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/biz/ - Business & Finance

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14124134 No.14124134 [Reply] [Original]

do rentfags understand that if they buy a house for say $350k with a fixed rate, they will literally have the same payment for 30 years and due to inflation those payments will become much easier over time. Whereas if they rent, landlords will simply continue raising their rent year after year until they die

>> No.14124148

>>14124134
rentfags have no deposit to buy a house in the first place

>> No.14124160

>>14124134
>yes goy buy the top of the bubble

>> No.14124161

if you're somewhere you want to live for more than 10 years, it almost always makes sense to buy. rentfags spend their whole lives building someone else's equity, but not their own.

>> No.14124173

>>14124134
Rentfags dont have the 70k down payment plus 4k for closing fees. They also dont have the 17k for a reduced down payment (inducing PMI charges) plus 4k closing fees.

>> No.14124177

>>14124134
I live in NYC and like being able to pick up and move freely. Being locked into one location for 30 years is a nightmare.

>> No.14124222

>>14124173
DUDE, go into debt to be able to make a downpayment for a mortgage, DOUBLE DEBT!
Even 5 years in the same place look like a luxury if you're under 40 and a wagie. Bless the modern peasant family where everyone for himself replaced multi-generational collaboration

>> No.14124236

>>14124134
Yea, but your fixed rate over the most common term of 30 years means you end up paying over $700,000 for your $350,000 home.
>>14124161
>if you're somewhere you want to live for more than 10 years
Not really building any equity the first 10 years. Those are interest payments, and if you were old enough to remember 2008 you'd know that there is some risk involved in being stuck in a mortgage.

>>14124134
>Whereas if they rent, landlords will simply continue raising their rent year after year until they die
And if the HVAC unit goes out, and Obama passed some regulations that mandate a new unit instead of a repair, then the landlord has to come up with the $7,000 for the new unit.

>> No.14124243

Do buyfags understand that they don't actually own the house, the bank does

>> No.14124255

>>14124161
That's only if you're a drooling retard and also not investing in shares

>> No.14124307

>>14124134
>Do mortgage fags realise the bank can call in the loan?
>Do mortgage fags realise they are tying up capital?
>Do mortgage fags realise they lose their freedom hence death tax!
>Do mortgage fags realise they are going to pay double the price once the mortgage is paid off?
>Do mortgage fags realise property prices can't rise any more!

>> No.14124334

>he fell for the low monthly payment meme
Do 30 year mortgage NPC cucks understand that they're paying nearly double the sticker price of the house over those 30 years?

>> No.14124349

Navy Federal had a no money down, no PMI loan for family members. I got my home because my sibling is in the Navy.

>> No.14124368

>>14124349
The kikes got you good! Thanks for devaluing the money supply! Crypto is now worth even more!

>> No.14124410

>>14124173
70k downpayment to buy a house? What fucking shithole do you live in?

>> No.14124414
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14124414

>Bought house after college. Wagecucked.
>Got raise, bought nicer house.
>Rented old house instead of selling.
>Rinse, Repeat, Rinse, Repeat.
>Retired at 36 with a stable of houses and wagecucks paying the mortgages.
>mfw

>> No.14124428

>>14124334
Yes, which is still far less than renting for 30 years and ending up with nothing. Its the best option you have over paying cash

>> No.14124431

>>14124134
Or just buy a duplex, make the rentcucks pay you to live there. no mortgage, gg ez

>> No.14124453

My first house I bought I rented out two of the rooms to roommates, they were buddies from college and we had some great parties in there, worked out great for me as they paid for my mortgage and utilities for 5 years.

>> No.14124478

>>14124222
>muh family
>muh legacy
Kek sad. Only fags who can’t make it themselves romanticize this shit.

>> No.14124488

>>14124414
How much are you pulling in anon?

By my calculations at that age I should be pulled in $30,000 worth of dividends a year (which are tax deductible)

>> No.14124544

>>14124134
>raising the rent year after year
3rd year starting at the same place anon, yet to see the rent rise
Also because I share the flat, my monthly rent is 0,1% of its total price, I would need literally 90 years to pay it off
Also the landlord has to deal with all the bs that comes through and with the other people living in the building

>> No.14124546

>>14124414
>t. $1.8k a month after taxes, insurance, maintenance, income tax, etc.

