08-20-2024, 05:30 AM
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#1
- TheScapeGOAT
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- TheScapeGOAT
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Mortgage payments= renting but with extra steps
This is because one missed payment and the bank can basically kick you out at will and sell the place
There are some differences, sure:
-your rent payment is tied to the purchase price of the house and the prevailing market interest rate, as opposed to whatever number the landlord dreams up
-there is an end point if an when you ever pay it off
-if the price of the property happens to go up, you get the benefit of it rather than your landlord
-if you’re renting the property to someone else the interest might be a tax deduction
But apart from those, you’re basically a rent cuck, just to a bank instead of a landlord
Lmao
There are some differences, sure:
-your rent payment is tied to the purchase price of the house and the prevailing market interest rate, as opposed to whatever number the landlord dreams up
-there is an end point if an when you ever pay it off
-if the price of the property happens to go up, you get the benefit of it rather than your landlord
-if you’re renting the property to someone else the interest might be a tax deduction
But apart from those, you’re basically a rent cuck, just to a bank instead of a landlord
Lmao
08-20-2024, 05:33 AM
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#2
- r32gojirra
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- r32gojirra
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Yeah so apart from
-the security
-the capital gain
-the tax advantages
It’s exactly the same
Lmao
BTW it’s not the prevailing market interest rate, that only happens if you have an ARM
Most would have locked in at 2.5 per cent or whatever for the life of their loan, after COVID
-the security
-the capital gain
-the tax advantages
It’s exactly the same
Lmao
BTW it’s not the prevailing market interest rate, that only happens if you have an ARM
Most would have locked in at 2.5 per cent or whatever for the life of their loan, after COVID
08-20-2024, 05:34 AM
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#3
- Cleveland33
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- Cleveland33
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anyone got a translation?
08-20-2024, 05:36 AM
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#4
- WoofieNugget
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The biggest pro is the equity you build - but a lot of people forget that you pay a ton of interest in order to earn that equity, and often it comes out a wash at the end of owning. Except for the property appreciation, which is often decent over time.
People who do well in real estate have multiple properties and leverage equity in one to buy another, then rent them out to mitigate their costs. Most families today are using their properties as a retirement plan, so they have an asset to sell when it comes time to retire/downsize and they can add to their funds or hand it to their kids.
But young people today basically are pooched when it comes to real estate without parental help. It's not the mortgage cost, it's the down payment and nobody has savings.
People who do well in real estate have multiple properties and leverage equity in one to buy another, then rent them out to mitigate their costs. Most families today are using their properties as a retirement plan, so they have an asset to sell when it comes time to retire/downsize and they can add to their funds or hand it to their kids.
But young people today basically are pooched when it comes to real estate without parental help. It's not the mortgage cost, it's the down payment and nobody has savings.
08-20-2024, 05:36 AM
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#5
- TheScapeGOAT
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Originally Posted By Cleveland33⏩
Even after I stuck up for you? Someone called you a cuck and I was like “I don’t think he is.”anyone got a translation?
08-20-2024, 05:40 AM
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#6
08-20-2024, 06:25 AM
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#7
- Issobolic28
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- Issobolic28
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Originally Posted By TheScapeGOAT⏩
You forgot you decide when you want to make the payments on your mortgage.This is because one missed payment and the bank can basically kick you out at will and sell the place
There are some differences, sure:
-your rent payment is tied to the purchase price of the house and the prevailing market interest rate, as opposed to whatever number the landlord dreams up
-there is an end point if an when you ever pay it off
-if the price of the property happens to go up, you get the benefit of it rather than your landlord
-if you’re renting the property to someone else the interest might be a tax deduction
But apart from those, you’re basically a rent cuck, just to a bank instead of a landlord
Lmao
There are some differences, sure:
-your rent payment is tied to the purchase price of the house and the prevailing market interest rate, as opposed to whatever number the landlord dreams up
-there is an end point if an when you ever pay it off
-if the price of the property happens to go up, you get the benefit of it rather than your landlord
-if you’re renting the property to someone else the interest might be a tax deduction
But apart from those, you’re basically a rent cuck, just to a bank instead of a landlord
Lmao
08-20-2024, 06:35 AM
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#8
- TheScapeGOAT
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- TheScapeGOAT
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Originally Posted By Issobolic28⏩
They still must be madeYou forgot you decide when you want to make the payments on your mortgage.
