mind blown at people who buy houses

[supaderp]

[squeak419]

how mad does it make you i only have a debt of $254

Precisely 0 kinds of mad.

Between my partner and I we have over $400k in debt, I have had some sort of loan since 3 days after I could legally have one (age 18). I get what I want now and have more than enough income to cover my interest/repayments, go on international holidays 1-2 times a year, I drive a nice car (which i am about to upgrade by increasing my loan), i can afford to go out often and own a chit load of cool stuff. Would not be this happy if instead i sat in my parents basement hording money.

I will always have a loan of some sort til the day I die. I also have more than enough life insurance to cover all my debts so my family doesn't have to deal with it when I go.

I have no issues with people avoiding debt, do what you want, but to call others out on it on an internet forum truly shows you are all sorts of mad.

[mnelson6]

Depends on your goal.

If you are young and are intending to be mobile for work (and the corp you work for doesn't buy your house as part of the move) you should avoid tying yourself to a home.

If you are someone who likes to move frequently (every 5 years) don't buy a home.

When you do settle on a particular locale, buy a home that is significantly cheaper than your income will buy - for example my home is modest. The total carrying cost is about 19% of my gross income. This means if I get into a situation wherein I have to move for work I can absorb the cost of the house until it rents/sells.

I think point of entry into the housing market can make it a good or bad decision. Buying in late 2007 in many markets would have been a bad choice. Buying in 2012 would have been a good choice due to much lowered home prices. etc.

[sIghtLines]

If you can buy your house and still have your proper investments in place its a ****ing win win.

[Turbomunkey]

Can you take someone seriously who doesnt own their own house at 30? Going to someones apartment is so poverty. Brb lets grill...... on my 5x5 balcony

[invain]

So say you decide to move.
you make it sound like you can sell your house over night.
lol good luck
the amount you pay for property tax (money you will never get back regardless if you own a home) is some peoples annual rent.
much like buying, renting is just as good if you do it properly.

I haven't read through all the pages but damn you are a massive dip****.

My mortgage + property tax + home owners insurance comes out to almost exactly what my friend is paying to live in a ****ty little 1 bedroom apartment. If your property tax is "some people's annual rent" then you are probably living in a million dollar home and would give two ****s about how much the tax is.

[3nt3r51l3nc3]

You what m8?

- locked in interest rates
- im a handyman
- multi-family home so I rent to nice tenants who pay my mortgage for me
- can sell and make a profit at anytime since I bought the house when it needed a lot of work.

[cavymeister]

Joining the military is not traveling the world. It's traveling to a few select places where your government has an agenda. You aren't free to do what you want. You do what your commanders tell you.


20 years of $1055 mortgage per month = $253,200 (I'll not even mention the costs of house utilities, which are often already included in apartment rent prices)
20 years of $400/month apartments = $96,000
Difference = $157,200
So not only did you attach a ball & chain to yourself by buying a house, you also lost $157k+.
Twenty years from now I'll be sailing the pacific ocean in my yacht that I bought with the $157k that I saved, while you're sitting in your La-Z-Boy chair watching the 36th season of American Idol on TV.

Anyway, to think your life is better than anothers because you bought a house is naive and shrouded in cultural conceit and materialism. Not everybody has the same goals and desires in life. Speaking for myself, buying a house would be the death of me. I cannot stay in one place for much longer than 7-8 months. I quickly grow weary and must move on. Similarly to what you said about the military not being right for everyone, the same applies to buying a house - it's not right for everyone. Do not delude yourself into thinking that a house is anything more than it really is - four walls, a roof, some plumbing, and electricity. Renting or buying is a decision left up to individual preference based on lifestyle and desires.

Hmm... 30 fixed mortgage stays the same. If your roach infested 650 sq foot studio apartment is still there in 20 years, the rent has gone up 5-10% each year.


Sorry, but $400/month in 2014 is about as poverty as you can get without a roommate. Section 8 is roughly 30% of your monthly income. So, if you're making $1300/month ($16k/year), then you can get housing for $400/month.

[ashin1]

Precisely 0 kinds of mad.

Between my partner and I we have over $400k in debt, I have had some sort of loan since 3 days after I could legally have one (age 18). I get what I want now and have more than enough income to cover my interest/repayments, go on international holidays 1-2 times a year, I drive a nice car (which i am about to upgrade by increasing my loan), i can afford to go out often and own a chit load of cool stuff. Would not be this happy if instead i sat in my parents basement hording money.

