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

jpro

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I’m paying a little more than half in rent of what a comparable home would cost.


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We moved here a year ago and we are renting a 4 bed/3 bath home with a swimming pool for about $800 less than what I would be paying if I owned it. Now...I'm taking the $800 in savings and investing it, so that until I buy a house I'm not really "losing out" on potential gains as much as if I was spending it on hookers, blow and car parts. LOL
 

nxhappy

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You're not crazy. Everyone thinking homes are great investments is some Matrix level bullshit. I make a living off investments (not property related). I could make a house a profitable investment and I still don't own one. What makes people think like they're good investments is because they are forced to pay a mortgage so they can't waste their money on the stupid shit they would otherwise. It's forced savings. That's not an investment.

Rent can be a waste of money too. So many people pay too much. For me, the rent I pay is equivalent to the money I would WASTE on school, property, local taxes, heating oil, homeowners insurance (and maybe mortgage insurance), trash, water, sewer. I'm not counting the random big expenses you get hit with occasionally owning a house. And man, buy and sell in a short period, all the assholes involved in the buy/sell process get a cut, the percentage points add up and eat that profit margin up IF the home market went the right direction for you.

There are many good reasons to buy a house but they should be more about your life and what you want. If you're going to raise a family or want to put down roots, buy a house. Or maybe you just want the security of owning your own home. But I wouldn't just buy it because everyone is telling you it's a good investment, especially right now, and definitely not if you plan on moving anytime soon.
LOL ok bud. Whatever you want to think. If you can't make money off of real estate, you're not doing it logically.....period. Real estate is easily top 5 for making money....if you know what you're doing.
 

nxhappy

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We moved here a year ago and we are renting a 4 bed/3 bath home with a swimming pool for about $800 less than what I would be paying if I owned it. Now...I'm taking the $800 in savings and investing it, so that until I buy a house I'm not really "losing out" on potential gains as much as if I was spending it on hookers, blow and car parts. LOL
so you think your landlord is just doing this for fun ? **** no. He's making lots of money doing it. And guess what ....you could be doing the same.
 

jpro

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so you think your landlord is just doing this for fun ? **** no. He's making lots of money doing it. And guess what ....you could be doing the same.

No doubt. But we sold our house, made a nice profit, moved across the country, and are renting until we figure out where we would like to be (schools, neighborhood, commute time, etc.). In the meantime, take the savings from renting and invest it rather than pissing it away. Sounds like a good idea.

We will own again for sure. But gotta get a read on where we want to be long term. Next purchase is a 20 year commitment.
 

nxhappy

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And you're paying someone else's mortgage with nothing to show in the end
it's so funny most renters are PROUD they are paying rent ... I'm like.... are you ****ing serious? I was 21 years old and decided I didn't want to pay rent ever again. Got a house ...paid $900 for mortgage compared to 1300 for rent ....sold 7 years later and doubled my money. In my current house I'm in the same situation. 99% of the time your mortgage will cost FAR less than rent. And if your purchase is smart you WILL make money. Like I said ...your renter isn't renting for fun....they are making a profit or at LEAST paying the mortgage...which is basically a free house. On top of that, you have major tax advantages, and income yield. Every millionaire that I know owns lots and lots of real estate. And there is a reason for that.
 

nxhappy

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No doubt. But we sold our house, made a nice profit, moved across the country, and are renting until we figure out where we would like to be (schools, neighborhood, commute time, etc.). In the meantime, take the savings from renting and invest it rather than pissing it away. Sounds like a good idea.

We will own again for sure. But gotta get a read on where we want to be long term. Next purchase is a 20 year commitment.
not at all. Most people move every 5-10 years.
 

RedRocketMike

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LOL ok bud. Whatever you want to think. If you can't make money off of real estate, you're not doing it logically.....period. Real estate is easily top 5 for making money....if you know what you're doing.

They definitely can be good investments. I know morons who make good money flipping homes. I also know smart people who can't swing a hammer that plow a bunch of money into paying contractors to upgrade a house, then they take a job somewhere else and sell at a loss or breakeven. Or people who bought 20 years ago before the neighborhood got shitty or before it got really nice.

Alot of people end up feeling like geniuses when the housing market trend is doing most of the work for them. That can go both ways.

I'm saying for most people, simply buying a house isn't a "great investment" for the reasons they think that it is, they see equity as gains. There are many expenses behind the mortgage that the renter escapes.