08-20-2024, 06:38 AM
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#9
- OffwhiteBrah
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damn calm down op , rent is not due until the 1st.
08-20-2024, 06:42 AM
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#10
- Issobolic28
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- Issobolic28
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Originally Posted By TheScapeGOAT⏩
Yes but what i mean is you can choose bi-weekly or monthly.They still must be made
Also rent is use of a space, a mortgage is paying a loan.
08-20-2024, 06:42 AM
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#11
08-20-2024, 06:42 AM
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#12
- MikeLowrrrey
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You missed a few:
-The bigger than down payment, the lower your mortgage
-Your mortgage can never increase
-You can lower your mortgage
-The bigger than down payment, the lower your mortgage
-Your mortgage can never increase
-You can lower your mortgage
08-20-2024, 06:49 AM
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#13
- MacDaddy68
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- MacDaddy68
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Originally Posted By MikeLowrrrey⏩
your mortgage can never increase but you bet your ass your taxes and insurance will.You missed a few:
-The bigger than down payment, the lower your mortgage
-Your mortgage can never increase
-You can lower your mortgage
-The bigger than down payment, the lower your mortgage
-Your mortgage can never increase
-You can lower your mortgage
Meet PR's
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08-20-2024, 06:53 AM
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#14
Originally Posted By MacDaddy68⏩
Unless you got an ARM, insurance/taxes will likely not increase enough to match rent increases.your mortgage can never increase but you bet your ass your taxes and insurance will.
I bought my house about 10 years ago, and the payment was $1100/month.
Fast forward to today, where it's about $1300/month.
Renting this house 10 years ago would have been $1600/month. Today it would go for around $2500/month.
Mortgage > rent in the long term as long as you buy a house that's in decent enough shape.
It's not even close.
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08-20-2024, 06:54 AM
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#15
- Babayagawick85
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Originally Posted By OffwhiteBrah⏩
Lolddamn calm down op , rent is not due until the 1st.
08-20-2024, 06:56 AM
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#16
- miscHodor
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- miscHodor
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Originally Posted By MacDaddy68⏩
And your landlord certainly won't pass those increases along to the rentcell.......your mortgage can never increase but you bet your ass your taxes and insurance will.
08-20-2024, 06:58 AM
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#17
- Archaic2021
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- Archaic2021
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Mortgages suck if you do 30 years.
15 year minimum. I plan to pay our house off in 10 years lord willing. Then No mortgage payment = early retirement.
15 year minimum. I plan to pay our house off in 10 years lord willing. Then No mortgage payment = early retirement.
"Equality is a False God"
"Comparison is the thief of joy."
08-20-2024, 07:21 AM
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#18
- SaviorSelfJT
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- SaviorSelfJT
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Now isn't a good time to get into real estate
This guy got unti the game almost 2 years ago in Pittsburgh, an affordable city for real estate. And looked at all his numbers and realized he was in the hole by six figures
https://www.biggerpockets.com/forums...y-via-cashflow
This guy got unti the game almost 2 years ago in Pittsburgh, an affordable city for real estate. And looked at all his numbers and realized he was in the hole by six figures
https://www.biggerpockets.com/forums...y-via-cashflow
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08-20-2024, 07:28 AM
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#19
- SaviorSelfJT
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Originally Posted By lockdev⏩
Not disagreeing with what your saying at all. want to point out that your mortgage was 1100 and renting the house would have been 1600. Nowadays it's flipped. Renting the house today might be 2500 but if you bought it today the mortgage would be like 4000 or somethingUnless you got an ARM, insurance/taxes will likely not increase enough to match rent increases.
