/biz/ - Business & Finance

>>29031973
>house owned by bank is your asset

What kind of bait is this

No retard you now have 400k debt

>>29031973
Now minus liabilities for net worth.

>>29032194
>>29032144
yeah thats what i think too but everyone says im retarded for not buying a house, trying to wrap my head around how having a 500k loan for 30 years is smart

>>29031973
is that fucking piece of shit shack actually that expensive? Holy fuck this clown world is about to come crashing down and i feel like only certain cryptos will be left standing.

>>29032300
yea that's the average price for a house on long island plus property tax is over 2%

>>29032255
Over the years you will build equity, and presumably you got a pretty low interest rate on your loan

>>29032300
It's in New York, so yeah? The land the house sits on is worth a fuckload.

>>29032255
anon, there are people who keep their savings in accounts earning <1% interest. Are you really surprised that there's a market for 30 year mortgages?

>>29031973
>have 0 in cash
>borrow 10000k
>now have 10000k

>>29031973
Until they decide to rugpull you on loans.

>interest rates go up
>You now have 450k debt and 300k in assets

>>29031973
Seeing these houses that are significantly worse than mine and yet priced way more makes me very happy I got into the market when I did instead of listening to the doomsdayers about the forever looming crash.

No retard that's not how it works, you have a 500k asset with a 450k liability therefore your net worth is still 50k

It's not your equity, but you control. So if you, say, rent it, you would take profit from the total amount of the property.

>>29032638
A proper housing crash will never come because of the credit system and the illiquidity of the market. It'll forever be a bullrun propped up by renters and government policies.

>>29032255
30% of the USD supply was printed in the past year. Your $500k 2021-debt now will be worth the equivalent of $5k 2021-debt in 30 years. Would you buy a house if I told you it only cost $5k?. Not seeing it this way is why people are calling you an idiot.

>>29032300
kek no central air in there either.

>>29032867
Even more so here in Canada. On top of what you said, we have so much money laundering using our real estate, as well as foreigners buying it up as investment. Hell, tons of Americans own summer cottages here. It's the definition of too big to fail now.

>>29031973
No, you have 450k in debt you fucking moron. Your net worth isn’t 500k until the house is paid off. Protip always pot 20% or more down payment and don’t be a fucking mortgage slave

only if you can rent it out and make money off of it. and if you pay it off or if its value goes up after you buy it. otherwise it just cost you 50K up front, 450K in the future, plus interest on the mortgage, plus some repair fees as the longer you live there the more shit you'll need to fix over time. ranging from minor fixes of under $100 all the way up top multi thousand dollar fixes if something happens to the roof for example. so doing maintenance to the house as much as possible is always recommended.

houses end up bieng expensive as fuck. but some people do make a lot of money off renting out houses and apartments.

>>29033492
I wouldn't put more than 20% down in the current market. Even if you can afford to pay off the house entirely, when else are you going to get a < 2% loan? Your money can make a lot more than that right now, even just sitting in boomer dividend stocks.

>>29032255
As opposed to?

Are you all bugs? Enjoy never owning anything in your entire life because Mr. Shekelburg said that it's bad for your (((net worth))).

>>29033492
are you actually retarded?
you dont count debt as a negative asset debt is a liability
this is how leverage works and is why companies love low interest rates

>>29032144
The house is his asset the loan debt is his liability.

>>29032255
>rent: pay a home owner to never own a house
>buy: pay a bank the same or less to own the house
You can’t figure out why? You’re retarded then.

>>29032882
This.

>>29032499
>The land the house sits on is worth a fuckload.

That only an idiot would pay for.

Only reason a house like that costs so much is because the market is assuming that some big ass corporation MIGHT want to take a bulldozer through the neighborhood to build over it as a mall or some shit one day while ignoring if they wanted to they would've owned the damn land already... OR there's retards such as perhaps OP who are ready to pay an extra 100,000, 200,000 or 300,000 to live down the street from the Beach they'll barely ever fucking go to instead of getting a house in the middle of fuck nowhere Texas or Arizona or something and taking a roadtrip when they want to do shit like that.

