/biz/ - Business & Finance

>>53720469
you forgot to factor in maintenance and capital expenditures.

>>53720481
also insurance, and tip

>>53720481
surely thats less than (37k profit / 12) per year right?

Right?

>>53720469

It'll go up 10% a year if you buy it in a lucrative city. Add rent on top of that and you'll profit more.

>>53720511
meant 37k / 30**

>>53720469
You suck at math and that's why you're not going to make it.

Learn math before you get a job or invest 1 fucking penny anon. I mean this sincerely and genuinely.

>>53720529
>It'll go up 10% a year if you buy it in a lucrative city
literally unsustainable
>>53720552
ok do it yourself nerd

>>53720642
I'm not doing your homework

Lolol get it, homework?

>>53720469

I did this exact same thing 3 years ago.

>500k 4bd/3ba house in North Austin
>100k down
>2.75% mortgage
>1.8% property tax

Owe 365k, house worth 625k now.

> Profit 160k ( 625 - 365 - 100)

>>53720469
>$1,559,325

>>53721281
nice but mortgage rates aren't 2.75% anymore and that house is $625k now but congrats enjoy the $15k a year in taxes

>>53721281
Your mortage rate is a third and thats the main thing why OPs isnt lucrative, none should
get a mortage with a fucking 7.5% rate

>>53720642
Feminism/no children pill turning the housing competition into dual income, Literal 21 year olds making 200k 1 year out of college in HCOL areas, unlimited cash in the fed reserve with “QE” make it sustainable.

Stop thinking your $20 is still worth $20. Fed is doing what they can to hide how degraded the actual value has become.

>>53721346
>>53721347

Todays rate is 6.684% not 7.5%

Just wait a year for them to go down and buy then.

>>53721346
Jesus Christ rentcucks are insufferable. Enjoy paying $24,000 per year for a sardine can condo rental

>>53720469
>Buy chainlink
>-100% per year
>total paid 1.500,000
>esitmated value 0

>>53721347
>none should get a mortage with a fucking 7.5% rate

houses only go up chud. And zillow estimates are 100% true

>>53721387
that's my main issue. I only make 90k a year in Austin in my 20s. Literally poverty tier now because every zoggware implant makes 200k a year for playing with react

>>53721421
if no one can afford to buy your house then it's not actually worth that much

>>53720469
Yeah the 1.5 million you would have paid in rent.

>>53720469
If you live in Texas and paying 1.6% property taxes, that place is probably a shit hole. 7.5% rate on 20% what horrible credit score do you have? Should be more like 6.5% Why the hell would you pay minimums on your house for 30yrs? That's like trying to pay down a credit card with just minimums and getting fucked by interest. You can pay down a lower principal with a higher interest rate. I am looking in the 500-625k range because thats about what it costs to get anything decent in a place not filled with niggers. 500k at 10% down would put me at 3.5k a month which is 25% of our monthly after tax pay. Also trying to look at buying a house as an investment? Are you insane? You buy that shit to get away from niggers so your children dont fuck them. Thats it. If you are single , why are you buying a house as an investment? Unless you know carpentry and a bunch of mexicans you aren't going to being making any profit of off buying houses.

>.t I live in Texas

Rentoids never factor the value of use. If my mortgage plus expenses is 2k a month and at the end of 30 years I have a home valued at 400k, and your rent is 2k a month (and assuming it doesn't increase) we both spent the same money but you don't have any ownership.

>>53721281
>Profit 160k ( 625 - 365 - 100)
>sell house for a $160k profit less 8% sell costs
>move into a cuckpartment, pay capital gains tax and $2.5k/mo rent
>move into another house, no capital gains due to 1031 exchange
>side trade (less selling and buying fees) into another shitbox that's now """worth""" $625k
sounds like you haven't profited at all, anon.

>>53720469
If you think the value of your home is going to increase 4% every year you are delusional. This is peak boomer mentality and one of the reasons the housing market and economy as a whole are so fucked up.

A house is a house, not an investment. Not an ATM. It's a money pit. Treat it like a depreciating asset, because it will cost you more to own it than you could possibly make over time by getting a mortgage.

If you buy a house, assume that you will lose 25-50% of your money when it comes time to sell like you would assume for any depreciating asset.

It's still better than losing 100% of your money as you do with renting, but go in assuming that you will lose money, because you probably will. It's your home, not another investment.

With that in mind, only buy as much house as you can really afford, and don't overspend on some house that you are going to be slaving away to pay off thinking that it will all be worth it in the end. Your housing payment should be no more than 10% of your income. It shouldn't be a burden.