>> No.14124550

>>14124428
Home owners get fucked multiple times over with routine maintainence, property taxes, utilities etc. It's certainly an ok way to build equity over several decades but if I'm wagecucking by the time I'm 35 and still can't buy a home for cash I'll probably have already necked myself. Fuck boomer gains.

>> No.14124560

>>14124544
No goy, buying is 100% upside with NO downside! Buy now! Need a loan?

>> No.14124561
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14124561

>>14124488
Not much to be honest. I mostly live like a peasant, playing vidya and riding the bus. The cash flow on the houses is <$1000 a month, but I also have roommates in the house I live in. Living on little money is a lot easier when you look at things you might want and decide if it's worth getting a job. Newsflash: almost nothing is worth getting a job.

>> No.14124594

>>14124134
350? Try living in a big boy city like Toronto

>> No.14124601
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14124601

>>14124546
I read a lot of stories in real estate threads of anons who put 20% down on a house and can rent it out immediately with significant positive cash flow. This has not been my experience. Becuase I lived in each house, I only put 5% down and pay PMI, but even accounting for those things the cash flow situation starts out bad in my area. I only bought if I could break-even while the house is rented, meaning ignoring maintenance and vacancies. It was only after a few years went by that I actually started making a month-to-month cash profit. The reward is for the patient, however, as you are also earning a return on the appreciation of the house, and the principal part of the mortgage that gets paid down with each payment. Not a get rich quick scheme, but if you are patient and disciplined, you don't have to take a lot of risk or be very smart.

>> No.14124610

I rent in UK but also have enough in investments to buy a house with no mortgage. I don't want a piece of shit immovable asset with associated liabilities and risk.

You're on a crypto board not a boomer board

>> No.14124614

>>14124560
So I can pay rent to the country's corrupt politicians called tax, instead of a random guy? Naaah, i am fine the way it is, mate

>> No.14124652

im just waiting for my boomer parents to die so i get their house

>> No.14124672
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14124672

This ship already sailed. Everyone who qualified already took out these loans (myself included).
>pic unrelated

>> No.14124710

The opportunity cost of parking your ass in the same place for 10-20 years is higher than the amount you could save by having a mortgage, for almost all people with professional skills.

Renting allows people to explore different career paths and opportunities, and different localities before settling (if they ever do). The very real possibility of being sold a lemon and losing equity instead of gaining exists, especially as available housing ages overall.

We are in the very opening stages of the nomad culture paradigm shift. Home ownership that you live in will be a very rare thing indeed for under-50's in as little as a 20 years.

>> No.14124740

>>14124652
>tfw boomer parents haven't paid off mortgage for house

>> No.14124840

>>14124222
Reads a lot like FOMO, my man

>> No.14124874

>>14124550
You’ll have to pay those things regardless if you’re on a mortgage or bought the house cash amirite

>> No.14124917

I always wanted my own house to call home but everything is bullshit expensive, everyone seems like a con artist trying to screw me, and there are mexicans on government loans in every neighborhood. I even have money and income to buy something.
I dunno what to do besides play it safe and not buy anything yet.

>> No.14125048

>>14124173
>down payment is 70k
>closing costs only 4k
Stop talking if you don't know what you're saying my man.

>>14124307
>more bullshit
Almost every loan these days has no prepayment penalty and borrowing money is cheap as fuck right now as interest rates are anywhere from 3.7-5%. You can get in on a conventional loan with 3% down with a 700+ jew score and pay it off as fast as you want while having the peace of mind of only having to make the minimum payment if necessary. They also can't accelerate the loan unless you break the agreement.

On a $100k home your payment is like $900/month with taxes and insurance included. There's no reason at all to rent right now unless you are building credit.

>> No.14125067

>>14124561
Based and 100% true.
>t. live extremely well on relatively low-avg income that’s all passive

>> No.14125077

the problem is that there is no job security these days. you can get fired and then you're fucked. and even if you have a great job, what if you want to leave and move elsewhere?

