mind blown at people who buy houses

[mnelson6]

The comparison seems to be between an investment option of purchasing a share portfolio vs purchasing a house in which you live correct? What about purchasing an investment property? Yes there are implications with ongoing costs, however if you are renting, then you are essentially just paying off somebody else's investment. Why wouldn't you be the owner of the house, rent it out to other people and let them pay off your property for you. Get the benefit from not being tied down to a location, while also having large amounts of capital to your name.

Just a different perspective imo

Investment property is a good idea, but only if one can set reasonable expectations of occupancy rates, maintenance and other carrying costs.

If one buys a home that costs 45% of their gross income (which happened all the time before the 2008 crash) and then need to move and subsequently rent it out will likely encounter issues with cash flow. If the unit sits vacant for 6 months they won't be able to make it work. If they have to replace a roof they may not have the cash to pay for it. etc.

Investment property is not for novices. One should have at least 1 year of costs saved in an account that won't be raided for other uses. 2 or 3 year buffer is an even better idea. I worked for several years in the Landlord/Tenant arena doing eviction work. **** can go south very quickly.

[3MeatTreat]

i obviously can't speak for everyone but buying my house is the smartest thing i've ever done...i guess it depends on timing, i live at the riverside/san diego county border and i've had my house for two years and it now has over 100K in equity and only getting better....that's actually paying me back my mortgage over two fold oh and i'm 27 and single.

[ashin1]

I am sure you could. I am not going to tell you how to live your life. If you want to work and save/invest money so you can retire at 50 then awesome! Do it! However, I look at it differently, by the time I am 50 I will already have countless memories. Memories in the home I own, that I helped design and build from scratch. I won't just be starting to live my life...

Imagine, you're 48, you're 2 years away from retiring. You've spent your whole life being frugal and accumulating this large mound of money. Next minute you find out you have a brain tumour and 6 weeks to live... What's that big pile of money going to do for you then?

you make it sounds like my quality of life is terrible.
for starters i just got back from a 3 week trip to Korea that will be a pretty memorable experience for me.
In my career as a health care provider i have improved the quality of life for many people
I have a beautiful girlfriend, who supports me in my endeavors
I have friends across the country, and around the world
My family and friends are healthy, I am healthy
If I died tomorrow I would die a happy man.
plus all the money that i did have saved will go to my mom, however when the time comes to having children half of what i have goes to family and the other half will go to some charity i see fit.
Squeak you need to realize you don't need to borrow money to have a good quality of life. take a step back and look how chitty other people in this world have it.

[1800_Cool_Guy]

You are not gonna make it, op.

[squeak419]

you make it sounds like my quality of life is terrible.
for starters i just got back from a 3 week trip to Korea that will be a pretty memorable experience for me.
In my career as a health care provider i have improved the quality of life for many people
I have a beautiful girlfriend, who supports me in my endeavors
I have friends across the country, and around the world
My family and friends are healthy, I am healthy
If I died tomorrow I would die a happy man.
plus all the money that i did have saved will go to my mom, however when the time comes to having children half of what i have goes to family and the other half will go to some charity i see fit.
Squeak you need to realize you don't need to borrow money to have a good quality of life. take a step back and look how chitty other people in this world have it.

And that's all great mate. You're doing well. If you're happy don't change what you're doing.

I am not calling you out on the way you choose to live. I am calling you out because you made a thread saying "mind blown at people who buy houses" then watch you argue over 8 pages about how it's stupid. Yet there has been plenty of examples ITT of how it's great and working for a heap of people.

What did you hope to achieve with this thread? Was it a brag thread about your savings? An excuse to make a thread about what you earn and what you expect to have by "X" age.

My point from my first post is that I have a completely different goals and objectives to you and I am perfectly happy. I called you out on your ignorance towards other peoples lives...

Just admit your mistake and move on. Delete the thread if you have to...

[cavymeister]

I'll forgive you for not reading my first post... Threads can be long and I don't expect everyone to read every post.

I have enough life insurance to pay my debts many many many times over. Leaving my partner with zero debt, over a million in capital to invest and live off. I have also included enough insurance for my sibling to buy a house and my mother to never work again.

Financially, the best case scenario for my family at the moment is if I die lol.

Not everyone is in the same situation (or continent) and can find as great of a deal on life insurance.

As, per my previous replies to this thread, I understand that not everyone's situations is the same and that maybe some are not able to purchase property. My current thought process to to focus on my my kids' development along with my own mid-term life needs.

I guess that while I don't wish to burden my children with my debt I also want to enjoy retirement as long as possible as I'm busting my ass working right now.

