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/biz/ - Business & Finance

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9032030 No.9032030 [Reply] [Original]

Realistically, how stupid would it be for anyone to get a mortgage these days? Given how fucked up world events are and the reality that the American economy has been on life support behind the scenes for the past 10 years, who the fuck would try to get a house without paying cash for it in an economy where the norm is having a different job every 2 years? If the likely mortgage default doesn't kill you, the stress of very little job security will.

>> No.9032050

Fool, I locked my rent in for the next 20 years, enjoy yours that will continue to rise

>> No.9032059

Just took out a mortgage and I have to say there’s definitely a sinking feeling like it’s going to bite me in the ass very fucking hard within the next 5-10 years. Hope I’m either very wrong or make it off crypto.

>> No.9032086

there are tax advantages to a mortgage and interest rates are low enough to pretty easily beat with investing, plus you won't likely get much of a discount if any for cash in a good area right now. buying cash is actually pretty dumb in competitive single family markets. It's more applicable if you are buying at auction or in another setting where traditional financing is not allowed and so you get an advantage due to less competition, or if you know of someone who is looking to sell and you can make a private deal and get an unfairly low price by offering a pile of cash (recently divorced wives, old people, problems with the property, etc.)

>> No.9032101

In northern europe, mortgage rates have effectively been negative the past year, so there's that.

>> No.9032109

guys help a brainlet

if you want to buy say a 200k home and can afford to buy it outright, should you still go for a fixed mortgage? so overtime because of inflation your actually paying less and less?

>> No.9032128

If you could negotiate a 3 month euribor rate, and bank put up a margin of .5-1%, it's been quite cheap money:
http://www.euribor-rates.eu/euribor-rate-3-months.asp
Personally, I opted a little less than 2% rate fixed 10 year term (70%) and 30% 3 month rate - relatively expensive compared to going all in short term rate, but historically quite ok.

>> No.9032129

>>9032109
Honestly fuck give these kikes a dime on interest. Mortgages need to burn along with everything other lending product in this debt based society.

>> No.9032135

>>9032109
i carry a mortgage even though not needed. Although, houses here are so expensive, I don't want to tie up 1m in a house. inflation works in your favor assuming a good interest rate, and the mortgage interest deduction for income tax is valuable.
This assumes you can manage risk properly to avoid foreclosure and will do something else useful with the money.

>> No.9032148

>>9032109
it might depend on what else you're going to do with that money.

Like. If you put 50k down, w/ a 4.25% 150k mortgage. Then put the 150k in cash in investments that earn 6%, your money is better utilized in the investment and you should use the mortage. But, if you're going to do nothing with the money, it doesn't make sense to pay more for the house. Sure your $ is depreciating with inflation. but the interest rate is higher than that depreciation.

>> No.9032158

>>9032129
its amazing usury isn't one of the biggest moral issues of our time, especially among left wing people who supposedly care about the poor the most. just goes to show who's really running things

>> No.9032160

>>9032135
Yea, it kind of depends on the opportunity cost of the money invested. If you think you get a better yield for the capital someplace else than appreciation of your house, then it might be worth taking a loan. But that involves risks ofc.

>> No.9032164

>>9032086
Bullshit. I entered into a mortgage in 2008 on a $150,000 home for 30 years at around 3%. If I were to make my minimum monthly payments I will have paid over $320,000. Mortgages are bullshit modern indentured servitude.

>> No.9032168

>>9032158
How would you suggest people finance their houses if not by borrowing, btw?

>> No.9032176

>>9032164
Here 15-20 years is a norm, as you go over 25 years, the interest really starts to bite.

>> No.9032178

>>9032164
What is time value of money.

How much is 150k worth 30 years from now?
How much is 150k worth when paying payments for 30 years?

You're not comparing apples to apples.

