turning every Tom, Dick, and Harry into an "investor". Wait for it to come crashing down soon and take advantage then.

Wait for it to come crashing down soon. It could be around the corner. It could be next month. It could be a year from now. The problem is, every Tom, Dick, and Harry is predicting it's going to crash ASAP. Once again, time in the market is the best thing, not trying to time it.

Google, reddit, news, whatever outlet you want, they've been preaching the 'end is near' bubble forever.

2013:
The Next Housing Bubble Is About To Pop All Over You - Gawkergawker.com/the-next-housing-bubble-is-about-to-pop-all-over-you-510108728

2014:
Here's proof the housing bubble is about to burst | 2014-04-15 ...https://www.housingwire.com/.../29669-heres-proof-the-housing-bubble-is-about-to-b...

2015:
Get Ready for Another Real Estate Bubble | The Fiscal Timeshttps://www.thefiscaltimes.com/2015/03/03/Get-Ready-Another-Real-Estate-Bubble

2016:
4 Signs The Global Housing Bubble Is Already Bursting--Here's What ...https://www.forbes.com/.../4-signs-the-global-housing-bubble-is-already-bursting-her...

2017:
This veteran investor nailed the last housing bubble and now expects ...https://www.marketwatch.com › ... › Stocks › Howard Gold's No-Nonsense Investing

2018:
We're probably at peak housing. Here's what that means. - MarketWatchhttps://www.marketwatch.com › Economy & Politics

The fact is, while everyone's been holding out on buying in at the next crash, all the people who have a few years in have built up enough equity to pad the next dip. Here's California, Nevada and Arizona.

47075051504_16de81813b_b.jpg

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47812293782_c9069db5be_b.jpg


Is buying for everyone? Hell no. Can you lose your ass in a downturn. Hell yes.

Is now the time to buy? Depends on a multitude of factors. Just don't sit on your ass and miss building equity waiting for an eventual drop.
 

coposrv

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Keep renting OP. If that fits your lifestyle and you're happy then I don't see the problem. A lot of people have missed the point, but some have pointed it out: interest is expensive! So, unless you have the cash to buy a home, don't forget about how much interest is paid on a mortgage. Talk about throwing away money...interest payments always have a guaranteed zero return.



This is the exact situation my wife and I are currently debating. We bought our home at the absolute right time: post recession when the market pretty much hit the bottom. The value of our home has nearly doubled since we bought in 2010. The home we're in is great, but not perfect and it's not my dream location. We're debating on selling the current home for our (as of right now) forever home.

I'm not sold on the idea because our mortgage is low and the next home would definitely have a jump in the mortgage, even with rolling over the equity of our current home. It's very nice to not worry if one of us loses our job. It's also nice to have additional expendable income (while still being responsible for savings/retirement/etc...).

Right. The 500k loan I have actually costs me 800k over 30 years on top of let’s say 6k a year in tax. So let’s say nothing ever goes wrong, taxes never increase, I never have to replace or maintain anything and my home doubles its value and is worth 1 million. I paid 800k for the loan. I paid almost 200k in taxes. My house doubled but I broke even, and I had a huge financial burden for the thirty years.


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earico

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Right. The 500k loan I have actually costs me 800k over 30 years on top of let’s say 6k a year in tax. So let’s say nothing ever goes wrong, taxes never increase, I never have to replace or maintain anything and my home doubles its value and is worth 1 million. I paid 800k for the loan. I paid almost 200k in taxes. My house doubled but I broke even, and I had a huge financial burden for the thirty years.


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Don't ever pay it for 30 years. At a minimum make 1 extra payment a year to reduce the loan payoff time to about 22 years.

Also you are forgetting that for a 500k house that you are putting down 100k. What's your total look like factoring in a 400k principle as your start? This goes without saying but don't buy with less than 20% down. PMI is more money out the window and now that the laws changed that shit doesn't drop off without a refi and that is just more closing costs.
 

blownstang4.6

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Don't ever pay it for 30 years. At a minimum make 1 extra payment a year to reduce the loan payoff time to about 22 years.

Also you are forgetting that for a 500k house that you are putting down 100k. What's your total look like factoring in a 400k principle as your start? This goes without saying but don't buy with less than 20% down. PMI is more money out the window and now that the laws changed that shit doesn't drop off without a refi and that is just more closing costs.

