[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 54 KB, 984x554, 02292012_underwater_house_yelling_article[1].jpg [View same] [iqdb] [saucenao] [google]
19771331 No.19771331 [Reply] [Original]

I don't think I could come up with a worse investment than owning a home even if I tried.
Negatives of home ownership
>constantly drains your cash due to repairs, upkeep, property taxes, etc.
>grossly illiquid; takes months or even years to sell
>expensive to buy and sell (closing costs, realtor fees, home inspection etc.)
>home prices don't keep up with inflation - yes that's right, the equity in your home on average does not even meet inflation so you are losing money every year
>stuck in one spot and the value is mostly dependent on factors you can't control like neighbors, city development
>natural disasters can destroy your home in less than a day; good luck wrangling with insurance companies to get even a fraction of the home value
>locks you in one place unless you want to go through the nightmare of selling a home, buying a new one and potentially losing your equity if you're forced to move at the wrong time
>taxes go up every year, you still have to pay federal, state and local taxes every year even when your mortgage is gone
>eminent domain means the govt. can literally seize your property at minimal recompense to you
Positives of home ownership
>"american dream"
>your roastie wife will like you more

Oh but home ownership is a great way to earn extra income from renters!
>only profitable if you are leveraged to the max and get lucky with your properties
>rentability still dependent on factors beyond your control like druggie neighbors or jobs leaving an area
>one bad renter can wreck your home and destroy years' worth of profitability in one week
>arcane and frustrating eviction laws means you will have a hard time even evicting problem tenants
>if you can't find renters you are on the wrong side of all that leverage and will go bankrupt in months

>> No.19771391

>>19771331
>my ancestors smile at me rentcuck, can you say the same?

>> No.19771445
File: 217 KB, 775x687, 6eb.png [View same] [iqdb] [saucenao] [google]
19771445

>>19771391
>my ancestor :)

>> No.19771468

Haha this board is made up of people bragging they are homeless bragging they lost their money on shitcoins bragging they buy bankrupt companies stock bragging they are incels

>> No.19771496

>>19771331
So youre saving 3k a month into a heigh yield retirement account instead?

You do realize that eventually you oay the home off right then you dont have a mortgage? Im making early payments should be debt in 13 years

>> No.19771521
File: 1.18 MB, 3800x1904, 1580491005745.jpg [View same] [iqdb] [saucenao] [google]
19771521

>>19771445
good one moshe!

>> No.19771544

>>19771331
Cope.

You're priced out faggot.

>> No.19771565

>>19771496
Even when you've paid off your mortgage how are you going to tap that equity (which doesn't keep pace with inflation)? And that's just assuming you're not underwater on your mortgage

>> No.19771591
File: 85 KB, 1280x720, maxresdefault.jpg [View same] [iqdb] [saucenao] [google]
19771591

>>19771521
>I-I-I'm white I promise!
The absolute state of /pol/cucks

>> No.19771608
File: 190 KB, 458x438, 1586498563986.png [View same] [iqdb] [saucenao] [google]
19771608

>>19771591

>> No.19771616

>>19771565
I dont need to tap equity. i have a huge line of credit , pile of cash, and massive cash flow. My goal is not to use equity on my house but instead decrease my expenses so much to have positive cash flow.

>> No.19771626

>>19771565
By living in the house you homeless faggot

>> No.19771650

im losing money going all in on airline stocks. Selling my parents home was my last option to escape debt. FUCKING SHIT? IM GONNA LOSE MONEY SELLING THIS SHIT?

>> No.19771660

>>19771331
Honestly you sound like a poorfag coping with not being able to afford to buy a house. Stop crying like a bitch.

>> No.19771682

>>19771331
The value of ownership isn't just about profits. If that is your only goal then sure put your money to work elsewhere. Ownership is about actually owning the house, the land, the ability to do what you want with it.

>> No.19771839

>>19771331
You must be American. I feel sorry for you OP but in the FREE WORLD owning a home is fucking fantastic. I bought my home with a 60% discount from the government, paid it in full,no mortgage and I've lived in it for long enough that it has more than paid for itself. And the best bit is, it has gone up 3 times in price since I bought it. Selling is really easy in the FREE WORLD too.

>> No.19771900

>>19771682
>its about owning it
>goes into lifelong debt

>> No.19771912

>>19771331
You have to take a risk to make money you dumb bitch. You're basically doing the equivalent of
>what if you pick the wrong stocks?
>what if their value doesn't go up?
You can keep being a bitch

>> No.19771935

Not owning only makes sense if you have a better option. Most people dont have better options.

>>19771900
>people much more financially solvent giving you real advice
>ignores it
Ngmi

>> No.19772049

>>19771900
>lifelong debt
Only if you are a retard.

>> No.19772170
File: 248 KB, 697x993, SmartSelect_20200525-171714_Gallery.jpg [View same] [iqdb] [saucenao] [google]
19772170

Average rent: $1,500
Average mortgage: $1,100

see pic

rent increases an average of 3-5% per year

https://www.fool.com/millionacres/real-estate-investing/rental-properties/what-average-rent-increase-year/

we'll be nice and say 3% :)

after 30 years, a rentcuck will have, on average, pissed away OVER $700,000

SEVEN
HUNDRED
THOUSAND
DOLLARS

a MortgageChad™ mortgage will remain the same

homes have historically increased in value by 3-5% per year

https://www.globalpropertyguide.com/North-America/United-States/Price-History

at the end of 30 years the MortgageChad will pay ~$800/month on average for property taxes and money set aside for repairs

The MortgageaChad will have ~ $413,000 (based in a $170,000 house) in equity despite paying ~$300,000 (@ 3% interest) over the course of the loan WHICH INCLUDES REPAIRS
PROPERTY TAX
INSURANCE
INTEREST

FOUR
HUNDRED
THOUSAND
IN
EQUITY

and a monthly bill that is a THIRD that of a rentcuck

stay retarded

>> No.19772523

There's a reason the word rentlord doesn't exist, pleb. Stay poor.