We as a society are undergoing a change similar to mankinds early transformation from hunter gatherer to settlers, in its inverse - we live in the era of open borders (like it or not desu), you can live anywhere you want basically. Why not move around? I don't want to live my entire life in some village in bumfuck Oregon, I want to see the world. Yes I know, I'm a normie. Fuck you go pay your taxes

>> No.14125078

>>14124134
You've obviously never owned property. It's not that easy and it's not how that works.

>> No.14125097

>>14125077
>wanderslut
Checked though and partly true

>> No.14125101

>>14124177
>t. has had his lease not renewed at least once

>> No.14125111

>>14125048
>Almost every loan these days has no prepayment penalty
kek, I didn't mention prepayment penalty!
COPE harder Mortgage cuck!

>> No.14125114

>>14125048
>$100k home
Fucking where? Even condos are usually twice that.

And isn't the lower interest rates resulting in higher prices for those of us that save and want to pay off a property asap? I'd like to think the central planners will raise interest rates and that would result in dropping prices, but I dunno.

>> No.14125123

>>14124134
The state will allow rentfags to pay 70% of their paycheck to rent. The state and banks are not okay with allowing rentfags to pay even 50% of their paycheck towards a mortgage they would likely default on, particularly because it'll result in the bank having to try to flip a home in god knows what condition after foreclosure. Since most people are broke as fuck and have poor credit, they're stuck renting. Even in places where the mortgages are cheaper than the rent.
The only large exception to this are rich 30 somethings living in the big city doing white collar jobs. Those people should really be buying homes and commuting in for multiple reasons, but I guess everyone wants to pretend their life is a normie sitcom.

>> No.14125163

>>14124255
>rent place owned by dividend issuing rental company
>buy shares
>accumulate shares until you have an insane amount
>pay rent to get paid to pay rent
I like the way you think, anon

>> No.14125204

>>14125111
You and others were talking about the interests and having to pay double the cost in 30 years. Stop being a child.

>>14125114
I work primarily in rural and semi-rural areas in Texas. If you don't mind small towns with 10kish populations you can find homes under 100k all day. Even in the larger cities you can find condos for that price.

Lower interest rates don't raise the cost of the home as the sellers don't have anything to do with the mortgage. Lower is always better and so long as you have the prepayment clause in the contract, you can pay it off at any time and you won't get fucked over for it. Keep in mind that the interest on loans is front loaded, so the majority of the money you pay on your initial payments is going to interest. The longer you wait to pay off the note, the more interest you pay and the less beneficial it is to prepay it.

>> No.14125232

>>14125204
To go back and touch on your question as I believe I misunderstood it, yes lower interest rates cause more of a seller's market and raise prices. With higher interest rates you would see lower prices as people would be struggling to sell and create the buyer's market situation where people who pay cash would have the advantage.

>> No.14125234

>>14125204
Nah, other might have been, I never mentioned it! Up your reading comprehension game.
Stop being a child & admit you were wrong!
Its an Anonymous board no one knows who you are!

>> No.14125247

>>14125234
You literally said that people with mortgages would pay double, you fucking ignoramus.

>> No.14125256

>>14124134
Buying a house now is idiotic. Let the recession happen and see all the cheapies available.

>> No.14125290

>not getting a 10/1 arm for the lowest rate then selling it to a boomer in 7-10 years

Step up son

>> No.14125296

>>14125048
this, though i live in the midwest city size of 150k so much cheaper then say NYC. i bought a 115k house with about 10k down, mortage/insur/util/tax cost me about a grand and that includes 100 a month extra on the mortage. i make 4 payments a month and right now am looking to be paid off in about 21 yrs on a 30 yr deal. no prepay penalty, 4% rate locked in for 5 yrs. it was a nightmare finding a house in my area though, a hot market.

>> No.14125316

>>14125247
Then you go about pre payment...I didn't bring that up! Sure pay early WOW I NEVER KNEW THAT!!!!!!!
Dunning Kruger RIGHT HERE
You took my comment out of context! strawmaning!
You fucking ignoramus.

Go get a mortgage ya cunt!

>> No.14125376

>>14124840
I already missed out twice from my point of view, now it's time to wait and not miss out on the next chance to fuck off forever from normies. I'm comfy with rent+utilities being 1/6 of my income for the time being.

>> No.14125439

>>14125316
The prepayment penalty comment is because some loans will in fact penalize you for paying it off early, mongoloid.