I bought my house about 10 years ago, and the payment was $1100/month.
Fast forward to today, where it's about $1300/month.
Renting this house 10 years ago would have been $1600/month. Today it would go for around $2500/month.
Mortgage > rent in the long term as long as you buy a house that's in decent enough shape.
It's not even close.
I bought my house about 10 years ago, and the payment was $1100/month.
Fast forward to today, where it's about $1300/month.
Renting this house 10 years ago would have been $1600/month. Today it would go for around $2500/month.
Mortgage > rent in the long term as long as you buy a house that's in decent enough shape.
It's not even close.
FTHB aren't getting the same deal we got
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08-20-2024, 07:28 AM
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#20
08-20-2024, 07:37 AM
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#21
- FAPhaggot
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You need to put a lot down (in a high-interest environment) and shorten your note's term as much as possible in order for a mortgage to work out well.
I've seen people my age put like 3% down and pay PMI on a 30 year note, and that chitisjust rentcelling with extra steps. After P&I (with much less P than I for the first 10 years), mortgage insurance, home insurance, and property taxes, maybe 10% of your note goes against the principle and 90% goes into someone else's pocket. You're just phuckin renting that place from your financiers.
The only play with the minimum-down strat is if you're just banking on continuing runaway price appreciation / rent inflation covering your butt, which after the last 4 years feels very much like buying the top. It's basically a leverage play.
If you put a lot down and shorten your note to 20 or 15 years, your payments can go from like 3/4s interest in the first 5 years to 1/2 or less. If you get in that situation, you start paying yourself every month just as much as you pay the bank. It is more capital intensive and less leveraged, but I don't want to be leveraged in a 6% rate environment.
I've seen people my age put like 3% down and pay PMI on a 30 year note, and that chitisjust rentcelling with extra steps. After P&I (with much less P than I for the first 10 years), mortgage insurance, home insurance, and property taxes, maybe 10% of your note goes against the principle and 90% goes into someone else's pocket. You're just phuckin renting that place from your financiers.
The only play with the minimum-down strat is if you're just banking on continuing runaway price appreciation / rent inflation covering your butt, which after the last 4 years feels very much like buying the top. It's basically a leverage play.
If you put a lot down and shorten your note to 20 or 15 years, your payments can go from like 3/4s interest in the first 5 years to 1/2 or less. If you get in that situation, you start paying yourself every month just as much as you pay the bank. It is more capital intensive and less leveraged, but I don't want to be leveraged in a 6% rate environment.
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08-20-2024, 07:37 AM
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#22
08-20-2024, 07:39 AM
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#23
- HayZues Christi
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- HayZues Christi
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Not even just cope, ill informed ignorance.
You can miss a lot more than a single payment. A home with a 2k mortgage is 3k to rent. Equity, customization, and stability being the other benefits to ownership.
Renting has its benefits as well
You can miss a lot more than a single payment. A home with a 2k mortgage is 3k to rent. Equity, customization, and stability being the other benefits to ownership.
Renting has its benefits as well
Ol' 71st street. The devil that birthed me.
606 G0D.
08-20-2024, 07:42 AM
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#24
- FAPhaggot
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Originally Posted By HayZues
It's azz backwards right now... mortgage payments are about 20% higher than rent payments on the same property. The RE market's a mess.Not even just cope, ill informed ignorance.
You can miss a lot more than a single payment.A home with a 2k mortgage is 3k to rent.Equity, customization, and stability being the other benefits to ownership.
Renting has its benefits as well
You can miss a lot more than a single payment.A home with a 2k mortgage is 3k to rent.Equity, customization, and stability being the other benefits to ownership.
Renting has its benefits as well
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08-20-2024, 07:48 AM
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#25
- HayZues Christi
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Originally Posted By FA*******⏩
Not in my area. Haven't seen any examples of that.It's azz backwards right now... mortgage payments are about 20% higher than rent payments on the same property. The RE market's a mess.
Ol' 71st street. The devil that birthed me.
