Mortgage payments= renting but with extra steps

08-20-2024, 08:21 AM

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#31

r32gojirra
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Originally Posted By HayZues

Not even just cope, ill informed ignorance.

You can miss a lot more than a single payment. A home with a 2k mortgage is3k to rent. Equity, customization, and stability being the other benefits to ownership.

Renting has its benefits as well

3k plus your dignity

Imagine being a grown man and living in some other dude’s house

Lmao

08-20-2024, 08:37 AM

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#32

dingler
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Why would you not just pay cash for your house?

no crew crew

08-20-2024, 08:58 AM

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#33

monster0ultra

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An easy way to spot a retard is that they think that something objective is subjective and will try to debate it.

Rent vs buy is just a math problem. There is no debate, it's just a question of comparing numbers vs what you get for your specific situation.

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08-20-2024, 09:11 AM

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#34

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Originally Posted By dingler⏩

Why would you not just pay cash for your house?

Because so many people have 300k lying in a bank account.

Oh wait, this is the misc, where millionaires hang out.

08-20-2024, 09:25 AM

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#35

SaviorSelfJT
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Originally Posted By monster0ultra⏩

An easy way to spot a retard is that they think that something objective is subjective and will try to debate it.

Rent vs buy is just a math problem. There is no debate, it's just a question of comparing numbers vs what you get for your specific situation.

Same goes for investors too. AFAIK investor activity has dried up a ton, but there's still idiots out there

I have a buddy that used a small inheritance as a down payment for a rental property a couple years ago (after prices and interest rates shot up). There was no math/logic involved, it was just "real estate good". I tried to talk him out of it but he didn't listen

He's been cash flow negative the whole time, and now needs to do a big foundation repair cause the basement floods when it rains. Will cost $$$. And on top of all that the area hasn't really appreciated since

Basically just lit money on fire

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08-20-2024, 09:27 AM

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#36

Destor
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You’re not really taking a loss by renting out a mortgaged house for less than the mortgage, that just means it requires supplementation until it’s paid off and then it will be an asset with huge stored value while also producing monthly income. Legit real estate investors can worry about cash flow but not smaller landlords as long as they have the financial capacity to handle everything.

Even if you just mortgage a house and live in it with no rental income, you’re plugging money into a store of value and end up with this asset — the mortgage payment money doesn’t disappear. Yes you pay interest but interest rates are tied to inflation and prices should track inflation over the long term so you’re still not losing in the end.

No need to overcomplicate things

08-20-2024, 09:31 AM

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#37

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Originally Posted By Destor⏩

You’re not really taking a loss by renting out a mortgaged house for less than the mortgage, that just means it requires supplementation until it’s paid off and then it will be an asset with huge stored value while also producing monthly income. Legit real estate investors can worry about cash flow but not smaller landlords as long as they have the financial capacity to handle everything.

Even if you just mortgage a house and live in it with no rental income, you’re plugging money into a store of value and end up with this asset — the mortgage payment money doesn’t disappear. Yes you pay interest but interest rates are tied to inflation and prices should track inflation over the long termso you’re still not losing in the end.

No need to overcomplicate things

IMO you need to do a lot better than just "not losing". You take on risks being a landlord, and need to be compensated for that. And it needs to do better than other forms of investing, like stock market or even just bonds/money market. Otherwise I'd just do that since its easier. Right now it doesn't seem to do that

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08-20-2024, 09:46 AM

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#38

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Originally Posted By SaviorSelfJT⏩

IMO you need to do a lot better than just "not losing". You take on risks being a landlord, and need to be compensated for that. And it needs to do better than other forms of investing, like stock market or even just bonds/money market. Otherwise I'd just do that since its easier. Right now it doesn't seem to do that

It’s not one or the other though, diversification is a good thing. You can be in the stock market, you can have rentals, you can have a business or businesses doing other things, you can have a 9-5 job, etc etc. The more income streams you have the better, and diversification can help protect you if one thing is struggling at any given time.

There’s a lot underneath all this for sure, like buying things at the right prices relative to their actual value. But in general I think that if you put the work in and do things that aren’t easy, you’ll come out ahead.

08-20-2024, 09:50 AM

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#39

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Originally Posted By Destor⏩

It’s not one or the other though, diversification is a good thing. You can be in the stock market, you can have rentals, you can have a business or businesses doing other things, you can have a 9-5 job, etc etc. The more income streams you have the better.

There’s a lot underneath all this for sure, like buying things at the right prices relative to their actual value. But in general I think that if you put the work in and do things that aren’t easy, you’ll come out ahead.