>>29031973

alright so,
If I put 50k in an asset and it appreciates 10%, it's worth 55k

If I put 50k in real estate and buy a 500k asset that appreciates 10%,then my asset is worth 550k.

The great thing about real estate is that you get an appreciation on the whole property (500k) rather than just your down payment (50k)

>>29032255
If you put 50k on the house it is a 50k asset to you. As you pay off that loan you gain equity and will collect more when the house is sold. Paying for a mortgage is therefore smarter than paying rent and basically burning your money every month

>>29031973
BTW for anyone stressing about the price of homes just leave the coastal states. I live in Indiana and own a similarly sized home as OP pic and it only cost 65k. I put 17k down on it and my monthly mortage payments are $315 a month with taxes and insurance.

>>29032867
Yup, and even if it does "go down" investment banks will buy up everything and hold the inventory off the market to keep prices high.

>>29035238
no you own 10 percent of the house if you only put 50k down on a 500k house. if it goes to 550k and your equity stays the same, youd be at 55k

dont let coiners convince you to NOT buy a house. maybe dont buy a boomer home, but definitely buy a home and start a family. so much retarded edgy advice here

>>29037158
People are retarded. Duh crash uwu has been coming real soon now for a fucking decade. Newsflash, you can’t build more land in a city. Almost nobody can manage to live innawoods no matter how appealing it is. Immigration is skyrocketing. Foreign investment continues. Money printer goes brrrr. Boomers reverse mortgage instead of leaving homes to the estate. So yes don’t buy a house. Rent the box. Eat the bugs. Own nothing, be happy.

>>29034189
>just take out half a million dollars from the bank goy

>>29035633
yeah but what the fuck is there to do in indiana

isn't there an eviction moratorium right now? this housing market is due for a correction

>>29037673
>yeah but what the fuck is there to do in indiana
and what the fuck is there to do in the coastal states?
just live your life
are you a literal retard that fell for the meme that you have to live in a big city to be happy?

>>29032216
this

is OP really that new?

>>29032255
>a 500k loan
jesus christ anon there is no need to buy a mcmansion. a 130k home will do just fine. perhaps you need to move away from whatever shithole city you live near

>>29037891

This shit is going to be extended indefinitely

>>29037628
Anon your homework this week is to go for a walk.

>>29032541
this

>>29034915
no to both of those things it's literally just because it's new york. most of these houses were just sitting on the market until the pandemic when people from the city started buying them all cash. the property prices here are all fucked up literally because of jews.

>>29037944
>just live your life
i mean i guess if you just want to sit in a house by yourself? i didn't "fall for the meme" i can understand 100% buying somewhere cheap to raise a family because family is all that matters but if you're a single guy what the fuck are you doing just sitting around?

>>29038101
that's a pretty average house on long island, houses up around here in rural areas for 130k are shitboxes in white trash neighborhoods

>>29031973
No, learn how accounting works it’s not that hard.

>>29032255
Paying off the loan is impossible, people pay minimums on house payments which means insane interest payments. Its like paying the minimum on your credit card balance and expecting to ever pay it off. Ya the % on a house is way lower but the cost is 10x. Add to that 2-3% tax on 500k, 30% tax on your wage slave, 30% tax on any cap gains, etc.. etc...Low interest rates but who cares when housing costs are too the moon? My point, the buy in upsides for urban civilization is quickly dwindling. Everywhere it costs 250k minimum and you get to live near gun shots, drugs, shit community, shit schools. Cities have insane std prevalence even before Tinder was a thing.

My point, you are gonna need 5 million minimum to have an adequate buy in to continue living in the mainstream degeneracy that is life as we know it. Need enough money just to separate yourself from the shitty poors, this gets worse and worse as inequality increases and diversity increases.

Im thinking about becoming Mormon and moving to Utah. Id rather be apart of a brainwashed group working together than alone fending of basketball americans from my front yard.

>>29037673
>yeah but what the fuck is there to do in indiana
get drunk and fuck. What else? If you want to o anything special just take the weekend and youre a days trip from lots of places.

