Rent or buy?

[Anonymous No.13520037]

What is the real cost of owning a house and is it even worth buying one? Live in chicago, currently renting and sharing with 3 ppl. Total rent including everything comes less than $500.

With buying , there is property tax, homeowner insurance, unexpected repair, interest on loan

[Anonymous No.13520055]

if you buy a house now and the bubble pops you're fucked

[Anonymous No.13520079]

>>13520037

Anyone who doesn't have the money to clear a mortgage in 5 years or less is walking on thin ice. The developed world is in the middle of a massive real estate bubble.

[Anonymous No.13520082]

>>13520037
Never rent you cuck

[Anonymous No.13520091]

>>13520037
good land is running out, if you dont buy it enjoy paying $5k a month rent from mr golburg in the ghetto for something he can take away from you at will and you own nothing.

[Anonymous No.13520094]

>>13520037
Advice

Cities and suburbs are going to continue to rot.

Buy crypto, buy land in the country for like 5k and acre and live out there trust me.

[Anonymous No.13520097]

Rent = paying your landlords mortgage, insurance, maintenance, your landlord profit margin, his contracter's profit margin, and being at the mercy of your landlords whims with the threat of moving (costs you thousands) your only leverage.

Buying = paying your own mortgage, insurance, maintenance, and doing w/e you want on your own property with no middle men to leech money from you.

>>13520055

Not really, just wait it out, 5 years tops, in the long term the dollar is rigged to lose against any real asset. And if you rent now because you think prices are high, if there is a recession in a year are you going to put down $100k and buy the bottom when everyone is getting laid off like in 2008? Probably not. Just make sure your mortgage is less than 10% your income and have a few years of payments saved up in an emergency fund.

[Anonymous No.13520136]

>>13520097
Based

Seriously

>>13520091
Very based

Trust us anon we are all frens here

[Anonymous No.13520189]

>>13520097
While I agree with you in principle, it depends heavily on where you are. Where I live (Chinksville Canada) prices to buy are so astronomically high that my rent doesn’t actually cover my landlord’s expenses so he’s subsidizing my housing costs. Do the math is all I’m saying.

[Anonymous No.13520227]

>>13520037
REAL ESTATE IN 2019 IS A MEME (in most areas)
Losers buy an overpriced house a 30min drive away from city center and think they made an investment (it's free money!). Top meme unless you can buy inside a city center.

[Anonymous No.13520257]

>>13520189
Why would he purposely lose money?

[Anonymous No.13520270]

>>13520257
Because the belief here is that prices will always go up and he’s banking on price appreciation in the longer term. Does this chart remind you of anything?

[Anonymous No.13520277]

>>13520257
Lose in the short term to gamble on the future

[DarkTrip !nNThBA7CKU No.13520288]

>renting

[Anonymous No.13520290]

>>13520270
>yfw interest rates finally go up again and it crashes

[Anonymous No.13520298]

>>13520189
Don't bother telling the retards in this thread since if they automatically respond buy it means they have less than 100 IQ

[Anonymous No.13520394]

>>13520097

>> Make sure your mortgage is less than 10% your income.

Kek good luck with that. If you're on $30-40k you'll get a shithole house for $250-$330 per month unless you extend the term so long that you end up paying double the value of the house just on interest.

Anything around 20% of your pre-tax income is fine providing you aren't a retard with money. Even closer to 30% can be okay in some circumstances, particularly if you're on a higher salary and can pay the mortgage off quickly to save on interest.

[Anonymous No.13520416]

>tfw you have a comfy interest rate
It could be lower but 3.625% feels pretty comfy

[Anonymous No.13520417]

>>13520037
Only an absolute mental retard would rent. I laugh at my coworkers (public accounting, so we're all in our 20s) who rent. Living with your parents rent-free is easily the wisest decision while you build up your savings.