606 G0D.
08-20-2024, 07:50 AM
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#26
- SaviorSelfJT
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- SaviorSelfJT
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Originally Posted By FA*******⏩
Yeah this is what I was trying to say in my previous post. The math is completely inverted today vs 5 years agoIt's azz backwards right now... mortgage payments are about 20% higher than rent payments on the same property. The RE market's a mess.
Seems investors that buy a property off of the MLS are renting it out at about half a percent of the price per month. Add in the property taxes, high interest rate, vacancy cost, property manager fees, repair costs, and I don't see how they're making money. That post I linked to above shows someone about over 100k in the hole just from 1 rental property bought in 2022. He's basically subsidizing renters lol
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08-20-2024, 07:52 AM
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#27
- Paul Kreul
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Originally Posted By TheScapeGOAT⏩
Most banks have a Grace window, & once it is paid off..no..it doesn’t still have to be paid unlike rent.They still must be made
08-20-2024, 07:56 AM
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#28
- SaviorSelfJT
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Originally Posted By HayZues
2000 mortgage with escrow for an investor has gotta be like a 250k house. A 250k house in your area rents for 3000?Not in my area. Haven't seen any examples of that.
In my area a 600k house rents for 3000
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08-20-2024, 07:57 AM
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#29
- WoofieNugget
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Originally Posted By SaviorSelfJT⏩
They're not. There's hundreds of owners in Toronto/Vancouver who bought investment properties and are taking massive losses every month because rent and mortgage costs are inverted up here. The place I used to live in cost $2500 a month and would have been well over 6k a month to own, even with a 10% down payment. Current place is less than half to rent as well.Yeah this is what I was trying to say in my previous post. The math is completely inverted today vs 5 years ago
Seems investors that buy a property off of the MLS are renting it out at about half a percent of the price per month. Add in the property taxes, high interest rate, vacancy cost, property manager fees, repair costs, and I don't see how they're making money. That post I linked to above shows someone about over 100k in the hole just from 1 rental property bought in 2022. He's basically subsidizing renters lol
Seems investors that buy a property off of the MLS are renting it out at about half a percent of the price per month. Add in the property taxes, high interest rate, vacancy cost, property manager fees, repair costs, and I don't see how they're making money. That post I linked to above shows someone about over 100k in the hole just from 1 rental property bought in 2022. He's basically subsidizing renters lol
People forget you can only charge for rent what the market will bear. You can't increase it by 40% over other comparable properties in an area and not expect it to sit empty.
Canada wide average cost to buy a home is 700k, so even factoring in 10% down the carrying costs are about $4500 a month and average rent is $2200. It makes ZERO financial sense to buy anything in most places in Canada currently.
08-20-2024, 08:04 AM
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#30
- SaviorSelfJT
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- SaviorSelfJT
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Originally Posted By WoofieNugget⏩
It could make sense if the property appreciates enough to cover your losses and then some, giving you profitThey're not. There's hundreds of owners in Toronto/Vancouver who bought investment properties and are taking massive losses every month because rent and mortgage costs are inverted up here. The place I used to live in cost $2500 a month and would have been well over 6k a month to own, even with a 10% down payment. Current place is less than half to rent as well.
People forget you can only charge for rent what the market will bear. You can't increase it by 40% over other comparable properties in an area and not expect it to sit empty.
Canada wide average cost to buy a home is 700k, so even factoring in 10% down the carrying costs are about $4500 a month and average rent is $2200. It makes ZERO financial sense to buy anything in most places in Canada currently.
People forget you can only charge for rent what the market will bear. You can't increase it by 40% over other comparable properties in an area and not expect it to sit empty.
Canada wide average cost to buy a home is 700k, so even factoring in 10% down the carrying costs are about $4500 a month and average rent is $2200. It makes ZERO financial sense to buy anything in most places in Canada currently.
But then that means that real estate investing has completely become un-attached from the "fundamentals" as they call it. And it's just a speculation game, not much different than Bitcoin or beanie babies
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