Yeah, don't disagree with that at all. Diversification is a very good thing

I still think there's a place for real estate investing today, if you can find special off market deals or something. I think the days of just buying normal stuff off of the public listings and making money are over though. The numbers are so bad it isn't even funny. Maybe things will change, idk

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08-20-2024, 09:59 AM

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#40

theraskal
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my house will be PAID-IN-FULL in 2025.....when does your RENT END OP?

paid-it-off in less than 15 years, same as I did the other two houses I OWNED and sold for PROFIT which was used to buy the next home.

08-20-2024, 10:03 AM

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#41

TryingMen
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LOL if you can't buy your house outright. A mortgage is a nice loophole to invest instead of paying it all up front. Something you rent cucks go on and on about being an advantage of renting.

The difference is I can end mine with a simple decision to pay it off but you can NEVER pay off all your rent.

08-20-2024, 10:18 AM

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#42

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Originally Posted By MacDaddy68⏩

your mortgage can never increase but you bet your ass your taxes and insurance will.

This is true, but rent in a comparable space will always be way more expensive than the taxes + insurance (talking about when you've fully paid off your house and those are your only property related expenses remaining). The landlords gotta cover their own taxes and insurance too, HOA if applicable, while still seeking a profit.

08-20-2024, 10:19 AM

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#43

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majority of the rich and super rich in this nation are from owning REAL ESTATE.

why white people, who've been here for generations, own majority of real estate in big cities, and thus super rich are like 95% white.

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08-20-2024, 10:22 AM

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#44

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lol at getting a loan and paying interest

I bought a large piece of land in cash and I'm putting money into it over the next couple of years until the house im building is complete...no jewish usury involved

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08-20-2024, 10:42 AM

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#45

monster0ultra

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Originally Posted By SaviorSelfJT⏩

Same goes for investors too. AFAIK investor activity has dried up a ton, but there's still idiots out there

I have a buddy that used a small inheritance as a down payment for a rental property a couple years ago (after prices and interest rates shot up). There was no math/logic involved, it was just "real estate good". I tried to talk him out of it but he didn't listen

He's been cash flow negative the whole time, and now needs to do a big foundation repair cause the basement floods when it rains. Will cost $$$. And on top of all that the area hasn't really appreciated since

Basically just lit money on fire

That's another one yeah.

In any investment thread, you'll see miscers who are convinced they know which way the market will go. If someone knew for sure which way the market would go, they would be the richest man in the world because they can just leverage their predictions to the maxx.

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08-20-2024, 10:48 AM

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#46

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Originally Posted By MikeLowrrrey⏩

You missed a few:

-The bigger than down payment, the lower your mortgage
-Your mortgage can never increase
-You can lower your mortgage

this.
your payments go down the longer you live there.
also you can claim interest paid on your yearly taxes.
actually you can claim your local taxes on your yearly taxes also.

08-20-2024, 10:50 AM

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#47

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Originally Posted By MacDaddy68⏩

your mortgage can never increase but you bet your ass your taxes and insurance will.

and?
you can't find a two bedroom apartment that isn't almost twice the mortgage for my house.
my mortgage payment will never be higher than an apartment not in a ghetto or slum.
i see single rooms in houses go for almost as much as my mortgage payment.

08-20-2024, 11:00 AM

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#48

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Originally Posted By Paul

Most banks have a Grace window, & once it is paid off..no..it doesn’t still have to be paid unlike rent.

my buddy works in the mortgage department for a bank.
in our state he said it's a yr minimum of no payments before a bank can foreclose on a house.
then sometimes the bank never forecloses and it just sits there and people basically squat in their own homes.

08-20-2024, 11:03 AM

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#49

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Nothing much to add other than this:

I pay almost 5x as a mortgagecel than I did as a rentcel. Disposable income aka income to invest into bonds/market is near zero now.

For fun I bought a single share of qqq and spy when I closed on my house. Long term I expect those funds to blow house appreciation out of the water, but I couldn’t figure out a way to live inside my brokerage account, so here we are.

08-20-2024, 02:28 PM

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#50

MikeLowrrrey

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Originally Posted By MacDaddy68⏩

your mortgage can never increase but you bet your ass your taxes and insurance will.

Your taxes is a very small sum compared to rent. I not what most folks pay, but even $4800/yr beats out $18,000 a year

08-20-2024, 03:52 PM

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#51

nutsy54
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Originally Posted By WoofieNugget⏩

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.

Only if someone hangs onto a mortgage for 30 years. Buy a home you can afford, and pay it off quickly.

If I'd held onto my mortgage for 30 years, I would've paid $123,000 of interest on a $160,000 mortgage. Instead I paid it off in 4 1/2 years, and my interest totaled $19,500 on a place now worth $300,000