The idea of owning your own home is that

-You pay it off by the time you retire
-You can live in the same area you worked hard to be able to afford living in
-You dont need to move into some government housing or scum area because you're retired and no longer have the appropriate income to sustain renting in a nice area in a nice townhouse or apartment
-When you die your kids will sell your house and get a very nice amount of cash each to go and put forth into buying their own homes, which thanks to you they'll be able to pay off faster from the huge headstart you give them.
-Since your kids have a huge head start in buying/paying off their own homes, they'll have a far greater chance of being able to all afford 2nd homes which they can use as investment properties
-Then the kids of your kids will be even better off.


This is how wealth is built by "average" people throughout their families generations.

Please fkn go.

Sorry, but I'm not "above average" in terms of wealth. I'm trying to look out for my kids, not leave them with my debt, teach them as much as I can, and hope that they do better than myself in life.

I think that's better than the spoiled rich *******s I see on TMZ.

[PrivilegeCheker]

Depends when you buy it right now its a buyers market.

[ashin1]

Was it a brag thread about your savings? An excuse to make a thread about what you earn and what you expect to have by "X" age.

My point from my first post is that I have a completely different goals and objectives to you and I am perfectly happy. I called you out on your ignorance towards other peoples lives...

Just admit your mistake and move on. Delete the thread if you have to...

well i actually did enjoy reading the arguments in this post. however i did not find those "op is a 17 year old blah blah" "op is retarded blah blah"
that 2nd thread i made was to silence those who would pollute this thread with such comments and it worked.
also the only reason i posted pics on the 2nd thread was to have people take me serious because god forbid someone on the misc actually "make it in life" and still be in their early 20s.
the 2nd post was also to prove a point that you don't necessarily need a house/debt to be happy or save money.
fact is i'm just showing the misc another opportunity on how one can establish financial stability, and possibly inspire others to do so.
you make it seem like its a crime to share your plans to achieve a goal. I refuse to admit i made a mistake, because my mind is still blown at people who buy houses, i may very well one day buy a house, but when i do i plan on buying it in cash therefore eliminating the debt associated with it.
you sir are the ignorant one, go read a book it might do you some good.

[squeak419]

well i actually did enjoy reading the arguments in this post. however i did not find those "op is a 17 year old blah blah" "op is retarded blah blah"
that 2nd thread i made was to silence those who would pollute this thread with such comments and it worked.
also the only reason i posted pics on the 2nd thread was to have people take me serious because god forbid someone on the misc actually "make it in life" and still be in their early 20s.
the 2nd post was also to prove a point that you don't necessarily need a house/debt to be happy or save money.
fact is i'm just showing the misc another opportunity on how one can establish financial stability, and possibly inspire others to do so.
you make it seem like its a crime to share your plans to achieve a goal. I refuse to admit i made a mistake, because my mind is still blown at people who buy houses, i may very well one day buy a house, but when i do i plan on buying it in cash therefore eliminating the debt associated with it.
you sir are the ignorant one, go read a book it might do you some good.

Up until this reply you had some merit. I didn't disagree with your methods...

Congratulations on demonstrating your arrogance, lack of empathy and ignorance.

You're not a stupid person. You just ignore to look at this from a different point of view and understand that there is more than one way to build wealth and continue being happy doing it. How can your "mind still be blown" at people who buy a house when there are countless examples in this thread about how it works. I don't expect you to think it's the best option for you, i just expect you to understand it may be the best option for others... How is that still mind blowing???

What is truly mind blowing is calling someone else ignorant when they are open to ideas yet you remain opposed to any other way of thinking but your own...

[cboeger3]

Will loaners automatically loan to anyone straight out of college? Id like to get a 100kish home and pay it off in 1-2 years and then either A) rent that house out or B) sell it and buy a 200kish home and pay that one off within a few years and then for sure rent that house out and buy another 200kish house and live in that one while the person renting my house is paying for my new mortgage bill. If I want to I could either A) use my gross income to pay that new mortgage off faster or B) invest in another house, but the smarter decision to me is pay off that second house ASAP and start renting that one aswell.
PS I'll have a petroleum engineer degree with a minor in chem engineering/IT networking, CEO 80k+ starting off/year.


Edit I don't want to rent straight out of college and have to wait a few years for a big down payment on a house, I don't believe in chiting away money renting, my mom does it and has nothing to show for it, basically all her income is spent on rent.

[dark-m]

I work for a realty management company that has overseas investors come in buy houses and we fix and rent it for them. usually they get back a ROI between 10-15%


much better than 5% dividend no?

of course this is a professionally run business not aunt jemima buying the corner crib and waiting on prices to rise

[ashin1]

Up until this reply you had some merit. I didn't disagree with your methods...

Congratulations on demonstrating your arrogance, lack of empathy and ignorance.

You're not a stupid person. You just ignore to look at this from a different point of view and understand that there is more than one way to build wealth and continue being happy doing it. How can your "mind still be blown" at people who buy a house when there are countless examples in this thread about how it works. I don't expect you to think it's the best option for you, i just expect you to understand it may be the best option for others... How is that still mind blowing???

