Why You Shouldn't Buy a Home

originally posted by: Mandroid7

No way, not me.

There isn't some big market crash coming, prices are still lower than 06.

If someone advises to sell real estate for bitscam, find a new broker.

Big Changes are coming... time to get prepared...

I think I'll take my chances in an apartment.

many homes in California will soon become worthless... 5-10 years give or take.

I don't know about Texas... but I wouldn't be buying a home on the West Coast.

Florida may be a bad place to buy a home too.

a reply to: DD2029

I am in florida now, Tampa is the top location next to Pheonix.

Running the numbers fast, I would be paying 10k dollars over 2 years to rent, I am essentially being paid 75k a year to live on the ocean.

So 150k in my bank, or 10k out of it for occupying the same home.

Added...the carrying cost are about 2k, rent would be 4-5k

Live under a bridge abutment in Portland. Then you aren't renting or paying a mortgage.

I used this strategy and it's how I can afford a Lambo.

a reply to: DD2029

I agree with you on avoid cali, at least the inflated areas. The rest of the country is pretty damn stable now.

The question is do you want to hand over your single greatest (most people) instrument of wealth to someone else?

-And pay more than a mortgage to do it?

There are a ton of people out there that would love it if you did.

Which side do you want to be on?

a reply to: DD2029

Sounds like you just live in the wrong area.

Here are some solutions,
move to a place with lower property taxes
No Hoa fees
lower insurance

Not sure about your utilities but mine have always been cheaper in a house vs. rental
Pay someone to do the lawn
maintenance will be paid by you either way

Realtor fees- There is a new hybrid system called brokerage, you list your house like a for sale by owner, the brokerage puts it on MLS and other sites, you allow realtors to show your house, but because you are only using a broker you only pay 2% commission. (Saved me thousands and didn't have to do much more than full realtor service)

Another option is to buy a duplex and live in one side and rent the other and use those funds to pay mortgage and maintenance.

In my personal opinion buying is almost always better than renting. The only case I would say renting is better is if you know you will move a lot for work.

Er,

Option 1 - Spend £1,000 per month for 25 years paying your mortgage on a £300,000 house, which after 25 years will be valued at (say) £500K, based on a 2% rise in value per year.

or...

Option 2 - Pay £1,000 in rent per month, which after 25 years (with a 2% rise in rent) would mean you will have paid £400-500K all told, and have sod all to show for it, except the rest of your life paying through your nose until your landlord discovers your bitter carcase.

Which option would the intelligent person take?

It's quite simple really. The two videos in the OP mean one thing and one thing only. Don't buy a house because it ties your money up for you. Rent and keep your assets liquid, that way people like the two in the videos can get it off you.

a reply to: crayzeed

Exactly, if it's being sold using fear, walk.

I forgot to add. Buying a house is really not an investment purely for money, it's an investment for your retirement. Not cash it in to liquidate your money for them to get hold of. Except, except if your on your own and only have months to live, then sell and enjoy yourself.
If you buy your house, with planning, it should be completely paid for by the time you retire. Then the investment pays off as you will always have a home and bar stupid mistakes it can't be taken from you. Whereas renting you'll be paying till you die, ok it might be cheap rent to start with but over the years it will only go one way and that's up.

This may be true for the last 80 years... (that home values always go up)

but things will change in the next 10 years on such a volatile scale... I don't know what to expect.

A house may be the best investment in the years 2019-2029, or it may be the worst.

I think it's best to go small on your house... Big on your truck...

and wait until the dust settles once the financial system goes belly up.



The time to buy Gold is now... when things are going good. This much I do know.

you should keep 10-15% of your total net worth in tangible Gold & Silver.

too much uncertainty in the near future.

Key Word: Minimalism

a reply to: DD2029

If the world goes to pot that my house becomes worthless, then Bitcoins would be an irrelevance, and I doubt gold would be much good either. Probably best invest in something that would be practical, like NBC suits, or vintage wine - so at least you can die feeling smug and drunk.

When we swim out back, we don't have 100 neighbors watching us.

originally posted by: DD2029
There are some decent apartments out there:








3 different places in 6 or 7 years wouldn't be a bad idea for someone like me.

would free up some money if I sold my house.

originally posted by: DD2029



I think it's best to go small on your house... Big on your truck...



you should keep 10-15% of your total net worth in tangible Gold & Silver.

Or you can have all three if you buy and save some money.
Heres grandpas truck. Its a Z71

He also has gold and silver

a reply to: DD2029

A bad advice. You don´t think longterm. Owning is always better than renting, everything else is paradox.

Let´s take you as an example. You rent all your life, I paid my debt. It was around the same as rent, a little bit less even, monthly.

After 20 years, you still pay rent, and if you retire, you need to pay rent, too. There are many so called retirement funds in my country and over time, each and every one has proofen not to be as valuable as owning something.