I will always have a loan of some sort til the day I die. I also have more than enough life insurance to cover all my debts so my family doesn't have to deal with it when I go.

I have no issues with people avoiding debt, do what you want, but to call others out on it on an internet forum truly shows you are all sorts of mad.

you sound defensive, and trapped in a materialistic world, i feel sorry for you. that's cool you want to purchase a new car or own cool stuff, but the intrinsic value of it will not last for ever.

give that thread a read, you may learn something

http://forum.bodybuilding.com/showth...post1249691981

[lildave]

although op has some valid points, let me share some insight.

I have a rental property

cost: ~$300k
borrowed: ~$260k
total payments: ~$1600 /mo (mortgage/property tax / strata) + $500 or so a year on utilities etc
30 year mortgage

I have it rented out for $1200 / mo
I pay ~$400 / mo

so if I have it rented of for the entire duration as a rental property I will have invested $4800/yr for 30 years for a total of $144k

in 30 years time, with inflation, and rising real estate values, I could guess (conservatively, while also looking at previous market trends) that it could easily be worth over $400k

so I invest $144k to make $400k

that's if I keep it rented out at the same rate and don't adjust it according to inflation /demand

stupid eh?

except you arent factoring in actual cost of the loan over 30 years... unless you arent paying any interest on that loan its more then $144k.

[lildave]

like someone mentioned already... buying in a major Canadian city at this point isnt smart. Values cant go much higher. Also in Canada we cant write off interest payments....

In my case buying doesnt make sense. I've moved 3 times in the past 3 years due to work.

[VBogdanovic]

OP, then why do my parents own 7 houses downtown paid off in cash that now generate $700-1000/Month in rent?
Sounds like a solid retirement/investment opportunity to me, brah!
I could maybe agree with the thought of buying a higher priced house but hey, in reality, it really is not that big of a deal if you hold a steady job and know where you need to be investing.

[cavymeister]

That video is pretty lame comparing $1500/month versus a $400k house? That's a REALLY big difference... 1800/month = $21,600, not $18,000 per the rent number in the video.....


Typically, as a property owner, you would rent out a house for just over the PIT&In (enough over to cover maintenance/breakages). So to compare apples to apples, you're looking at $1500/month rent house compared to a $250k house at current rates.

Also upkeep isn't "going out the door" because maybe in that maintenance, there is an upgrade that increases the value (assuming you are planning on selling).






That being said, it's a good video for those that tend to buy things on a whim or are movers and shakers. But be sure that it is prefaced with the fact that not everyone needs to buy a house right now. The video takes a 'bit' too long to get to the actual point (in the last 2:30 of an almost 12 minute video).

[blastbeats_stl]

This thread has been re-hashed on the misc, mostly with the same result.

People REFUSE to believe that it can be more advantageous to rent. This is likely due to the emotions tied with "owning" a house. It's a cultural thing.

You can come home to a family of 4 and have your dog lick you and wife bake you an apple pie in a rental too.

Also a lot of suburbia posting in this thread who assume everyone else is suburbia

[ashin1]

I haven't read through all the pages but damn you are a massive dip****.

My mortgage + property tax + home owners insurance comes out to almost exactly what my friend is paying to live in a ****ty little 1 bedroom apartment. If your property tax is "some people's annual rent" then you are probably living in a million dollar home and would give two ****s about how much the tax is.

well i guess your friend doesn't know how to find a nice place for a reasonable cost.
don't be mad at me because i made the wise decision to not get my self into such a financial burden and buy a home i couldn't afford.
i'm sorry i didn't know that i rustled your jimmies that i'm using what could have been a down payment on a house to buy successful companies to fund my early retirement.

[JohnnyChristian]

20 years of $1055 mortgage per month = $253,200 (I'll not even mention the costs of house utilities, which are often already included in apartment rent prices)
20 years of $400/month apartments = $96,000
Difference = $157,200
So not only did you attach a ball & chain to yourself by buying a house, you also lost $157k+.
Twenty years from now I'll be sailing the pacific ocean in my yacht that I bought with the $157k that I saved, while you're sitting in your La-Z-Boy chair watching the 36th season of American Idol on TV.

