Current Events > Why wouldn't you want to buy a house? That's the American dream (cousin)

(+) Yeah! (+)

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You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.
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And of course, biiig american titties
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I just want to go bowling
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WaterLink posted...

You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.

There are plenty of pros to renting. And it's not like money isn't 'disappearing' when buying either between interest payments and maintenance you wouldn't have to cover if renting.
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Owning a house is a lot of work but my last house I made 30k in two years just on sweat equity and a good market.

My fiance made 50k on her house but had been there like 8 years.

Rolled in together for a down payment on a much nicer house together and will either stick it out for a 15 year mortgage or if the market booms sell it.

I like having a house it is a lot of work and an expense but it's nice to have some pride in ownership and show it off when you host to friends and family.
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Owning a house is better.

BRB option to rent rooms to help pay
BRB gaining equity for possible upgrade
BRB ability to sell house for more money
BRB freedom to do what I want with the cuz it's mine
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WaterLink posted...

You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.

https://www.youtube.com/watch?v=YHU_KLYhibI
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HypnoCoosh posted...

Rolled in together for a down payment on a much nicer house

And this is why I don't don't care for the "you're just throwing your money away" argument

What the majority of people will do is simply buy another, bigger house with the majority of the money they might make from appreciation, which doesn't really make you richer from a cashflow standpoint at all.
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Sir Will posted...

WaterLink posted...

You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.

There are plenty of pros to renting. And it's not like money isn't 'disappearing' when buying either between interest payments and maintenance you wouldn't have to cover if renting.

When you move away from renting, you get nothing back. When owning, you can often sell it for higher than you bought it if you make improvements, and therefore essentially upgrade to a new, better house a little down the line. Or you can just rent it out to take care of the payments on it and even make some money off it while essentially doing nothing.

And yeah, you do lose some money from owning due to interest and HOA fees if that's a thing, etc. But it's not your entire payment.
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What happens when you own a home, but something happens that forces you to move out of the home?

Anisoptera posted...

What happens when you own a home, but something happens that forces you to move out of the home?

Home owner's insurance?
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Twin3Turbo posted...

which doesn't really make you richer from a cashflow standpoint at all.

But your net worth increases. If you can only afford like $800 a month when renting and let's say 10 years down the line that's still the case, you can't upgrade. When owning, if you can only afford $800 a month, 10 years down the line you can sell it for a profit and be able to make a bigger down payment on a nicer place to keep your monthly payments the same. You've moved up.

And it's not like the monthly payments on a mortgage are much different than renting. Depending on where you live you can have cheaper monthly payments on a mortgage on a nicer place than renters do for smaller and less flattering places.

The downside is you're responsible for damages, but you get tax breaks and you can do whatever the hell you want with your place.
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I prefer renting. Houses generally only pay off over a period of time and money---and time, oh the time---being poured into it for renovations and basic repairs. Even then it's not always even guaranteed.

With renting I have zero responsibilities, and I'm able to move easily. I always live in some of the nicest/newest apartments in my city and in a few years move on to the next best thing. Always new appliances, technology, etc.
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Makeveli_lives posted...

WaterLink posted...

You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.

https://www.youtube.com/watch?v=YHU_KLYhibI

Lol, what a crappy video.
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WaterLink posted...

Twin3Turbo posted...

which doesn't really make you richer from a cashflow standpoint at all.

But your net worth increases. If you can only afford like $800 a month when renting and let's say 10 years down the line that's still the case, you can't upgrade. When owning, if you can only afford $800 a month, 10 years down the line you can sell it for a profit and be able to make a bigger down payment on a nicer place to keep your monthly payments the same. You've moved up.

And it's not like the monthly payments on a mortgage are much different than renting. Depending on where you live you can have cheaper monthly payments on a mortgage on a nicer place than renters do for smaller and less flattering places.

The downside is you're responsible for damages, but you get tax breaks and you can do whatever the hell you want with your place.

