/biz/ - Business & Finance

[Anonymous No.18085157]

>Buy house for $171,000
>30 year mortgage, 5.3 percent
>Make payments for 5 years totaling ~$91,000
>Remaining balanced owed: ~$169,000
Why do people do this?

[Anonymous No.18085161]

>>18085157
mortgage cucks btfo
at the end of the day, we're all just renters

[Anonymous No.18085175]

>>18085157
Cash flow. Also if you do that deal and rent it out to someone at 7% you are basically making free money.

[Anonymous No.18085195]

>>18085157
Desperation, they think that's all their is, etc etc. I'm sick of it. Absolutely ridiculous. I looked at a mortgage for like a 60k house. The interest was almost cumulatively 45-50% of the principle. Stupid.

I explained to my CC company that 20% on any line of credit was insane. The phone person just gave me a balance transfer 12 months no interest ahahahhaahahahahah

[Anonymous No.18085196]

>>18085157
>5.3% interest yearly
lol i can get 1.8% here, how low of a deposit did you put in?

[Anonymous No.18085209]

talking about loan but not the appreciated assets

[Anonymous No.18085214]

>>18085157
people don't understand the 8th wonder of the world.

[Anonymous No.18085220]

Is this pol? What’s up with all the anti semitism

[Anonymous No.18085225]

>>18085196
That's daily. Not yearly. It's added daily on principle. Go use a mortgage calculator.

[Anonymous No.18085245]

>>18085196
I haven't personally done it but one of my coworkers bought their first house and then paid it off in full after five years. Zero down. For the full thirty years you end up paying for the house almost three times

[Anonymous No.18085252]

>>18085157
Your interest is paid upfront, principal is paid down in the later the years, also your rate is high, at least for my market. As others have stated If I can lease the unit at an 8% cap I’m basically letting my renters pay the equity in my house. Many first time Re investors will do this with a duplex, live in one half, lease the other half and let the renter pay the mortgage. Your biggest expense will be your contributed capital, typically 20% of the loan value. I can also write off my mortgage interest and any capx on the property, so navigating tax laws is key for maximizing IRR. Trust me, renting is not the way to go, you’re basically a cuck building no equity. Anyone who tells you differently is uneducated on the topic.

t. Masters degree in Real Estate finance with multiple properties both commercial and residential

[Anonymous No.18085260]

>>18085209
Houses are negative cash flow unless rented out or used to create positive cash flow. It's not an asset, it's a liability.
Pick up an accounting book dude. Appreciation is not actualized until sold, and with where we're headed, appreciation doesn't look very good, unless the government continues to inflate the dollar to oblivion, which it is doing quite fervently. Look at the US debt to GDP. That may provide some insight.

[Anonymous No.18085269]

>>18085220
what the fuck are you talking about

[Anonymous No.18085289]

>>18085157

plugging this into an amortization calculator you would have a 157k balance after 5 years if you put 0 down.

[Anonymous No.18085361]

>>18085157
buying is a scam dude

[Anonymous No.18085672]

>>18085157
>5.3%
Are you insane?

[Anonymous No.18085751]

>>18085157
>be savvy
>realize they're lying about inflation
>take out as big a loan as a i can
>fed pumps the fuck out of my house bags
>keep paying minimum debt with money that's progressively devalued
>by the time it's over. paying back my loan with funny money and holding a real asset

People that bought homes int he 1950's were paying their loans back with dollars that had devalued quite significantly by the 1970s.

[Anonymous No.18085776]

>>18085220
Yes this is pol

[Anonymous No.18086218]

>>18085751
This. Even if you assume the 3% inflation the kikes tell you to believe, after just 20 years you’re giving the bank worthless coupons for your asset.

[Anonymous No.18086239]

I imagine duplexes are going to be on a fire sale here very shortly...

[Anonymous No.18086331]

>>18085252
How fucked are you for the next few months when your renters don’t pay

[Anonymous No.18086381]

>>18085157
Because the Fed's money printer will inflate your debt away

[Anonymous No.18086446]

>>18085157
Shitty rate anon. You should start paying extra on your principal if you plan on living in that home for more then a few years.

[Anonymous No.18088018]

>>18085220
Every board is pol faggot

[Anonymous No.18089118]

>>18085260
>where we are headed people won’t need houses
You realize nobody is going to sell their home for peanuts when it’s all they have, right? Better to have a home than nothing at all. If the banks go under you won’t even need to pay your mortgage.

[Anonymous No.18089924]

>>18085175
7% huh?

[Anonymous No.18089955]

>>18085157
Why don't you just buy something outright like we did back in my day?

[Anonymous No.18090012]

>>18085252
>Multiple properties

Kys

[Anonymous No.18090080]

>>18085157
People like having a home and not renting around a bunch of degenerates. Also, 5.3% interest is a rip off even 3 years ago. You can get 3.0% and even buy mortgage points to the point where the interest is barely noticeable

As far as investing goes, rental properties are a waste of time and money unless you can know how to renovate and repair every part of the home.