>> No.9032187

>>9032168
I don’t know how, but ultimately it’s usury and absolute kikery that has pumped up the housing market in the first place, so to even ask such a defeatist question is pointless. There will come a time when the debt ceiling is reached and we will have much grander issues to deal with than getting the best rate on a 5 year closed.

>> No.9032207

>>9032164
so 10 years in with 20 left. you'd be ahead right now if you made the minimum down payment to get a good rate and put the rest in an index fund vs just buying with cash. I'd almost guarantee that will be true 20 years from now as well.

>> No.9032209

>>9032187
I'm just saying that no one will enter on the contract on the other side, if you do not provide some reimbursement for the capital they lend to you.

>> No.9032212

>>9032178
Yeah, well the biggest bullshit part of a mortgage is for the first 10 years or so you're payments are close to 100% interest, and you aquire no equity. That shit should be illegal that the lenders get all there profit up front.

>> No.9032216

>>9032187
>There will come a time when the debt ceiling is reached
blaspheme
the economy will grow infinitely

>> No.9032222

>>9032212
*Their*

>> No.9032230

>>9032212
That I agree with.
in most mortgages I'm familiar with, any payment that you make in a month that is over the minimum, goes straight to equity, which is a way around... though annoying/unfiar

>> No.9032232

>>9032222
nice quads, self-disciplinary grammar nazi

>> No.9032264

>>9032212
That depends on the mortgage type, annuity or linear. If you can afford it, linear mortgage becomes cheaper, but the monthly payment can be quite steep.

>> No.9032303

>>9032086
>buying the top of the bubble

protip-when boomers starting hitting their 80's the cost of housing is going to plummet. 80% of boomers own at least one home, while only 30% of under 35's own a home, and 50% of 35-44 own homes.

A lot of people are oging to be underwater.

>> No.9032335

>>9032168
usury isn't borrowing. borrowing is borrowing money and repaying it back. usury is borrowing it and being charged for the privilege of borrowing it. usury is outlawed in all forms in many islamic countries even the wealthy arab states and it works out fine for them. say what you want about muslims but they know how to not get scammed by outsiders.

>> No.9032341

>>9032303
I've had this thought as well. Especially when it comes to mcmansions and even regular colonials. Since millenials are having a lot less kids and in general I can't imagine them/us wanting to live in mcmansions to the extent boomers have built them. It's definitely something to think about. It doesn't mean there is no good place to buy though. I personally rent currently and am thinking more about buying but am going to wait a while I think.

>> No.9032357

A. Buy a house to rent. Rent where you live.
B. Don't buy a house until the economy collapses, they are overpriced af right now.

>> No.9032365

>>9032357
when is the housing bubble gonna pop? i'm not buying a fucking shack for 300K

>> No.9032381

>>9032365
I don't know but I hope places like silicon valley get hit hard as fuck.

>> No.9032414

>Jews are forbidden to use usury in dealing with fellow Jews, and this lending is to be considered tzedakah, or charity. However, there are permissions to charge interest on loans to non-Jews.[29]

huh

>> No.9032436

>>9032357
>>9032381
basically nobody is truly bullish on housing prices at the moment. it's not realistic for interest rates to rise at the current prices without wage growth. this makes me nervous. the country has been shaped by the housing bubble and there is a collective ptsd. tons of people are waiting and skittish or just resigned to rent forever or wait for a crash. the problem is wall street can print endless money to buy themselves houses , even if its single family houses that sit vacant. they do this. in the 08 crash the thing they did was to make commissions and distort/offload risk. now with the government/central bank/populace broken they have been methodically buying up property in a managed way. there is also huge international deployment of capital in the large multifamily property business. IMO we could sit at the current levels as an equilibrium or just be really boring for a while. like at least 5 more years. there's nothing to cause it right now.

>> No.9032517

>>9032178
there is no time value of money without interest

>> No.9032556

>>9032436
this is what i think will happen for now. the government just cant afford another 2008 right now and will delay for as long as possible, we might not see another serious crash for 5-10 years. but the house of cards can't stand forever