mind blown at people who buy houses

[ashin1]

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

[Atem69]

why dont you provide a solid alternative?

should people rent their whole lives?

[noitall]

i agree esp in expensive areas. lol at throwing 50k basically all ur money on a down payment and living check to check for the next 30 years


life after 40 is a waste anyway so who cares if you own a home when ur old and dont do anything


i think its better to find rent in large cities and spend money on cars and vacations and good food.

people who say ur throwing money away renting are retarded....ur paying for somewhere to live so what if you dont get anything back.


i run a ranch where i tame and break horses and i barely break even i wish i grew up in a big city and had a normal job but that is life

[vertucaj]

+1 to strong correlation between home ownership and unemployment

[CHARBACK]

How old are you and what is your educational background OP? You have no clue.

My house is the best investment I have ever made.

[JDM-EJ1]

Investment properties. There, I've defeated your entire argument.

[NoThnxsJeff]

He actually has a point. People don't think about/factor in all the maintenance cost of owning a home. So many repairs, home owner fees if you live in a community, and just general repairs of anything in or outside of your home.

[ashin1]

why dont you provide a solid alternative?

should people rent their whole lives?

actually renting is not a terrible idea.
one of the reasons having a house is a good idea is because it forces people to save money.
however if you have the discipline to save money and invest properly you realistically do not need to own a home to retire.

there is a term called house rich cash poor, and it directed to those who have been putting their life into paying off their homes and by the time they are ready to retire they will have a fully paid off home but no money to live off of.

[Atem69]

i agree esp in expensive areas. lol at throwing 50k basically all ur money on a down payment and living check to check for the next 30 years


life after 40 is a waste anyway so who cares if you own a home when ur old and dont do anything


i think its better to find rent in large cities and spend money on cars and vacations and good food.

people who say ur throwing money away renting are retarded....ur paying for somewhere to live so what if you dont get anything back.


i run a ranch where i tame and break horses and i barely break even i wish i grew up in a big city and had a normal job but that is life

when you begin your post with stupid assumptions i cant take the rest of it seriously?

[noitall]

How old are you and what is your educational background OP? You have no clue.

My house is the best investment I have ever made.

unless u bought a house in a major city proper within 15 minutes from downtown you lost. id rather rent and be right in the big city and own a home in the middle of no where

[jdogg772000]

I'm inclined to agree, but you have to factor the tax advantages.

I am in ~25% tax bracket (I rent). My buddy owns 2 properties and due to the tax advantages has an effective tax rate of ~10%.

TFW you pay the government less...

[ho_124]

What about a Condo? I've always thought it's a better option to start out with since it's cheaper and doesn't nearly require as much maintenance

[Socalstylz88]

This only applies to people that purchase property without the necessary capital to do so. AKA idiots.

[ashin1]

How old are you and what is your educational background OP? You have no clue.

My house is the best investment I have ever made.

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.

[noitall]

when you begin your post with stupid assumptions i cant take the rest of it seriously?

ok a house in a major city is 300-500k so need about 50k+ to thrown down to avoid pmi and have a decent mortgage.....unless ur a trust fund baby it takes years to save 50k+ unless u live like a lame hermit with no fun or life.....after you throw all ur savings down its gonna be 1500-2000 grand a month for a mortgage and we are not even talking about other bills and expenses..

so basically if you make 4-5k a month and are an average joe most of your money is gone after its all said and done. good luck with savings unless you count 300-500 anything

[ashin1]

Investment properties. There, I've defeated your entire argument.

nothing wrong with investing in real estate, actually I am all for supporting REITs.

[invain]

Buying my house was the best investment I could have made at my age. I'm guessing OP is about 16 years old and has no clue about real life.

I will admit the benefit to owning a home completely depends on the area. Housing market where I live is on fire and I will make a pretty good profit if I sell mine.

[Atem69]

actually renting is not a terrible idea.
one of the reasons having a house is a good idea is because it forces people to save money.
however if you have the discipline to save money and invest properly you realistically do not need to own a home to retire.

there is a term called house rich cash poor, and it directed to those who have been putting their life into paying off their homes and by the time they are ready to retire they will have a fully paid off home but no money to live off of.

dude you could retire in your car if you really wanted to. and yes some people who dont know how to manage their money can screw themselves over before retirement but if you know what your doing there can be more to gain by owning a home

[CHARBACK]

unless u bought a house in a major city proper within 15 minutes from downtown you lost. id rather rent and be right in the big city and own a home in the middle of no where

Not if I don't live there

reds gonna red

[flairon]

i agree esp in expensive areas. lol at throwing 50k basically all ur money on a down payment and living check to check for the next 30 years


life after 40 is a waste anyway so who cares if you own a home when ur old and dont do anything


i think its better to find rent in large cities and spend money on cars and vacations and good food.

people who say ur throwing money away renting are retarded....ur paying for somewhere to live so what if you dont get anything back.


i run a ranch where i tame and break horses and i barely break even i wish i grew up in a big city and had a normal job but that is life

if you buy a house and live check to check for the next 30 years, then you shouldn't be buying a house.

