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follow anonymous 2015 Nov 26, 7:55am
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Being a renter back with the extended family is fan-fucking-tastic, isnâ€™t it Patnet! All that housing shit you gave them years ago gets shoved back in your face in spades:
- Hey Jason, still renting huh, hows that waiting for the bottom working out for ya?
- Hey remember 5 years ago when you told me to sell and rent, waiting for the crash â€“ LOL â€“ gawd what a fucking disaster of advice that was. Say where you living these days?
- Hey still waiting on that â€œtidal waveâ€ of inventory to crash prices â€“ LOL â€“ keep waaaaaating!!!
- Hey your wife was telling Kate in very hushed tones about you are paying FOUR FUCKING THOUSAND in rent these days? Couldnâ€™t you have bought a few years ago for under 3K a month? Didnt you brag about how you were saving all that cash by renting? But if you could have bought for 3K and now rent for 4K how are you still winning? Oh well, keep renting, im sure it will work out for you...
ANOTHER PATNET VICTORY!!!
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The answers to the multiple questions in the OP depend on what JasonM have done with the money he didn't have to plop down as a downpayment.
I have been doing pretty good by not buying a house and investing all on SP500, what it's historically better
Tell me, how would I extract said "equity"? And how would said "equity" be affected by say, an economic crash? And If I lost my job, would this equity enable me to continue paying my mortgage?
In vast majority of cases, investing downpayment in stock market will seriously under-perform buying a house with 20% down due to leverage issues and rent increases. It is literally an unforced error in terms of tennis and may result in serious long term regrets.
With real estate, you pay property taxes annually AND capital gains at sale. There are also maintenance costs, not only roof patching or window caulking, but also leaves don't rake themselves. Maintenance for the SPY ETF is a fraction of a fraction of 1%.
Strategist saysI cannot stress enough....buying your own home is the best investment you can ever make.That's where you're wrong. Buying your home gives you SHELTER first, that's the MOST important piece. You have control over your shelter versus your landlord. Any investment growth is icing on the cake.
I cannot stress enough....buying your own home is the best investment you can ever make.
Not a great deal in parts of the country where long term appreciation is very low.
Strategist saysNot a great deal in parts of the country where long term appreciation is very low.So what happens in those areas (like here by me)?
If you have enough equity, you could extract it with an equity line, or by selling the home. I would not recommend either.In the event of an economic crash you are likely to lose your equity until the market comes back.If you lost your job, an equity line would enable you to pay your mortgage. How would you pay your rent if you lost your job?
In the event of an economic crash, can you guarantee your landlord will continue to pay HIS mortgage? What if he gets foreclosed and the sheriff shows up to kick you out? What do you have as saved equity in that situation?
errc saysMy how quickly people forget.When you say “our system”, do you mean Free Market Capitalist system? Or American Lemon Socialism?Why you angry bro?Didn't Bernie give you the free house he promised?
My how quickly people forget.When you say “our system”, do you mean Free Market Capitalist system? Or American Lemon Socialism?
Bernie didn’t promise me a free house.
Rent: AMortgage interest + property tax + HOA + maintenance - (tax deductions): B If B < A, then buy
I haven’t forgotten the housing crash from ten years ago.
If I lose my job, I move to a smaller place. Since I'm just renting it's an easy, and immediate solution.
Strategist saysIf you have enough equity, you could extract it with an equity line, or by selling the home. I would not recommend either.In the event of an economic crash you are likely to lose your equity until the market comes back.If you lost your job, an equity line would enable you to pay your mortgage. How would you pay your rent if you lost your job?So debt is your answer. Figures, since debt is how most people get a house to start with. I enjoy living debt free and within my means.
Are you really debt free if you are paying your landlord's mortgage?
Buy even if B > A, because in a few years B < A.
I'm completely debt-free and have a good pile of money in the stock market. More all the time. Thanks, Trump!
Cost of owning the same thing is significantly larger than renting it.
What investment would that be that won't be affected in the next crash?
The benefit of owning is the landlord (bank) will take absolute minimum 9 months to maybe years to kick you out.
when you are paying your mortgage, anything going to principal is paying yourself.
Slowly rots is right. My 200 year old house cost $180 on the earliest land records from the year 1832. In 2012 I pulled up one room of antique floor boards and sold them to a lumber co for $300 nearly double the cost of the whole house!