A conundrum
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They don't actually need regular payments for 10-30 years. They need you deposit that down payment cash ASAP so they can lease it to billionaires and crypto exchanges.
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Then there's all the expenses you didn't know about before you bought the house. If you don't have at least some DIY skills, you get to pay people a lot of money to fix things for you.
...BTW, the county just did a reassessment on your property and your property taxes have now doubled. In exchange, you get nothing. Congratulations.
wrote last edited by [email protected]I always find this to be such a poor argument.
Yes unexpected maintenance can sometimes be a huge problem, especially in the first couple of years, but after that you can tap into home equity and repair say a roof. Everything else while expensive is still cheaper than renting. Using the OP's example 1k vs 500, I can assure you you will never have consistent 500 repairs per month.
As for the taxes the people in my city nearly went ballistic when the city increased the rate by 5%. At the end of the year it costed me $200. Per month that's about $16. I've never lived in any apartment anywhere where rent didn't increase by at least $50 per month each year. Even if someone had a home twice as valuable that's still a very small monthly cost.
Additional once you get past the first 3ish years rent prices have greatly outpaced your mortgage and you will be saving a lot of money compared to of you were renting.
I'd like to wrap up with a question. If owning a home was such a sink of resources why do people become landlords?
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Whats going on is decades of mismanagement of property taxes and city zoning. People fight tooth and nail to keep their property taxes low, and eventually the city has to do a big increase because they failed to increase incrementally. The bigger issue is how poorly we zone and design most north american cities.
The average car dependant suburb costs more to maintain than it generates in tax revenue. A denser area like mixed use neighbourhoods and "missing middle" housing fares far better and generates enough that it often ends up subsidizing the rest of the city, the same is usually true for denser downtowns. That trend is dying off as those denser areas demolish tax revenue generating businesses and homes to pave parking lots that don't generate taxes to park cars from the suburbs that don't generate enough taxes.
You can't afford a home because for decades suburbs were given a massive tax break while denser downtowns (guess where the poors have to rent and ultimately fund the property taxes) have to subsidize car dependant expensive to maintain subdivisions (which is usually for middle class or wealthier people, especially when built new). Add in some racial demographics and we've basically engineered every city to have secret tax cuts for anyone rich enough to get into the suburbs.
The best part is, many cities are keeping the cycle going because the only way they are paying for maintaince of an old subdivision is by using the devleopment taxes and fees from a new subdivision. This is not sustainable and ultimately equates to kicking the can down the road to let a future generation figure it out (which is literally as simple as building cities densely again, as they had been built for 100s of years).
This hasn't even touched yet on the urban sprawl, energy ineffeciency, and secondary effects of car dependancy that have all spawned from "the american dream" of suburbia. We seriously need to reconsider how we zone, build, and get around our urban spaces.
I agree with a lot of what you said but this is complete bullshit:
while denser downtowns (guess where the poors have to rent and ultimately fund the property taxes)
I have never been able to live in a "downtown" because I'm just a construction worker. So GTFO with "these poor inner city areas are funding the suburbs." I'm in one of the nicer houses I've ever managed to live in and it's primarily a shithole. You're telling me that the people downtown are subsidizing my white-trash ass? No way.
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And so now you've learned that you need to regularly flush the water heater and change out the anode rod every few years, right? I just bought my first house. Hot water wasn't working right. Heating element was dead. Why? There was so much scale that the lower element was covered in it. Replaced the element, flushed as much out as I could reasonably remove, and then flushed again six months later while replacing the anode rod. This keeps the corrosion at bay.
With new water heaters yes, do your maintenance. Old water heater that came with the place and hasn't been touched in years? Yeah, the advice is to actually not flush it because you don't know what cracks that gunk might be blocking up and it will be more likely to fail on you sooner.
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I wouldn't say you get nothing from paying property taxes.
Depends where you live. Where I live we just get more funded cops to more expensively harass houseless people.
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Hey, I just did these things! Water heater i was ripped off, which cost me $2600, and the roof i actually thought was a good deal at 17k. Not fun but the roof made me happy. The water heater actually destroyed my basement by leaking out...
I'm guilty of ignoring my water heaters. Had my backup start to leak and it cost $1500 to replace. So I immediately bought a new anode rod for my primary tank. Drained/flushed it and replaced the old rod which was completely gone. It was an easy task but you will need a cheap impact wrench, 1 1/16" socket and chain link anode rod to make it easy.
It's something you need to do every couple of years. But I never do it.
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I tell my soon-to-leave-the-nest kids:
Rent is the most you will pay every month. The mortgage is the least you will pay every month.
I'm loving them being here as full grown adults and enjoy my time with them and with our particular house they are seeing that lesson play out in real time. Some big expenses and I am the DIY dude. I don't fuck with (big) electric or gas though, that shit can really backfire.
The other side of that is that my mortgage, even with rising property taxes and my house appreciating wildly in value, tracks less than renting.
If I could rent a place for the price of my mortgage with the cost rising at the level my mortgage does … I’d rent all day long
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good news, theyre counting rent and utilities payment as a way to build credit now! link
wrote last edited by [email protected]That's just for the "paid on time" section of your report. It helps a bit with your score, but it doesn't change how banks determine your debt to income ratio.
