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I just bought a house and it will cost half as much to own vs rent same house
invite response
2012 Oct 12, 8:54am 117,401 views 412 comments
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Looks like people here are finding it amazing when their rent wasn't increased in 2-5 years. It's like having a 2 year ARM or 5 year ARM. Interest Only, never payoff. Ever considered a fixed rate mortgage? Same payment for life? You can get a mortgage right now for free (inflation adjusted).
Problem is we were not supposed to be here this long. We hate LA, and both of our companies has been through 2-3 rounds of lay offs. Other problem is comp houses/neighborhoods (we started shopping a few months ago given the rates) is still going to cost $2000/mo more than our current rent, so it's same or worse than just keep renting.
Bigsby
2012 Oct 16, 11:49am
LIEWog/Bigbsy.....
Do you really think that we believe anything you say?
You're an establish liar pimping depreciating houses at inflated prices.
Give it a rest troll. We aren't the same person, unlike you/Darrell/Realtors are... etc. etc.
Bigsby
2012 Oct 16, 12:03pm
LIEWog/Bigbsy.....
Do you really think that we believe anything you say?
You're an establish liar pimping depreciating houses at inflated prices.
Well, I know I don't believe a word you say. How many times have you been banned so far? You must be so proud. Have you posted up a certificate of achievement in your parent's basement?
You better keep praying for appreciation!
Isn't it odd that "appreciation" was never associated with housing until Lereah and Yun made it a fashion statement.
In the meantime, the reality is houses depreciate. Rapidly....
THAT is the point that so many haven't seen, or don't want to see out of their own fear or remorse.
Ironic, speaking of depreciation, that no one questions the depreciation of a new car!
Bigsby
2012 Oct 16, 9:28pm
Yeah, houses never appreciate in value. Just ask all those people whose houses have appreciated in value.
Bigsby
2012 Oct 16, 10:10pm
LIEWog/Bigbsy.....
Do you really think that we believe anything you say?
You're an establish liar pimping depreciating houses at inflated prices..
So it's a call centre.
Bigsby
2012 Oct 16, 10:23pm
LIEWog/Bigbsy.....
Do you really think that we believe anything you say?
You're an established liar pimping depreciating houses at inflated prices..
Except my job has nothing to do with real estate.
You'll have to be quick responding - someone needs your help with their household appliance.
Bigsby
2012 Oct 16, 10:28pm
LIEWog/Bigbsy.....
Do you really think that we believe anything you say?
You're an established liar pimping depreciating houses at inflated prices..
Warranty or technical support?
tatupu70
2012 Oct 16, 10:29pm
THAT is the point that so many haven't seen, or don't want to see out of their own fear or remorse.
Because it is completely incorrect. Historically, houses appreciate at approximately the rate of inflation. Case Shiller proves this.
Bigsby
2012 Oct 16, 10:34pm
Deleting the (repeated) posts that I respond to once again, I see. That's a tired old routine, don't you think? You must be the least inventive and most repetitive troll on the internet.
Deleting the (repeated) posts that I respond to once again, I see. That's a tired old routine, don't you think? You must be the least inventive and most repetitive troll on the internet.
I think you are calling the kettle BLACK because if YOU want to talk of trolling? Start by just looking at the ridiculous volume of your idiotic one liners on this thread alone.
It is clear who you are.
Bigsby
2012 Oct 16, 11:14pm
I think you are calling the kettle BLACK because if YOU want to talk of trolling? Start by just looking at the ridiculous volume of your idiotic one liners on this thread alone.
It is clear who you are.
Jog on Reader. They were responses to repeated trolling posts by your best mate. He posted. I responded. He then deleted them. I presume that people aren't supposed to respond to your best mate's repetitive attacks. Strange that you never comment on his trolling. Why is that?
And it's clear what you are.
