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/biz/ - Business & Finance

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27967338 No.27967338 [Reply] [Original]

How do mortgages work?
If I borrow 500k from a bank at 2.5 interest for 10 years, I'll have to pay the bank back 65k extra in interest. But the value of the home could have doubled within 10 years giving me a net positive of 440k. Is there some kind of hidden cost I am not understanding?

>> No.27967403

yes.

>> No.27967407

>>27967338
property taxes and depreciation

>> No.27967464

>>27967338
>But the value of the home could have doubled within 10 years giving me a net positive of 440k. Is there some kind of hidden cost I am not understanding?

Yes. The risk that it doesn't and crashes. Ask the people on skidrow.

>> No.27967580

Homes are really expensive to maintain, lots of shit you wouldn't think about when renting has to be paid for. Recently had to replace the hot water heater in my house and that was like $4k (monopoly money, am Canadian)

But yeah, generally real estate is one of the best investments in terms of stability. Its been like this for pretty much all of Western civilisation

>> No.27967656

>>27967338
>Is there some kind of hidden cost I am not understanding
No, ignore no-homers that think it costs a fortune in "maintenance", i.e. changing a few lightbulbs and mowing your lawn. The reason banks lend at such low rates it's because if you stop paying they can confiscate your house to reclaim the debt, so there's no way they can lose money.

>> No.27967658

>>27967407
Property value isnt going to depreciate as long as its in a nice city in a safe neighborhood. Property taxes and maintence are the only cost.

>> No.27967754

Depending on the loan, there might be a "loan" insurance. Watch out for that.

>> No.27967764

>>27967338
Property taxes, maintenance costs, and hyperinflation

>> No.27967859

>>27967764
>hyperinflation
Inflation generally brings house prices up with it, whilst the debt remains the same and becomes easier to pay off.

>> No.27967934
File: 95 KB, 724x611, 1418264884681.png [View same] [iqdb] [saucenao] [google]
27967934

Wait I just realized the mortgage calculator I'm using doesn't compound the interest.
So if I have 300k saved up all together and I am going to buy a 300k condo, I am better of just getting a mortgage and putting my money to work in the stock market. My original 300k will on average double in 10 years, the condo value will on average double in 10 years, but I'll only pay for about 350k in total for a 10 year loan. Am I wrong?

>> No.27968052

>>27967934
You're not wrong. The dumbest thing you could do right now is buy a property outright when banks are basically lending you money for free.

>> No.27968093

>>27967859
Also regular inflation works in favor of the borrower. That's why a 30 year contract might be cool - it's like 60% inflation if everything goes according to plan on America.

>> No.27968146

>>27967934
>stock market only go up forever

>> No.27968183

>>27967580
>renting is cheaper than owning
>4k for water heater replacement
goddamn Canadians are dumb. property investors make money on real estate, they don't rent at a loss. renters cover the cost of mortgage plus all expenses. also a water heater should be 1k usd so like 1.5k leafbuks

>> No.27968268

>>27968146
>stock market only go up forever
It literally does, especially if you're talking about the world indexes and not just the US.

>> No.27968423

>>27967859
>implying that wages increase with inflation and corporations have been paying employees a fair wage post 1970.
Anon I....

>> No.27968518

>>27968423
Wasn't actually implying that obviously

>> No.27968535

>>27968183

I literally never said renting is cheaper, only that there are bunch of hidden costs retard. If you are someone who can only just barely afford to pay your mortgage, you'll be fucked by this sort of shit. Similar to people who buy cares they can only barely afford the payments and insurance on and then get fucked on maintenance. Americans continuing to show that they are one of the most illiterate countries in the world.

>> No.27968607

>>27968535

*cars

Also I live way up north where shit is more expensive. You don't even want to see what the prices in a grocery store look like.

>> No.27968734

What's better, /biz/
ZERO LINK and BTC and the other one, and NO gf or house OR
15k LINK, 5 BTC a gf and house and kids, you're active and respected in community but have very few obligations and only show up when you're needed or want to
But
You only get to have sex 50,000 times in your life and travel twice a year

>> No.27968747

I pay $500 a month in mortgage insurance because I only put 10% down. I have to pay it for like 3 years.

>> No.27968767
File: 184 KB, 483x470, 1590985498900.png [View same] [iqdb] [saucenao] [google]
27968767

>>27968183
Is it feasible to buy property somewhere I actually wanna leave, rent it to pay for its mortgage and tax, and then rent a place for myself when I actually work?

