What's up /biz/ ? I am grown from a poorfag white trash family and I make $57k a year, which is double what anyone else in my family makes (I am considered "rich" by family). I don't have any debt due to this and I always buy cars with cash. I am looking to move out (I am 29, pay $300/mo to mother currently) and I am stuck in between the ideas of renting VS owning. I am not sure I want to own a house because I will have to maintain the property, the appliances, etc... On the flip side, rent is super-super expensive in my opinion, but I would not need a down payment and I could move around and not be stuck in one place.
I assume /biz/ will say BUY A HOUSE FAGGOT but I want your input.
The buying a house checklist:
Is the market down or at least normalized?
Can you put 20% or more down on the home?
Do you have consistent income and will you continue to have consistent income?
Do you plan to live in this area for 5 or more years?
Can you take your time and buy a good home at the right price?
If the answer to all the above questions is yes, then buy.
My only problem with buying now is that the market is high. I bet if you wait 2 years the market will crash again and you could buy low.
>Is the market down or at least normalized?
The area I want to live in is sort of overpriced
>Can you put 20% or more down on the home?
>Do you have consistent income and will you continue to have consistent income?
Yes and yes.
>Do you plan to live in this area for 5 or more years?
Unknown, but likely yes
>Can you take your time and buy a good home at the right price?
All the time in the world, but I would love to move in 2016
The interest you pay on a mortgage IS rent.
Considering all of the other hassles, risks, and liabilities associated with mortgages... my rule is this: Only buy real estate if you are looking at it AS AN INVESTMENT. Unless you are deliberately buying a property for the purpose of selling it later for a profit, AND you do all the necessary research to ensure that you'll be able to do that.... do not buy.
Rent and save, bro.
Supply and demand. There's literally twice as many people on Earth as there was in 1970. Supply is up 100%, amount of available land is the same.
It's going to get worse, not better.
Actually it seems a classic case of the prisoner's dilemma. If nobody took mortgages homes would be cheaper and rent affordable, but since people do homes are expensive as fuck and everyone is in a sense worse off, having to invest the bulk of their capital in an unproductive asset which merely tracks inflation or pay rent to someone who did just that.
Based on population demographics, and slipping fertility rates, I would say that's unlikely.
Unless we literally open up the floodgates to Mexico, India, China, Africa... etc.
This also supposes that we don't see any major shifts in demographics: scarce resources (food, water), no disease epidemics, no major conflicts, etc.
A lot of capital has left China and fled into housing all over the world (capital outflows). This is retarded zerg group-think, in the sense it's the "cul de sac" of the century trade. Moving liquidity into a fixed (highly illiquid) asset when demographics are flagging, and a major liquidity crisis looms on the horizon. Great way to maintain wealth amirite?
Well sort of. But local and state governments have a vested interest in setting policies that keep house prices high, as do most members in said institutions as they probably own property, so do banks and real estate agents. Really nobody has a vested interest in cheap homes except poor people who as usual have no say in anything.
If you intend on moving every few years for work rent. If you hate mowing the yard and doing house repairs rent. Buy if you plan on staying in the area for work and don't mind doing maintenance.
Condos have the worst of both buying and renting
>less personal space than a house
>only a wall between neighbors
>on the hook for repairs
>condo associations can be stupid and set aside nothing for major repair like roofing
>suddenly hit with 10k assessment because the roof needs replaced
A good rule is to buy 2-3 times what your annual take home pay is. You don't need a 5br 3b house in the hottest new housing plan 45 minutes away from work.
>Unless we literally open up the floodgates to Mexico, India, China, Africa... etc.
I take it you don't live in LA, San Francisco, Houston, or Chicago?
Flood gates are already open and have been for quite some time. 30% of the population in San Francisco are immigrants. Go down to San Jose and its nearly 40%.
Buy a duplex or larger. Rent out the other space(s). Use that money to pay mortgage. Live for free. OR, if you want shorter term, pick up a livable foreclosure and fix it up in your free time. When you move, sell it and collect that crown molding profit.
There's a big emotional difference that occurs when you rent a place and when you own a place.
When you own a place you are king. You wanna punch a hole in the wall, you punch a hole in the wall. You wanna paint a room, you paint a room. It's yours you have control of it.
Agree completely. That feeling, although I wouldn't say is worth a 30 year mortgage, is damned nice and improves other parts of your life just by putting you in a state of mind to control your everyday life.