Everything that you've mentioned could be done with a commercial investment property, except it would pay you monthly (instead of you paying into it), which could help cover, if not fully cover whatever you pay monthly for wherever you live.

Also the the benefit of the tax break, if you've been using the standard deduction, is only the difference between the standard deduction and whatever your annual interest paid is. For most people, that difference is not a lot and the benefit goes DOWN over the years as you pay off the mortgage.
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I mean maybe my house is just small but I spend nowhere near the $424/mo Mrs. DevsBro and I paid for rent on a studio in monthly maintenance. Even if If you divide property taxes and the expensive one time stuff evenly per month, it comes to about $170.
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@Sir_Will posted...

WaterLink posted...

You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.

There are plenty of pros to renting. And it's not like money isn't 'disappearing' when buying either between interest payments and maintenance you wouldn't have to cover if renting.

Half the fun of owning a house is doing your own work on it. Also, I just love having grungy maintenance people in my apartment when I am not in it.
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You're going to spend a lifetime paying mortgage for a home you may not want to live in for the rest of your life so what's the problem with renting?

Twin3Turbo posted...

Everything that you've mentioned could be done with a commercial investment property, except it would pay you monthly (instead of you paying into it), which could help cover, if not fully cover whatever you pay monthly for wherever you live.

Imagine if you owned your own place and owned commercial real estate? Hot damn
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Different people live in different situations. Owning a home isn't always better, renting isn't always better.
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No reason not to own a home when you can rent it out to whoever you want(that means no shit tier people)
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Twin3Turbo posted...

HypnoCoosh posted...

Rolled in together for a down payment on a much nicer house

And this is why I don't don't care for the "you're just throwing your money away" argument

What the majority of people will do is simply buy another, bigger house with the majority of the money they might make from appreciation, which doesn't really make you richer from a cashflow standpoint at all.

Yes but the new house is simply worth more plus the quality of living or happiness in increased because well frankly it's a super nice house.

Also nicer house, nicer neighborhood, better schools, lower crime, lower insurance rates, etc.

Different things make different people happy.
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Anisoptera posted...

You're going to spend a lifetime paying mortgage for a home you may not want to live in for the rest of your life so what's the problem with renting?

You can sell your house at any time.
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Lonestar2000 posted...

Half the fun of owning a house is doing your own work on it.

To each their own I guess. That's not what I'd consider fun.

If I had a family then yeah, sure, maybe. I'm single, my apartment is more than enough.
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I move around too fast to own anything.

I'm never at one place for more than five years.

I mean I have credit for about $80,000 but what can I do with it ?
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Sir Will posted...

To each their own I guess. That's not what I'd consider fun.

Yeah I guess agree to disagree. I grew up helping my family remodel their houses, and I kinda like having projects that I can decide to do and kind of make my home to my own liking. Like deciding my own ceiling, my paint, and floors, etc
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DevsBro posted...

I mean maybe my house is just small but I spend nowhere near the $424/mo Mrs. DevsBro and I paid for rent on a studio in monthly maintenance. Even if If you divide property taxes and the expensive one time stuff evenly per month, it comes to about $170.

Where the fuck do you live for under 500 a month? That'll barely get you into the hood in NJ if your lucky
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WaterLink posted...

Twin3Turbo posted...

Everything that you've mentioned could be done with a commercial investment property, except it would pay you monthly (instead of you paying into it), which could help cover, if not fully cover whatever you pay monthly for wherever you live.

