/biz/ - Business & Finance

>>1824069
>implying I won't just inherit my parent's house

>>1824069
>mfw 1.5% interest rate :^)

Free moneyyyyy. Might change it to a 2.5% 30 year. Keep renting cuck.

>>1824089
>$90,000 in interest

I love how the banks managed to convince even financially sophisticated people into buying a house.

>ignoring the overprized market (not necessary the whole market in your country, could be just the region)
>assuming growth rates based on historic data/steady growth rates/comparing it to other regions
>ignoring risks and costs (maintenance, modernization, oncosts...)
>ignoring location (I'm talking about the long-term development of the location)
>ignoring the fine print of the contracts
>ignoring opportunity costs
>ignoring life-altering events (losing your job, health problems = not having an emergency fund)
>calculating with the wrong numbers (manipulated inflation rates for example)

Renting > buying in most cases!
Even now with really low interest rates.

>>1824122
you forgot the worst parts
>what houses are made of
>no 2br 1ba houses, just square footage you dont need
>surrounded by a worthless plot of land that will basically grow nothing but crabgrass unless you pamper it, then it will grow nothing but fescue

>>1824109
>paying 1.5% interest on a loan
>property pricing are increasing +10% a year

One of my apartment increased with 60% in 3 years. I wish I had taken more loans and bought more apartments. Free money.

As long as the housing market has a higher appreciation rate than the interest you're paying. It's all about location. It also helps if you rent out your spare bedrooms so you don't even have to pay the mortgage yourself.

>>1824109
>paying 1.5% interest on a loan
>property prices are increasing +10% a year

One of my apartment increased with 60% in 3 years. I wish I had taken more loans and bought more apartments. Free money.

Also, we need people who rent. Feels good to rent out my other apartment to a wagie that pays ~190% of what it costs me to own the apartment.

>>1824069
>Paying someone else's interest and mortgage instead.

It's fucking retarded to do anything but buy so you see a return on the money you fork out.

>>1824180
if you rented, saved and paid for it in cash you would be 3% richer on that mortgage

>>1824180
Renting out is not what I talked about above. I was talking about buying a house and live in it.
Renting out is great business if done right.

>>1824069

>caring about interest
>inflation makes that nil over the life of the mortgage

Interest is nothing. Taxes are where homeowners get cucked hard.

>>1824195
>pay for an apartment in cash

HAHAHAAHHAHAHAHAHHHAHAHA

>>1824069
>Saved up $250,000
>Bought $400,000 home with $150,000 cash and mortgaged the $250,000 remainder
>Made $100,000 payment on day 1 of mortgage with the option to withdraw it if needed (aka 'redraw'')
>$150,000 mortgage remaining - aka 8 years ahead on my payments on day 1
>Dad has $150,000 sitting in an account after divorce settlement
>Suggest dad transfer that money into my mortgage (with option to redraw)
>He agrees on day 5 of the mortgage
>$1 mortgage after 5 days

Over thirty years I'll make way more than that in investments. Why not let that low mortgage ride? I'm net positive every year

>>1824231
What did that do to your credit? I'm sure some bankers were not happy about their 1 dollar return.

>>1824075
>tfw im literally waiting for an old woman to die so i can start my life at 33.

>>1824069
>A dollar is likely to be worth ~55% of what a current value dollar is.

I'll take an inflation hedge for $500 Alex.

>>1824261
No idea.

I laugh thinking about the bankers cut of the profits.

>>1824069
Renting for life LOL. Have to ask someones permission to change a wall color LOL

>>1824069
>Doesn't know he can claim interest on mortgage on your taxes
top cuck

>>1824288
not painting walls is so much worse than attaching yourself to a jew bank for years, paying for maintenance, tying you up to one place, all the while investing in a highly illiquid asset that may or may not end up being profitable after spending your life saving for it.
>muh tenants
yes anon, relying on random people to pay for you mortgage is very wise compared to investing in well established companies of the stock market that make the world function.

oh look it's this thread again!

How many times do we have to go over this, it's 100% based on where you live. It's cheaper to rent in a city and houses in cities are shit.

I can get 5 bed 3 bath for $75K some of these houses are 80 years old so they've been through at least 40 tornadoes. Meanwhile you can't get 2 bed 1 bath in a city for less than $100K. 100% matters where you live.

