Someones gotta pay for roads, police officers, firefighters etc.

Investment vs paying for something you don't own. You put in 20k, you can get that back. Put 20k in rent and all you get is a nice referee and a snagging list to pay for.

My 100k in equity beg to differ.

lol somebody doesn't know the difference between equity and asset

no reason those things would not be provided in an unhampered market

taxation is theft

bandits with guns (and tanks) threaten you constantly so you hand over your money in exchange for not being forced out of your home at gunpoint

who was eminent domain legislation

Strong cope thread.

This is true if you saved almost zero deposit, have borrowed the maximum the bank will allow you, and if you have done the minimum repayments.

However, if you save up a large deposit, borrow well under your means, and if you put extra on the loan (especially by means of an offset account), this is not true.

This calculator lets you play with some examples.https://www.ing.com.au/home-loans/ca...epayments.html

For example, borrowing $500k today in Australia would lead to repayments of $3k a month, and the loan repaid in 25 years. But if you put on an extra $1k a month, that saves 9 years and 10 months - making it 15 years. $2k a month extra makes it 14 years saved, paid off in 11 years. And so on.

In Australia, if you are on minimum full-time wage ($36k pa) you won't be able to buy a home. But a median graduate income of $55k gives you a chance at something small like a one bedroom apartment in the suburbs, and if you're in a couple then you can go for something bigger, or pay off a smaller place quickly, for example a couple where one is a graduate accountant or something and the other is a cleaner would have a joint income of $91k, about $77k after tax. With the above example, they could borrow $500k and manage $3k a month without trouble, put on an extra $1k if they're frugal, but $2k extra wouldn't be reasonable. However, the extra $1k would buy them time if one of them lost a job or they had other big expenses come up.

Remember that you don't need to buy the house of your lifetime today. When my wife and I bought our first place, we'd rented and saved money for 7 years. So we had about $170k in savings. Then we looked at what we could buy, the bank would lend us up to $450k I think it was, so we could have bought a $620k place. We didn't.

We said, "We're not yet married and don't yet have kids - first we have to marry, we might not even be able to have children for all we know, and if we do it'll probably take a year or two, then another couple of years before a second child. So realistically for at least the next 5 years all we need is one bedroom for us, and a second bedroom for a study or child. There are lots of parks around so we don't need a big yard." So we looked for a two bedroom unit (a "unit" in Australia is a place sharing land with others, but not stacked on top of each-other). We looked in the suburb we were renting in, then noticed that the next suburb was $100k cheaper. So we looked there.

We found a place for $325k, it was 88m2 interior with 2 bedrooms and a single garage, with about 15m2 of back courtyard garden, sitting in a complex of 12 units. So we only had to borrow $150k. This we paid off in 3 years. We did indeed have a child in that time, but by the time he was 1yo the place was paid off.

So then we looked for a second place, this time a 3 bedroom house or unit. We found one in the next block which was 3br 2ba, 135m2 interior and a double garage with a 30m2 courtyard, sitting in a group of 3 units. This was $535k, since it was larger and prices had risen in the intervening years. 4 years later we have paid $330k off. Because this money is in an offset account, we could paynothing for about 10 years and we wouldn't lose our home, we'd just end up paying more in interest. But at our current pace of repayments it'll be paid off in 3-4 years.

All this is over a period of 17 years - the first two years we didn't save and made no plans. So really 15 years. My wife was a uni student for part of it, I've always had working class jobs, and after her student period she's always had professional jobs. House prices have gone up a lot in those years, but so did our incomes.

Don't borrow the most the bank will lend you. Live within your means. Buy a place smaller than you'd like, a suburb away from where you'd like to live. It's hard but it's doable. And it's more doable in a couple than singly.

Technically, yes, you own the home, even if you have a mortgage. Why? Because the bank gave you the money to purchase it outright.

In reality, no, you basically do not because as OP says, a few missed payments and you're out (actually can take 1-1.5yrs for foreclosure)

I look at it this way. If you have a loan on your house or car, you do not "own" either. You rent them from the bank month-to-month.