Imagine if you owned your own place and owned commercial real estate? Hot damn

I know plenty that do

But I thought we were talking about the average American here?
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I don't get people who say "Renting apartments is throwing away money" and then gladly waste money that goes to taxes, interest, PMI, insurance, higher utility bills, upkeep, and maintenance. Also, the idea that your home's value will always go up is not one you should bank on as history has shown us. Studies on the subject show that real estate on average across America basically just keeps up with inflation over long periods of time. That said, I know that everything about real estate is local so different pockets of the country experience different rates of growth and appreciation. My point is that the rent vs. own conversation is nowhere near as black and white as many people make it seem as there are valid reasons to do both that are dependent upon one's situation. You really have to identify your goals and do a full financial analysis (which most people never actually do) to determine whether it's a better option.
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Where the f*** do you live for under 500 a month? That'll barely get you into the hood in NJ if your lucky

Big wheels keep on turnin'
Bringing me home to see my kin

In fairness, this apartment was just a step above the hood itself. Though the one I rented in college was $320/mo. It was also 308 sqft.
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People keep saying buy a house, but how? Between rent, my carnote, student loan, car insurance, bills, etc I pretty much break even every month. I can't afford to save thousands for a house down payment
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Behaviorism posted...

People keep saying buy a house, but how? Between rent, my carnote, student loan, car insurance, bills, etc I pretty much break even every month. I can't afford to save thousands for a house down payment

I dont know your situation, but I wouldnt say its impossible.

Rent is the only expense you have that I didnt when I got my house. I had the rest of your listed bills. Id made only 13.75/hour, 40/week when I purchased my house for 100k. Again, I dont know your budget, but I just made it a goal to spend little money so I could save, and got an FHA loan.

My only mistake was not getting an FHA construction loan..... I charged all the reconstruction costs on my credit card.

I would love to buy, but this the argument I don't understand: "your mortgage is sometimes the same as your rent!"

Alright so my rent is $750. I can afford that, a little high but I can. My mortgage is $700. Then I have to pay my own utilities. Then I have to pay taxes. Insurance. Something giant breaks. Now I'm up to, what, $1200 for that month? So every month I sink 500 into all the extras, 6k a year, and my house accumulates just about that in value?

So I've done all this work for nothing, and made like a few hundred dollars to maybe a grand or two in equity. I could just pick up a couple extra gigs and make that, all the while renting with no stress or hassle at all.

That argument just seems to ignore how rent covers EVERYTHING and your mortgage covers like half
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Colorahdo posted...

I would love to buy, but this the argument I don't understand: "your mortgage is sometimes the same as your rent!"

Alright so my rent is $750. I can afford that, a little high but I can. My mortgage is $700. Then I have to pay my own utilities. Then I have to pay taxes. Insurance. Something giant breaks. Now I'm up to, what, $1200 for that month? So every month I sink 500 into all the extras, 6k a year, and my house accumulates just about that in value?

So I've done all this work for nothing, and made like a few hundred dollars to maybe a grand or two in equity. I could just pick up a couple extra gigs and make that, all the while renting with no stress or hassle at all.

That argument just seems to ignore how rent covers EVERYTHING and your mortgage covers like half

The hell? You don't pay utilities when you rent? If that's the case with you, just know that's highly unusual.

And Taxes and Insurance are part of your monthly payments with your mortgage...if it was just your mortgage and interest itself it would be ridiculously cheap.

As far as something breaking...well that's what your insurance is for. Many have a home warranty as well.
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WaterLink posted...

The hell? You don't pay utilities when you rent? If that's the case with you, just know that's highly unusual.

Depends on where you live in. But it's actually relatively common.

Things like heat and water are often free to renters...
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Yeah it'll depend. Heat and water are generally included. Electricity occasionally. Sometimes rental companies can get discounts for certain cable or internet providers. At least around here.
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OR... why not compromise and just get a mobile home instead? :u The cramped space of an apartment combined with the thrills of home ownership.
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Behaviorism posted...

People keep saying buy a house, but how? Between rent, my carnote, student loan, car insurance, bills, etc I pretty much break even every month. I can't afford to save thousands for a house down payment

As first time home buyers, my wife and I were able to get one with no down payment. Basically we have two mortgages: the main one for the house, and then a smaller loan of about $3800 at 1% interest for 10 years that covered down payment and closing costs.

One year in and I've already almost paid that second one off.
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OpheliaAdenade posted...