When you can´t afford to pay rent when you´re old, where are you going to sleep then? Again, a really bad advice.

originally posted by: DD2029
I think it's best to go small on your house... Big on your truck...

Thats one stupid advice as your truck looses value WAY WAY faster than any house, that normally gains value over time, if you´re not living in the swamp.

It seems to me you are very guilible. What you think and spread plays into the hands of people like me who buy houses, pay them over time while living in them and then sell it with 20-35% over the price I´ve bought it.

Sure I renovated here and there but if I look back, this is the third house I´ve done this in my lifetime and once you paid for the first house, you can afford a bigger/more modern one, it´s a small jump after that.

I know people that pay 800€ rent each month. That´s 9600€ per year. If you make a 30k jump, you need about 3 years then you can sell the next house and on and on and on.

If you keep one of the houses you can rent it out to someone that thinks like you. People that think like you are at their own fault for not being financially in a good standpoint.

I worked this on my own, no heritage or something. It´s like selling cars until you can afford a BMW or similar, but bigger.

You just don´t have to live in luxury and you can´t have a new car every two-five years, then it works formidable.

a reply to: DD2029

I've rented for practically all my life, and I too have been questioning this.

The reason I've been renting is because:
1. I am not in a stable job (the field is stable, but finding a job? I took a large paycut just to leave my old company!).

2. I had student loans - Every dollar I made had to go for something. I'm free of those as well.

3. (At the time), I wasn't mature enough to own a house. Technically, I'm almost there, but I come home so drained from work that I don't want to do anything.

Renting can have it's perks, especially when you live in a place where the walls aren't paper thin. You can also in theory move at a moment's notice: For example, if I found an awesome job on the other side of the US, I can move in as little as 30 days. You can't do that with the house.

Now, my strong points for buying a house:
1. Freedom - Don't like the wall color? You can paint it! Want to hang your own personal art gallery in a room? Do so! Want to practice violin (as a beginner) and only annoy the neighbor next door? 3:00am, bring it on!

2. If most of your work is in the area - My parents taught me to look for a house if I plan to stay in an area for at least 5 years. So if you've been at your job long term, or all of your work is in the same area, a house is probably as good as an apartment.

3. It can be a place all to your own: One of the things I'm keeping an eye out is for an older farmhouse: I like the idea of having some distance between my neighbors, and maybe some nature on my property. Sadly, most apartments won't give me that.

-foss

a reply to: fossilera
The time and settings must be right. If you build up family very early and a secure job, it definitly makes sense. If you´re discovering the world or jumping jobs, working day and night, not so much, of course.

originally posted by: Bluntone22
When you buy a house, you pay the bank for the house and eventually it's yours.

Try not paying your property taxes and see who's house it REALLY is.
"Owners" merely rent it from the government as opposed to a private entity. Not much difference here other than a wider leeway to customize the abode (unless you get lucky and keep scoring landlords who don't GAF what you do aesthetically like us)

originally posted by: Mandroid7
I invest in real estate full time for a living.

Those tax numbers are rediculously high.

When you rent, you are paying the mortgage, the property taxes and the slumlords paycheck.

They usually pick them up at auction for cheap, I've seen 120k houses sell for 10k at auction.

You make all your money on the buy, not the sell.

Renting is a horrible idea, it is almost always higher than the mortgage.

I picked up a house at 169k, it will be sold at 400k. It needed 100k worth of work. The property tax was 6k for 2 years.

You don't have to pay taxes on improvements made if you live there over 2 years.

The I don't want to fix stuff line is bunk. When you close on a house these issues are located with a good inspector YOU hire and addressed before you close.

Renting os throwing your money into someone elses bank account, while they sit on their a@@es.

We need more homeowners, not slumlords, they drive housing costs up.

Temp rental for college ok, but living in a rental is extremely stupid.

Be that as it may in YOUR opinion, it's a very wise & significantly cheaper option for us where we live. A 2100 sq ft house on half an acre in a mixed mid & upper middle class neighborhood where other houses regularly push $200-$300 k (fat mortgage that is) on average (some are higher) for a mere grand a month is pretty damn wise to stick with versus double or more for a smaller house on a smaller lot. It's a legit bargain. We like this place. We like our neighborhood, neighbors, neighborhood amenities, non-existent crime -- all of it is much more worth it in rent than the exorbitant mortgage would be. We would still like to buy some day, but not any time soon. Every time we revisit researching the current markets in any given season, it's a huge turn-off. Housing prices are through the roof since we moved here, and it's not going down any time soon. It may be many more years before it going back to affordable purchase levels, but at the rate people from other states keep flooding W MI, that doesn't seem too likely in the near-term.
I'm not buying a house right TF now for substantially more money in a mortgage than I pay in rent just because you puckered in anger over it.