>>29032541
Where else can I put my savings that is liquid enough that I could have my funds in 3-5 days if needed.

>>29032553
>what is a fixed term mortgage

You put down 50k on a loan for 500k. You now have 500k in assets (the house) and 450k in liabilities (the loan).

>>29039702
Congrats on your 100 IQ

I'm always so surprised at how fucking insane real estate costs are in other parts of the country. You can basically buy a mansion here for 500k.

>>29032882
Japan has printed more and more year after year since 1992 and look what happened to their property market

>>29032255
>trying to wrap my head around how having a 500k loan for 30 years is smart

Do you not understand leverage?
1. put $100k down on a $500k house (20% down)
2. 10 years later, sell house for $750k
3. pay off remaining ~$400k to bank
4. you now have $350k from a $100k investment PLUS you had a roof over your head for 10 years

Do you not understand inflation?
1. put $100k down on a $500k house (20% down)
2. never sell the house
3. in 20 years, inflation raises the cost of everything but also your income
4. But the cost of your $400k loan remains the same
5. future money is cheap compared to today's money

Do you not understand equity?
1. put $100k down on a $500k house (20% down)
2. house stays the same price
3. in five years you sell the house and you get your $100k back
4. like living 5 years rent free

>>29041221
>pay a mortgage, taxes, and upkeep for 5 years
>rent free

>>29041030
Supply and demand.

>>29031973

You now have a claim to 450K in assets with your loan holder.

And 400K left in debt.

>>29041221
>Total Interest paid = $250k

>>29041583
All of that is pretty cheap depending on location of course. I pay $1.2k on thr mortgage including taxes and shit with 5% down in a nice house. That's what some people are wasting on an apt. I can rent out to buddies too and max money

>>29041104
imagine buying a house at the top for like 700k loan speculating on inflation then 10 years later your house is barely half a mill.

rekt.

>>29039045

You can change the beach to New York and it's the same shit m8.

End of the day just don't be retarded and try to live in HIP TRENDY PLACES. If you want to be in that sort of area just buy a fucking car,travel and a fucking hotel room for a few days. Places like NY or the Beach are awful places to live anyway because of how congested they are.

>>29041849
>3% interest rates

>>29040463
same question here

>>29041221
is there something else i can do with my money other than taking out a half a million dollar loan for a house how the fuck does this thought not make people physicall ill

>>29031973
You live in Bayville? Really? Who are you and do you prefer your American classic from the deli across from the fire station as a pizza or a sandwich

>>29040985
The real scale is
0-110IQ = "DEBT GOOD"
110-125 = "DEBT BAD"
125+ = "I personally own nothing and am the chariman of a shell corporation who's sole purpose is to be my tax haven resource mule and used as a piggy bank by my other corporations by which I harness the power of debt. These corporations I use to rent luxury goods to me at a price that is just enough to cover the interest on their respective debt. This price is payed by my initial corporation... DEBT GOOD"

>>29041104
Remember that Japan had a massive property bubble in the late 80s/early 90s. At one point the property value of the Imperial palace in Tokyo was worth more than the entire state of California.

But Japan is an interesting case. They also have an aging population, negative population growth, and little immigration so there's also falling demand for residences too. Some rural cities in Japan are actually paying people to come live there.

>>29031973
No, it means you have 450k of debt retard. Don't ever buy a plywood box that expensive, I can't believe millennials are actually this stupid.

>>29041030
I wouldn't call this mansion, but it must be nice to own a brick home. I really hate drywall homes; they shift and fall a part with temperature changes.

>>29042104
>is there something else i can do with my money
where else can you get 4x leverage with such little risk? it's not like taking out a loan to gamble on a shitcoin, even if the house fucking becomes worthless you still have a place to live in.

>>29042247
nah i live in the city right now but i'm leaving and looking at my options but literally everything in the tri-state area is so expensive for what you get nothing at all makes sense to me.... i feel like everyone is absolutely insane for taking out hundreds of thousands of dollars in loans but i guess im the fucking retard

>>29042399
>No, it means you have 450k of debt retard.
you have 450k of liabilities and 500k of assets.
God, you'd think that a business board would at least have people slightly familiar with finances.

oh wait, it's /biz/, continue with shitcoin posting.

