Just because the FED has propped up the housing market

09-18-2019, 12:44 PM

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#121

GainzMcgee
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Originally Posted By TraininWh33ls⏩

I bet you can guess which group of pixels you are on this

Lol mortgagecels are down to insults now since they have been out matched. No worries enjoy the next crash and see how dumping your life savings into a chinese drywall invested chithole worked out for you *******s.

09-18-2019, 12:45 PM

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#122

guest89
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Originally Posted By GainzMcgee⏩

Exactly some clown puts $50,000 down on a property then gains another $10,000 in value and calims he has $60,000 in equity. No you only gained $10,000 when in reality how much could you of made if you invested that $50,000. With interest, taxes, insurance, etc how much more would you have vs rent? Thats what it boils down to and every single person that has been brainwashed by the ZOG and the banks thinks they are some financial genius because they have 120% of their life savings tied up in some stucco walls.

You can tell the people that are over leveraged because when you present valid counter points to the mortgagecel issue they seriously get offended, mad and angry lol

In that situation he would have 60,000 in equity. If the market tanks he only loses if he sells. Assuming he has a fixed rate 30 year mortgage he's not any worse for wear even if prices plummet.

It goes both ways. You can invest 50,000 and every spare penny you have and the markets tank. What do you have? Numbers on a screen. They won't be producing dividends. You'll still be paying rent to live. Even if the real estate market tanks, you either have a fixed payment for 15-30 years. Or you own the property and are saving a ton of money every month.

Graham Stephen did research which indicates that by far and large people who rent/don't own real estate have a much lower net worth then people that own a home. Even older people in their 60s+.

At the end of the day if you aren't planning on being mobile/flexible your better off owning real estate. No matter how hard you cope.

09-18-2019, 01:21 PM

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#123

TraininWh33ls
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Originally Posted By ANumber1⏩

In my experience, most real estate investors who are financing are lucky if they're simply not sinking cash as they build up equity. That's what makes it an investment: there's a time horizon.

Of course you have to use money to make money but is it not like any other investment out there.

Originally Posted By ANumber1⏩

I'm sure you realize where I'm going with this, but this is why you can't just skip down payments to model this. A 100% down payment would produce a mortgage of $0, in which case obviously, rental income is going to be significantly more - and that's great. However, that's not the choice most homeowners are looking at, and it's also why the opportunity cost of pulling a down payment out of alternative investments can't be ignored.

...and then there's maintenance and repair. This is a long thread, but as has been raised before, a major profit center for real estate investing - and cost savings for homeowners - is doing the tradie work yourself. Your time as an owner/investor has value and that also has to be accounted for compared to having someone on call when the washing machine breaks who is already priced into the rent.

Down payment would be balanced out easily before 10 years including maintenance. In the long run real estate will give a larger and safer profit margin - There are many examples of wealthy people that can back that up. But yes, I do raise my profit margins quite a bit by being able to do a lot of work myself or having friends that are in the electrical/plumbing business that work for me on the side.

Originally Posted By ANumber1⏩

If you're in a market where these figures represent a 75% LTV investment loan, congratulations on being in one of the lop-sided housing markets I mentioned before. I live in one of the cheapest housing markets in the northeast and don't think I've ever seen a legally habitable duplex or triplex going for $120k.

Unless, of course, you did a significant amount of work rehabbing them and aren't bothering to account for that.

Having a bank to back your loan will require to pass inspection = habitable. Are they the most appealing or better location properties.. hell no. After putting some TLC on the property I can put it on the market for rent after a month. This is also including the fact I have a full time job as an engineer. But like I mentioned I do have a business partner and we are both great with our hands (edit: no homo).

Originally Posted By GainzMcgee⏩

Lol mortgagecels are down to insults now since they have been out matched. No worries enjoy the next crash and see how dumping your life savings into a chinese drywall invested chithole worked out for you *******s.

Dang man.. can you actually contribute on backing yourself up on your own thread?

09-18-2019, 01:38 PM

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#124

Witrebel
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Can the problem truly be generalized to the degree that is happening ITT?