OR... why not compromise and just get a mobile home instead? :u The cramped space of an apartment combined with the thrills of home ownership.

iirc, mobile homes don't increase in value.
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littlebro07 posted...

OpheliaAdenade posted...

OR... why not compromise and just get a mobile home instead? :u The cramped space of an apartment combined with the thrills of home ownership.

iirc, mobile homes don't increase in value.

just live in it till you die
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Not to mention property tax
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littlebro07 posted...

Behaviorism posted...

People keep saying buy a house, but how? Between rent, my carnote, student loan, car insurance, bills, etc I pretty much break even every month. I can't afford to save thousands for a house down payment

As first time home buyers, my wife and I were able to get one with no down payment. Basically we have two mortgages: the main one for the house, and then a smaller loan of about $3800 at 1% interest for 10 years that covered down payment and closing costs.

One year in and I've already almost paid that second one off.

Could it be?
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WaterLink posted...

Sir Will posted...

To each their own I guess. That's not what I'd consider fun.

Yeah I guess agree to disagree. I grew up helping my family remodel their houses, and I kinda like having projects that I can decide to do and kind of make my home to my own liking. Like deciding my own ceiling, my paint, and floors, etc

There's a recent house flipping show where they buy a house and remodel it and then sell it again. Never thought these shows would continue to be popular but as it turns out a ton of people like them.
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what if you die? lol
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saspa posted...

There's a recent house flipping show where they buy a house and remodel it and then sell it again. Never thought these shows would continue to be popular but as it turns out a ton of people like them.

My roommates watch them a lot. Joanna Gaines is basically one of my roommate's idol lmao. I mean I'm not going to sit there and watch it all day, I like storytelling when I'm watching TV. But you do get some decent ideas from them time to time, but then again the internet exists when you have some DIY projects you want to tackle.

I really hate popcorn ceiling, and that's what we have at the house I'm renting at. And I've scraped it off and put orange peel and repainted it at my grandparents house before. It's time consuming but it's not really difficult. Me and my roommates asked the landlord if we could do these kinds of remodel and she flat out said no. *Shrug* I can't blame her because ultimately she owns the place and probably doesn't want renters doing a bunch of DIY projects on her house. But ultimately we'd be modernizing it and probably increasing the value of the house on our dime.

Just one of the many reasons I'd like to own, so I don't have to jump through hoops with a landlord to get repairs and improvements done.
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Yeah I totally get what you mean. Also wow thanks now I know there's a term for that weird ceiling in old buildings and motel rooms, popcorn ceiling!
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Makeveli_lives posted...

WaterLink posted...

You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.

https://www.youtube.com/watch?v=YHU_KLYhibI

I've heard of Adam Ruins Everything before but I've never seen it until now.

Is it meant to be as fucking annoying as possible?
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LinksLiege posted...

Makeveli_lives posted...

WaterLink posted...

You can buy a house as an investment, or you can rent and never see your money again once you throw it to someone else who actually owns the place you're staying at.

https://www.youtube.com/watch?v=YHU_KLYhibI

I've heard of Adam Ruins Everything before but I've never seen it until now.

Is it meant to be as fucking annoying as possible?

Not to mention those points don't hold any weight. Like if you rent, you're paying the person that owns the property's mortgage so you're essentially building someone else's equity. And if something breaks, the landlord doesn't "fix it", they often choose the cheapest option at their disposal to remedy the problem that may not fix it properly or it takes a long time for your request to be addressed. You don't have a choice in the matter. And if you get a job opportunity elsewhere you can sell your house, you're not "stuck" like he claims. And the bank person doesn't own the house like he says in that little jab. You're paying off a loan and if you don't pay it then yeah they can seize the house as payment. Same with car notes and other loans. They can't just waltz in there because they're not the owners, but landlords can because they are the owners. I don't understand what that point was about.
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Why did this topic feel like GTA4 to me at the beginning?
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