PockyClipsNow
2012 Oct 17, 7:21am
well it used to be a real estate discussion board, now its more of a 'DONT BUY ANYTHING, EVER BECAUSE EVERYTHING IS A RACKET' board.
of course everything is a racket. duh.
Some of you act like rubes who just moved to the big city. "dont trust no body here, they is all liars n theives! a man promised me he would find me a place to stay for $20 and he dissappeared with muh money!'
hahaha
of course everything is a racket. duh.
No, there are people out there who are hardworking, pay their bills, help their fellow man, are not greed oriented, don't do anything and everything to try to sucker people into debt with fear or lies and/or lead them into bankruptcy to make a fast buck, and therefore such people do not play part of such rackets.
Everything is NOT a racket THAT is the bigger point to make clear. It's all about not falling for the bullshite and saving your own arse.
RentingForHalfTheCost
2012 Oct 17, 11:11am
well it used to be a real estate discussion board, now its more of a 'DONT BUY ANYTHING, EVER BECAUSE EVERYTHING IS A RACKET' board.
of course everything is a racket. duh.
Some of you act like rubes who just moved to the big city. "dont trust no body here, they is all liars n theives! a man promised me he would find me a place to stay for $20 and he dissappeared with muh money!'
hahaha
Another property tax bill is coming in the mail soon. Save up.
Bigsby
2012 Oct 17, 12:01pm
LIEwog, you forgot to log into the other account.
You are a very boring troll. There's only one person on here with multiple accounts and everyone is perfectly aware that is you. Now why don't you run along and do another one of your searches for a single neighbourhood with a monthly decline so that you can post up yet another of your ridiculous threads.
Bigsby
2012 Oct 17, 12:04pm
Can I stay Liewog/bigsby? Please?
You've already been banned numerous times, so obviously you can stay.
I am prepared to lose 300k if rates rise, prices tank, and I end up facing a 7% mortgage payment (oh the horror). If that happens and I cant get a loan mod, then after squatting for free for 2-7 years I will buy a better home at the new '50% disount' and actually be better off in a nicer house, with a lower tax rate.
Meanwhile I will not be renting anymore.
This totally makes sense in CA since they will not come after you for a deficient judgement anyway. All you lose is your down payment. I will call it an even (financially) if you squat for two years afterwards. But be aware for people in other states. This kind of strategy could back fire on you.
RentingForHalfTheCost
2012 Oct 18, 2:15am
What's fuzzy about $2000 back on a $1000 outlay?
No one talks about the hidden costs of renting in a dump neighbourhood. Just the same as no investor talks about his loses.
When you see someone beating their chest trying to show how great a deal they got, it is a good chance they are bullshitting you. I am a landlord, know many landlords, it is not that good. It is a choice of where to put your money. I hate these people that come on and say they are amazing, they timed it perfect. They remind me of the 30 minute info-mercials at 2am. They can do no wrong. The more they spend time here trying to convince everyone to act like they do, the more I see them for their insecurities and weaknesses. The people that are making money out there are not on here trying to use it for power and to create a following. They are enjoying their money. Enough said.
Bigsby
2012 Oct 19, 2:08am
When you see someone beating their chest trying to show how great a deal they got, it is a good chance they are bullshitting you. I am a landlord, know many landlords, it is not that good. It is a choice of where to put your money. I hate these people that come on and say they are amazing, they timed it perfect. They remind me of the 30 minute info-mercials at 2am. They can do no wrong. The more they spend time here trying to convince everyone to act like they do, the more I see them for their insecurities and weaknesses. The people that are making money out there are not on here trying to use it for power and to create a following. They are enjoying their money. Enough said.
And yet you say you're a landlord.
RentingForHalfTheCost
2012 Oct 19, 7:21am
When you see someone beating their chest trying to show how great a deal they got, it is a good chance they are bullshitting you. I am a landlord, know many landlords, it is not that good. It is a choice of where to put your money. I hate these people that come on and say they are amazing, they timed it perfect. They remind me of the 30 minute info-mercials at 2am. They can do no wrong. The more they spend time here trying to convince everyone to act like they do, the more I see them for their insecurities and weaknesses. The people that are making money out there are not on here trying to use it for power and to create a following. They are enjoying their money. Enough said.