Anyway, to think your life is better than anothers because you bought a house is naive and shrouded in cultural conceit and materialism. Not everybody has the same goals and desires in life. Speaking for myself, buying a house would be the death of me. I cannot stay in one place for much longer than 7-8 months. I quickly grow weary and must move on. Similarly to what you said about the military not being right for everyone, the same applies to buying a house - it's not right for everyone. Do not delude yourself into thinking that a house is anything more than it really is - four walls, a roof, some plumbing, and electricity. Renting or buying is a decision left up to individual preference based on lifestyle and desires.

I am loling so hard at the math in this thread forgetting the fact that after the 20 years you own something similar in value or worth more than the $253,000 that you have paid,

Where that $96,000 you spent is nowhere.

So the person who purchased the house can take that house, sell it, buy the yacht and probably still have $300,000 left to do whatever the fuk it is they want, while you have the $157k that you " saved."(Which I can bet you won't)

[ashin1]

OP, then why do my parents own 7 houses downtown paid off in cash that now generate $700-1000/Month in rent?
Sounds like a solid retirement/investment opportunity to me, brah!
I could maybe agree with the thought of buying a higher priced house but hey, in reality, it really is not that big of a deal if you hold a steady job and know where you need to be investing.

money makes money.

[midniteOG]

Brb, own a 164k condo, sold for 225k before the market crash

Brb, 2 train stops within walking distance coming in two years

Brb, 10 minutes from work, cheaper than living anywhere else

Brb, have roomate paying me

Brb, more condos/apt going up and raising my price

[Ryanmcd]

Lots of people buy the max they get approved for that in itself is stupid. If you are going to rent buy the CHEAPEST house that you can that gets the most in rent, a friend of mine has 15 section 8 homes about 60-80k each, the government pays him 800-1200 each per month because in GA section 8 is for low income and it's done in the private sector so you get your rent money every month.

Also you have to remember when something goes wrong YOU are getting that call unless you have enough homes to hire someone to take care of it, and 1 blew up that was a meth house and the other the city bought to put a road in so you have to be ready for this as well.

Last thing, LOLing at people who say that the house is worth 400k and they got it yesterday for 300k, so you made 100k in a day? When you find a REAL deal like that let me know I will buy the house and split that 50k with you EVERYTIME!

[Ziff]

Depends on your goal.

If you are young and are intending to be mobile for work (and the corp you work for doesn't buy your house as part of the move) you should avoid tying yourself to a home.

If you are someone who likes to move frequently (every 5 years) don't buy a home.

When you do settle on a particular locale, buy a home that is significantly cheaper than your income will buy - for example my home is modest. The total carrying cost is about 19% of my gross income. This means if I get into a situation wherein I have to move for work I can absorb the cost of the house until it rents/sells.

I think point of entry into the housing market can make it a good or bad decision. Buying in late 2007 in many markets would have been a bad choice. Buying in 2012 would have been a good choice due to much lowered home prices. etc.

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

[squeak419]

you sound defensive, and trapped in a materialistic world, i feel sorry for you. that's cool you want to purchase a new car or own cool stuff, but the intrinsic value of it will not last for ever.

give that thread a read, you may learn something

http://forum.bodybuilding.com/showth...post1249691981

Thread was useless, just a short autobiography then a link to an average website. Thanks for sharing though.

money makes money.

Then what? Your in your 80's with a couple million bucks to your name...

You've spent your whole life hording a large pile of money for what? If that makes you happy then by all means do it... But there's no point being the richest bloke in the graveyard.

You can call me defensive and say I am "trapped in a materialistic world" as much as you want. But in the end I'm sitting here happy with a more than comfortable lifestyle, great friends, life experiences and excited about getting up and doing it all again tomorrow while you sit on an internet forum making threads about how you think others should live their lives.

You really don't get it do you?

[BuckNakedinBama]

What aspect of your quality of life changes based simply on the price of your living quarters?
I've lived in $7/night hostels for weeks straight, and I've lived in a 1.5 million dollar oceanfront house in Hawaii.
My quality of life was the same either way, because I do not place any life value on 4 walls and a roof.
You have wrong priorities in life if your happiness is based on your homes price tag.