A) The whole "Renting gets you a shorter commute/better location" notion is not black and white. I.e. the rent in Boston for a single room with shared bathroom is absurdly high. If you want your own place? GTFO. So renting may in fact reduce your ability to invest if its a huge payment. If you pick a more reasonable rental, it means you just got that 1-2 hour commute back. "Renting" is not some universal truth, it depends on market and personal lifestyle.

B) Mortgages/homeownership are not all created equal. As noted above, multi-family versus single family properties, and again LOCATION matters.

C) The intangible value of "owning" your own slice of heaven. Want to paint your room a different color... have at it. Want to get into a new hobby that requires a bit of workshop area and makes some noise... good thing you can put up a shed or use your basement or the garage etc. Renting might mean less time required for property maintenance but its also not the same level of freedom. This has value to me, and many others.

D) Re-iterating B, all squares are rectangles but not all rectangles are squares. All landlords are homeowners, but not all homeowners are landlords. Huge difference between house hacking a multi and buying a mcmansion with your soon to be ex-wife.

I mean OP has a point if you buy the WRONG house for the wrong price and then brag about your paper gains before even factoring in the closing costs of the purchase and the cost to liquidate when you do sell. But setting aside that obvious truth, are we really going to act like you can just say "Renters" and "MortgageCells" as there is no nuance?

We are all gunna make it

09-18-2019, 01:40 PM

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#125

IAMBEE

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Originally Posted By GainzMcgee⏩

lmfaooo at "eventual ownership" and what if you mix a tax bill payment *******?

The govt sells your house, and you get whatever equity you have left over given back to you. *******

09-18-2019, 02:15 PM

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#126

ANumber1
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Originally Posted By guest89⏩

Graham Stephen did research which indicates that by far and large people who rent/don't own real estate have a much lower net worth then people that own a home. Even older people in their 60s+.

Causation/correlation. That renters include a disproportionate number of people at the bottom of the economy who fail to save and invest, it does not follow that owning fixes it - or even helps. It might simply be that ownership inherently tends to exclude people who are bad at money.

The NYT built a calculator for people to use back in 2014. It's the most thorough attempt I've ever seen:

https://www.nytimes.com/interactive/...alculator.html

The problem with it, as always, is that it still relies on a lot of information that most buyers can't easily predict or are even outright delusional about: future appreciation, future rent increases, the return on your portfolio, the time period you plan to stay in the home, maintenance/renovation costs. You have to consider these things, but they're all educated guesses about the future. However, it does show that under many circumstances, it's a closer call than people realize.

Originally Posted By TraininWh33ls⏩

Of course you have to use money to make money but is it not like any other investment out there.

Sure. The question is how much money you're using, how much money you're making, and if you're really getting ahead compared to putting it in a 60/40. Several people, including Warren Buffet, have made a very credible claim that Donald Trump would have been much wealthier had he simply lived idle off his inheritance instead of trying to run a real estate empire with it, because all available numbers point to him dramatically under-performing the stock market. As far as I know, that claim has never been contradicted.

Investors look to get compensated for risk and to manage that risk. That's as it is and should be. What you're doing is totally right-on and you'll be rewarded for adding value through good management and hard work. It's just that it's not the same choice people are making when they're shopping for a place to live. If we're going to talk about buying a fixer-upper versus renting a place that's already ready for the market, we've got to put a number on your work and also put a number on how much it's worth to our theoretical buyer tonothave to fix up a place - which is obviously a significant amount, or else you wouldn't be able to get a deal on it.

Originally Posted By Witrebel⏩

Can the problem truly be generalized to the degree that is happening ITT?

No.

Originally Posted By Witrebel⏩

are we really going to act like you can just say "Renters" and "MortgageCells" as there is no nuance?

Yes, because it is the Misc.

Nah, fukk that. I’m not doing that.

09-19-2019, 01:51 AM

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#127

S0Jack3d
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Lemme show you rentcels why you're retarded.

I purchased my home for $152,000 6 years ago. I now use it as a rental property.