>> No.14125449

>>14124594
This
All the advice in this thread goes out the window in a lot of leaf cities, I live a few hours from Toronto and it costs more to buy than to rent here.
350k for an a meth'd out cuckshack in a crime riddled area of town
440k for a townhouse
480k for bottom tier detached home that hasn't been renovated since it was built 40 years ago
Meanwhile newly built 2bedroom apartments can be rented for $1500/month

Assuming you're willing to put in 50k of work to a 350k cuckshack to make it livable, you'd need 70k for 20% + the 50k, that's a shit ton to save just for a downpayment and renovations.
At 3.29% interest rate + property tax + maintenance, you're looking around $2000/month for the next 25 years.
So I should save for a big ass down payment, toss an extra $500/month down the drain for 25 years, be at risk for a housing crash, and reduce my quality of life? No thanks, I'll keep renting and throwing as much as I can into buying index funds.

The only case where it makes sense is with duplexes (although good look finding one under 600k around here kek) or if you had someone else buying a place with you because it would cut all your costs in half, then it's only a 35k down payment + 25k renovations, and $1000/month for mortgage/taxes/maintenance, saving you $500/month, plus giving you ownership.

>> No.14125456

>>14125439
>mongoloid.
P R O J E C T I N G

>> No.14125475

>>14125048

Yes, buy at the top of the housing market bubble, so you can be upside down on your mortgage in 5 years.

>> No.14125479

>>14125456
I'm just going to ignore you now, m8. You're trolling at this point.

>> No.14125494

>>14124134
They don't want people to know that because then they will realize that their purchasing power decreases year after year.

>> No.14125515

>>14125475
>top of the housing bubble
Completely dependent on location, fren. I don't live in 500k cuckshack land. There's not much to lose in a crash for me, my house cost 82k thanks to some boomers selling their parents shit for whatever they would get. Bought it before the listing agent even got a sign up for 40k under asking.

Perks to being a realtor.

>> No.14125548

>>14124410
>what is math
OP said a 350k. 20% of that is 70k

>> No.14125552

>>14124478
>said the self made idiot
You're either a low IQ modern peasant, a scammer by profession or not self made

>> No.14125577

>>14125479
>m8
Not your friend! Wouldn't want to be!
>You're trolling at this point.
I am!

>>14125515
>Perks to being a realtor.
I see why your so arrogant about it now! You are literately invested in the lie!

>> No.14125600

>>14125515

Then stop projecting your personal situation on to other people to make yourself feel better. If you have to tell other people about something you've done, then that something must be a big deal to you.

>> No.14125623

>>14125048
>100k house
Lmao no thank you Detroit. I live in the suburbs and even condos are 180k

>> No.14125747

>>14125600
>>14125623
I already explained where I work and where the pricing could be found. It's not my "personal situation", I get homes under asking price for clients every week.

The loan information is universal to the entire United States. If you don't like the way the market is where you live, move. It's like being asshurt about a stock hemorrhaging and not just fucking selling it when you are in a good spot and tossing it into another one.

>> No.14125795

Love these threads for all the seething rent fags

>> No.14126156

>>14124148
this.

>> No.14126223

>>14124134
Actually never thought about that. Thanks anon.

>> No.14126314

>>14125795
i do, too. i've had many a good laugh arguing with seething rent fags on this board.
t. RE investor and property management company owner.

>> No.14126348

Do mortgage fags not understand that if they buy other assets for say 20% of $350k that they'll be further head than someone who bought a house?

>> No.14126349

Can mortgage fags explain to me how millennials, and zoomers, who have no money, are going to buy the bags of gen xers and boomers without their being a correction? Are they expected to buy another ATH bubble with no money?

>> No.14126443

>>14124134
>interest rates go up (they can't go down anymore)
>your 400k cardboard home looses 50% of value since people can't afford finance fat loans anymore (no more free money)
There are risks

>> No.14126761

>>14126349
Yeah, you just get them to get their credit score juuuust high enough to sign a mortgage. That way, you know you can legally keep them on the hook and people wont be able to say you took advantage of poor idiots like in 2007. Then you phone the Bogs as soon as the anon leaves the bank.

>> No.14126835

all this arguing and no one has said when the bubble is supposed to pop