[ImDangerous]

[noitall]

Not if I don't live there

reds gonna red

i got mod negged for saying jon ham is a ******* for always showing his bulge srs

but where are you gonna live? u gonna by two houses? u must be a rich boy because 99% of people in respetable cities cant afford to buy multiple homes

[CHARBACK]

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.

I took out a subprime loan on my house 2 years ago...house is brand new so not much need for repairs/maintanence. Lived in in 2 years and now renting it out for $350/month more than my house payment. Also brb house is valued 100k more than I bought it for...so I can sell it for 100k+ profit.

Like I said...you don't have a clue.

[Atem69]

ok a house in a major city is 300-500k so need about 50k+ to thrown down to avoid pmi and have a decent mortgage.....unless ur a trust fund baby it takes years to save 50k+ unless u live like a lame hermit with no fun or life.....after you throw all ur savings down its gonna be 1500-2000 grand a month for a mortgage and we are not even talking about other bills and expenses..

so basically if you make 4-5k a month and are an average joe most of your money is gone after its all said and done. good luck with savings unless you count 300-500 anything

if said average joe cannot afford to buy the house in the major city then he shouldnt. you are simply describing the future failures of people who try to live above their means. you have yet to post a convincing reason why owning a home is a bad idea

[sloppyjoe1]

So OP tell me if a house is a bad idea where the hell am I going to live? Renting an apartment in the long run is basically throwing your money away. Id rather put 50k into a house in a 10 year span than 50k towards renting an apartment in a 10 year span.

[Zwicker]

I hope to start with a very inexpensive house, do basic cosmetic changes, rent it, and repeat. Would be a nice income without too much work.

Real estate can be a great investment. A lot of people are dumb and have too many high expectations for their first house and go into considerable debt, which causes stress and anxiety (for some...)

[RelentlessChaos]

ITT op doesnt understand an investment and liability, and when one becomes another.

a house bought on a mortgage is a liability. it can become an investment when it in your ownership, when the bank does not own it.

renting is dumb. its like leasing a car. your saying one should spend say $600 on rent for lets just say 40 years.(age20-60) that almost at 300k. Realistically, we could add more years. thats a decent apartment maybe 2 bedroom if chittier. I can get a great house in my area for 150k. I have spent years in construction so i could get a great big home in poor condition for cheaper and fix it up for next to nothing. i could spend half the amount of money. You speak about repairs and ****. Learn to do them yourself.

what is really dumb is young bishes moving out at a young age partying it up, but really mommy and daddy pay half the bills. Live at home and save/invest, then buy a house with little or no mortgage.

[noitall]

I took out a subprime loan on my house 2 years ago...house is brand new so not much need for repairs/maintanence. Lived in in 2 years and now renting it out for $350/month more than my house payment. Also brb house is valued 100k more than I bought it for...so I can sell it for 100k+ profit.

Like I said...you don't have a clue.

what city?

[flairon]

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.

some people like living with their parents. if thats your thing..good for you

[guest89]

Renting vs buying are both gamble, some bigger then others depending on area. Tell me, what's smarter.


Spend $1000 a month on rent for 30 years ($360,000 in the wind). Or spend $1000 a month on a mortgage for 30 years? At the end of renting you have nothing. At the end of buying you at least own a home. Which you can either continue to live in, or rent out of you choose to do so and you buy a new house. I see the whole but if you buy you have to pay for maintenance, property tax, homeowners insurance argument. But one could also argue that if you factor that in to your mortgage and get the price with that included even to that of rent, then its irrelevant.





Where I live a mortgage is actually comparable to rent if not cheaper. IE for $1000 a month on a house I can own a nicer home in a nicer area/ then if I paid $1000 a month to rent. In general a house that'll hold about a $600.00 a month mortgage here (so a crappy house) rents for about $1100 a month.



I'm about to buy a house. So I drop about 1k a month on a mortgage. In 10 years its unlikely my property value will have increased enough to turn any kind of a profit to speak of. But at the same time it definitely won't decrease. I drop 120k on the house over the next 10 years then sell it and I'll get my money back. I drop 120k on rent in the next 10 years and that money is gone.




A huge problem with rent (or buying) is real estate markets can change. You can rent a house one day for 1k a month, then in a few years they want 2k a month for it. Same problem with buying. Property values can drop and you lose.... At the end of the day even if I buy a house for 200k and property value drops and I sell, I probably still won't lose as much as if I rented.