I purchased the home at $152,000 6 years ago.
My mortgage is $980 per month.
My current tenants pay $1,600 per month in rent.
I make $600 a month in profit.
I profit $7,200 a year off rent.

My home is now estimated to be worth $236,000
I currently owe $139,000
I have nearly $100,000 in equity. I can sell, pay closing and agent commissions and fees and walk away with $80,000+ cash in hand.

one third of my rental income is taxable (around $2,400 a year)
However, I can claim home repairs on taxes to reduce my tax liability to $0

I make sure i spend $2,400 on repairs and upgrades to the house every year so I can write it off on taxes.

If I need to spend more than $2,400 i wait until the next fiscal year to spend the money on those repairs, so I can claim it on the next years taxes.

I now own a second home. when I move, i'll rent this one out for roughly the same amount in profit as my first home.

rinse and repeat. my revenue streams grow bigger. I get richer. rentcels get poorer, there is balance to the force.

This is what winning looks like.

Disclaimer: All of my posts are for ENTERTAINMENT PURPOSES ONLY. All opinions expressed by the the poster known as "s0jack3d" are the fictional opinions of a fictional character. All opinions expressed by "s0jack3d" are pure hyperbole & satire. My posts should not be misconstrued to be the personal beleifs of any individual in any way, shape, or form. These posts are not meant to be taken literally. s0jack3d is a fictional character created for the purpose of writing a future novel.

09-19-2019, 02:24 AM

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#128

SillieBazzillie
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Originally Posted By Jacobcapra⏩

If you put 50K down and gain 10K in value, you DO have 60K equity. You GAINED 10K, and had 50K to begin with.

I'll totally bite a 2nd time on this troll job - Let's use a realistic scenario.

scenario 1
250K house, 20% down = 50K invested
200K mortgage @ 4% = $955, escrow ~ $300 = total housing expense of $1,300
3.7% ROI on the value of the home yearly for 5 years = $300K value (3.7% is historical average)
mortgage balance after 5 years = $181K
$300K - $181K = $119K in equity
$119K - $50K = $69K in profit (138% ROI on the original $50K)

Scenario 2

Housing costs = $1,300
Assuming the quality of housing is about the same (it won't be)
50K invested in stocks
10% ROI annually for 5 years = $80.5K (10% is historical average)
$80.5K - $50K = $30.5K profit (61% ROI on the original $50K)

Before you complain about insurance, taxes, etc remember that's all included in the escrow. Even with repair costs coming out of pocket it's still a bold assumption that you could even get an equivalent living situation for the same price renting as compared to owning.

As mentioned ITT, SOMEONE is paying the insurance, taxes, repairs, etc on the place you rent so it is included in your rent (probably with some profit in it for them as well, lol).

Yeah, I'll take the 138% ROI over the 61%

Numbers don't lie. And using a 10% ROI on investments is aggressive.

Good job Jacob.

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Holy crap dude, Satan's huge crew.

09-19-2019, 10:27 AM

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#129

Frank Drebin
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Buying a house isn't an investment, but neither is a rent payment. Come at me rentcels

09-19-2019, 10:33 AM

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#130

Kay4Kool
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Just saw Jacob's math. Might wanna go back to a math class

And I'm out.

09-19-2019, 10:36 AM

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#131

pondus_levo
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Originally Posted By Frank

Buying a house isn't an investment, but neither is a rent payment. Come at me rentcels

It is unless you buy at the peak. Like right now.

Save as much money as you can and in a few years when market bottoms, buy.

Stop throwing your money away on consumables and needless things. It isn't that hard to save enough money for a 20% down payment. The trick is to start saving from DAY ONE.

If your parents didn't tell you how much you needed to save and how to budget when you were a kid. They did you a disservice.

Originally Posted By LordBroski⏩

It's so easy to make money in the states. Over here you need at least 600k+ to get a home even 1 hour+ away from the city. Meanwhile in 'murica you can be in your early 20's and a landlord because you can actually get houses for < $200k. The only properties here for < $200k are run down condos from the 70's in the bad area on the outskirts of town and rents are $600-900 tops on those.

If you're in 'murica and not making it, then you dun goofed.

