You need to buy a house

[Anonymous No.57478050]

I did a little math on house appreciation. I bought a house in the last year. While I don't want to give out my house price, I will use September 2023's median home price of $412,000.

On average, home prices appreciate by 2% to 3%. So, if you own a house for ten years, you will go from $412k to $502k. People will say you are throwing away money on interest payments and house maintenance. But unless you are renting a room or your parent's basement, Renting a house or an apartment is even worse 100% is wasted. Maybe you could make more money by just throwing it all into SPY. But do you want to live in a shoe box for ten years to perform in the housing market?

But if we cut that 2% into the monthly appreciation, that is 0.167% a month or $688 every month. Keep in mind That it is leveraged money. No one would let you buy $412k in SPY index funds at a fixed 30-year interest rate. But you can with a house. This is all based on the low-end home appreciation too.

WHY HAVE YOU NOT BOUGHT A HOUSE YET?

[Anonymous No.57478422]

because picrel costs $250,000 at 7.5% APR and I'd rather live at my parents' for free

[Anonymous No.57478440]

>>57478422
You better be saving more than $688 a month, too.

[Anonymous No.57478444]

>>57478422
lmao what a retard i just use my parents house for free i dont even need to pay my parents rent i just mooch off of them

[Anonymous No.57478445]

>>57478422
WHY THE FUCK IS THIS SHIT HALF A MILLION DOLLARS, DOES MONEY NOT ANY VALUE?

[Anonymous No.57478472]

>>57478445
bruh this is so true money is so stupid what is the point of it just let me mooch off my parents with no consequences money doesn't even have any value anyways its stupid and gay i would totally live in my mom's basement for free

[Anonymous No.57478478]

>>57478444
>what a retard
>my parents house for free
>>57478422
>for free
you're the retard

[Anonymous No.57478499]

>>57478472
cope, enjoy holding that bag + taxes when the market corrects

[Anonymous No.57478519]

>>57478050
>You need to buy a house
This is all true as long as the banking system continues on the way it has been. If the Fed keeps printing money and stocks only go up then you will gain a lot of value on your house, but if the market or banking system fails you will instantly be upside down.

Most people cannot afford a home outright, so the real question is: Do you think the Federal Reserve can keep the banking system together for the next 30 years until you can pay off your mortgage? If you think that the answer is "No" then tread carefully.

[Anonymous No.57478613]

>>57478444
>>57478472
Missing out on the rent and appreciation.

[Anonymous No.57478659]

>>57478519
If it fails their will be hyper inflation and now I can pay off my loan with a summer job working fast food.

[Anonymous No.57478982]

Home ownership should not be seen as an investment or a financial decision but as a lifestyle choice. The reader's digest version is this:
>A home is not an investment because a home does not resemble any other kind of investment that you might have.
>Your house may appreciate in value but it does not make you money. You don't collect a pay check from your house every quarter. A house is a liability, not an asset.
> Where you live will determine what opportunities you have or don't have. If you buy a house, you have to accept that for probably at least 5 years, you will have fewer job opportunities, fewer potential romantic partners, fewer shopping choices, fewer medical services, etc.
> If you don't like your house when you buy it chances are you will never like it.

[Anonymous No.57479000]

>>57478050
You also get tax benefits (mortgage interest deduction, property tax deduction), and even more tax benefits if you rent the place out (depreciation deduction, maintenance + repairs)

[Anonymous No.57479045]

>>57478982
>>A home is not an investment because a home does not resemble any other kind of investment that you might have.
>When everyone else is cheaper I will still play by rules I made up
>>Your house may appreciate in value but it does not make you money
>I would rather let all the homes I might want to live in become so exsive that their is no hope for me to buy one because I'm paying 75% of my income on renting a shit box
>>Where you live will determine what opportunities you have or don't have.
>I would gladly give up the opportunity of never buying a house as they gain over $100k in value every 10 years.
>>If you buy a house, you have to accept that for probably at least 5 years, you will have fewer job opportunities, fewer potential romantic partners, fewer shopping choices, fewer medical services, etc.
>Girls over coming over to my apartment. They are not interested in guys who own houses
>>If you don't like your house when you buy it chances are you will never like it.
>I don't know how to swing a hammer.

[Anonymous No.57479106]

>>57478445
They're not makin' more land, kid! Best hike up them bootstraps like I did. Firm handshake and look them in the eye.

[Anonymous No.57479163]

>>57479045
No one is suggesting you rent at a rate more than 33% of your income.
Live with parents or move out where both housing and rent are cheap.

The anon is right - it's a liability, and you never truly *own* your house and land, given you must pay rent in the form of a property tax.

[Anonymous No.57479207]

Housing is a real terms depreciating asset, only buy if your mortgage payment + taxes + insurance will be less than equivalent rent

[Anonymous No.57479210]

>>57479163
>Live with parents
Becuase all the jobs are right next to mom and dad's
>move out where both housing and rent are cheap.
Other than Japan all the first world countries are flooded with new comers willing to live 4 to a room. Rent and housing is never going to go down.