And yet you say you're a landlord.
5 times over. However, all of my places are in an area where owner costs are very close to renting costs as it should. BTW, none of them are in this crazy socialized housing country.
marcus
2012 Oct 19, 11:25am
Price: 875k
$ Financed: 700kLoan: 5/1 Interest Only ARM at 2.875 with .25 points (union bank)
Payment: 1677
Prop tax: 912
total: 2588
(im in 28% effective tax bracket so 2588 * .72 = 1863 'after tax write off payment')
Add fire ins of 129 per month and total pmt after tax write off = $1992
The only downside I see is what if inflation pressures kick in along with interest rate increases. (but not real estate inflation).
This has happened in the past.
If interest rates go up and prices go down, then you're in trouble.
Not trying to troll you,...just saying,...that's where the risk is in your strategy here. Otherwise it sounds pretty good.
Bigsby
2012 Oct 19, 11:56am
5 times over. However, all of my places are in an area where owner costs are very close to renting costs as it should.
Then why are you taking digs at someone whose ownership costs are far less than rental income? He's seemingly made a much better investment than you. He's RentingOutForDoubleTheCost.
you know you are a freaking idiot, right?
hear hear!!! If I purchase an investment that goes down in value, but still makes 2-3X the return of inflation every month.. I ain't gonna be crying myself to sleep over it.
Tenpoundbass
2012 Oct 19, 10:59pm
Congrats Pocky!
Damn you spending that Railroad money.
Though 700K sounds like a lot, it sounds like you gotta a lot for you're money. Out of my league but it sounds like you lived up to my house buying motto. I want the most for the least money.
RentingForHalfTheCost
2012 Oct 21, 1:26pm
When you see someone beating their chest trying to show how great a deal they got, it is a good chance they are bullshitting you.
so let's see: if someone says:
" i bought a home, and its a terrible deal" they are telling the truth.
BUT, if someone says:
" I bought a home, and its a great deal" they are of course lying...
you know you are a freaking idiot, right?
Idiot, because I think real estate in this country is one of the riskiest places to put your hard earned money and also throw in a 5-1 leveraging on top of it? You would be safer buying pork belly futures. You can have your opinion Roberto and not be an idiot, but apparently anyone that differs from you is one. Good luck to you Roberto, you will need it over there in Phoenix if my predictions come true.
RentingForHalfTheCost
2012 Oct 21, 1:29pm
you know you are a freaking idiot, right?
hear hear!!! If I purchase an investment that goes down in value, but still makes 2-3X the return of inflation every month.. I ain't gonna be crying myself to sleep over it.
Keep praying ever night that you can get more and more friends to join the greatest national ponzi scheme. Don't be surprised if it all collapses though.
tatupu70
2012 Oct 21, 9:18pm
The truth is that investments in stocks has been shown to always out perform real estate. Always!
I've never invested in real estate because I don't want to be a landlord, but I'm not sure about that statement.
Are you looking solely at appreciation or are you also factoring in income?
On the long run housing goes up 4% per year vs stocks 8% per year. If don't think any further you will believe you can make more profit with stocks. But there are two key differences: you don't buy stocks with a small down payment, can't do a cash-out refinance on your stocks after they appreciate and your dividends are much lower than rent collected on housing. If you buy a house ($100k) with 20% down ($20k) and it goes up only 4% ($4k) then you get a return on your down payment of 20%. And that' not even including profits on rent.