It's like this near all major metropolitan areas in the US. If homes are cheap, it's because no one wants to live there.

Forever alone? Attraction and keeping the girl chasing you - http://forum.obnoxiousbrutes.com/showthread.php?t=131498033

You will never know your limits, unless you push yourself past the imaginary lines you have drawn in the sand.

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09-19-2019, 10:42 AM

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#132

Frank Drebin
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Originally Posted By pondus_levo⏩

It is unless you buy at the peak. Like right now.

Save as much money as you can and in a few years when market bottoms, buy.

Stop throwing your money away on consumables and needless things. It isn't that hard to save enough money for a 20% down payment. The trick is to start saving from DAY ONE.

If your parents didn't tell you how much you needed to save and how to budget when you were a kid. They did you a disservice.

We don't know when the peak is. I remember giving unsolicited advice about not buying in Vancouver in 2011.

For reference

2002 average price $400k
2011 average price $1.1m
2016 average price $1.6m

That said, if you think the payments are affordable and you could pay it off in 20 or less years, then buy. If you don't, then don't.

09-19-2019, 10:44 AM

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#133

Ratfish

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there's also something that rentcels never factor into their calculations in these threads: quality of life

the absence of a landlord either showing up randomly or raising your rent/stealing your deposit etc. is the only way for an adult to live

not sure what the laws are elsewhere, but here they have to simply give you 24 hours notice to enter your living space for whatever bullchit reason

if someone gives me 24 hour notice that they're going to enter my house, i'm gonna fukken shoot them as soon they cross the threshold

to say nothing of your ceiling being someone else's floor, or shared walls while they blast trap music late at night etc.

owning a home is an entirely different way of life. I could simply never go back.

Make Europe Germany Again

09-19-2019, 10:53 AM

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#134

GainzMcgee
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Originally Posted By ratfish⏩

there's also something that rentcels never factor into their calculations in these threads: Quality of life

the absence of a landlord either showing up randomly or raising your rent/stealing your deposit etc. Is the only way for an adult to live

not sure what the laws are elsewhere, but here they have to simply give you 24 hours notice to enter your living space for whatever bullchit reason

if someone gives me 24 hour notice that they're going to enter my house, i'm gonna fukken shoot them as soon they cross the threshold

to say nothing of your ceiling being someone else's floor, or shared walls while they blast trap music late at night etc.

Owning a home is an entirely different way of life. I could simply never go back.

ratfish, you are assuming everyone who rents is in a low income area with shallow ceilings and walls. Not the case for higher level condos and usually if you are in a nicer complex the reason someone is going there is because the tenant requested it () a repair etc) no different than if you called the cable guy. So you moved from one of the ****tiest apartment complexes in town to a trailer, congrats.

Sigh...just another mortgagecel that cant see two sides of the coin. Have fun being mr shekelsteins bitch for 30+ years.

09-19-2019, 11:00 AM

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#135

pondus_levo
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Originally Posted By GainzMcgee⏩

ratfish, you are assuming everyone who rents is in a low income area with shallow ceilings and walls. Not the case for higher level condos and usually if you are in a nicer complex the reason someone is going there is because the tenant requested it () a repair etc) no different than if you called the cable guy. So you moved from one of the ****tiest apartment complexes in town to a trailer, congrats.

Sigh...just another mortgagecel that cant see two sides of the coin. Have fun being mr shekelsteins bitch for 30+ years.

They also never calculate the family factor. Renting a house is way more than renting an apartment or condo, especially if you want your kids to be a highly ranked school district.

Trust me, if you have kids, you want a lot of square footage. lol.

I can rent my house for 2+ times my mortgage... and I will, once I don't need the space anymore. Then I will rent something small that my rentcells are paying for. Or maybe buy another small house, which, yep, my rental income will still pay for.

There are calcualtors out there that will tell you what is best for your situation, but if you have a family, buying ALWAYS comes out on top in the long run, by a huge %.

And like ratfish said, there is no better feeling that not having to report to a landlord all the time and doing whatever the **** you want.

Renting feels like you are still living at home with your parents.

