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/biz/ - Business & Finance

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15096129 No.15096129 [Reply] [Original]

How do you guys justify paying rent? In aussie I havent done the facts but it'd be around 15-25k a year. In 10 years it'd be aroudn 200k+ how do you guys pay knowing that?

>> No.15096172

Do the fucking math on a $200,000 home (cheapest in my area)

$40,000 down payment + 3K in closing cost.
$5000.00 property taxes per year
$4000 maintenance
$600 insurance
First year of homeownership I am down $50,000 cash and I’ve made about $35K equity.


Unless you can pay outright cash, homeownership is a scam.

>> No.15096188

>>15096172
>$40,000 down payment + 3K in closing cost.
>$5000.00 property taxes per year
>$4000 maintenance
>$600 insurance
Good point didn't think of the property taxes especially.

>> No.15096202

>home "ownership"
fucking kek

>> No.15096210

>>15096129
Depends on how much your rent is desu. It's financially smarter to rent a shithole and invest the spare capital if you how to do it safely with enough returns. Easier just to be a slave and get a mortgage though.

>> No.15096211

>>15096129
Because there arent many more options when saving up for a downpayment? Not all of us are neets in our moms basement

>> No.15096227

>>15096172
i mean other than the fear of economic collaspe, surely the repayment on the loan will be the same as rent just a slightly higher. Also you have an appreciable asset

>> No.15096243

>>15096227
Yeah it “appreciates”

But you still need to put an ass ton of work when you’re preparing to sell a house. Unless you’re selling to a rich commiefornian who managed to exit scam his 5 bedroom house in the Bay Area.
Home ownership is a major scam
Home owners fell for propaganda

A house is not an asset. It is a LUXURY.

>> No.15096275

>>15096243
youre retarded. its a sellers market currently at least where I live in Florida. If your house is decently maintained you can list the house and it will be sold within a week if not that same day. 30 people will come to look at it the same day its posted and not only that but they will pay for closing costs too because they are that desperate.

If the market doesnt crash owning a house and making a profit is guaranteed

>> No.15096297

>>15096129
There are some pluses to renting vs owning.

>If you have a good landlord then you don't have to worry about maintenance. This might seem like a small thing, but wait until your house's water main breaks and you realize it's going to cost thousands to fix and you have no idea if the guy you hired even knows what he's doing.
>Less cash up front. Cash flow is a real thing and you can't always take the long term view, sometimes you do need that short term cash to get through the month or whatever.
>No additional tax burden/debt.
>Makes moving easier, instead of having to rent out or sell your own place if you want to relocate, you can sublet or break the lease instead.

Owning of course has its benefits as well, the obvious one being no rent, but if you're paying a mortgage you are basically paying rent to a bank and even after that you still have to pay yearly rent to your govt.

>> No.15096323

because someone is letting me live in their building and also they do all the maintenance and repairs and all the yard work and snow removal

sucks to not "own" a property but it's a pretty fair trade

>> No.15096331

>>15096129
>Australia doesn’t have inflation
Try closer to 400-500k, anon. The thing about mortgages rent retards don’t get is it ensures your “rent” never goes up

>> No.15096340

>>15096172

fpbp, maintenance is a bitch and a single problem can be nothing at all or a home you just lost

>> No.15096388

dont live in ballarat

>> No.15096392

>>15096275
It’s a sellers market right now.
Won’t be a sellers market next year.

Especially with all the foreign investors who do not feel welcome in the US anymore.

>> No.15096414

>>15096172
this is basically what I would say. Don't jump into a mortgage just because "paying a mortgage is just like paying rent bro but you OWN IT"

You should have a lot of money before buying a house

>> No.15096453

>>15096172
>22 years ago
>be me
>buy 375k condo
>~5k closing costs
>1500/mo HOA fee + property tax + interest
>5k surprise special assessment
>replace water heater
>repair and stain deck
>still worth same price 2 years later
>when i sell, realtor fees will be 6%

Yeah owning is not worth it unless your down payment is like 50%+

>> No.15096457

>>15096129
Because I don't continuously rent & a house essentially anchors you down
>move to the desert for a couple years
>move back with parents & stack chips
>move to alaska for a couple years
>move back with parents & stack chips
>move to cali for a year
>move back with parents & stack chips
>move to montana for a couple years
>move back with parents & stack chips
>move to the carolinas for a year...
I would feel trapped if I bought a house

>> No.15096462

>>15096453
I meant 2 years ago not 22.
also only worth it if you are sure you are going to live there for like 5+ years

>> No.15096463

>>15096414
I’m getting a lot of pressure to buy a house from my “financially wise” uncle.

I was all for it until I did the math behind it.


Funny thing is these guys who fell for mortgage lender propaganda get mad at you for not buying a house.

>> No.15096467

>>15096188
I think property taxes are a lot more justified once you have kids. Then you want to live in a nice place with good schools and see more of a benefit from paying it. Without kids, it seems like it makes more sense to rent in a low cost place, which often will have bad schools.

>> No.15096482

>>15096467
That’s the thing. I fucking hate schools.

Schools are run by literal women children and man babies. It is little more than a holding cell for children and teens.

>> No.15096510

>>15096467
Just because you don't have kids doesn't mean you want to live in the hood

>> No.15096537
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15096537

>>15096467
>public schools

>> No.15096585

>>15096129

REDPILL:

For the first 5-10 years of a 30 yr mortgage over HALF of each mortgage payment goes to interest. Then you pay maintenance, property tax, utilities, insurance, and maybe HOA and PMI. I did the math of buying a 450k house in my area (slightly below average price) and I'd be paying 2800-3000 a month when all the above is factored in and only ~600 of that would be going in to equity, so I would be literally throwing away 2200-2400 a month. I currently pay 1500 to rent in the same area (1br all by myself) so it's a no brainer. And I didn't even factor in closing costs, renovations, lack of mobility, and all the time you waste fixing shit.

>> No.15096636

>>15096585
How much would you be putting down in a deposit though? I guess it's only worth buying if you can put a huge chunk down for a deposit over 65% or so idk, or want to settle down with someone.

>> No.15096710

>>15096172
>50k-35k=15k
basically the same cost as renting, I don't see how these numbers make buying unattractive

>> No.15096747

>>15096453
i feel ya. bought a house 10 years ago and its worth the same.

>> No.15096780

>>15096747
“It’s like a savings account that goes up in valley. Not at all like a tax account pegged to your name.”

>> No.15096814

>>15096710
A house is basically an account tied to your name that lets banks/insurance/government/and other businesses charge you.

>> No.15096990

>>15096129

>But bro you're building equity in a highly illiquid asset where half of your monthly payments go to pay usurers who created money from nothing to fund your house purchase

>> No.15097078

I bought a house 7 years ago. And payed it off in less than 5.
If I would've put that money in bitcoin, i'd be rich as shit.
You are losing opportunities by owning a house. Both in time and money because if you own the house, you are constantly fixing it.