[Anonymous No.57479276]

>>57478659
>if the jews lose mcdonalds will pay me $200 an hour because....BECAUSE THEY JUST WILL!! OK??!??! POST NOSE!!

Um chuddie sweaty, you have to be 18 before you can be a nazi here

[Anonymous No.57479279]

>>57479210
there is still cheap land in both the American and Canadian midwest.
However, the jobs there are typically skilled trades, oil & gas, agriculture, whereas our education system trains us to become office drones

[Anonymous No.57479284]

>>57479207
There's far more to the equation than just "what's cheaper per month"

But renters are niggers and only look at things in terms of monthly payments

[Anonymous No.57479298]

>>57478422

Unironically a deal -- by me, a house that's maybe 66% that size is an additional $75K at the same interest rate

I'm still thinking of going all-in on a shithole, but I am in no way eager nor looking forward to doing it and basically tying a huge portion of my income to this.

[Anonymous No.57479345]

>>57479279
Now your moving the goal post. First, it was JuSt LiVe WiTh YoUr PaReNtS.
Now it is just move to the middle of nowhere

[Anonymous No.57479351]

“Hey I’ve got an idea. We’re always talking about good investments. What if we came up with the worst possible investment we can construct? What might that look like?”

Well, let’s see now (pulling out our lined yellow pad), let’s make a list. To be really terrible:

It should be not just an initial, but if we do it right, a relentlessly ongoing drain on the cash reserves of the owner.
It should be illiquid. We’ll make it something that takes weeks, no – wait – even better, months of time and effort to buy or sell.
It should be expensive to buy and sell. We’ll add very high transaction costs. Let’s say 5% commissions on the deal, coming and going.
It should be complex to buy or sell. That way we can ladle on lots of extra fees and reports and documents we can charge for.
It should generate low returns. Certainly no more than the inflation rate. Maybe a bit less.
It should be leveraged! Oh, oh this one is great! This is how we’ll get people to swallow those low returns! If the price goes up a little bit, leverage will magnify this and people will convince themselves it’s actually a good investment! Nah, don’t worry about it. Most will never even consider that leverage is also very high risk and could just as easily wipe them out.
It should be mortgaged! Another beauty of leverage. We can charge interest on the loans. Yep, and with just a little more effort we should easily be able to persuade people who buy this thing to borrow money against it more than once.
It should be unproductive. While we’re talking about interest, let’s be sure this investment we are creating never pays any. No dividends either, of course.
It should be immobile. If we can fix it to one geographical spot we can be sure at any given time only a tiny group of potential buyers for it will exist. Sometimes and in some places, none at all!

[Anonymous No.57479368]

>>57479351
It should be something that locks its owner in one geographical area. That’ll limit their options and keep ’em docile for their employers!
It should be expensive. Ideally we’ll make it so expensive that it will represent a disproportionate percentage of a person’s net worth. Nothing like squeezing out diversification to increase risk!
It should be expensive to own, too! Let’s make sure this investment requires an endless parade of repairs and maintenance without which it will crumble into dust.
It should be fragile and easily damaged by weather, fire, vandalism and the like! Now we can add-on expensive insurance to cover these risks. Making sure, of course, that the bad things that are most likely to happen aren’t actually covered. Don’t worry, we’ll bury that in the fine print or maybe just charge extra for it.
It should be heavily taxed, too! Let’s get the Feds in on this. If it should go up in value, we’ll go ahead and tax that gain. If it goes down in value should we offer a balancing tax deduction on the loss like with other investments? Nah.
It should be taxed even more! Let’s not forget our state and local governments. Why wait till this investment is sold? Unlike other investments, let’s tax it each and every year. Oh, and let’s raise those taxes anytime it goes up in value. Lower them when it goes down? Don’t be silly.
It should be something you can never really own. Since we are going to give the government the power to tax this investment every year, “owning” it will be just like sharecropping. We’ll let them work it, maintain it, pay all the cost associated with it and, as long as they pay their annual rent (oops, I mean taxes) we’ll let ’em stay in it. Unless we decide we want it.
For that, we’ll make it subject to eminent domain. You know, in case we decide that instead of getting our rent (damn! I mean taxes) we’d rather just take it away from them.

[Anonymous No.57479393]

>>57478050
Delete this. Now.

[Anonymous No.57479402]

>>57479368

Now do the same for renting.

[Anonymous No.57479678]

>>57479345
No, I said, if you don't wish to live with parents, move to the middle of nowhere.
And nothing wrong with the middle of nowhere unless your only qualifications are to be a useless office drone

[Anonymous No.57479734]

>>57478050
You didn’t buy a house. You’re renting from the bank at interest.

[Anonymous No.57479750]

>>57478478
he's agreeing with you and dunking on op, not on you

[Anonymous No.57479789]

>>57479734
Even once you pay off the bank, you're still renting from the government through property tax

[Anonymous No.57480007]

>>57479789
>Even once you pay off the bank, you're still renting from the government through property tax
Government and banks let you make money off your house by becoming a landlord or through appreciation.