You're a fukkin idiot, m8, if you don't consider the quality of your dwelling to impact the quality of your life. Have fun bringing girls to your shack. Have fun not having room to keep your hobbies and/or not having hobbies because of said problem. Have fun not knowing the companionship of a loving pet because you live in a dumpster behind a Dennys. Have fun living with roommates into your 30s and 40s. I'm sure you'll find some real "normal guys" to live with. Have fun not itemizing your tax deductions and leaving thousands on the table. Have fun having fun being a FA *******. If you want to play WoW and live with 3 other neckbeards your whole life and die with nothing of value, go for it, but don't hate on those of us with a fulfilling and productive lifestyle who understand what it takes to leave a legacy behind.

[cavymeister]

Thread was useless, just a short autobiography then a link to an average website. Thanks for sharing though.



Then what? Your in your 80's with a couple million bucks to your name...

You've spent your whole life hording a large pile of money for what? If that makes you happy then by all means do it... But there's no point being the richest bloke in the graveyard.

You can call me defensive and say I am "trapped in a materialistic world" as much as you want. But in the end I'm sitting here happy with a more than comfortable lifestyle, great friends, life experiences and excited about getting up and doing it all again tomorrow while you sit on an internet forum making threads about how you think others should live their lives.

You really don't get it do you?

There's also something to be said for giving something to your legacy. Not just 'breaking even' or worse giving out descendants debt that you may not have been able to pay off before you passed. Maybe you don't care about those you begat, but I have no intention on putting an additional financial strain on my children. Regardless of what this economy may put towards me, I plan on making their lives easier that mine.

[ashin1]

Thread was useless, just a short autobiography then a link to an average website. Thanks for sharing though.



Then what? Your in your 80's with a couple million bucks to your name...

You've spent your whole life hording a large pile of money for what? If that makes you happy then by all means do it... But there's no point being the richest bloke in the graveyard.

You can call me defensive and say I am "trapped in a materialistic world" as much as you want. But in the end I'm sitting here happy with a more than comfortable lifestyle, great friends, life experiences and excited about getting up and doing it all again tomorrow while you sit on an internet forum making threads about how you think others should live their lives.

You really don't get it do you?

if i really tried im sure i could get a couple million before 50

[Dave P]

Spoken like a jobless 17 year old who theorizes on wealth.

[scullin]

If you buy a house in an area where it will appreciate it is a great investment. Op rsnting about fees and bullchit, completely wrong. Where I live it cost less to buy than rent and my house has appreciated well over 35k in the last two years already. Location and timing is everything. Have another house that is a rental property, pays for itself plus a little extra. Great tax advantages to owning as well. Plus if you have big dogs like me, good ouck trying to rent anything.

[lildave]

I am loling so hard at the math in this thread forgetting the fact that after the 20 years you own something similar in value or worth more than the $253,000 that you have paid,

Where that $96,000 you spent is nowhere.

So the person who purchased the house can take that house, sell it, buy the yacht and probably still have $300,000 left to do whatever the fuk it is they want, while you have the $157k that you " saved."(Which I can bet you won't)

$25000 over 20 years would be around $80k in interest alone. So your house that you bought for $250k actually cost $330k to buy. If you sell you are paying lawyer fees, realtor commission. You also have 20 years of property tax. Lets say at least $25k in upkeep (I'd guess it would be closer to $40k)...

But... you arent buying a house anywhere worth living in Canada for $250k... And in cases like mine it pays to be mobile... 2012 I made around $70k... 2013 I made $120k but only worked from April to December.. This year I should be closer to $150k but I'll be working one extra month... If need be I can pack up and move anywhere if a better job comes up... I literally moved one time within a day after getting a call for a job a few hours away. Like Monday I got a call for the job Monday afternoon. Tuesday I packed up and made a couple calls off craigslist and Wednesday started my job... after work I moved into a new place.

[squeak419]

There's also something to be said for giving something to your legacy. Not just 'breaking even' or worse giving out descendants debt that you may not have been able to pay off before you passed. Maybe you don't care about those you begat, but I have no intention on putting an additional financial strain on my children. Regardless of what this economy may put towards me, I plan on making their lives easier that mine.

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.

[Mimic3]

There's also something to be said for giving something to your legacy. Not just 'breaking even' or worse giving out descendants debt that you may not have been able to pay off before you passed. Maybe you don't care about those you begat, but I have no intention on putting an additional financial strain on my children. Regardless of what this economy may put towards me, I plan on making their lives easier that mine.

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.

[squeak419]

if i really tried im sure i could get a couple million before 50

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?