[Anonymous No.13520459]

>>13520270
picture for ants

[Anonymous No.13520463]

it really depends on where you live, that said i do have to admit in most scenarios buying is the better decision but also more risky. Nevertheless i would wait a few years say 3-4 the market is simply too hot right now

[Anonymous No.13520476]

>>13520037

>buying boomer bags in 2019

[Anonymous No.13520486]

>tfw live in HCOL area where 1,000 sqft 2 Bd/1 Ba condos are like 300-350k

No way I'm dropping 60-70k + closing costs anytime soon especially when I can put that money in much better investments

I'm doing just fine paying 900/month with a roommate

[Anonymous No.13520596]

>>13520037
Best tiny piece of advice from someone who has recently sold and purchased:

Have all of your inspectors lined up before you even start looking at homes. Get the absolute best fucking inspector you can find. Once you sign an offer on your purchase the ball will start rolling and you will be rushed to complete inspections and close. You'll have a roughly 10 day period to complete all inspections if I remember correctly and your realtor will recommend an inspector if you don't have one already lined up. Under NO CIRCUMSTANCES use an inspector recommended by your real estate agent. I know this is obvious to most, but there is a lot going on once you sign the offer and you will be rushed to close so you might get swept up in cutting corners on vetting your inspector.

[Anonymous No.13520651]

What about buying in Seattle? Prices have stabilized there recently and I want to move soon. Asking for a friend.

[Anonymous No.13520688]

The only thing renting has over owning is something you can never get back.TIME.
the amount of time you invest in your home vs having someone else deal with it can prove to be worth wild for some people. I am not one of these people.

[Anonymous No.13520765]

Can you still buy rental real estate in Toronto?

[Anonymous No.13521112]

>>13520651
>730k for 1300sq ft in grey ass Seattle

[Anonymous No.13521190]

>>13520037
So can have a dog and that's about it. Great reasons there.

[Anonymous No.13521203]

>buy house
>rent property to college kids
>use income to pay mortgage
>use left over to cover rent at your swankass fuck palace downtown where rent costs as much as monthly mortgage and you have a free repairman on call.

[Anonymous No.13521229]

>>13521203
>college kids wreck your house

[Anonymous No.13521231]

For me buying a house was a no brainer. The mortgage with NO MONEY DOWN besides closing costs is the same if not CHEAPER than renting. I cant fathom deciding to rent lol just lmao

[Anonymous No.13521245]

>>13521231
Wait until you see how much it costs to maintain it.

[Anonymous No.13521259]

>>13520037
wait for the boomers to die. get their real estate on the cheap

[Anonymous No.13521281]

>>13520394

$30-40k is a very low income, the average household making $120-130k (average US household income in 2018) can pay $1k/m on a mortgage which is a very safe amount, and should have around $50k in emergency funds.

>extend the term so long that you end up paying double the value of the house

The thing is inflation after 30 years is much more than 2x... All mortgages are given by government owned companies, they are money losing loans as the interest rates are artificially low. Its pretty much free money as long as you take proper precautions like having a large emergency fund so you don't go under in a recession.

[Anonymous No.13521284]

>>13520037

A HOUSE IS A PLACE TO KEEP STORE YOUR SHIT AND KEEP YOU OUT OF THE ELEMENTS

ITS NOT A FUCKING INVESTMENT

[Anonymous No.13521288]

>>13521259
this. simple supply and demand

[Anonymous No.13521328]

>>13521284
it's an asset that can and in many cases will safely appreciate quicker than inflation
mortgage interest is a giant deductible and SALT piles on top of that

with a decent down payment you end up ahead of renting while enjoying the benefits of ownership rather than the relative uncertainty of renting
it does require greater financial flexibility and general responsibility though

[Anonymous No.13521339]

>>13521245
This, normies buying homes with their little 50k/year income are basically agreeing to rent from the bank instead of a landlord while also maintaining the bank's property for them. When normie gets laid off or housing bubble bursts, house goes back to bank and they find another muppet to extract fees from.

[Anonymous No.13521351]

>>13521339

Thing is with a mortgage you're renting money, vs renting an asset. Only one is near guaranteed to depreciate value in the long run.