>>1824069
i bought it with cash so nope
now im broke as fuck

>>1824339
>compared to investing in well established companies of the stock market that make the world function.

Oh yes, the """""well established""""" (((companies))) - like Lehman Brothers and Enron, amirite? Like Bear Stearns and Parmalat? Like Wachovia and Kodak?
Good goy, you're not supposed to live in your own home anyway, rent it and help the owner to pay the mortgage or just """invest""" it in the (((stock market))) and hope it won't tank for the third time in two decades after 2000.

>>1824069
>he's not going to deduct his mortgage interest from his taxes

>>1824190
this is what your mom and the nice lady at the bank tells you

>>1824429
This as usual. Rural living is so affordable. I'll have a house by 23 at these prices.

>>1824069
Works if you were given the house and pay $0 interest.
Still get the property tax write-off, though.

>>1824069
>bought a house for $360k six years ago
>20% down, $288k mortgage
>house is worth $675k now
>no significant repairs/upgrades were done
>not complaining about paying $70k in tax deductible interest
>current monthly payment is about half of what it would cost to rent the place
>but go ahead and keep renting if it makes you feel better

buying is not for everyone, but if you feel like you're going to be in the same area for 5+ years and you can find a good deal on a place, it should definitely be considered.

>>1824069
>he's going to pay $430,000 in rent over the next 30 years

>>1824069
It'll be a fuckton more than that son.

Probably closer to half a mill if i live to be about 80.

>he pays off hos house at all ever.
>he thinks he owns his home
>he doesn't use tens or hundreds of thousands in equity to get tax free lowns at low interest rates to acquire more assets.

Bro... get the right hoky fuck off of my containment board until you learn the very fucking basics of personal finance.

Would it not be worth paying 200k a year in interest if you can make 300k after all the expenses both good and bad?

Any retarded fucking autist with a basic understanding of simple math knows this...

That being said if you are a 40k a year wage cuck and you bought a $350,000 liability then yeah. Good fucking work dipshit.

Keep making me richer.

Pay that mortgage.

Refi for that wave runner and vacation and wtf ever

I live in expansive city in Germany (Hamburg).
We have a house kinda central with a big property for city houses.
Now the point is our House is pretty old build before WW2 and somehow survived the bombing of the brits.
We never realy maintained it and stuff is getting old and and it keeps no warm inside.

Is it a good Idea to tear off the house and build a new one on the property or sell the property and buy a new house?

>>1824231
Why the fuck did u even get a mortgage and pay all that interest then newfag?

>>1824652

I'll go you one better

> Bought a house at foreclosure sale for 150k 3 years ago
> FHA wants 3% down
> Get grant from state for down payment so I literally pay $0 out of pocket to get into house
> MRW when I ask the bank (seller) to pay closing costs and they do it

Move into house, its not bad but needs a little work

> Minor reno/rehab of house costs me ~$15k in reno costs over 3 years
> Deduct interest paid on 4.25% mortgage and get nice refund every year
> House is worth $250k today
> I've lived in the house more than 2 years so I get to take my gains (up to $500k) tax free
> MRW I invested $0 down and $5k a year and will walk away with $100k

You don't make your money when you sell, you make your money when you buy. I bought a good house in a good neighborhood on a good deal and have a return of 667% on my money.

>>1824261
> $1 return.

Most generaly you owe the 30 year mortgage interest or wtf ever rather it takes u 39 years or 3 months to pay it off.

>>1824288
>not renting from your own llc...

>>1824319
/sigh.

>thinks he is saving money by getting some of the money back that he paid.

Here is 1 million bucks. K, i'll give u back 300k.

300k back ah fuck yeah i got 300k...

>>1824339
What is the great depression.

What is the great recession.

What is fiat currency.


Fuck directly off retard

>>1824429
>matters where u live.

Yup. Most generally around here a 65k house with a couple acres is too teir unless u build new and never plan to sell it.

Bought the crackhouse i live in for 21k no interest rent to own.

Bought the shithole next door for pretty much the same deal at 10k.

Rent is 500-600 minumum for a fucking trailer house around here.

Assuming no catastrophic failure i'm soon to be a rich mutherfucker. Buy shitholes, fix them up. More and more for rents until i can sell them for a large profit after 1 year and 1 day or keeo it till i die or bulldoze the fucker after a decade and sell the land.