I wanna work in Silicon Valley but I want my house to be in TX or OR but can't afford to pay for a mortgage and rent at the same time.

>> No.27968827

>>27967338
burst pipes, stovetop fires, scratched floors, and a fucking woman decorating the whole thing

>> No.27969095

>>27967338
>Is there some kind of hidden cost I am not understanding?
maintenance and risk of depreciation. the proper way to play a mortgage IMO is get the lowest payment possible and pay extra towards the principal if you want. If I had enough income and credit to get a loan at your terms, I'd still take the 30 year and just pay it like a 10.
I'm shaving like 6 years off mine just by rounding up to the next hundred.

>> No.27969098

>>27968052
noob here, why would it be dumb to pay cash rather than take out a loan? wouldn't you save the money you owe on interest?

>> No.27969123

>>27967338
Property taxes, potential negative market fluctuations, home repair and upkeep can be very expensive if you don’t plan and budget well. All in all right now mortgage rates are amazing if you can find a decent house, have good credit, and most important, you can afford it.

>> No.27969131

>>27967580
>4k for water heater

Lol wtf you got ripped bud. Hope you didnt pay someone to hook up the water.

2k max

>> No.27969183

>>27968767
do you trust a stranger with leverage to pay your bills?

>> No.27969234

>>27967407
also maintenance and utilities, and you also have to hire professionals to do house repairs

>> No.27969246

>>27968767
If you can afford the conventional loan on it then yes absolutely. It will be classified as an income property so you won’t be getting any government back/subsidized loans.

>> No.27969263

>>27967338
/biz/ are the only people who get that renting is not a meme, and that owning is. Normies are retards.
Let some other retard shoulder the burden of taxes, maintenance, and other bullshit while you enjoy life and continue to trade crypto.

>> No.27969278

>>27969098
Your money will make more in some safe boomer index fund in 20 to 30 years than it would cost for the interest on on a mortgage in that same timeframe.

>> No.27969326

>>27967658
>as long as
*laughs in Detroit*

>> No.27969376

>>27969263
>/biz/ are the only people who get that renting is not a meme, and that owning is
Lol, no. Every reddit soiboy falls for the same renting meme that you're falling for right now.

>> No.27969391

>>27969234
>professionals
Gas and electrical 100% yes. Anything else you can learn to do yourself as long as its minor not dangerous risks your house being burnt down.

>> No.27969437

>>27969234
>hire professional
nigger any man can learn how to fix his own shit with youtube and giving a fuck.

>> No.27969447

>>27969098
Because interest rates are so low, you can easily make the money back through investments
>buy house outright
>spend $150,000

>get mortgage
>invest $150,000
>make much more money from investments than you lose to interest

>> No.27969467

>>27967580
>one of the best investments
Historically yes but I'm a firm believer in the fact that we have reached the ceiling. Houses are not going to double in price in anymore. Two people on 100k where I live can barely afford a 2br in a non shit area.

>> No.27969471
File: 63 KB, 496x641, christmas_pepe_joy.jpg [View same] [iqdb] [saucenao] [google]
27969471

>>27969278
thank you for the explanation

>> No.27969500

>>27969437
you can't carry that shit by yourself, its not worth the time.

>> No.27969509

>>27967754
PMI iirc

>> No.27969522

>>27967580
>4k
tell me you know how start the pilot light lmao you need to be handier, it'll save you

>> No.27969535

>>27969263
Then you have the women and livestock question to reckon with. Women want the security of ownership and I imagine it's difficult to rent land for your livestock as well. You need property and 10+ acres.

>> No.27969660

>>27969500
Nigga I did half of my roof by myself in my early 20s

Yeah it was brutal but it saved me thousands. Quit being a fat fuck.

>> No.27969661

>>27969098
because it's not hard to grow 300k into several million over 30 years. 300k * 1.05 ^ 30 is a lot more than you'd gain by just owning 300k in real estate.
Put another way, I paid 250k for my house, but 500k earning 4% a year can pay my mortgage.

>> No.27969700

>>27969131

I live basically in the wilderness, have to use satellite internet, etc.

>> No.27969709

>>27969535
>load up your cattle
>drive them to under-used rural land to graze

It's done, so I hear, don't know much more first hand

>> No.27969720

Why would you buy a house when there are millions of vacant homes? Most states give you the house through adverse possession after you squat there long enough. Shouldn't be too hard to find some Chinaman who is buying up hundreds of homes and not using any of them.