What is truly mind blowing is calling someone else ignorant when they are open to ideas yet you remain opposed to any other way of thinking but your own...

" i may very well one day buy a house, but when i do i plan on buying it in cash therefore eliminating the debt associated with it. "

hopefully by tomorrow you calm down, all this miscing has made me tired, time to go to bed with my girlfriend in my rental home.

[FourtyEight48]

hmmm.. interesting.

[scullin]

Will loaners automatically loan to anyone straight out of college? Id like to get a 100kish home and pay it off in 1-2 years and then either A) rent that house out or B) sell it and buy a 200kish home and pay that one off within a few years and then for sure rent that house out and buy another 200kish house and live in that one while the person renting my house is paying for my new mortgage bill. If I want to I could either A) use my gross income to pay that new mortgage off faster or B) invest in another house, but the smarter decision to me is pay off that second house ASAP and start renting that one aswell.
PS I'll have a petroleum engineer degree with a minor in chem engineering/IT networking, CEO 80k+ starting off/year.


Edit I don't want to rent straight out of college and have to wait a few years for a big down payment on a house, I don't believe in chiting away money renting, my mom does it and has nothing to show for it, basically all her income is spent on rent.

Not sure what country you're in but in the US, no they won't give you a loan if you don't have credit built up regardless of how much you're 'going to make'. You need a history of credit to build a credit score. If you're making good money, that's fine but if you're credit score is low or non-existant forget it. Check your credit score and see where you're at before you even start getting too excited. Don't underestimate how much money you'll need to live on also (location makes a big difference here).

In most places in the US that I've lived a 100K house will be very ghetto which wouldn't be a good investment IMO. You should never buy a house you wouldn't want to live in long term, because if something goes bad you might have to. Also, if you buy a ghetto house to rent out, you'll have ghetto renters which = problems for you. When I bought my first house, it was a very nice house but not overly expensive. I lived in it for a couple of years and then had to move for work. I still own the house and have rented it out since 2009. I would consider moving back into that house if given the opportunity, it's about as nice as the house I live in now which cost double of what the first one cost (different location / state). My current house is expensive but it's value keeps rising as I live in a good market. Will probably sell within a year and take the profit and buy myself something smaller (situation changed and I don't need as big of a house).

[BatmanBeGains]

OP is financial wizard.




Does not know difference between accept and except.

[ultramagnus]

Are houses a investment?

absolutely not.

1. you will never escape the fees that come with it
-maintenance
-property taxes
-lawyer fees when buying and selling
-interest rates
etc that all rise with inflation

2. usually massive debt is involved
-looks like the bank owns you instead

3. A house alone makes up a large percent of one's portfolio or is one's entire portfolio. the down payment alone is a huge expense.



If you can avoid all 3, and don't mind putting in the time to keep your house up to date with repairs, maybe then owning a house may be a good idea.

You’re trapped. Lets spell out very clearly why the myth of homeownership became religion in the United States. Its because corporations didn’t want their employees to have many job choices. So they encouraged them to own homes. So they can’t move away and get new jobs. Job salaries is a function of supply and demand. If you can’t move, then your supply of jobs is low. You can’t argue the reverse, since new adults are always competing with you.


on second thought, houses are an investment, just a very poor one.

someone prove me wrong


lets look at it this way.

would you rather have a 300k home or a 300k portfolio consisting of high quality dividend paying stocks with a 5% dividend yield
stocks:
passive income no work needed to be done but still bringing in AT LEAST an extra 15k a year
brb can sell when ever you want
brb no fees accept broker fee (<30$)
brb company continues to grow
brb no chitty roommate
brb can go anywhere in the world and still make money doing nothing

300K house:
brb fees everywhere
brb good night sweet mobility
brb no such thing as passive income without a roommate
brb yard work

Simple - would you rather pay someone else's mortgage or your own?

[IH8RICE]

It's called living beyond your means. Me and the wife make about 150k/year combined. We got our house through a short sale and paid 125k. The adjusted market value on it was 178k. Not 10 minutes from us they're starting to build a massive entertainment villa with a very nice movie theater, condos, brand new shopping centers, a nice hotel, ect. We expect our property value to go up more. Starting next year, we are goin to live near or below our means because we are going to pay this house off within 6-7 years. It's gonna be tough but well worth it. Then we are going to invest in real estate. You're young and know nothing of how things actually work. If you do your homework and make good decisions involving your money, then it's possible for you to come out on too of your investments( house, stocks, ect.)

[r32gojirra]

im 23 and i have completed 2 years of technical school. and been out in the work force since 19.
i do have a clue, id rather sink my money into companys that are already well established and have them make money for me, not a house which will eventually need repairs and get taxed the chit out of.

