Young people should be buying property

[bigswolelite]

Lmfao. Those are such a fuking scam it's unbelievable.

Go on.

[EboBebo]

I profit like $370 /mo off my property. There isn't extra $ for a manager.

Your posts make it seem like you bought a really old property. Also, it sounds like you've been living off the "profit" and you haven't been squirrelling it away for rainy days like you mentioned.

Why are you bringing in **** tenants? Are you doing credit checks? Are you calling past references?

[ANumber1]

Unless the market is wildly skewed, the deal is almost always this:

Owning a similar property is better than renting it. It may also involve more headache and risk, but it's usually a better net financial result, dollar for dollar.

Where people go wrong is when they try to move out of a 1BR apartment that meets their basic needs and buy a 3BR single-family home to fill with crap they don't really even want. *This* is almost always a mistake. Unless you just happen to buy into a hot real estate market at the right time, your home is probably an under-performing investment compared to the alternatives, and you may very well come out ahead staying in your apartment and putting the difference into a diversified stock portfolio. There are also less tangible costs, like the loss of mobility when you're tied to a residence and can't just finish out your lease and find another place closer to a new job offer immediately, etc.

As for that hot real estate market, if you're buying a personal residence, you are probably restricted by your commute and other responsibilities. You don't have total freedom to buy into what you believe is the hottest property, the way you do to buy what you believe is the hottest stock. Even if you're buying an investment property, scouring the country and finding a decent property management company is a challenge and time-waster compared to other investment instruments. If you want to invest in real estate, you can buy a REIT.

Bottom line: buy a home when you're ready to put a family in it. Until then, you're probably saving yourself a lot of hassle and financial risk by renting.

[SynapticCleft]

Depending where you live, 200k will by a decent house.

This is a $189K house in Texas, and this is an overpriced area

[img]http://i.imgur.com/CRwW6oR.jpg[img]

http://www.zillow.com/homes/for_sale..._zm/?3col=true

Brb moving to Texas. That would cost 400k up here in MA.

[pmasterman]

Last year most property sales in London involved flats which sold for on average £465,713. Terraced properties sold for an average price of £600,949, while semi-detached properties fetched £577,411.

London, with an overall average price of £541,940 was more expensive than nearby South East (£344,333), East of England (£282,482) and East Midlands (£181,162). The priciest area within London was Central London (£1,332,413) and the least expensive was East London (£383,122).

During the last year, sold prices in London were 4% up on the previous year and 25% up on 2012 when the average house price was £434,688.

Wat do OP?

[dustiestuniform]

lol at A 200 K house. Where do you live in the hood?

Depends where you live. You can get a nice 3 or 4 bed 2+ bath in Kansas city suburbs for that.

[EboBebo]

As for young people saying they can't make it? Guess what dudes, I started in the Marines at 18, had a kid at 22, went to college, earned magna cum laude, and ended up at a pretty good job after nothing for a year.

Posters who say this is unrealistic don't have a clue. You have to keep grinding. Life is like WoW, you can't quit when life gets boring or monotonous.

[ven33]

But who was down payment?

[EboBebo]

Wat do OP?

Don't buy in London apparently.

[TheRealCartman]

Unless the market is wildly skewed, the deal is almost always this:

Owning a similar property is better than renting it. It may also involve more headache and risk, but it's usually a better net financial result, dollar for dollar.

Where people go wrong is when they try to move out of a 1BR apartment that meets their basic needs and buy a 3BR single-family home to fill with crap they don't really even want. *This* is almost always a mistake. Unless you just happen to buy into a hot real estate market at the right time, your home is probably an under-performing investment compared to the alternatives, and you may very well come out ahead staying in your apartment and putting the difference into a diversified stock portfolio. There are also less tangible costs, like the loss of mobility when you're tied to a residence and can't just finish out your lease and find another place closer to a new job offer immediately, etc.

As for that hot real estate market, if you're buying a personal residence, you are probably restricted by your commute and other responsibilities. You don't have total freedom to buy into what you believe is the hottest property, the way you do to buy what you believe is the hottest stock. Even if you're buying an investment property, scouring the country and finding a decent property management company is a challenge and time-waster compared to other investment instruments. If you want to invest in real estate, you can buy a REIT.