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I agree with a lot of what you said but this is complete bullshit:
while denser downtowns (guess where the poors have to rent and ultimately fund the property taxes)
I have never been able to live in a "downtown" because I'm just a construction worker. So GTFO with "these poor inner city areas are funding the suburbs." I'm in one of the nicer houses I've ever managed to live in and it's primarily a shithole. You're telling me that the people downtown are subsidizing my white-trash ass? No way.
You’re both right which is what’s so fucked.
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I agree with a lot of what you said but this is complete bullshit:
while denser downtowns (guess where the poors have to rent and ultimately fund the property taxes)
I have never been able to live in a "downtown" because I'm just a construction worker. So GTFO with "these poor inner city areas are funding the suburbs." I'm in one of the nicer houses I've ever managed to live in and it's primarily a shithole. You're telling me that the people downtown are subsidizing my white-trash ass? No way.
Yeah, I'm living rural because living in the city is still more than twice as expensive. Some bad faith actors want to reclassify it as 'suburban' because it's doubled in size since covid, but I'm closer to cows than the grocery store, so that falls flat.
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They don't actually need regular payments for 10-30 years. They need you deposit that down payment cash ASAP so they can lease it to billionaires and crypto exchanges.
The deposit is to cover expenses/losses that arise out of defaults. Housing loans have been lile this forever. Not everything is a conspiracy.
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Yeah, I'm living rural because living in the city is still more than twice as expensive. Some bad faith actors want to reclassify it as 'suburban' because it's doubled in size since covid, but I'm closer to cows than the grocery store, so that falls flat.
I like that metric
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You’re both right which is what’s so fucked.
It depends on the city. Smaller non touristy cities. Your cheapest rents are near downtown core with all the old buildings and the only place density has been allowed to be built for the past 60 years. Bigger cities the central downtown is defintely expensive, i guess in those cities im more so refering to anywhere with apartment buildings density, which can give a downtown feel if older buildings are still preserved nearby. Although a lot of the time they've been paved over and thats how we get apartments that stand 20 stories high surrounded by a sea of single story strip malls and box stores.
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The other side of that is that my mortgage, even with rising property taxes and my house appreciating wildly in value, tracks less than renting.
If I could rent a place for the price of my mortgage with the cost rising at the level my mortgage does … I’d rent all day long
Yeah, that's the thing. The market went upside down. Maybe 1993? Before that renting made sense even from a financial perspective in many areas. But now when housing is double or treble inflation? Nope. Sink money into real property at your first opportunity.
We have fucked up the entire "developed" world so much that if you start poor you stay poor and housing is a large part of that equation.
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Where y'all finding houses for 500/month with a 25k downpayment?
Seems cheap af. If you only did a 25k downpayment the mortgage would certainly be more expensive than rent where I'm at.
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Yeah, that's the thing. The market went upside down. Maybe 1993? Before that renting made sense even from a financial perspective in many areas. But now when housing is double or treble inflation? Nope. Sink money into real property at your first opportunity.
We have fucked up the entire "developed" world so much that if you start poor you stay poor and housing is a large part of that equation.
wrote last edited by [email protected]In my lifetime interest rates on mortgages went from high teens to the 3.whatever I have.
Home values skyrocketed and now the expectation seems to be this must continue.
Honestly I’m happier to pass my house on to my kid than turn a profit on it.
Now if HE buys a house and inherits mine … I hope he turns a fat profit on it lmao
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I tell my soon-to-leave-the-nest kids:
Rent is the most you will pay every month. The mortgage is the least you will pay every month.
I'm loving them being here as full grown adults and enjoy my time with them and with our particular house they are seeing that lesson play out in real time. Some big expenses and I am the DIY dude. I don't fuck with (big) electric or gas though, that shit can really backfire.
Rent vs mortgage - gotta put a caveat on that one.
Renting = landlord gets all the money but has to maintain the property.
Mortgage - bank gets all the money and you get a partial refund if you sell. You pay for the upkeep. A mortgage is not really an "investment", you usually lose money on the deal if you live there. It's cheap rent from the bank.
It basic math to see which one is better long term. Usually the mortgage wins because of of the partial return. However if you can't do the upkeep yourself, renting is often a better financial decision.
There have been times when renting was the smarter financial decision. Like the housing bubble in 2003-2007. You could rent places for 1/2 what it would cost to buy them per month.
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How fucking old is this? Unless it's a real shithole, mortgages have not been this cheap since Truss fucked up the economy
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They did this before it worked out really well around 2008
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Rent vs mortgage - gotta put a caveat on that one.
Renting = landlord gets all the money but has to maintain the property.
Mortgage - bank gets all the money and you get a partial refund if you sell. You pay for the upkeep. A mortgage is not really an "investment", you usually lose money on the deal if you live there. It's cheap rent from the bank.
It basic math to see which one is better long term. Usually the mortgage wins because of of the partial return. However if you can't do the upkeep yourself, renting is often a better financial decision.
There have been times when renting was the smarter financial decision. Like the housing bubble in 2003-2007. You could rent places for 1/2 what it would cost to buy them per month.
I think people should listen to this user.