[Anonymous No.57480029]

>>57479734
> rent from a landlord who is renting from the bank.
Do you love being the last one in a human centipede

[Anonymous No.57480034]

>>57478422
>>57478445
Shit i gotta buy this house its only 650k

[Anonymous No.57480045]

Cool have fun paying double the value for a home that is worth a quarter as much as you paid for it

[Anonymous No.57480147]

>>57478050
>I did a little math on house appreciation
houses don't appreciate, its just your dollar tanking.

[Anonymous No.57480204]

>>57478422
Do Americans really think this is a bad house or something? I don't get it.

[Anonymous No.57480218]

>>57480147
so get your money out of dollars and into real estate.

[Anonymous No.57480680]

>>57479276
>Anon owns a house
>Celebrities the fact inflation makes it cheaper
>Tell others to get in on the homeownership train
>REEEEEEEE YOUR A NAZZZZIIIII
you need to go back

[Anonymous No.57480714]

>>57480204
For 250k? Yes
I bought a 2 story house for 12k, 8 years ago. Rented out basement and that paid my mortgage. Sold it for 165k last year (it was worth 175k but I didnt want to wait for better bid)

[Anonymous No.57480747]

>>57478050
My house has done more than a 2x sinds I bought it in 2015.

[Anonymous No.57480858]

>>57480714
Lol.

[Anonymous No.57481922]

>>57479000
>mortgage interest deduction, property tax deduction
Less than standard deduction in most cases

[Anonymous No.57481987]

>>57481922
Not on a 400k house at 7% interest

[Anonymous No.57482002]

>>57479284
As a depreciating asset it's financially unsound for a wagie to buy unless the monthly cost is equivalent to rent AND the down payment is less than 50% (preferentially less than 25%) of net worth, elsewise the wagie must reduce their savings directed towards low impedance liquid assets (equities/bitcoin), which will vastly outperform moderate/high impedance assets like housing, and remain trapped in the cagie forever

[Anonymous No.57482140]

>>57480218
>buy an asset that underperforms monetary expansion
No. See:>>57479207

[Anonymous No.57482161]

>>57480714
What ghetto was this in?

[Anonymous No.57482167]

>>57478050
>Rent a nice apartment
>500k invested in stock market (1mil+ next decade)
>30k in crypto (150k next decade)
Thanks for the advice anon, but I'm good

[Anonymous No.57482169]

>>57481987
>being a singltoid
Wife is a better tax dodge, better cock sucker too

[Anonymous No.57482198]

>>57482002
Real estate is the best investment that someone without capital can make due to the ability to purchase on leverage.

[Anonymous No.57482204]

>>57482169
>what is married, filing separately

[Anonymous No.57482218]

>>57480218
Never put cash into real estate when mortgages exist

[Anonymous No.57482292]

>>57482204
>not having a stay-at-home cocksocket
Married filing separately only comes out ahead if your wife earns a substantial fraction of your income, which makes you a homosexual cuckold.
>>57482198
What are SSO/QLD/BTC/TQQQ/LEAPS etc. A down payment in 2010 placed in QLD would be worth more than the house now. Leverage on a high impedance asset is even worse than holding unleveraged high impedance assets, it's a one way ticket to never-gonna-make-it town

[Anonymous No.57482609]

>>57478050
NAR, you are getting far too desperate with these demoralization-as-sales-pitch tactics lately, i know the housing market isnt looking good right now. it'll bounce back, just give it time. about 10-15 years.

[Anonymous No.57482658]

>>57482292
She earns a good amount. Didn't marry an idiot. Glad to have her genes on our 3 children.

Go USDA and put $0 down and refinance to a 30-year conventional without PMI once you have 20% equity.

[Anonymous No.57482720]

Ok fallout of 2008. I bought a 3bed, 1.5bath house with basement and a garage and with a yard that's not some stamp sized thing. My payment is merely $400 a month. What's happened in the intervening years? Well my salary has gone up and the house is worth least double what I paid for it maybe more. I dunno cause I've no plans on selling it.

[Anonymous No.57482725]

>>57482720
So you are saying it is best to wait for the market to crash like 2008? What year did you buy?

[Anonymous No.57482739]

>>57478050
>my house is worth +30%
>mine +50%
>worth always go up

What use is this, if I don't sell? Where would I live? If I sell and buy new I gain nothing.

[Anonymous No.57482754]

>>57480714
sure you did

[Anonymous No.57482924]

>>57482658
>USDA loan
Jesus Christ how poor are you?

[Anonymous No.57483339]

>>57482924
Wasn't rich when I graduated in 2011. Doing better now.

[Anonymous No.57483593]

>house prices will appreciate more than wages until infinity
Doesn't seem stable

[Anonymous No.57483650]

>>57478050
>WHY HAVE YOU NOT BOUGHT A HOUSE YET?
open zillow
search anywhere california