Almost no way to fail but im not delirious. Shitholes are a risk and im trying to get good houses and asset pretextion set up before. Pocket 1 red fucking cent.

>>1824571
TOPKEK'D AND REKT WITNESSED.

>>1824652
>has a few friends over
>random cunt shows up, slips, breaks her leg and fakes a spine or neck injury
>gets your house.

Your not wrong anon but for god sakes never have a home with equity in your name. Google or read up on assett protection before u buy some welfare cunt a house

>>1824694
Ah. Interesting. That's weird that they can still charge you the interest.

How do they figure out what the principal would be? I mean, if you over payed every month and hit the principle, that decreases interest right? How can they just say "oh well interest on 400k for 30 years is X, so you owe us X."

>>1824693
FUGGG. Gg anon. Really impressed.

Be careful tho. I considered that here and after i bid on and lost the 4th property i found out that in my state u have up to 2 years to pay it back and reclaim your home. There is a fad where people will partner with someone well off. Intentionally get their house repossessed. Then someone tyoically an established landloard will buy it and dump a bunch of money fixing it up to rent it out. Then 2 years latter the people reclaim their house for pennies on the dollar and fucking sell it for several times what it was worth.

Its truly sad u have to think like a con man just to protect your shit.

>>1824719
doesn't homeowner's insurance include liability for accidents that happen at the house? i actually have a call with my insurance agent later this week, so i'll be sure to ask her about that.

>>1824719
Not only this but you make them sign a lease agreement. You can't make them sign away state rights, but guests are not going to be covered. Almost all the lease agreements I've seen say this.

You could also combine /biz/ and /k/ and just shoot them and bury them in the back. Solves the broken leg problem, the lawsuit problem, and you can show this to future tenants so they don't get any similar ideas.

>>1824691
... it recalculates if you pay early

Otherwise it would be impossible to move after buying a house if you were locked into the interest payments

>>1824698
>pay 1200/mo in rent
no tax return
>pay 1200/mo in mortgage interest
$5k tax return

>>1824723
Well, for easy math lets say u got a $100,000 mortgage at 3% apr interest for 30 years.

That is 360 months.

The principal or initial loan of $100,000 ÷ 360 months is $360 per month for 39 years.

The interest is 3% of the $100,000 anually. Or $3,000 per year wich is $250 per month for 30 years.

So instead of paying $360 for an interest free $100,000 for 30 years you now pay a combined $610 per month.

Keep in mind there are as many types of loans as colors in the rainbow. But generally speaking when you sign on the dotted line you owe $610 per month for 30 years unless you can pay the combined loan of $100,000 and 30 years of $3,000 wich totals to $190,000. Most cases you can pay early. Sometimes you can pay ahead. Or like in my case it comes off the back end. So even if i pay 10k a month for a year, that next month i still would owe the $610 untill the $190,000 is paid in full.

If that makes any sense. Financing is a pecker of a subject for retards like me to learn let alone try and teach without pictures.

>>1824723
Most of them still charge you the interest becaude that is part of their assett building. They know that they get your money reguardless or repo your property and still charge u.

I used to be pissed at this but if you think about it. Why wast a couple hours just for someone to pay off their mortgage in 2 months and loose out on 30 years of interest payments

>>1824723
You can get contracts that have no fees for early repayment. I've owned 3 houses and none of them punished me for early repayment. I don't even know why anyone would sign such a contract.

>>1824736
Most of the time yes. But there are some rich and shady people that make a living taking advantage of the less informed. Keeping anything of value legally hidden and leveraged is step 1. Even if they circumvent all the rules. No attorney in their right mind would touch a 100,000 house that you have a 200,000 lean on from the last housing bubble. I fully plan on staying upside down as much as possible till i die.

And in the event some retard does sue and win. TOPKEK. Here is your 100k shithole you owe 200k on, have to maintain, and cant sell for shit

>>1824740
Well, fortunately i learned from my crooked ass boss i used to have. Worth upwards of 209 mill. Ownes nothing on paper. While studying personal finance and investing i did have the chance to catch him in a good mood and share some stories. He will go near broke fighting you on unemployment just to keep the reputation of a shark. Generally nobody dicks with him and when they do he just emails them a staxk of court cases and threatens them. 9 times out of 19 they back off. The money he has spent more than saved him from several other fights. 95% of litigation is in america and most of it is frivilous bullshit. U want to be worth fuck nothing on paper anon. Own nothing but controll everything. Have 51% controll in several companies but dont own dick.