You are not a true adult until you own your own property.

Forever alone? Attraction and keeping the girl chasing you - http://forum.obnoxiousbrutes.com/showthread.php?t=131498033

You will never know your limits, unless you push yourself past the imaginary lines you have drawn in the sand.

Knee Dragger - '06 GSX-R750

09-19-2019, 11:03 AM

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#136

Frank Drebin
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Originally Posted By GainzMcgee⏩

ratfish, you are assuming everyone who rents is in a low income area with shallow ceilings and walls. Not the case for higher level condos and usually if you are in a nicer complex the reason someone is going there is because the tenant requested it () a repair etc) no different than if you called the cable guy. So you moved from one of the ****tiest apartment complexes in town to a trailer, congrats.

Sigh...just another mortgagecel that cant see two sides of the coin. Have fun being mr shekelsteins bitch for 30+ years.

Just lmao at living in a box in the sky for your entire existence. SFH crew

09-19-2019, 11:13 AM

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#137

S0Jack3d
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Originally Posted By pondus_levo⏩

It is unless you buy at the peak. Like right now.

Save as much money as you can and in a few years when market bottoms, buy.

Stop throwing your money away on consumables and needless things. It isn't that hard to save enough money for a 20% down payment. The trick is to start saving from DAY ONE.

If your parents didn't tell you how much you needed to save and how to budget when you were a kid. They did you a disservice.

It's like this near all major metropolitan areas in the US. If homes are cheap, it's because no one wants to live there.

You're right. no one wants to live there, however, my homes are near military bases, so they HAVE to live there, and the government gives them a housing stipend (BAH) to pay for rent. Im spilling the beans on how im building my real estate empire so i'll just shut up now.

Disclaimer: All of my posts are for ENTERTAINMENT PURPOSES ONLY. All opinions expressed by the the poster known as "s0jack3d" are the fictional opinions of a fictional character. All opinions expressed by "s0jack3d" are pure hyperbole & satire. My posts should not be misconstrued to be the personal beleifs of any individual in any way, shape, or form. These posts are not meant to be taken literally. s0jack3d is a fictional character created for the purpose of writing a future novel.

09-19-2019, 11:25 AM

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#138

Ratfish

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Originally Posted By GainzMcgee⏩

ratfish, you are assuming everyone who rents is in a low income area with shallow ceilings and walls. Not the case for higher level condos and usually if you are in a nicer complex the reason someone is going there is because the tenant requested it () a repair etc) no different than if you called the cable guy. So you moved from one of the ****tiest apartment complexes in town to a trailer, congrats.

Sigh...just another mortgagecel that cant see two sides of the coin. Have fun being mr shekelsteins bitch for 30+ years.

Make Europe Germany Again

09-19-2019, 11:30 AM

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#139

JoshSP1985
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Originally Posted By Jacobcapra⏩

If you put 50K down and gain 10K in value, you DO have 60K equity. You GAINED 10K, and had 50K to begin with.

I'll totally bite a 2nd time on this troll job - Let's use a realistic scenario.

scenario 1
250K house, 20% down = 50K invested
200K mortgage @ 4% = $955, escrow ~ $300 = total housing expense of $1,300
3.7% ROI on the value of the home yearly for 5 years = $300K value (3.7% is historical average)
mortgage balance after 5 years = $181K
$300K - $181K = $119K in equity
$119K - $50K = $69K in profit (138% ROI on the original $50K)

Scenario 2

Housing costs = $1,300
Assuming the quality of housing is about the same (it won't be)
50K invested in stocks
10% ROI annually for 5 years = $80.5K (10% is historical average)
$80.5K - $50K = $30.5K profit (61% ROI on the original $50K)

Before you complain about insurance, taxes, etc remember that's all included in the escrow. Even with repair costs coming out of pocket it's still a bold assumption that you could even get an equivalent living situation for the same price renting as compared to owning.

As mentioned ITT, SOMEONE is paying the insurance, taxes, repairs, etc on the place you rent so it is included in your rent (probably with some profit in it for them as well, lol).