You can do things smart either way. Housing market is hot right now, that makes OP buying a 500k house more than likely not a smart investment ahead of an overdue recession.


https://www.zillow.com/home-values/
 
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VenomVeins

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Renting vs buying is completely dependant on where you reside.

Here in San Diego (or coastal SoCal) you’re a top level dumbshit if you have the ability to buy and choose to rent instead.

Rent is out of ****ing control and my mortgage is literally $1000+ cheaper per month than anything i could rent in North County.

And i get a nice tax write off every year on top of that.

Oh, and homes build equity FAST here, so there is that to look forward to.


YMMV in other locations, but its a literal no brainer here.
 
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PhoenixM3

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We moved here a year ago and we are renting a 4 bed/3 bath home with a swimming pool for about $800 less than what I would be paying if I owned it. Now...I'm taking the $800 in savings and investing it, so that until I buy a house I'm not really "losing out" on potential gains as much as if I was spending it on hookers, blow and car parts. LOL
Nobody said that hookers and blow werent a good investment. Remember to reward yourself first!
 

PhoenixM3

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The average 2 bedroom would be 2-2400 here.

So the 2 family we are in is owned by the daughter of my wife’s old boss. Her and her husband had a terrible experience with their first tenant. She trashed it and couldn’t stay current with rent. They fixed it back up and We moved in, originally planned for a few months. I paid for 3 months in full with a discount for paying in full. Then we decided to “re-up” for a full year paid in full with a discount again. They wanted 2k per month and I got away with a payment in full of 16,000 for the year with the agreement that if we leave early we are reimbursed for the months left minus one. Basically if we moved in June we get 5 months back.

A comparable home would be 400ish. We have a great deal that’s why I’m reluctant. Basically I’m paying now and comfortable but expecting to see a down turn in the next few years. We can for sure afford to buy but I feel like the markets high and the return over all isn’t fantastic.

We were pre-approved for something like an 800k mortgage. We gross together monthly on average 15k. She makes 83k per year and I’m around a 100. we have a few CCs with a combined few grand balance that we use to pay for everything during the month and 1 car payment of 385$

We live frugally.


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That is a good deal, so save up and when you decide to buy (and you will) you’ll be ahead of the game because you’ll be borrowing less. Your landlord may not continue to give you this deal, you may end up having five kids, a divorce, or other “life happens” event.
 

PhoenixM3

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Idiotic thread by OP.


Renting vs buying is completely dependant on where you reside.

Here in San Diego (or coastal SoCal) you’re a top level dumbshit if you have the ability to buy and choose to rent instead.

Rent is out of ****ing control and my mortgage is literally $1000+ cheaper per month than anything i could rent

I know because my wife and I moved from there. It’s hard to own a few properties because of the price.
 

Zemedici

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Wait a minute - you make a combined 180+....and still rent?

What....

Put 20-25% down, your mortgage will be comparable to what you’re paying now, and you’ll OWN it. It will be yours. Want to paint a wall? Paint it.

Want to renovate a bathroom? Renovate it.

You won’t have to move out eventually, and have nothing to show for all those payments.

They’ve been saying the housing market is going to crash since the last bubble burst lololol getting to be the same as the ‘next year the world is ending’ cats.
 

jaxbusa

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That I find weird. Just about very adult that I know has lived in the same house for their entire life.

I’m 38 years old and I’ve noticed that all of my friends around my age have moved at least once or twice. Most of their parents still live in the house where they raised them. I recently moved from my first home where I lived for 13 years. I never thought I was going to move, but the neighborhood was changing and crime was running rampant. I felt that my property value was going to suffer if I waited to sell.
 

jpro

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Down payment is an obstacle for many. 20% of $400k is $80k. Not many folks have that plus a little cushion laying around. So if you buy with less than 20% down you pay PMI, which is $200 or more on houses over $400k so you’re still throwing tons of money away. Except for the SVTP ballers, many people aren’t swimming in cash.


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PhoenixM3

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Down payment is an obstacle for many. 20% of $400k is $80k. Not many folks have that plus a little cushion laying around. So if you buy with less than 20% down you pay PMI, which is $200 or more on houses over $400k so you’re still throwing tons of money away. Except for the SVTP ballers, many people aren’t swimming in cash.


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Or you have a VA cert and don’t need a down, nor suffer PMI....
 

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