People don't understand these two concepts.
 

roadracer247

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Right. The 500k loan I have actually costs me 800k over 30 years on top of let’s say 6k a year in tax. So let’s say nothing ever goes wrong, taxes never increase, I never have to replace or maintain anything and my home doubles its value and is worth 1 million. I paid 800k for the loan. I paid almost 200k in taxes. My house doubled but I broke even, and I had a huge financial burden for the thirty years.


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*Well i hope you’re not sensitive because this post might sting a bit*


Cool, don’t buy a house then. That’s fine that you don’t wanna buy right now. I wouldn’t speak to another mans finances. How much you’re willing to spend or have as overhead is completely up to you.

So I’ve got a idea. I’ll buy another house and I’ll rent it to you. As long as you have solid credit and make enough for ME to decide you’re a safe bet. Sound good? I’ve been wanting to invest more in real estate.

Food for thought...

Of all the guys in the Fire Service (I mention my job only because we have a wealth of life experience in my profession, because A LOT of people seem to leave other careers to come try their hand at being a Firefighter) I’ve gotten to know a lot of good people over the last 15 years in the business and I’d safely say that the ones “with money” reached their wealth through real estate. And no, I don’t mean the ones who are paying rent. I’m referring to the guys who bought a home and continued investing over a lifetime in real estate.

Was it simple and as straight forward as my post? Of course not! It’s hard. Full of ups and downs. But in the end, most of the smart ones (hard workers who don’t give up easily) have come out way ahead and they’ve made a great life for themselves and their family.

This whole topic reminds me of a conversation I’ve had with my mortgage lender. The average home buyer doesn’t stay in their first house forever. Not even their second house. Crazy huh. That people can buy so many homes. I know it was a revelation for me when I first learned that.

Now let’s go hypothetical for a sec. If you can’t afford a certain area, then I guess that leaves a few choices? Move? Is it a sacrifice? Sure. But it depends on an individuals priorities. So the other option is to make more money so you can afford the area you’re in. That might mean changing careers or taking on a 2nd/3rd job. Sounds hard. Not willing to do that either? Then continue renting. I will say, all of the landlords out there (present/future) really appreciate you paying for their assets. Myself included.


Good luck in your decision.
 

ViciousJay

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If you rent you have zero return. My buddy just had to move to San Fransisco with his wife and they are paying $3000 per month for a small apartment under 800 s.f. Every month he is out $3000, $36,000 per year gone.

Even if you pay 8-10k in property taxes you still come out better than many people that rent - if you buy the right property in the right area.
reaction to your friend
 

mysticsvt

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Do what I did, join the Military, Retire, Buy 350K house....use retirement check for the $2100 House Payment....FREE HOUSE! BAHAHAHAHA
 

blownstang4.6

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*Well i hope you’re not sensitive because this post might sting a bit*


Cool, don’t buy a house then. That’s fine that you don’t wanna buy right now. I wouldn’t speak to another mans finances. How much you’re willing to spend or have as overhead is completely up to you.

So I’ve got a idea. I’ll buy another house and I’ll rent it to you. As long as you have solid credit and make enough for ME to decide you’re a safe bet. Sound good? I’ve been wanting to invest more in real estate.

Food for thought...

Of all the guys in the Fire Service (I mention my job only because we have a wealth of life experience in my profession, because A LOT of people seem to leave other careers to come try their hand at being a Firefighter) I’ve gotten to know a lot of good people over the last 15 years in the business and I’d safely say that the ones “with money” reached their wealth through real estate. And no, I don’t mean the ones who are paying rent. I’m referring to the guys who bought a home and continued investing over a lifetime in real estate.

Was it simple and as straight forward as my post? Of course not! It’s hard. Full of ups and downs. But in the end, most of the smart ones (hard workers who don’t give up easily) have come out way ahead and they’ve made a great life for themselves and their family.

This whole topic reminds me of a conversation I’ve had with my mortgage lender. The average home buyer doesn’t stay in their first house forever. Not even their second house. Crazy huh. That people can buy so many homes. I know it was a revelation for me when I first learned that.

Now let’s go hypothetical for a sec. If you can’t afford a certain area, then I guess that leaves a few choices? Move? Is it a sacrifice? Sure. But it depends on an individuals priorities. So the other option is to make more money so you can afford the area you’re in. That might mean changing careers or taking on a 2nd/3rd job. Sounds hard. Not willing to do that either? Then continue renting. I will say, all of the landlords out there (present/future) really appreciate you paying for their assets. Myself included.