Yeah, I'll take the 138% ROI over the 61%

Don't think this is the correct way to look at the math. You can't count all the equity as profit because you paid into it by paying on the house. You can't invest $100 and then pull $100 out and say you made $100. The only thing you actually "profited" was the appreciation on the house which in your example is 50k over 5 years minus any additional expenses on the house (repairs, etc). Lets say you had no repairs on the house.

You invested 50k and made 50k over 5 years or 10k a year from appreciation. So you "profited" 50k by buying the house in a perfect world which you won't realize unless you sell.

Also in the house example you took on debt to gain that appreciation with the stock example you took on zero debt which should also be considerations when comparing.

Also this comparison is somewhat silly as well considering you have to have a place to live. Now if you're okay living in your parents basement to realize those stock gains go for it.

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09-19-2019, 11:36 AM

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#140

leoaa777

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^^^^ mirin’

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09-19-2019, 01:11 PM

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#141

GainzMcgee
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Originally Posted By LordBroski⏩

I also like how people think they'll just get 10% returns trading stocks or going with an index fund or something. They never do factor in taxes, or the fact that historical performance of the market isn't going to be necessarily reflective of the future.

Actually this is exactly what mortgagecels sound like except for repairs, taxes, hoa assesments etc. They just assume "equity" = profit. Stockholders are a little more savvy which is why the huddled masses are brainwashed to begin with when it comes to mortgage.

So we all need a place to live if you dont have the luxury of a comfy basement is it more lucrative to buy vs rent?It dependsThe entire point of this thread is to bash the mortgagecels that come on here and think just because they went housepoor they all of a sudden have a PhD in economics and all of a sudden are personal finance gurus. You do not come out AHEAD 100% of the time when you buy a home on loan and the last 10 years anyone that has bought got lucky since the FED has been propping the housing market due to artificially low interest rates.

09-19-2019, 01:16 PM

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#142

solidus2k3
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lmao at rentcels

<HTC>

09-19-2019, 01:17 PM

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#143

Spahgetti
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Love rentcel cope. Regardless of 'investments', you're gonna need a roof over your head despite life. You either throw it down a black hole (aka rentcel) or you gain equity and can rent out to another person/family (while they pay off your mortgage and you earn!) or you gain equity for yourself and can sell at any time. With no inflation. Over decades. Then you own it. But rentcels throw $ down a black hole, pay on average at least 5% more each and every year in up and coming cities (~2% inflation + city growth demand unless you live in the boonies). enjoy! The market that's made the most millionaires in the world....clearly they're al wrong, right rentcels!

09-19-2019, 01:29 PM

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#144

ANumber1
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Originally Posted By LordBroski⏩

I also like how people think they'll just get 10% returns trading stocks or going with an index fund or something. They never do factor in taxes, or the fact that historical performance of the market isn't going to be necessarily reflective of the future.

Personally, I actually use 7% in projections, even though my portfolio historically delivers 8-9%, and yes, I do optimize for tax consequences, as well.

Real estate buyers have made the mistake of relying on historic performance for years. Either way, this is where we can have an adult conversation about diversification, because if the alternative to holding an index fund of thousands of investments across all sectors and markets is buying a single property in a single sector in a single market, all other things being equal (and they aren't, you can't cash in your time renovating a stock), it's potato-level financial planning to choose all that risk over the proven reduced volatility of diversification.

Without a doubt, you can absolutely get rich taking a risk on a piece of real estate. You can also get rich investing in penny stocks. The people who blow up their savings trying usually don't go around talking about it, so you only hear from the successful ones. Then there's all the people who diligently save and build up a steady nest egg at 8% and stayed off that roller coaster, but still did just fine for themselves.

Of course, I'll say again: if you want to buy a home, go for it. I did. It's been real. I'll do it again, too. Just don't assume that you're coming out way ahead. That way, if you do it, it'll be a nice surprise.

Nah, fukk that. I’m not doing that.