>> No.27969725

>>27967338
If you sell the realtor is gonna fuck you, the buyer is gonna fuck you, the city is gonna fuck you. If you rent it the tenants are gonna fuck you, the middle man is gonna fuck you, the irs is gonna fuck you. If you stay the upkeep is gonna fuck you, the city is gonna fuck you, the county is gonna fuck you. Buy outside the city limit OP

>> No.27969733

>>27969098
It’s not. If you got the cash buy it in cash. The less burden of bills hanging over your head the better. You could always use a mortgage to finance another property for rental income, but you should always try to get your owner occupied property without a mortgage.

>> No.27969754

The decision to rent or buy depends entirely on your local housing/rental market and how far you're willing to commute to work. There's no one right answer to "should I rent or buy?".

I'm a homeowner/landlord and I rent right now, even while collecting rent. Why? Because I'm forced to work in a city that's 41% ***** with extremely cheap rents and a bunch of houses sitting smack dab in a floodplain. Buying makes absolutely no sense here, especially since my contract only lasts 2 years.

When I leave here I'll probably buy a house in a good location and live there the necessary two years for tax reasons while I try to get my own business set up. But if that fails and I need to move to a city for work, I'll almost certainly rent again.

>> No.27969765

>>27969467
You might be in a local bubble if that's the case, but there's plenty room for house prices to keep going up. The current prices have been achieved by dual incomes, low interest rates and 30 year mortgages. The next half century of growth is going to be sustained by side gigs and second jobs, 50 year mortgage terms, even lower interest rates, parents helping out with deposits and multiple working generations sharing the same home.

>> No.27969773

>>27968734
Can I sell the kids for more LINK?

>> No.27969783

>>27968734
Im closing in on 530k net. 3 years in crypto and fcked up ALOT. I now understand markets. If your a boomer or low IQ stick with houses. Safer easier but shite returns.

>> No.27969782

>>27967338
>If I borrow 500k from a bank at 2.5 interest for 10 years, I'll have to pay the bank back 65k extra in interest. But the value of the home could have doubled within 10 years giving me a net positive of 440k. I

Yes, + property taxes + maintenance

But if you live in a growing area, it'll help when selling. My parents bought their house in 1994 for $100k. It's now valued at $550k + my mom is in a union for being a RN for 30 years. That's basically good retirement money

>> No.27969790

>>27969660
hey anon
is it easy to replace drain pipes from the gutter & re-do all the wooden skirting on the outside of a house?
can you recommend any good DIY type channels on youtube I can trawl through
I want to learn more & DIY fix my house up in the areas that need it

My house was built in the 70's

>> No.27969812

>>27968535
Renters are just stupid in every country

>> No.27969854

>>27969500
>>27969660
if you've never been on your roof it's not even your house

>> No.27969855
File: 177 KB, 768x1024, Gonna build me a home.jpg [View same] [iqdb] [saucenao] [google]
27969855

>>27967338
Normally banks dont make much off the 10 year and really like the 20-30 year.
These numbers depend on sq ft of house but figure this.
New roof in 10 years $8000
New Furnace/AC in 10 years $4000
New water heater in 10 years $1000
New Fridge in 10 years $1000
New Washer/Dryer in 10 years $1000
Be ready for those costs. I had to replace my driveway at the cost of $6000 but mine was in rough shape.

>> No.27969890

>>27969733
Awful boomer advice

>> No.27969911

Mortgage + death agreement in latin. Don't fall for this jewish trick.

>> No.27969949

>>27968767
Dude just buy a multiplex. With 4 apartments the other 3 can pay the bills

>> No.27969993

>>27967338
>could have
You are absorbing risk for the bank. Your loan is low risk interest to them.

>> No.27970082

>>27969661
>because it's not hard to grow 300k into several million over 30 years. 300k * 1.05 ^ 30 is a lot more than you'd gain by just owning 300k in real estate.

Real estate grows a lot faster than 5% a year dingus.

>> No.27970088

>>27969700
What does that have to do with 4k for a water heater, average decent water heater is 1500 with tax, and you could go cheaper. Did you pay 3k for a plumber + gas?

>> No.27970110

>>27967338
That's called Equity...

>> No.27970123

>>27967658
It's not the land that depreciates, the house itself needs work and eventually needs to be rebuilt. You can say that a house can last 100 years but there are plenty of houses out there that are 60 years old already. In the same way that cars depreciate, houses do.