Probably a bunch of investors said that about enron while sinking their entire 401k plan into it, just as the CEOs were bailing out

[IH8RICE]

Not sure what country you're in but in the US, no they won't give you a loan if you don't have credit built up regardless of how much you're 'going to make'. You need a history of credit to build a credit score. If you're making good money, that's fine but if you're credit score is low or non-existant forget it. Check your credit score and see where you're at before you even start getting too excited. Don't underestimate how much money you'll need to live on also (location makes a big difference here).

In most places in the US that I've lived a 100K house will be very ghetto which wouldn't be a good investment IMO. You should never buy a house you wouldn't want to live in long term, because if something goes bad you might have to. Also, if you buy a ghetto house to rent out, you'll have ghetto renters which = problems for you. When I bought my first house, it was a very nice house but not overly expensive. I lived in it for a couple of years and then had to move for work. I still own the house and have rented it out since 2009. I would consider moving back into that house if given the opportunity, it's about as nice as the house I live in now which cost double of what the first one cost (different location / state). My current house is expensive but it's value keeps rising as I live in a good market. Will probably sell within a year and take the profit and buy myself something smaller (situation changed and I don't need as big of a house).

100k in certain areas isnt considered ghetto but I understand where you're coming from.

[scullin]

100k in certain areas isnt considered ghetto but I understand where you're coming from.

What location are you looking?

[Inb4Negged]

Just found this interesting tool / article:

http://www.telegraph.co.uk/finance/p...nt-or-buy.html

[FinanceSwole]

There is only one con to buying a home (assuming you are financially capable of doing so), and it's the fact that it anchors you down to that location.

That's the only thing stopping me at the present time.

[GiantGonads]

There is no other investment that I am aware of where a bank will lend you money to make an investment where you can be leveraged at more than 10 to 1 (depending on the size of the deposit you have to put down).

If you invest in the stock market you are leveraged at 1:1. You invest 100k in the stock market, it goes up by 10% you make 10k.

Say you invest in a house that is worth 1m and you need to put down 10% (100k).
If house prices go up by 10% you make 10% on the 1m. You have now made 100k or 100% on your initial investment.
And that is just your returns on you capital investment. If that house is rented out, that person is also paying off your bond too.

BOOM

[heartswild]

im 23 and i have completed 2 years of technical school. and been out in the work force since 19.
i do have a clue, id rather sink my money into companys that are already well established and have them make money for me, not a house which will eventually need repairs and get taxed the chit out of.

You have a 2 year tech degree and make $95,000 a year. Keep on frauding buddy.

[scullin]

There is only one con to buying a home (assuming you are financially capable of doing so), and it's the fact that it anchors you down to that location.

That's the only thing stopping me at the present time.

I disagree. Buy a house, live in it for a while, if you have to move for work then rent it out. Buy another house and live in it while making profit on the first one. Which is exactly what I did.

[Spartan#x]

OP, you are an idiot.

Please reference this article:

http://riskology.co/rent-vs-buy-insanity/


Read it all and then please give us your thoughts, oh so enlightened one.




PS-$450/year home warranty and all major repairs are covered.



Buying my house was the smartest move I have made thus far in my 25 years of life.

[woodbarry]

im 23 and i have completed 2 years of technical school. and been out in the work force since 19.
i do have a clue, id rather sink my money into companys that are already well established and have them make money for me, not a house which will eventually need repairs and get taxed the chit out of.

Lmao. Yeah I want to listen to you because two years in a tech school is definitely qualifies you to discuss finance.

[chappy86]

My down paymeny was $0 op. I finished my basement and up the value of my home by $30g. Plus, if I ever move ill be able to rent the house for more than what i pay on it.


Also generally its cheaper to own than to rent. If i rented i would be paying $300 more for the same type of home and ive seen this is mosy areas ive been too.

[turbodiesel_kai]

Hobbies are individual.
Your hobbies may require air compressors, whereas my hobbies just require a hiking stick. So for you, buying a home may be a better decision.
As I mentioned in my above post, the decision to buy or rent is not a universal one. It is dependent on each individual.

The OP is a fool, as is anyone else, to think that there is only one clear decision when it comes to buying or renting.

agreed. when I was shopping for a house, my priority was a huge garage with enough space to park several cars, install a lift and other equipment. the house itself was secondary; I simply wanted a place i wouldn't be embarrassed by but it didn't have to be flashy or overly large. as a single man, i have no need for 6 bedrooms and 4 bathrooms.

[Spartan#x]

agreed. when I was shopping for a house, my priority was a huge garage with enough space to park several cars, install a lift and other equipment. the house itself was secondary; I simply wanted a place i wouldn't be embarrassed by but it didn't have to be flashy or overly large. as a single man, i have no need for 6 bedrooms and 4 bathrooms.

I know a guy who bought a place, and he said "Yep! Bought a garage, it came with a house!"