Lol @ how simple OP is

In case you haven't noticed, you don't chit in this world.

Apparently you don’t, so here is a quick refresher.

Assets - liabilities = equity. Which in my case is 100k. You mad?

Again, this assumes that you have borrowed the most they'll let you, and have paid the minimum they require. Which would be stupid.

Borrow less than they'll let you, and pay it back faster than they ask. This reduces the amount of interest you'll ultimately pay, taking years off your loan, and meaning that if you have a period of unemployment or extra bills elsewhere, you're okay. Which is much less stupid.

Too many people seem not to have learned basic mathematics and budgeting, self-reliance and self-restraint. Obviously they missed these classes in school, or had idiot parents who didn't teach them. Livewellwithin your means.

Less whiny self-pity, more action.

Yeah...it doesn't quite work like that.

Are you serious? Neg me for that? Wow bruh. What OP is (i think) saying is that if you have an outstanding balance owed to the bank for your house, then you do not "own" it.

It does not assume you've borrowed the most they'll let you and paid the minimum.

Ex: You need 50k to buy a house so they loan you 50k NOT the 100k you qualified for and you're making payments GREATER than the minimum. Guess what? You still owe the bank $$ and if you don't pay them the $$ they can take your house.

Edit:
Side note: I owe 6k on my house. Differs somewhat from your advice to "plan better" you left on my neg.

and what happens when you now longer have means to clear your liabilities....bye bye asset

I don't care about that part of it, which is just pointless semantics. I negged you for your lack of reading comprehension, which you have continued here, since -"Miss 1-2 payments and you lose your house", which both you and the OP said, doesassume you've borrowed the most and paid the minimum. If you've borrowed less and paid more then you can miss several repayments and still be okay. Look up "offset accounts."

What part of having money on top don’t you get. I can sell my house in no time and MAKE a profit.

Lol. This.
OP is pissed because his country is run by Ackmhed and they won’t give him a loan.

How does it make you a poor person because you choose to rent?

Lmao not everyone wants to tie their life down to a property they may not even want to continue living in after a year.....

I know myself I get bored in one area after a while and with the freedom of my job I am able to up and move easily.....I'm by no means a ballin CEO 10k/day like every other miscer seems to be, but I'm not poor and live a comfortable life with the ability to move around whenever I see fit....

May not be wise from an investment POV, but what's the point tying myself down, like it's been said above, your house can easily be destroyed by a hurricane etc and BOOM your homeless ******

not having a mortgage doesn't make you a homeowner, miss one or two property tax payments and boom you're homeless.

And your country is owned by the Saud family and a few certain Jews....

Obviously the OP is technically wrong, the right term is technically "home owner"

but.. you guys are playing dumb if you don't understand what the OP is getting at. People get huge egos just because they're 1-2 years into a loan.. the bank still owns 99% of your home should you stop paying.

There's nothing worse than the smug ego of a new homeowner who thinks taking out the loan is an achievement lol.

Being frugal financially sometimes means renting in the right situation, earning a good amount and saving a lot of money, that's respectable. Taking your big loan out isn't immediately respectable.

Cliffs:

- Guy has his own irrelevant definition of the word "homeowner"
- Argues with people who understand the actual definition as per the English language
- Said people continue to argue for some reason

Fight me 1v1 fgt

OP you mad I have 5 mortgages?

Dont care if you think I own them or not, all I know is im $510,000 in debt, yet the houses are worth ~$725,000, and they make me ~$29,000/year profit.

Gonna go out on a limb and say ya you mad

OP was denied a mortgage.

Homeowner here, so not just saying this because I rent.

LMAO at the tards that spout over and over that "rent is just throwing away your money." Completely untrue, and in very many areas (and also in many points in life) it makes much more sense to rent than own.

Here's a very good calculator to help decide if renting or owning is better in a given situation:https://www.nytimes.com/interactive/...alculator.html

Actually OP, no one truly owns the house. Even if you pay off the mortgage, try not paying your taxes for a couple years. You wont own your home anymore.

Had to do a double-take to make sure this wasn't a GMiscer thread.