>>29042316

Remake the meme haha

>>29036310

>own 10% of the house.
lol what.

Why can you sell it then if dont own it? You can sell it , pay back your loan and keep the profits , that's what most people do.

So the main point stands that you're getting appreciation on the entire asset (500k) and not just on the 50k that you have put in. If real estate goes up 10% you are up 50k not 5k.

Pretty good return

>>29042059
The banker kikes jew you up front on interest. Most of your mortgage payment goes towards interest with very little toward principal in the early years of a loan.

>>29042729
Houses in Bayville go for a fuck ton, and always have
I’m super curious what made you look there though, there’s gotta be houses all over the place

LI houses in general go for ludicrous amounts, really

>>29031973
>500k for that garbage

>>29042104
>other than taking out a half a million dollar loan for a house
buy a more affordable house

>>29037628
Working from home is going to make overpriced real estate crash.

>>29034576
The house is the bank's asset until he "pays off the debt", but it's the state's asset the entire time.

>>29039279
Maybe of you didnt live in such a piece of shit yankee state you wouldn't have to pay out the ass for a house that would cost a quarter as much in a different state's suburbs.

>>29040985
congrats on ur skin color, i can have 100 IQ and still be wiser than most. Paying interest to live with nogs? You are advocating this?

>>29039279
>inland cities have no life/fun in them
>if you want to meet someone it has to be in a coastal state

>>29043653
What?

>>29031973
And a 450k AP liability to balance the asset

>>29031973
jesus 500k for that piece of shit. i see something every day that makes me think hyperinflation is here

Talk about depressing

>>29032541
>>29032882
What I'm trying to figure out is what is the downside to just using VA loans. Even if it takes forever to pay off if the alternative is renting isn't the loan always better? You also don't have to worry about having your savings depleted for the down payment and you buuld equity like others have said.
Shit seems like a cheat code.

>>29043185
didn't specifically look there just used it as an example, but even still i have a brother on south shore and his house was like 400k and its not at all anything special

>>29044065
i'm just not a fucking hoosier bro, god bless you if you grew up in an area like that but im not uprooting my life at the opportunity to live in fucking indiana of all places

>>29032499
i wouldnt pay to live in new york if the house was 80k

>>29036310
this is your brain on POLtard.
If your house goes up in value you pocket the difference between your debt and the value of the house.

>>29032867
Sounds like delusion in the mania phase

>>29044426
>on Long Island
it's not like it's in rural Kansas, anon

>>29032255
If you are shit at investing your money AND you know for sure you will live there for the next 10 year, then yes that's a smart thing to do, otherwise it's garbage. The transaction fees on a real estate purchase are ridiculously high, you need a realistic expectation of holding the real estate for 10+ year.

>>29032255
>what is leverage
do poorfaggots even try to stop being poor ?
Leverage and debt are the best tools to actually increase your assets you fucking niggers

>>29031973
Same with crédit cards

>>29044891
yes i know pay a premium to live on Jew Island. Oy ve what a deal! Best bagel shops in the country!

>>29044941
this. Also in a big city if you get lucky you can get a decent return over the next 10 years. Also the risk of losing a lot in a bursting bubble is there tho

>>29032541
if you don't think there will be deflation (of course there won't inflation is the real risk) then the longer the loan term the smarter you are.

>>29043867
The state is the banks asset though

>>29032882
no idiot
if you have debt you WISH there is a shitload of inflation. Your debt will literally be evaporated.

>>29042329
An interesting take. Places like California and Hawaii have net outflows of residents for several years now as well, but property prices there are at all time highs. In Hawaii I know for sure that properties are being bid up through speculation. 40% of buyers last year were from out of state, and most of those buyers already sold for huge profits.

>>29033348
It never really gets hot on long island. I could go the whole summer without AC no problem if it didn't cause mold in the house.