Good luck in your decision.

A big LIKE....hahahaha nicely put! I know quite a few people who kept buying multiple rental properties throughout their lives and put in the hard work to maintain them. Theyre sitting pretty as millionaires in retirement right now. Tenants paid their houses off, they used left over rent to pay down the mortgage quicker or invest in additional properties, then sold the houses for much more than purchased.

One thing a friend told me, who had 5 six unit apartment buildings, was to never buy a single family home as your first property. You buy a multi-unit rental property and live in one of the units until you can buy another property. If the property is large enough you live completely rent free. Then when you buy another property you have money to cover a portion of that property every month and so on.

My mortgage, insurance, and taxes monthly payment on both properties is $4200. It costs me $1000 out of my own pocket. Essentially I'm adding $38k to my yearly salary.
 
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Kevins89notch

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8-10k in tax, sounds like a revolution is in order.

Nope, just select shitty states like NY and NJ. Funny thing, some folks up there don't know how bad they have it. A coworker moved to FL from upstate NY like 20 years ago. Like 10 years back, he was making small talk with his brother who still lived upstate NY. Taxes came up. My coworker says something like "Yeah, I pay $2,600 a year for my house." His brother about shit himself. "WHAT?" He was paying like 12K for the same size house. Do you know how many round trip flights to visit family/friends 10K can buy you? They put their house on the market and moved to FL within 6 months. Oh, and he was a retired NY state trooper, on a pension, and living in FL, there's no state income tax either...more money saved.
 

coposrv

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*Well i hope you’re not sensitive because this post might sting a bit*


Cool, don’t buy a house then. That’s fine that you don’t wanna buy right now. I wouldn’t speak to another mans finances. How much you’re willing to spend or have as overhead is completely up to you.

So I’ve got a idea. I’ll buy another house and I’ll rent it to you. As long as you have solid credit and make enough for ME to decide you’re a safe bet. Sound good? I’ve been wanting to invest more in real estate.

Food for thought...

Of all the guys in the Fire Service (I mention my job only because we have a wealth of life experience in my profession, because A LOT of people seem to leave other careers to come try their hand at being a Firefighter) I’ve gotten to know a lot of good people over the last 15 years in the business and I’d safely say that the ones “with money” reached their wealth through real estate. And no, I don’t mean the ones who are paying rent. I’m referring to the guys who bought a home and continued investing over a lifetime in real estate.

Was it simple and as straight forward as my post? Of course not! It’s hard. Full of ups and downs. But in the end, most of the smart ones (hard workers who don’t give up easily) have come out way ahead and they’ve made a great life for themselves and their family.

This whole topic reminds me of a conversation I’ve had with my mortgage lender. The average home buyer doesn’t stay in their first house forever. Not even their second house. Crazy huh. That people can buy so many homes. I know it was a revelation for me when I first learned that.

Now let’s go hypothetical for a sec. If you can’t afford a certain area, then I guess that leaves a few choices? Move? Is it a sacrifice? Sure. But it depends on an individuals priorities. So the other option is to make more money so you can afford the area you’re in. That might mean changing careers or taking on a 2nd/3rd job. Sounds hard. Not willing to do that either? Then continue renting. I will say, all of the landlords out there (present/future) really appreciate you paying for their assets. Myself included.


Good luck in your decision.

This makes a lot of sense. My dad has owner a ton of real rate over the years and I’ve seen the fruits of that labor. It’s definitely an investment to consider.

For us right now it’s not a lack of being able to afford the area it’s more of a desire to avoid the treadmill of debt. And enjoy the freedom and low risk.


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coposrv

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Nope, just select shitty states like NY and NJ. Funny thing, some folks up there don't know how bad they have it. A coworker moved to FL from upstate NY like 20 years ago. Like 10 years back, he was making small talk with his brother who still lived upstate NY. Taxes came up. My coworker says something like "Yeah, I pay $2,600 a year for my house." His brother about shit himself. "WHAT?" He was paying like 12K for the same size house. Do you know how many round trip flights to visit family/friends 10K can buy you? They put their house on the market and moved to FL within 6 months. Oh, and he was a retired NY state trooper, on a pension, and living in FL, there's no state income tax either...more money saved.

There’s a reason the northeast is expensive. Metro west mass is where I’m raising a family. Moving is not an option.


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