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06-18-2012, 10:31 PM #31
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06-18-2012, 10:31 PM #32
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06-18-2012, 10:31 PM #33
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06-18-2012, 10:33 PM #34
- Join Date: Nov 2011
- Location: Chicago, Illinois, United States
- Age: 34
- Posts: 337
- Rep Power: 257
22 year old brah here reporting in. Bought a 270k condo in December. Saved money (15k) + 25k job signing bonus (minus damn tax = 13k) + help from parents for down payment on mortgage.
Plan on staying here 3-5 years and selling if market rises, otherwise renting out place for a minimal profit until market is high again.
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06-18-2012, 10:34 PM #35
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06-18-2012, 10:38 PM #36
- Join Date: Nov 2011
- Location: Chicago, Illinois, United States
- Age: 34
- Posts: 337
- Rep Power: 257
You realize property taxes are tax deductible right? Interest on mortgage payments are tax deductible as well. In fact, you save on monthly cost when buying vs renting, even factoring in association fees, mortgage, property tax, tax return. And to top that, you get your principle payment on each mortgage payment back, so when you factor that in for long term money you really pay 50-80% of what you're paying rent.
Quick math:
$1600 to rent 850 sq ft 1BR downtown Chicago.
I bought a 900 sq ft condo on a higher floor, and I pay $785 mortgage (at this point in the amortization schedule, half is interest, half is principle), $520 association fee, $377 property tax per month = $1682 per month up front cost.
I get a tax return on $377 property tax and $785/2=$392.5 for interest. Add those and you get $770, multiplied by your tax rate (35% for me) and you get about $270 per month for a tax return just for owning a home.
$1682 - $270 = $1412. Then factor in the other $392.50 on the mortgage payment you get back when you sell your place, then the place is relaly $1000/month when looking at long term cost. Now if we really wanted to see value, your $392.50 right now is worth so much more in the future if your home appreciates in value, which it will likely due considering the times we're living in (an economical trough)
That's why people buy. Not to settle down. It's cause its an investment, especially in these times when mortgage interest rates are abysmally low.
The obvious caveat is that you have to have good credit, and you need initial money for dat dere down payment of 20%.Last edited by Screwtaped; 06-18-2012 at 10:45 PM.
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06-18-2012, 10:38 PM #37
and if nobody wants to buy your house, or you can't sell it for the price you paid initially then you either lose money or have a mortgage for a place you don't live in. I personally don't plan on buying a house until I want to get married(probably very late 20's or early 30's). I would rather have a few roommates around anyways, wouldn't want to live by myself
Texas A&M Class of 2014
Computer Engineering brah
I rep back everyone
current/goal by january 1st (in lbs)
Deadlift: 295/345
DB Bench: 75'sx6 reps/ 95's x 8 reps
Overhead Press: 105/ 160
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06-18-2012, 10:40 PM #38
I live in one of the most overpriced areas of the country. Hardly anyone in their mid-twenties owns a home. If they do, it's in a lesser area. And it's still the exception.
Many people in their mid-twenties can't even afford to rent their own apartment. 1 bedrooms= $1200 or more. Most closer to 2k check Craigslist to see the insanity.
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06-18-2012, 10:41 PM #39
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06-18-2012, 10:42 PM #40
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06-18-2012, 10:44 PM #41
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06-18-2012, 10:46 PM #42
i dont want to buy a house for a while, bc chances are id have to move in a couple of years and sell it etc. don't be jealous of other people. just because theyre buying houses, doesn't mean they're not struggling to make payments, or planning ways to kill their wives and burn down their office etc.
appreciate how far you've come at least. not everyone has the ability to get into a good phd program and all that. you'll find your place eventually{{**DIRTY SOUTH CREW**}}
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06-18-2012, 10:47 PM #43
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06-18-2012, 10:48 PM #44
- Join Date: Jul 2005
- Location: In a squat rack, curling away
- Posts: 11,471
- Rep Power: 2693
Perhaps I was a bit harsh, tradies can earn some decent money above the average, for sure.
But I just couldn't live with having a profession that you describe with vernacular like that- "Hey I just landed a gig as a post-doc-ie!!!" feels cheap brah.
Tradies arent the brightest bulbs in the house either, lets admit it. The'yre usually the ones who always in bar brawls and I've never known one who did anything apart from go to work, go out drinking and talk about fights/gangas/cars etc.Nov 04-fatass @40%bf
Jan 06- buff(apparently) @ ermm i dunno, still have a gut though,
long term goal= jacked @ 7% bf, get the damn abs to show themselves
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06-18-2012, 10:48 PM #45
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06-18-2012, 10:48 PM #46
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06-18-2012, 10:49 PM #47
I think that paying off your first house is the biggest material stress in your life. So why not start as early as possible. Once you have a house paid for with a steady income you are cruising. I am a firm believer that you should only ever have one mortgage in your life. If you want to step up to a nicer house you should come up with the difference before moving.
I don't understand all you guy's itt. Owning a house outright is hugggggge. I hope to have a 20% downpayment by 23.
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06-18-2012, 10:49 PM #48
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06-18-2012, 10:51 PM #49
In NYC, Boston, or California, a lot of people rent their whole lives. It just isn't possible for everyone to own a house when the starting price is over $500k.
I'll be renting for one more year probably, and then I might buy, we'll see.
It's always better to buy if you can, though. The equity you have on the house basically makes it like you're renting for free.Misc Med Crew
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06-18-2012, 10:52 PM #50
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06-18-2012, 10:53 PM #51
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06-18-2012, 10:55 PM #52
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06-18-2012, 10:57 PM #53
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06-18-2012, 11:00 PM #54
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06-18-2012, 11:02 PM #55
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06-18-2012, 11:04 PM #56
- Join Date: Jul 2008
- Location: Sydney, NSW, Australia
- Age: 37
- Posts: 3,165
- Rep Power: 250
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06-18-2012, 11:06 PM #57
Op you need to relax. Buying a house in your 20s is fuking retarded. Such a huge unneccesary stress at that age when you should be out living. Rent, move around freely, and save some.
Why restrain yourself to a single house for the next decade struggling to pay off a morgage that you are getting ripped off on?
Friend of mine at work bought a house in his twenties and eventually had to give up the house and file bankrupcy. These days buying a house is a massive gamble.
And another thing, im always amazed at how 90% of the misc either have phds or are pursuing phds. Either this is a haven for geniuses or for insecure *******s who feel the need to bs on the internet to make themselves feel slightly betterCertified 1200 ng/l T
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06-18-2012, 11:08 PM #58
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06-18-2012, 11:08 PM #59
- Join Date: Jan 2006
- Location: Australia
- Age: 38
- Posts: 13,923
- Rep Power: 18090
I run a Creative Services Company, so film/video/photography/advertising copy, creative production primarily (though I'm trying to push into more long-form work, TV shows and the like).
It just doesn't make sense to me spending your efforts saving a dollar in everything you do, rather than focussing that same effort (and money) on generating more work, and increasing the scope of and capacity of the sort of work you can do - a couple of extra days work in a year will generate far more income than investments in shares and the like are likely to do - so that's were I put my money, back into the business that makes me money.
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06-18-2012, 11:10 PM #60
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