>>29031973
>put 50k down on 300k house
>300k house is now worth 500k because real estate is a massive fucking bubble
>you have 250k in assets plus whatever on the mortgage you have paid down

>>29044428
VA loans have a 'funding fee' that other loans do not. Look it up.

>>29045846
Tax shelters.

>>29042675
That home is probably drywall with brick veneer. There are next to no brick homes in the US.

>>29042316
Explain this to me. As far as I know debt can be good. But I don’t want any debt in my person. Do I have to create a company which controls my assets?

>>29038320
Absolutely. They keep kicking that fucking goddamn can down the road and our generation will never own a house.

>>29040985
This guy gets it. Why the fuck would you want to pay off your home as quick as possible? You use other people's money for that. Lmao, the dude talking is a young man who doesn't have experience in life.
>b-but you pay more in the long term
Him saying that lets me know you can't reason with him. Based anon dropping graphs.

>>29045846
Official stats like net outflow dont account for illegal immigration inflows. One can likely safely speculate on real estate in CA with the assumption that there is a larger than reported population base that needs to rent, basically dark demand. It's also presumably a huge reason why sanctuary cities are critical talking points for Neolibs. They recognize this is what's best for their own bottom line, working class wages be damned.

poorfags love to pay for everything in cash. they can't think beyond that process.

>>29046766
Debt means you owe someone else something.
You personally owing a debt in your name is bad.
You avoiding debt is smart, but not efficient.
You using the goods provided by someone else or something else taking on debt is big brain (it's also a quick way to land yourself in prison if you don't know what you're doing or if you're committing a crime to accomplish this).

>>29046410
Couldn't you just put the minimum down payment to get out of that? I know this eats into the
>$0 down
But that's never been a real thing anyways

>>29044792
The sad part is that you're right. It does. But that being obvious to everybody is another reason why it wont crash.

Do you want to live in an overpopulated area or have reasonably cheap housing? I don't see why OP is struggling to understand this. Welcome to the real world, my sweet little man child, your fantasies dont exist here.

>>29044097
a lot of pricey real estate is pricey because of its access to high power business areas
not as relevant anymore because of remote work, so businesspeople can move wherever they want

>>29041221

Wait. Do you understand Equity?

Assuming the very best state with 0% property taxes, you're still paying ~$1850/mo for that $400k loan over 30 years.

$1850x60months = $111k <-- that's how much you pay over 5 years. $46k does go to the principal - which you 'get back' when you sell... but you're still talking about paying at the very minimum (again, assuming no upkeep and no property tax) $1100/mo "rent" to live in that house for 5 years.

>>29042316
ok but this is embezzlement tho

>>29031973
No retard. The equity on your home is an asset. Debt is a liability. If you put 50k in, and the mortgage is 450k, your net worth is negative 400k

>>29032790
Lost

>>29031973
You must be 18 to post here.

>>29032255
Because, retard, your loan is 3% but you are making 20% on the stock market.

>>29034576
Uh no the house is legally his asset and also the collateral of his mortgage loan.

>>29032144

You're net worh is the market value of the home minus the outstanding loan amount.

(ex: Home is worth $300,000 and you owe $200,000) you can add $100,000 to your net worth

>>29048895

You too, must be retarded.

>500k assets
>450k liabilities
50k net worth

you will roughly pay 900k by the time you've paid it off
this is why becoming a usury landlord is leech behavior, and you are directly responsible for increasing the cost of living and driving people out of their hometown

>>29049427
>you will roughly pay 900k by the time you've paid it off
If you rented similar quality housing in the same area for the same amount of time you'd end up paying more because your rate isn't fixed but you wouldn't have the equity to show for it.

>>29049872
why the fuck would I rent a 500k home to make up for not owning a 500k home
nigger you're dumb as hell

>>29050212

let's not pretend there aren't advantages to renting.

>>29043180

There's no way

>>29050212
900K/360 months = $2500 per month
Look at the average rent in Long Island. And that doesn't even get you a house. Enjoy living with the other sois in a cuckshed apartment, faggot.
https://www.zumper.com/rent-research/new-york-ny/long-island-city

>>29051018
i get your point but that isn't remotely close to what anyone would pay for a 1br on long island