[Anonymous No.13521365]

>>13521339
Why does it matter if the bubble bursts if you don't lose your job?

[Anonymous No.13521372]

>>13521281
>$50k in emergency funds
this is both an insane number and completely arbitrary

a way better way to think about emergency funds would be 6 months of expenses
if you can keep enough liquid cash to keep yourself going for 6 months

>they are money losing loans
spoken like someone who has no clue
banks routinely bring in 1-2% on closing in just fees and somewhere around 5-10k on the back end in selling loan contracts to freddie mac/fannie mae
and they are easily making around 10-20k per loan depending on the quality and size of the mortgage

[Anonymous No.13521394]

>>13520486
>HCOL
that would cost three times as much here

[Anonymous No.13521407]

>>13521328
>with a decent down payment you end up ahead of renting while enjoying the benefits of ownership rather than the relative uncertainty of renting

No shit.

Not to mention with renting you're just paying someone else's property tax and mortgage and they're laughing straight to the bank

[Anonymous No.13521413]

>>13520037

Fuckin buy - build your own house you stupid fag. Rent is always increasing more then the inflation rate and more then your basic salary increases per year.

On the other hand, the interest on a loan is always below the inflation, if you havent a complete fucked up credit rating.

[Anonymous No.13521420]

>>13521372

I'm talking conservatively if you're really expecting a downturn in the next few years, then you're going to want multiple years of payments saved to feel safe.

[Anonymous No.13521427]

>>13521365

If you treat your house as a place to live and not an investment, market cycles become irrelevant.

[Anonymous No.13521443]

>>13521365
It matters because being underwater on your loan is typically a bad thing. Many housing bubbles popped in 2008 and never regained their peak prices until very recently. Many housing markets are still underwater from '08. If you are comfortable trying to time that, have fun.

[Anonymous No.13521458]

>>13520486
Paying $750 a month to rent with gf roommate currently. Keep thinking about buying but seems like a huge risk/mistake right now. Housing bubble + disruption is overdue.

[Anonymous No.13521467]

>>13521339
Delet this pls

[Anonymous No.13521470]

>>13521413
My goal is this....significantly easier according to research ive done to get a builders mortgage.

[Anonymous No.13521482]

>>13521427
History has shown this is a fantasy. Consumers view their houses as investments as well as piggy banks, constantly tapping the equity to buy depreciating meme assets like cars and stupid vacations. If a repair comes up, they tap equity because most consumers dont save. Most people dont have the financial discipline to own a home, and will be renting from the bank (with interest), forever.

[Anonymous No.13521484]

>>13520037

>buying is just renting from the government via property tax

[Anonymous No.13521517]

>>13521484

Went you rent you pay your landlord's property tax, and its probably higher because he wouldn't get a residential exemption.

[Anonymous No.13521519]

>>13521443
underwater loans only really happen when you take some shitty 80/20 mortgage/HELOC deal or something without a down payment
so long as you put ~15% down and don't buy at the exact worst time you are pretty much guaranteed to never be underwater

[Anonymous No.13521532]

>>13521484
>you can claim your state and local property tax as a deduction on your federal taxes up to 10k

[Anonymous No.13521577]

>>13521482

I was arguing how to should be, not how it is.

[Anonymous No.13521591]

>>13520097

>Rent = paying your landlords mortgage, insurance, maintenance, your landlord profit margin, his contracter's profit margin, and being at the mercy of your landlords whims with the threat of moving (costs you thousands) your only leverage.

>Buying = paying your own mortgage, insurance, maintenance, and doing w/e you want on your own property with no middle men to leech money from you.

So either way you’re paying a mortgage, insurance and maintenance. The difference here is the landlord’s profit, but what about the profit of the seller for a house? And at this point in many cities housing is so expensive that you get articles about how millennials are all renters. It’s possible your “investment” in a house could go nowhere. But if you rented a cheap place and invested in different assets, you may have made even more money!