Its truly fascinating and also horrifing from both sides of the coin.

>>1824742
Like asaid. More loans than colors in the rainbow. You can almost always refinance. Banks love that shit if u pay on time. Its part of the reason i even haveba mortgage. Why the fuck buy a car at 8% when o can refi at 3%.

>>1824745
Spend more than 5k in repairs and upkeep.

Have the potential to have it taken from u.

Having to fix your own shitter.


Dont get me wrong there are benefits to both. But owning your own giant liability with property tax just to write of 5k is insanity

>>1824755
Lower interest or no down payment is all i could guess. Would almost nevet consider that shit

>>1824180
And when they raise that interest rate properties will crash hard as fuck.

The real redpill is spending as little as possible on housing and investing all your money in your business.

>>1824773
You also get to live in it. Even a pretty shit house will have better accommodations than a decent apartment.

>>1824791
To add onto this, I don't think mortgages are bad, but they should be used for investment, not luxury.

When you look at investing in property, project cash flows, and make sure to run a probable worst case analysis so you don't lose your shirt.

>>1824802
Or just live with your parents and buy an investment property instead.

>>1824791
Yessir. And most always get fixed interest.

>>1824791

yep so when your business takes a shit you lose everything!

>>1824265
How much you gonna pocket?

>>1824429
>>1824621
Found the rednecks.

Some of us don't what to live in rural areas, no matter how cheap it is. You couldn't PAY me to live in some boring, ignorant, backasswards shithole town.

There's a reason people make fun of folks like you. Think about it.

>>1824791

>When you look at investing in property, project cash flows, and make sure to run a probable worst case analysis so you don't lose your shirt.

Wow thanks Tai. Nobody ever thought of doing that :^)


>>1824791

>And when they raise that interest rate properties will crash hard as fuck

>when
>when
>when

When they do I will be up 500% in profits. Fixed rate will save me.

>>1824682
Repair it unless it's THAT bad

Sometimes repairs can just lead to even more.

The real fun begins when the federal reserve hikes rates and all housecucks get rekt

Also
>fixed rate will save me
You realize your equity will crash along with the rate hike, right

>>1824805
Do parents not kick kids out anymore? If my kid had a 'rental property' but was living with me their ass would be evicted in a matter of hours.

>tfw dad is 69 and mom 62
>gonna inherit 400k+ before taxes when dad dies. Dno about moms wealth

Is 400k little?

>>1825076
Yeah it's not a whole lot but your parents might take 20 more years to die.

>>1825076
That's not terrible, assuming they have low outstanding debt. Unfortunately, most people's inheritance money goes to pay off the outstanding balance on the estate.

>>1825084

they have 0 debt

>>1824069
>3.75% interest rate on 15-year mortgage

It's not liquid, and it's not even particularly cheap, but it's mine, and it will cut down significantly on my cost of living by the time my kid turns 12. I'm 29 now, with 150k in liquid assets, another 100k in retirement vehicles, 12 years from paying off my house, and a job that pays me >100k annual.

I'm going to be living on easy street by the time my kids turn 18, free to retire shortly thereafter.

>>1825076
400k gives 16k per year according to the 4% rule

Nice chunk of change tbqh

>Buying my parents' house at the end of the year
>Plan is for them to just sign the house over to my name and have me send "gifts" to them each month until I pay off what I owe them

Will the IRS shove it's dick up our collective asses if we do this?

>>1824261
If he's paid off his mortgage I doubt he gives a flying fuck what his credit rating is.

>>1824180
>>property prices are increasing +10% a year
you are fucking delusional, enjoy the next crash retard.

>>1824694
>>1824723
He's on crack. A bank can't charge interest on principal that doesn't exist.

Source: It's my fucking loan.

>>1824691
I paid about 5 days worth of interest on $150,000 @ approx. 4% p.a. so OK I paid about $80 interest.
>Overwhelming.

>>1824180
I'm pretty sure a child knows the economy better than you lmao. I guarantee you will lose most of your money or you're just a master baiter.

>>1825769
>you're just a master baiter.

:^)

>>1825392
I will be out before another crash. Already cashed out one apartment. No crash will occur before we see a much higher interest rate.

>>1824069

>>1824729
I know about that issue but right to reclaim is only so many months in my state. When we put the offer in on the house we were past the right to reclaim (house had sat empty for 2 years before we got into it).