>>53721547
after 30 years you'll pay like 80% of the principal in taxes. 1.6% compounds a lot

>>53721528
based texan man. I was just throwing numbers out there I plan to buy when I settle down but for now like you said it literally makes no sense on paper

>>53720469
>20% down
lmao, all your profit is going to your mortgage provider dumbass

>>53721463
>that's my main issue. I only make 90k a year in Austin in my 20s. Literally poverty tier now because every zoggware implant makes 200k a year for playing with react

hahahahah omfg move out of Austin. my cousin lives in Austin works for google , hes having a house built. In laws are lawyers they have a house in Austin, and just bought a vacation home in NM. I live in Houston which is more affordable but filled with nogs.

You are in your 20s I now know there is nothing to gain from this thread except to confirm my ideas about children in their 20s. They think they know everything and are going to tell everyone else how to live. Keep using the vocabulary of your conquerors, "chud". In fact please stay in Austin and let your life spiral downwards into complete tranny failure.

>>53721578
we're clearly in a bubble and even so real estate has barely managed 3% compound inflation-adjusted returns since 1995. kek.

>>53721617
no thanks but I'd rather not settle for a polluted, obese, suburban shithole like Houston just to buy a house

>>53720481
Also some slut will crawl in to your life and insist on re pinting and furnishing every 3 years

>>53720469
Texas is one of the worst places to live. Why anyone would drop $500k on a home there is mind boggling to me.

Do you have a family? Do you plan on it? If you live alone or have a wife but no children then you don't need more than 1500 square feet. Seriously, you don't. If you have children then add 300 square feet for every child. You don't need bullshit like a swimming pool or a recreation room or any of the other nonsense that comes with modern McMansions. Don't buy some piece of shit that will need constant repairs. All a house needs is a bedroom for every occupant plus one extra for a spare or an office, a kitchen, a living room, maybe a dining area, and a basement for storage and recreation.

I know this because I have observed the way people with big houses use their houses. In every case, people with houses that are too big for their needs end up only using a part of their house and never even go in the parts they don't need. Rich people, middle class people, busy people, people who stay at home all the time, it doesn't matter. People only use the amount of house they actually need and everything else goes to waste.

So if you buy some oversized stupid house with a bunch of junk you don't need, think of all the crap that you don't use like your foyer, pool, game room, dining room, fitness room, etc. when you are busting your ass at work being miserable. You are working to pay for some crap you don't even use.

>>53721463
You make $90k, so the house you should buy should cost no more than $150,000. Yes, that's it. If you can't get a house for that cheap where you live then you should consider moving to a cheaper city.

>>53721928
Otherwise keep renting and wait for rates to come down. The reason the max you can afford is $150,000 is because interest rates are fucked. With interest rates from before COVID faggotry you would be able to afford $250,000.

The housing market is at peak delusion right now, and you are in the center of the madness in Austin. Housing prices are at an all time high and interest rates are higher than they have been in years, all while the actual economy is in the gutter and people don't have any money. This situation is unsustainable and the market is headed for a big correction or crash.

My advice is to move to a cheaper city and buy something you can afford, even if it's just a one-bedroom condo. Sell that when the market is right and you can buy a reasonable house for a reasonable price and when you have more money because you saved it and invested it into something with a real return instead of passing it all away on housing payments.

>>53721928
>$150,000. Yes, that's it. If you can't get a house for that cheap where you live then you should consider moving to a cheaper city.

good advice grandpa but there are literally no places where houses cost $150k and the average salary is above the poverty line

>>53722426
Then don't buy a house. That's my advice.

>>53720469
Yeah, after 30 years you're in the green $30k

Meanwhile rentcucks are in the red like $800,000

>>53720469
>7.5% mortgage
Those rates are for people with bad credit. You should be getting near 6% if you are going conventional (you shouldn't).

If you live outside of the city, you can get a USDA mortgage with no money down and the current rate is 4%, which is lower than the Treasury Bill rates.

>1.6% property taxes
Texas has high property taxes but again, these are far lower if you live outside of cities.

Just go anywhere on this map that isn't shaded. No money down, cheap mortgage rates.

If you're looking at Frisco, buy in Prosper instead.

The Woodlands interests you? Buy anything east of 45 instead.

West Austin is your target? Bee Cave is USDA eligible.

>>53720469
kek stop asking questions goy its an investment

>>c53720469
contact the appraisal review board and argue (in a friendly way of course) that they overvalued the property, or that the value hasn't increased 4% per year

>>53724035
>>53720469

>>53721463

Get a better job, I'm making 250k WFH also mid 20's here.

>>53720469
insurance costs.

>>53724836
get a better job, making $530k in my mid 30s here.

>>53725002
Marry well. mid 40s here and earn nothing..wife makes good money though..

>>53722056
Demographics will fix this. Less children born, boomers dying. Should be an abudance of housing in 10 years. Wildcard is immigration but pablo from Nicaragua can't afford a 1985 monte carlo let alone a shack on a 1/4 acre.

>>53725002

Won't be working in my mid 30's so no worry.