09-19-2019, 01:42 PM

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#145

JoshSP1985
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Originally Posted By LordBroski⏩

Equity is profit if someone else is making the payments. Doesn't matter on an income statement as only interest expense would show up, not the entire mortgage payment, which is how that "equity" gets counted for as profit, so you do pay tax on it too, but it is tied up with the home as would be seen on a balance sheet. If you're just making the payments yourself then it's just paying off a liability.

I also like how people think they'll just get 10% returns trading stocks or going with an index fund or something. They never do factor in taxes, or the fact that historical performance of the market isn't going to be necessarily reflective of the future.

Sure but that's not what was shown in the example I was responding to. The poster was counting equity he paid for in his profit calculation.

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09-19-2019, 01:43 PM

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#146

Johnez
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Originally Posted By Witrebel⏩

House hacking is the solution. Find a 2-4 unit property, get an FHA loan and put down 3.5-5% up front.

As a rule of thumb, if the realistic monthly rent is not 1% or greater than the purchase price, it is NOT a good purchase.

Might take a few months to find such a property, or even take some hand written letters to local owners you may find on the town assessors website (AKA do some homework). You also may have to compromise slightly on the quality/location versus your ideal "first home". But you can essentially pull off a rent free owner occupied property, and down the road it becomes a cash flowing rental property/asset.

This sounds like a smart option.

Dumb question, are these multifamily units like smaller apartment complexes or duplex type things? Multiple houses on the same property?

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09-19-2019, 01:47 PM

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#147

JoshSP1985
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Originally Posted By Johnez⏩

This sounds like a smart option.

Dumb question, are these multifamily units like smaller apartment complexes or duplex type things? Multiple houses on the same property?

Well a 2 unit property is a duplex. Sometimes they're built as planned duplexes(2 garages is an easy tell) and sometimes they're larger old homes that were renovated into separate living spaces. Once you hit 4+ units it's almost always going to be more apartment style multi-family units.

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09-19-2019, 02:46 PM

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#148

Johnez
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Originally Posted By JoshSP1985⏩

Well a 2 unit property is a duplex. Sometimes they're built as planned duplexes(2 garages is an easy tell) and sometimes they're larger old homes that were renovated into separate living spaces. Once you hit 4+ units it's almost always going to be more apartment style multi-family units.

Gotcha. Thanks for the info.

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09-19-2019, 03:35 PM

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#149

Kawhilights
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Originally Posted By GainzMcgee⏩

Actually this is exactly what mortgagecels sound like except for repairs, taxes, hoa assesments etc. They just assume "equity" = profit. Stockholders are a little more savvy which is why the huddled masses are brainwashed to begin with when it comes to mortgage.

So we all need a place to live if you dont have the luxury of a comfy basement is it more lucrative to buy vs rent?It dependsThe entire point of this thread is to bash the mortgagecels that come on here and think just because they went housepoor they all of a sudden have a PhD in economics and all of a sudden are personal finance gurus. You do not come out AHEAD 100% of the time when you buy a home on loan and the last 10 years anyone that has bought got lucky since the FED has been propping the housing market due to artificially low interest rates.

You actually live in a basement? I thought you were trolling. Also this whole thread reeks of someone you know bought a house, probably around the same age as you and roasted you for living in a basement so you came here to vent.

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09-30-2019, 05:44 PM

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#150

CulturalDecay
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Originally Posted By Spahgetti⏩

One of the main reasons to own rather than rent is that your mortgage payment is fixed for the life of the loan (assuming you have a traditional mortgage). Your insurance and tax payments will likely go up, but if your mortgage payment is $1000/mo in 2019, it will be $1000/mo in 2029, $1000/mo in 2039, and ideally $0/mo in 2049.

In most cases, rent increases year-over-year. If your rent is $1000/mo and increases, on average, 2% per year, it will be ~$1218 in 2029, ~$1485 in 2039 and $1811/mo in 2049.

When we bought our house two years ago, we could make the mortgage payment without any trouble, but it really did take a bite out of our monthly income. Two years of raises/promotions later, and that bite is much smaller. Meanwhile, rent in our area has increased by 5-7% over the same timeframe.

UGH, the content here is good / correct, but you lifted it straight from Reddit, the bastion of angsty weak beta *******s.