Bottom line: buy a home when you're ready to put a family in it. Until then, you're probably saving yourself a lot of hassle and financial risk by renting.

Instead of your 1 bedroom apartment I'd buy a 1 bedroom condo. The cost per month for mortgage/taxes vs rent are very close and you will build equity in the condo to use as a downpayment on a future house.

[RiceFish]

Would rather invest in a well diversified portfolio than stick it all in property... notsherrifsrs

[mrc19888]

Your posts make it seem like you bought a really old property. Also, it sounds like you've been living off the "profit" and you haven't been squirrelling it away for rainy days like you mentioned.

Why are you bringing in **** tenants? Are you doing credit checks? Are you calling past references?

The home is like 50 years old. So yes it's old. I only have had 1 tenant. They've never missed a payment, and take care of the home. It's still a pain in the ass to deal with. Also I'm one of the biggest penny pinchers you'll ever meet. I would never pay someone 25% of my profit to keep an eye on things. I don't make nearly enough money from the property and my job to do such ridiculous things.

Also, here's a good dose of reality. I guarantee you I have more savings than 95% of people my age. I have better credit than 99% of people my age (haven't missed a bill in 10 years, no student loans, don't carry CC debt month to month etc) and I still had to shop for a mortgage. It simply isn't practical for young people to do this. I know it looks pretty on TV. But this is real life. I'm telling it like it is. Whether people want to hear it or not.

[StrongScience62]

As for young people saying they can't make it? Guess what dudes, I started in the Marines at 18, had a kid at 22, went to college, earned magna cum laude, and ended up at a pretty good job after nothing for a year.

Posters who say this is unrealistic don't have a clue. You have to keep grinding. Life is like WoW, you can't quit when life gets boring or monotonous.

Good for you? A lot of us have good jobs and just live in areas where 200k gets you a shytty studio apartment. I'm not moving to bumfukk nowhere to buy a house either.

[EboBebo]

But who was down payment?

FHA or 97% FNMA loan. You'll pay PMI so that sucks. I got a VA loan at 100% LTV about a year and a half ago so no PMI and a 3.25% mortgage rate. I majored in finance and I watched the FNMA 30 year coupon like a hawk.

[ANumber1]

Instead of your 1 bedroom apartment I'd buy a 1 bedroom condo. The cost per month for mortgage/taxes vs rent are very close and you will build equity in the condo to use as a downpayment on a future house.

Absolutely, as I said, in most markets this is a good idea: comparable properties, buying beats renting, dollar for dollar. However, you should also look at whether your local real estate market is one you actually want to be exposed to, and whether you actually plan to remain in the area for an appreciable length of time.

Many Miscers are at an age where they don't know what the next year looks like, forget five.

[ANumber1]

As for young people saying they can't make it? Guess what dudes, I started in the Marines at 18, had a kid at 22, went to college, earned magna cum laude, and ended up at a pretty good job after nothing for a year.

Posters who say this is unrealistic don't have a clue. You have to keep grinding. Life is like WoW, you can't quit when life gets boring or monotonous.

Pretty much right on.

[curiospanda]

It's becos people are stoopid and/or bad at simple math.

Only an idiot would think paying $1000 a month to get nothing in return (renting) is "better" than paying that same $1000 a month into something you have control over (property). The former makes you poorer long-term, the latter makes you richer long-term.

This is also where the massive "wealth gap" between millennials and boomers comes from. The boomers put their money into their house, and thus built massive equity after a few decades. On the other hand millennials, being poor, are forced into chitty apartments. Consequently millennials are negative net worth or poor, or both when factoring in student loans.

There's even been studies confirming this. Average net worth of renters is like $0-2000, while average net worth of homeowners is between $60k-$80k.

Only thing I regret is not buying a house back when economy was still intact, I would be sitting pretty if I had simply bought a house - any house even an ugly one.

[lsiberian]

Right now the market is way too hot to buy anything IMO.

[zilaniz]

The housing crisis happened because prices well outstripped the price of rent, so the base support wasn't there.

Your an idiot

[EboBebo]

The home is like 50 years old. So yes it's old. I only have had 1 tenant. They've never missed a payment, and take care of the home. It's still a pain in the ass to deal with. Also I'm one of the biggest penny pinchers you'll ever meet. I would never pay someone 25% of my profit to keep an eye on things. I don't make nearly enough money from the property and my job to do such ridiculous things.

