|Today 11:35 AM|
What do you mean "different category." You mean buying a smaller house? This is a 3 bedroom 1.5 bath ranch, that has the original kitchen and baths from the 60s. It's far from something fancy.
That home isn't at the top of our budget from a cash flow stand point, I just don't plan on being house poor. I could get approved for a $300k+ mortgage easily by myself, without using Tiff's income. It just requires that much bigger of a down payment. Saving $10 or $15,000 takes time.
|Today 11:32 AM|
|Chas||Never said owning is always better, but it's better for you.|
|Today 11:29 AM|
|Chas||You are only looking at a tiny fraction of the experience, and you can't seem to get past buying a home in a different category. I'd never buy a home at the top of my budget.|
|Today 11:24 AM|
|kylesvt720||All of that aside, I'll repeat this again, I'm not against owning, I plan on buying a home in the next couple years. I just know that making blanket statements like, "owning is always better" are ignorant.|
|Today 11:09 AM|
FALSE. I sent you an article talking about how property taxes essentially make your house never yours, as it can always be taken by the government. (Completely different thing.)
Here is the article: https://petesisco.liberty.me/you-don...nd-never-will/
"If you can afford to rent a nice home in traverse city, you an afford to buy a decent home and actually get your money back as opposed to a black hole. That's it."
This statement is insanely ignorant. The house we are renting was appraised at $215,000. We rented it with a $500 security deposit. That was all that was needed to rent it.
To buy it? Doing an FHA loan, we'd need $6,450 for a down payment (3%), plus money for a home inspection. ($300-500) let's say $400. We're alraedy up to $6,850 needed.
Our rent? $1,100 a month.
Mortgage on $209,000, 30 year fixed FHA at 4.25% (current rate today) payment is $1,028. $2,500+ a year in taxes for east bay township. (We'll use $2,500 even) That's another $208.33 per month. Then you have PMI, which based on most calculators would be about $200 per month based on the loan value.
In order to move here and rent we needed $500 for the deposit, then pay $1100 to move in.
To move here and buy the same home (we could buy it right now from the owner), we'd need a minimum of $6,850 in cash to buy the home, and the mortgage/taxes/PMI equates to $1436.00 per month.
Sorry, but doing one does not equate doing the other.
As for your "black hole" statement, let's say I hold the house for 5 years then sell it. The mortgage balance would be $190,000 at the time of sale. If I sell it for the same $215,000, that nets $25,000. (Minus the 6,850 spent to purchase it.) We're down to $18,150. Then we subtract 3% closing costs, (conservatively) another $6450, and we are down to $11,700 net actual profit from the sale.
But wait! There's more! The monthly cashflow difference is $1436-1100 = $336 in saved cashflow per month by renting. $336 x 60 (months) = $20,160 in cash flow saved by renting.
So by renting for 5 years, would save $20,160 in cash minus $11,700 (profit from the sale) = $8,460 saved by renting. (Are you still following me?)
Now I may get lucky and sell the house for more, I'd have to sell it for about $10,000 more than what I paid, to break even. (And this is if the house has zero expenses that go into it over the 5 years.) There has already been $1,000 in stuff put into this house by the landlord in our first 6 months. A new dishwasher, fixing some wiring, and the furnace will need servicing before next winter.
|Today 10:58 AM|
|Aku||I fortunately don't have student loans except for the last semester. And that loan I owe my parents since they did a home equity loan for me at WAY cheaper of an interest rate than any student loan would be. So I'm slowly paying my parents back for that. I also live on my own in an apartment and starting Sept I'll have a single bedroom so that won't be cheap. (over double the rent/util cost of my current living situation). I pay my own auto insurance on 2 cars, and a payment on 1 of them. I also pay my own phone bill and I refuse to not pay off a credit card bill in full every month. Combine that with an unhealthy car modding problem and this is why I don't own a house yet.|
|Today 10:45 AM|
|gold_zx3||Even with the PMI I'm paying per month for not putting 20% down I'm only paying like $20 more per month for my mortgage plus escrow than I did with my dinky ass studio apartment that's only a mile closer to downtown. Do I have to do a shit load more maintenance? Hell yes. But for me I think it's totally worth it. If I had to do it again I'd probably spend a little more for a house better suited to my needs but my mortgage is so damn cheap I can live here for a couple more years, save money, resell it for more and find something better. That's the plan anyway...|
|Today 10:31 AM|
|Chas||Lol look man, you're the one that sends me articles claiming its better to rent than own, unsolicited. I'm sorry if I struck a nerve about family. If you can afford to rent a nice home in traverse city, you an afford to buy a decent home and actually get your money back as opposed to a black hole. That's it.|
|Today 10:22 AM|
My point with asking that isn't to cut you down, but to act as if it's "easy" because it was for you, is silly. I had to pay my own insurance and cell phone, (not on parent's plan for either) in high school. I had to buy my first vehicle, by saving sweeping floors and mowing lawns when I was 12, 13, 14. I remember having to put books on a credit card because I couldn't even get a loan for them one semester in college, and had to pay it back off. I would guess Tiff and I pay more in college loans each month than you pay in mortgage and taxes.
So yes, if I had 20% to put down on a house right now, you bet I'd be a homeowner. You consistently confuse the argument I make though. I am not saying buying a home is bad. I am simply saying it's not always good. Had I bought a house in Royal Oak, or Rochester, then ended up moving here, I more likely than not would have lost money on the deal.
|Today 09:48 AM|
|Chas||Yeah, it's totally worth it. Honestly, even if we weren't making money on our homes, i'd still enjoy it. I love taking something and making it newer and nicer. I hope to fix up more homes in my life.|
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