Homebuying

Owning a piece of land will never be a meme.

>>2722019
I'll save you time
>someone who bought their home
- Yes it is
>someone who is paying rent
- No it isn't

>>2722039
And I mixed them up, nice

File: 1445614913743.jpg (171KB, 310x403px) Image search: [Google]

171KB, 310x403px

>>2722019
>tfw I made enough enough on crypto to oneshot a house without paying the jews at the bank
>still renting cause i'll make more money holding my cryptos before cashing out in a year

>>2722039
>id

Also yea, this. People are so deep into their opinions and will just call the other stupid. For me personally, I wouldn't rent unless I could otherwise invest the same amount of money as the wasted rent, so like 2k a month unless you live in a welfare apartment or have roomies like a damn teenager.

>>2722019
If mortgage and rent are close to the same (or like in my town, rent is higher) then it's worth it to buy a house because you build equity with 1) the mortgage payments and 2) the (hopefully) increase in property values.

But you make your money when you buy not when you sell (hold out for a good deal, get a good rate on your mortgage, and get a home warranty policy - well worth the $60 per month to cover all repairs--saved me about $5k in the 3 years living in a house).

>>2722110
Mortgage rates are way below market returns right now, even if you can oneshot a house you should still buy it on leverage.

>>2722019
The correct comparison is not the mortgage payment, which mostly goes into home equity which (hopefully) will retain its value and even increase. Though for most people, this is a way over-leveraged investment into an illiquid extremely non-diversified asset, so might want to discount it because of how shitty an investment it is on that front.

You need to compare housing costs when buying vs renting, which means mortgage interest, maintenance, property taxes, insurance, then the amortization of your transaction costs (realtor fees, transfer taxes, inspections etc), and also try to price in the intangible negatives of being tied down to some specific location. For rent you may also want to consider the expected cost in the future, in most markets you can expect it to increase consistently over time.

In efficient markets (not SF or NYC where house prices have way outstripped rent) the two of these are very close and it ultimately comes down to the amortization of the transaction costs, so the answer is "if you're going to live there for more than 5-10 years then it's better to buy".

>>2723205
Oh, also the longer you live there (a) the higher rent will be, it will likely at least track inflation and (b) the lower your mortgage interest will be. So it's not just the amortization that makes the house a better investment after a long time.

buying a house was the best thing ive ever purchased... financial freedom

if you are single then rent and invest the money rather than throwing down a down payment

if you are in a serious relationship then buy a home

there

>>2722019
Having a paid off house is literally the best thing you can own in life, especially if you are diligent you can have it by 35 to 40. Most people in their 50s still have a lot of mortgage left which must be depressing. You are halfway to retirement with a free and clear house

>>2722019

Oh look I wrote a stick for biz 6 months ago and it got completely ignored.

Refer to question 4:

https://docs.google.com/document/d/1oHjHI7EpQD0QZ0Hyx7wu9k-nvpjS_G98RU_u9DHW0IA

To answer your question, yes buying a home is a better long term decision for your wallet, but only if you buy in a down market. Buying in a high market (like now for example) is fucking stupid.

>>2722039
own outright, can confirm meme.

>>2723205
>Mortgage rates are way below market returns right now, even if you can oneshot a house you should still buy it on leverage
This is a dumb meme unless oneshotting the house means all of your money will be wiped out. Houses are way too high right now, and a correction to the market is coming, so it's better to wait for the dip before buying anyway

Hey man heres some actual advice. look up 'house hacking on biggerpockets.com. to sum up, Use a first time buyers loan with 4-15% down (you can buy up to 4 family homes untill it is classed as commercial) you live in the worst or cheapest renting one, and then you rent the other 3 units out and they will pay your mortgage and if you find the right deal it should give you monthly cashflow.

Buying a house to live in MEME!!!! yeah ok so now you've paid off your mortgage great, oh so your worth 1 mill because you paid off that loan? How do you have 1 million? how do you get access to that money?? by selling your home and becoming homeless, or by Remortgaging your home all over again.

Rent where you live, and use debt to pay for an ASSET, IE a rental property where you have done the numbers and you will receive rental cashflow, debt paydown, appreciation and tax deductions.

The art of leverage is buying cheap money that will make you a fraction more money and benefiting from the difference.

Buying a house to live in is a LIABILITY, mortgage may be less than rent, however what are you going to do when the boiler breaks and costs you 3-5k, you need a new roof for 15-25k, your cold water pipes burst in winter and you have to pay 1k unexpectedly or you have no water. What if you have to default on your loan, it's certainly easier to just break a lease of sublet and get into a cheaper place, it's a lot harder to be forced to sell your house at the bottom of the housing market when your house is now worth less than the mortgage you took out on it.

you will still be getting the benefit of your rent being effectively going towards your debt paydown, However the tenants will be paying your rent for you

>>2724184
Ok PoorDad, if home repairs are a liability then what do you call the risk of your tenants not paying their rent?