>>1827123
Well good on ya.

When im a rich real estate tycon im sure we'll cross paths. Cheers bro

>>1825729
Oh. I didnt even know banks did that.

Good work then

>>1825725
Uhh... yeah it can.

State laws vary and there are 1,00 different kinds of loans tho.

>>1824802
Apparently you havent seen my shithole.

Litteral crackhouse.

A buddy used to own it.

Saw people was smoke crack at several parties.

Found drugs all over the fucking place and had to have my buddies retired police dog come sniff the whole fucking house for 3 hours...

>>1824069
>save up 60K for house
>family doubles it

no mortgage, and my house went up $25K in the few years since i've owned it.

>>1824813
Missed me faggot.

If you GAVE me an apartment in new york city it would rot.

Fuck i hate cityfags.

Rural america is gods country son.

Pic related. My dirty yard full of mowers and shit. I generally trash the fuck out of it then clean it twice a year in spring and fall.

I love my fucking life.

Suck a dick.

Make fun of me all you want.

I'll be laughing at your boring ass as i float my mower accross the lake on big tires drunk as shit laughing my ass off...

Fine fuckit.

My backwoods internet on my samsung exploding phone wont fucking send the pic.

Small price to pay for being able to piss off my front porch naked

>>1824813

>He's willing to spend way way way more money to live in a clusterfuck small home/apt on which the land alone costs more than a rural area by an order of magnitude per acre.
>Becuz muh rednekz

It's like you enjoy wasting money or something.

You're fucking delusional if you think the advantages of living in a city beats the amount you pay to live there.

>>1824180
Your post is evidence that property is in the mania phase of the bubble (before it bursts)
Everybody, get the fuck out now!! This is our shoe-shine boy moment.

>>1827564
rich people merely work in the cities its the poor people that actually live in that filth
no one who isnt retarded wants to live in that cockroach den unless they were forced to, ie poor

>>1827477
>My backwoods internet on my samsung exploding phone wont fucking send the pic.
The redneck's small-town internet is so bad he can't even post a picture to 4chan! This is too fucking perfect!

>Rural america is gods country son.
What a fucking cliche you are (look it up, Jethro).

>Make fun of me all you want.
There's a word for people who invite others to laugh at them: cuck.

>>1827564
>You're fucking delusional if you think the advantages of living in a city beats the amount you pay to live there.
You do know my salary is 200% higher than the equivalent job in Smallsville, right Gomer? Not that your shitty stain on the map town has any jobs equivalent to what I do. The highest paying job in your county is probably the preacher who married your mother to her brother while she was pregnant with you.

>>1827465
How does that even work when you go to sell the house or refinance? This seems like some shit that was just made up.

>>1827811
Because interest is accrued over a period and recognized (paid and received) once the accrual period is over. Do you have any knowledge of accounting at all?

>>1827465
>>1827811
Don't worry. If you have smarts you will read fine print and ensure there's no economic penalty for making early payments.

If you select fixed interest you are generally limited to how much extra you can pay off above the standard payment, but that's why I went the 'nothing fancy' loan with variable interest.

Like captain negative said, 'laws vary' but by 'laws' he meant 'conditions banks put on home loans, fine print etc'.

If you have any smarts you'd just present the scenario to your banker and ask him to point to the part in the fine print that supports what he just said, good or bad.

>>1827844
Yeah and interest is currently being accrued on my $1 loan you inbred fuckwit. Mind boggling misinformation on such a simple concept.

I wonder if you legit believe that a bank will charge a $1 loan balance the interest equivalent of a $250,000 loan.

Your bank is screwing you with 9000 anal dildos if you actually experience that.

>>1827854
Guess who needs to start reading legal documents (i.e. YOUR FUCKING MORTGAGE BEFORE YOU SIGN IT) a little more closely?

Protip: the answer is you lad

It was probably stipulated that you're required to pay interest on the outstanding balance of the loan according to a pre-made amortization schedule for the mortgage loan wherein minimum monthly payments are assumed during calculation of interest/OS balance. This was probably some sort of lock-in clause where you have to pay that interest if the loan is repaid too quickly (just a way for the bank to try and cover its exposure to prepayment risk from retards who take out 6-figure mortgages then repay them a few days later).