It’s not obvious that buying a house makes sense as an investment, it depends on context.

[Anonymous No.13521600]

>>13521532
that is good for minimizing what you owe but if you're already getting a refund you don't get very much back

[Anonymous No.13521613]

There's nothing comfier than renting. If anything goes wrong I just pick up the phone. Owning a house was stress city.

[Anonymous No.13521623]

>>13521532
So less than the standard deduction meaning it's completely worthless?

[Anonymous No.13521624]

Places renters never have to spend money

There's a reason home repair and maintenance is a trillion dollar industry. It's expensive as fuck.

[Anonymous No.13521650]

>>13521623
if you somehow ONLY have property tax to claim you've done something very wrong
namely you can also deduct ALL of your mortgage insurance
which for the first year of ownership should be between 5-15k depending on mortgage amount and rate

[Anonymous No.13521657]

>>13521532
Not anymore....trump took that away.

[Anonymous No.13521668]

>>13521657
try fucking googling this shit before you make a post you uninformed idiot

[Anonymous No.13521706]

>>13521657

That for claiming state tax as a deductible on your federal tax, IIRC.

[Anonymous No.13521727]

>>13521657
>t. Redditor with his own financial whiz kid YouTube channel misleading an entire new generation of brainlets
kys

[Anonymous No.13521858]

>>13520097

But the housing market is 95% propped up by a very cheap dollar to borrow

[Anonymous No.13522054]

>>13521650
>he didn't put enough down and now he's blowing money on fucking PMI
>at least he can deduct it from his taxable income
fucking lmao home owners will jump through flaming hoops as long as their mental gymnastics can justify their massive buyers' remorse

[Anonymous No.13522083]

>>13521484
this

the cheapest way to reduce ongoing costs like property tax is to live outside a municipality. You still get charged a land tax which is about ~$10/year per 100k of land value. pretty fucked that you're paying for literally no service lol but not like you have a reasonable way to fight it

cheap bush land in the middle of nowhere for about 16k
clear out the land for 2k
drop down a tiny/small prefab house $20k-150k
get solar panels and batteries for $15k-$50k
get a well drilled for maybe $6k
get a septic for maybe $10k
only $69k to have a comfy property to live on for $10/year.

you'll need a car so that's maybe another $100-$200 for insurance, plus ~$50/gas depending on how often you drive and how far you need to
you'll need food, can grow your own and hunt, but will likely still want groceries. so maybe $100/month
you'll want internet, so that's at least $50/month.
so that's maybe $400/month, so you'd need 120k invested to have 4% returns that cover that.

means you only need $189k to live and retire comfy

once you get settled it could be fun to start buying up some more land and building out your own towers for internet/cell, ubuqiti PBE-M5-620 will give you 30+ km range and you'll get 150+mbps and only costs about $200 for a pair.
147ft tower $5000 to build
less power needed so maybe $3000 for solar panels + batteries
assume land costs 16k, that's $24,200 for each cell tower with minimal maintenance.
with 600k invested you could safely build out a new tower every year. you and your future generations could become very rich as more people expand outward, after a decade you'll have a shit ton of land and 10 cell towers. lease out access to them for the surrounding area, if any telecom wants to get in they'd probably rather just pay you than build their own.
Imagine how much you'd have after 40 years and how much the area would have grown from other people wanting to escape municipalities clawing money away from them with little recourse.

[Anonymous No.13522114]

>>13521112
>ghey ass Seattle
fixed that for you

[Anonymous No.13522135]

>>13520037
if rent/price under 0.5% you rent no question
if it's above 1% you buy no question.
in-between depends on what you want and for what timeline.

[Anonymous No.13522371]

>>13521706
My response was right....Thats exactly what he fucking said...You cannot claim state tax as a deductible on federal taxes anymore.

>you can claim your state and local property tax as a deduction on your federal taxes

[Anonymous No.13522385]

>>13522371
well....above 10k you cant but whos fucking property taxes are bellow 10k anymore