Also, here's a good dose of reality. I guarantee you I have more savings than 95% of people my age. I have better credit than 99% of people my age (haven't missed a bill in 10 years, no student loans, don't carry CC debt month to month etc) and I still had to shop for a mortgage. It simply isn't practical for young people to do this. I know it looks pretty on TV. But this is real life. I'm telling it like it is. Whether people want to hear it or not.

It sounds like you have a lot of gripes. How long have you owned it? If it's more than 5 years and you didn't buy in 2005-2006 you'll have equity. Cash money in the property. For all the headaches I bet you've made good money.

[NeonEagle]

Gimme some money

[mrc19888]

It sounds like you have a lot of gripes. How long have you owned it? If it's more than 5 years and you didn't buy in 2005-2006 you'll have equity. Cash money in the property. For all the headaches I bet you've made good money.

I bought 6 months ago. And if the property doesn't have too many headaches it will be approx 42 months until I break even on just what I put in when I bought it. At that point I'll actually be pocketing the extra roughly c-note a week.


And I'm not trying to come off pissy man. I'm just saying there's some massive generalizations going on in here about how simple this idea is. I can tell you most people don't have the balls or brain or either to be able to handle it.

[mrc19888]

Your an idiot

I agree with your sentiment just not how you spelled it.

[EboBebo]

Your an idiot

Check your grammar first. Second, no I'm not wrong. Why do you think investors scooped up properties like crazy in the crisis? Because the yields were nuts. No real investors were buying at the peak. It was idiots chasing capital appreciation and stretching to get in on a price appreciation boom. Plus obvious fraud everywhere.

Now rents are matching the prices. Obviously check your markets. After my tax benefit my place costs me $1725/month all in. There is no way I could rent for that. If I take out my principal each month my actual "rent" is like $1150 per month.

If renting matches buying and you don't plan to leave a 30 mile radius, it's a no brainier.

[StrongScience62]

Check your grammar first. Second, no I'm not wrong. Why do you think investors scooped up properties like crazy in the crisis? Because the yields were nuts. No real investors were buying at the peak. It was idiots chasing capital appreciation and stretching to get in on a price appreciation boom. Plus obvious fraud everywhere.

Now rents are matching the prices. Obviously check your markets. After my tax benefit my place costs me $1725/month all in. There is no way I could rent for that. If I take out my principal each month my actual "rent" is like $1150 per month.

If renting matches buying and you don't plan to leave a 30 mile radius, it's a no brainier.

Strong hypocrisy OP.

[EboBebo]

I bought 6 months ago. And if the property doesn't have too many headaches it will be approx 42 months until I break even on just what I put in when I bought it. At that point I'll actually be pocketing the extra roughly c-note a week.


And I'm not trying to come off pissy man. I'm just saying there's some massive generalizations going on in here about how simple this idea is. I can tell you most people don't have the balls or brain or either to be able to handle it.

So you bought six months ago and you've had to sink money into big repairs. It sounds like you're due diligence wasn't that strong. When I bought I checked the age of my heater/AC. I checked the age of my water heater. The HOA covers my roof and exterior so I have that benefit.

I have some pipe work I have to do, maybe a $1000 that I've been putting off.

[EboBebo]

Strong hypocrisy OP.

Lol I'm on an iPhone typing fast 🌚🌚

[Phenom01]

Why not just hire a property manager?

x2 or hire a handy man contractor.

[jro9999]

over 50% of all millennials don't even have $1,000 in their savings accounts

young people can't buy property because of the insane amount of student loan debt, inflated housing markets, and an awful job market with wages that have barely risen 5% in the last 40 years

people complain about the younger generations being spoiled, meanwhile millennials can't afford to buy new cars, purchase land, and are riddled with debt thats going to take on 20+ years to pay off

inb4 uneducated miscers all chime in "it's their own fault"

[zilaniz]

If you plan to live in the same area for 15+ years then it is a good idea to buy. I cringe when people buy a house, then move in five years and all their money they earned on the appreciation got eaten up in interest and selling/closing costs.

On a 200k house at 4% interest rate over 30 years, you just spent roughly 143k on interest lol. That house wasn't really 200k, it was 343k