Long story short, learn to read shit before you sign it. Also, quit sperging out at everyone and being such an autistic shitposter in this thread. The manner in which you type makes me think you rub shit in your hair and huff glue.

>"RREEEEEEE FUCK THE SYSTEM FUCKWIT FUCK BANKS RREEEEEEEE THEY CANT CHARGE ME INTEREST I KNOW MORE THAN THEM IVE BEEN LURKING 4CHAN FOR 8 YEARS RREEEEEEEEE"

>>1827754

>You do know my salary is 200% higher than the equivalent job in Smallsville, right Gomer? Not that your shitty stain on the map town has any jobs equivalent to what I do. The highest paying job in your county is probably the preacher who married your mother to her brother while she was pregnant with you.

Did I really trigger you that hard?

You don't have to work in a rural area to live in one, people have these things called vehicles. I also think you're confusing rural with backwoods. I can very easily (and happily) drive 20 minutes to and from the city if it means I can get more than a half acre to have a house built on. Not to mention the countryside is beautiful, something desk jockeys like you have probably never been able to see. Not your fault, but I'm just trying to educate you.

But hey, here's looking at you kid, you keep intentionally spending your money unwisely for stupid reasons. You might end up positive in the end, but the amount of money you blew to afford living in a cramped hole in the wall in the middle of the city where you can't even see the night sky will always haunt you. We intelligent spenders will be relaxing on our multiple acre property, breathing fresh air and not having to worry about getting mugged.

>>1828240
Suck my moster cock, poorfag

>https://www.moneysmart.gov.au/managing-your-money/managing-debts/making-repayments
>https://www.nab.com.au/personal/learn/managing-your-debts/5-tips-for-paying-off-your-home-loan-sooner
>https://www.nab.com.au/personal/loans/home-loans/home-loan-calculators/loan-repayments-calculator

Even the fucking BANK encourages you to do it

Protip: US banks are apparently fucking your ass

>not just buying a 4 bed/ 4 bath house and renting rooms, then using the rent to pay your 15 yr mortgage off in 5 years

shiggydoodiggy

>>1824075
Me and my family plan on building a small family home that may grow into our own estate. We have the money to start, but we are waiting for land prices to fall and for me to get a good career. Currently in college.

American Dream!

>look into renting
>mortgage payments are basically the same

>>1824702
The first two had a major influence on housing prices, the fiat currency argument is completely irrelevant.

Just sayin.

>>1824571
Compare Warren Buffett to Donald Trump. Trump was in real estate, Buffett in stocks. Buffett beat the ever living shit out of Trump in the amount of fortune they built.

>>1825076
My girlfriend is set to inherit her grandmother's house. The grandmother is 70 years old. My gf's great grandmother is still alive and is 96. Have fun waiting.

>>1824231
What is the point of this? Whats the difference between paying in cash? What benefit would you have taking a $200000 loan andbpayimg $100000 the first day and just taking out a $100000 loan? What benefit does your father get with having his money locked into your loan instead of investing it?

>>1828429
It's essentially like I paid cash for the house, but if something comes up and I want to withdraw a few thousand or up to $230,000 I can in about 20 seconds without needing to refinance or speak to a banker, qualify etc. It's just an online banking click of a button.

Prior to choosing to do this, the money was divided into a term deposit/CD paying, at the lowest point, 2.5% (of which is taxed) and several Vanguard funds which, after 3 years, returned no net profit (started with $55k, ended with $55k - buy high, sell low). I'd argue that now, since it's offsetting a 4% mortgage, it's earning me 4% tax free each year so closer to 6-7% at my tax rate.

*shrug*

>>1828469
Ive never heard of a redraw with no cap and no fee. Wouldnt you be forced to pay off your loan next month because early payments come from the end span of a loan? Your payments dont normally change when you pay off early. You just end up paying more principle instead of for that period thus lowering the total loan period and saving money on interest.

>>1828469
So if you are paying 2000 a month for a loan and pay half of it off, you would still be paying 2000 a month but your loan would be paid off in more than half of the time.

>>1828485
Bank sent a letter asking if I want to close the loan and I said no.The bi-weekly payment of approx $550 is simply deducted from the re-draw amount bi-weekly. So if this period I can re-draw $230,000, in 2 weeks time I'll only be able to re-draw $229,450

>>1828491
Yes, or I could skip a few payments and they're taken from the 're-draw' amount.
i.e. if I am required to pay $2,000 per month and I pay $4,000 in January, I technically don't need to pay February's payment... unlike my US accounts where if I owe $100 and I pay $500, I still owe $100 the next month.