[Anonymous No.18090094]

social status of "owning" a house

[Anonymous No.18090106]

>>18086239
Prices are going up, not down. That's how inflation works.

[Anonymous No.18090226]

>>18085252
Anon if you're still in this thread:

How does a poorer person become a homeowner? I'm 30 with no living family and a saving of about 20k USD. Its kind of been my dream to be a homeowner. In short, how would you proceed in my shoes without bankrupting myself?

[Anonymous No.18090253]

>>18085157
Your credit/DTI is nigger tier if 5.3% is the best you can get today

[Anonymous No.18090262]

>>18085175
Yeah until a pandemic happens and your renters aren't paying anymore

[Anonymous No.18090264]

>>18085157
>5.3%
>30 years
>no/minimum down
Stop falling for scams. We seriously need to teach people how debt works or we will be stuck in slavery forever. We need to stop squabbling over fucking pennies when we can be curing cancer and aging and exploring the cosmos.

[Anonymous No.18090268]

>>18085157
>rent
>pay your landlord's mortgage
>pay your landlord's profit margin
>get 0 equity

[Anonymous No.18090277]

>>18085157
>paying the minimum

I bet credit cards love you too. What part of 500/mth for a 200,000 house doesn’t trigger your spider senses?

[Anonymous No.18090278]

>>18089118
Some people may have no choice to sell. Either that or foreclosure.

[Anonymous No.18090294]

>>18085220
Subtle

[Anonymous No.18090298]

>>18090262
Wrong. The lost rent will come out of their security deposit, or the government will give them unemployment and they still have to make their rent.

Also, landlords can apply for forebearance at this time and not have to pay their mortgages for 3-6 months meanwhile the rentcuck has to.

[Anonymous No.18090318]

>>18085252
Your time nears, landlord.

[Anonymous No.18090322]

>>18085220
Hating kikes is not anti-semitic

[Anonymous No.18090402]

>>18085175
not even close. maintaining a house costs money. I've probably thrown 10k at my boiler alone over the last 10 years. OPs example is accurate, but just goes to show you have much of a scam 30 year mortgages (at 5.3%) are.

[Anonymous No.18090407]

>>18090268
Thats because you are paying for a service. Theoretically, it should be cheaper, and there is no interest, so the difference can be used for other things like investing. Obviously, thats not always the case.

[Anonymous No.18090433]

>>18090322
Based and anti-zionist pilled!

[Anonymous No.18090585]

>>18090407

No theoretically. Your landlord has a mortgage. When you rent, you are paying more than the cost of that mortgage. You are paying for his profit, and a lot of other things. You are probably also paying a higher tax rate. You are also probably paying your landlord to pay a property manager. They'll take their profit too. That property manager also pays mechanics, plumbers, etc. for shit that you could probably do yourself or hire someone yourself for much cheaper.

There are never cost savings to renting, because your landlord is paying the same costs, plus more, and he makes money, so by definition you have to pay more renting. You also get leverage when buying. If you put 20% down for example, and your house appreciates 5%, you actually made 25% return. And on average houses will appreciate closer to inflation of the money supply, not CPI, they usually rise >6%/year. So you will get much better returns on average than something like an index fund in the stock market.

[Anonymous No.18090752]

>>18089924
ye increase that mortgage payment number by 2% and divide by 12. rent out so that tenant "breaks even" and you get 2% profertino

[Anonymous No.18090811]

>>18085220
Subtle

[Anonymous No.18090954]

>>18085220
fed

[Anonymous No.18091706]

>>18085157
>pay off house
>still have to pay property tax or you lose your house

[Anonymous No.18091759]

>>18085157
this math doesn’t even make sense its 5.31 percent total so like $9,000 interest on a $171,000=$180,000

[Anonymous No.18091762]

>>18085161
This

*Pays property taxes*

[Anonymous No.18091780]

>>18085157
>what is the time value of money
I've never bought a single stock or shitcoin and I know this

is this just a board for trannyposting?

[Anonymous No.18091782]

>>18085220
Hating kikes is universal.

[Anonymous No.18091787]

>>18091759
The interest on loans are added daily, not on the entire loan. Look at daily interest rates and how these loans actually work. It's not even close to what is actually stated. They do this for clueless people.

[Anonymous No.18091820]

>>18085220
Mmmm tasty anon I like your posting

[Anonymous No.18091831]

>>18085220
go back to re...ddit bernstein

[Anonymous No.18091883]

>>18090226
move to a place where property isn't a total ripoff (hint: not a major city)

[Anonymous No.18091906]

>>18090264
or we could throw them out of our nation... 110 when?

[Anonymous No.18091925]

>>18089118
if you don't pay your mortgage the banks confiscate your house as collateral, you aren't safe until the loan is paid off

[Anonymous No.18092253]

>>18091925
Then if you don't pay property taxes after you own the house the government takes it.

[Anonymous No.18092267]

Because it actually makes more sense then renting enjoy wage slavery.