RentingForHalfTheCost
2012 Oct 21, 11:59pm
On the long run housing goes up 4% per year vs stocks 8% per year. If don't think any further you will believe you can make more profit with stocks. But there are two key differences: you don't buy stocks with a small down payment, can't do a cash-out refinance on your stocks after they appreciate and your dividends are much lower than rent collected on housing. If you buy a house ($100k) with 20% down ($20k) and it goes up only 4% ($4k) then you get a return on your down payment of 20%. And that' not even including profits on rent.
5-1 leverage is risk. You can play that risk with stocks with derivatives. However, investors can see the risk of raw -4% becoming -20% to you there. Because we have been brainwashed by the greed machine wrt real estate, everyone ignores this effect in housing. Good try.
tatupu70
2012 Oct 22, 12:34am
5-1 leverage is risk. You can play that risk with stocks with derivatives. However, investors can see the risk of raw -4% becoming -20% to you there. Because we have been brainwashed by the greed machine wrt real estate, everyone ignores this effect in housing. Good try.
You didn't answer my question. Are you including income in your calculation or just appreciation??
Very few people buy an investment home solely for the appreciation.
RentingForHalfTheCost
2012 Oct 22, 12:53am
5-1 leverage is risk. You can play that risk with stocks with derivatives. However, investors can see the risk of raw -4% becoming -20% to you there. Because we have been brainwashed by the greed machine wrt real estate, everyone ignores this effect in housing. Good try.
You didn't answer my question. Are you including income in your calculation or just appreciation??
Very few people buy an investment home solely for the appreciation.
Income can be dividends also. Absolutely including both. Housing is one of the worst forms of investments. Tracks to inflation. Other investment actually grow your capital. A house is a shelter.
David Losh
2012 Oct 22, 12:55am
I'll stop you with the income portion of rental property by saying permits for building apaprtments were almost nonexistent for the ten years from 2000. Builders did build millions of crap shacks for cheap, and sold them for premium prices.
As builders go back to building for "cash flow" smaller investors will be squeezed by the high prices they paid for crap.
Can I say crap on this site? I'm new here.
The rents you are looking at today are a part of that over all "feeling" of wealth Bernanke is talking about. Historically low interest rates, gives you a feeling on passive income, while ignoring the debt you are going to pay off.
OK, so what you end up owning that crap shack? Who is going to buy it? You just carried the property, and paid twice the price of it's value, but who will take it off your hands?
The type of thinking that is expressed here is the stuff slum lords are made of.
Tenpoundbass
2012 Oct 22, 1:07am
OK, so what you end up owning that crap shack? Who is going to buy it? You just carried the property, and paid twice the price of it's value, but who will take it off your hands?
Something tells me the Pockster can swing it. Being that his current finances hold up. Playing with in your means is the most important rule everyone should follow. NOT that nobody should ever buy a house that you or I would consider grossly inflated and out of our league. That is why I bought a house that the mortgage/ins/taxes would equal to the the average rent I was paying for ten years prior. Now had I the Pocksters money, I would have bought in Coral Gables and not thought twice about it.
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I hope this is a real world math lesson for some of the 'should I buy now' crowd. Its a tough decision.
Price: 875k
$ Financed: 700k
Loan: 5/1 Interest Only ARM at 2.875 with .25 points (union bank)
Payment: 1677
Prop tax: 912
total: 2588
(im in 28% effective tax bracket so 2588 * .72 = 1863 'after tax write off payment')
Add fire ins of 129 per month and total pmt after tax write off = $1992
This is a custom built, recently remodeled huge estate home on acreage and zoned for horses - would rent for 3800 to 4200 based on craigslist comps.
If I change jobs I can make 1k per month easy in profit when renting it out. Its not a great rental though, but an awsome to live in property.
I sold four homes off in 05/06 and the plan was wait for 50% drop then buy back in. Well prices only came down to 70% of peak fraud prices - close enough with the low intrest rates (which I am betting are permanent, as in the rest of your life. If rates spike in 5 years I will simply pay off the loan, refi, or get a loan mod - no worries here.)