The key is to use a mortgage offset. I expect to pay interest on approx half of my mortgage. Gradually the offset will increase at a rate of $400 per fortnight.

Paying a mortgage free of interest really is ideal.

>>1828503
Im not saying you are wrong but that is a very unusual bank. I would not recommend other people to try this is not how this normally works. The early payments are optional and can not be used to adjust your minimum payments. They are specifically used to close your loan early not adjust the payment system. If you found a bank that is in practice withdrawing from your repay to pay that current months payment then you should spread information about that specific bank and not the loan itself because you cant expect this at most large banks.

>>1824791
>The real redpill is spending as little as possible on housing and investing all your money in cryptos.
FTFY

>>1825076
if my parents died right now, i would end up with >2 mil in related cash/assests

get fucked frogposter

>>1825152
What's the 4% rule senpai?

>>1824069
Just bought these beautiful lakefront properties right outside the big city. I reckon I'll flip these bad boys in a couple of years when the housing market really booms here!

>>1824745
>pay 1200/mo in rent
no tax return
>pay 1200/mo in mortgage interest
$5k tax return
>pay $0 in mortgage interest
$14,400 savings

Are you serious mate? Paying tax deductible mortgage interest is better than renting, but it's worse than buying your house in cash and not having any mortgage interest whatsoever.

The only advantage of mortgages is if you get a low enough rate, your investments can beat that rate of return. The tax deduction isn't a "benefit", it's just a reduction of your interest. You're still paying more than if you didn't have any interest payments to make.

>>1828543
That if you invest money in the stock market, you can safely withdraw 4% of the total amount every year and it will last you 30 years. It's no longer true if you look at periods longer than 30 years though, so if you receive any money before retirement or plan on retiring early you need a 2-3% withdrawal rate to avoid exhausting the portfolio.

https://en.wikipedia.org/wiki/Trinity_study

Holy fuck I need to leave this board. People are arguing that you should save and pay for a house in cash lmao...

>>1828263
>I can very easily (and happily) drive 20 minutes to and from the city
No you can't. The only "city" that you can drive 20 minutes from and be in rural areas is the City of YouraMethDeludedRetard.

>a cramped hole in the wall in the middle of the city where you can't even see the night sky
Wow, projecting this hard. You really do swim in a sea of mediocrity and regret, huh Jethro? Enjoy the pig fucking ... I hear they're more attractive than smalltown women anyway,

>>1824696
Could you give a quick rundown of how to do this? I want to buy a house under a LLC so people won't be able to easily find out where I live by simply checking public records.

>>1824693

CPA here. The itemized deduction for 4% interest on 150000 is 6000 which is less than the standard deduction of 6300. This means you didnt see any tax advantage from interest unless you had other major itemized deductions.

There are plenty of good reasons to buy a house but the interest deduction is a meme perpetuated by realtors.

>>1824265
How old is she.

Women are huge parasites. My dad died, grandmother is still alive at age 80 and survives every happening thanks to healthcare.

>>1828825
The best way to do that is with a "nevada corporation."

I just know it exists. Sorry but i have no fucking idea how it works. Your tread near the irs rules and i dont want on their fucking radar. Just be careful if u actually do it and find a good cpa and tax attorney.

Im actually doing the same thing so that i can own rental houses in my small town and people not shit talk me for kicking them out when they dont pay or trash my house.

>>1824203
Where do you live?

>>1824195
THIS
Just do the math people

>>1827465
Which fucking shithole country do you live in a bank still gets to charge interest paid off early?

>>1824319
That's a myth realtors tell you. Do the math of how much you'll save if you itemize your deductions. The grand majority of people take the standard deduction because they save more money that way.

>>1828910
>CPA here. The itemized deduction for 4% interest on 150000 is 6000 which is less than the standard deduction of 6300. This means you didnt see any tax advantage from interest unless you had other major itemized deductions.
>
>There are plenty of good reasons to buy a house but the interest deduction is a meme perpetuated by realtors.

If you were a CPA you would have also mentioned the deduction for real estate taxes, which goes hand in hand with the interest deduction.

>But you're another fucking roleplayer on /biz/. Why?