>> No.27970169

>>27969773
Why link when you can ETH? I have both. I actually hope link hits 300 but its my EtH that'll make me multi multi millionaire. Buy the base layer. Layer zero. :) No worries were all gonna make it.

>> No.27970204

>>27969890
That’s how the mortgage market works. If he were to finance 2 properties, he’d get killed on the non-owner occupied property. Only way around it is to buy a multi unit first 3 unit, then 2, then 1. The banks will deem each property as owner occupied and give you close to par rates.

>> No.27970233

fren, don't buy this overpriced shit. if you need to buy something, at least get an updated brick home that has lasted a few decades. the new homes are chemical shit and trash wood.

>> No.27970239

>>27970123
Why are American houses so shit? My house is over 300 years old and never requires any maintenance.

>> No.27970246

>>27969890
it's not awful, just overly safe by a factor of ten. most people are dumb as shit and can't comprehend the idea of one investment paying for another.

>> No.27970261
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27970261

>>27970082
That's his point anon. Banks lose money loaning to you for so cheap

>> No.27970265

>>27970088

A lot of things up north, whether its food or maintenance, are a lot more expensive because of lack of competition. If you live in like North Bay its not a problem but once you get out in the middle of no where, unless you have the ability to travel to a normal market and transport it yourself, shit is whack

>> No.27970295

>>27970082
Im growing 70k in 1 million this year. It took 3 years though. And i made many mistakes...

>> No.27970322

>>27970204
That's not what I'm referring to. No-one said anything about owning multiple properties.

>> No.27970331

>>27969855
I can do all those things myself except maybe two, and a fridge is $100 on marketplace from some dude moving to another state.

>> No.27970351

>>27970295
That's a 7% return

>> No.27970375

>>27970239
Where do you live fren?

>> No.27970410

>>27970375
Scotland

>> No.27970445

>>27969790
>is it easy to replace drain pipes from the gutter & re-do all the wooden skirting on the outside of a house?

I actually had to do this a couple of years ago, I dont remember any specific channel I usually just watch a bunch of different videos and see how different contractors do things.

>> No.27970565

ADVERSE POSSESSION - 5 YEARS IN CALIFORNIA. All you have to do is occupy property and pay taxes. Seems like an easy way to make a few million.

>> No.27970621

>ITT People who didn't have dads to show them how to repair shit
Lmao, imagine not having that bounding time with your father. You can legit do all of this shit yourself. Just give yourself time to do it.

>> No.27970722

While we're on the topic of houses, what's been something that you've done to your house to increase it's value?

I personally just put solar panels on my house and they'll have paid for themselves in 5 years and added at least another 5k onto the resale value

>> No.27970763

>>27969812

And this, class, is how you know you’re talking to a poor.

L
M
A
O

at buying a home, especially while young. You rent where you live, and you own what you rent out.

Especially when you’re young, you shouldn’t waste a downpayment sum on a house - you use that shit to aggressively make more money. Instead of using 80-100k at age 25-30 to put a down payment on a home, you do literally ANYTHING but that, and you scale that shit hard to a million.

Case study, me, 30 years old, 1M liquid from aggressive scaling into crypto and online business. Meanwhile, my “friends” and their friends aka retards have been out getting married, buying homes because “mUh gReAt iNvEStmEnt”, literally siphoning out any free cash or warchest that they have, not giving them the freedom to move and LITERALLY dooming them to a life of being in the wage cage.

>2021
>falling for the boomer meme of home ownership when you don’t have at least 7 figures liquid

lol

>> No.27970846

>>27970295
1mli9n
>>27970351
1 mill will be conservative... it could go as high as 2.5 but and correct to 1k to 750k. Sure your claiming equity but im claiming 20% and thats on fiat/ stable coins alone... Some pairs at certain times allow +1000% but its kinda risky at that point... I'd throw in 10 to 50k if I was doing well... DeFi is nascent industry but will replace banks at the very least.

>> No.27970945

>>27970846
Correct to 1M i meant..

>> No.27970956

>>27970722
5 years is good, i heard the avg is like 7-9. do you get a lot of sun where you live? how much did the total process to purchase/install cost?

>> No.27970970

>>27967580
How do you spend 4k on a water heater i bought one for 1k 5 years ago and its still fine. Me thinks you should shop around a little before you hit purchase in the future.

>> No.27970995

>>27969447
But interest rates can increase and mortgage rates follow a tracker for the majority of the term

>> No.27971004

>>27970763
but have you ever seen a vagina?

>> No.27971027

>>27967407
are you fucking retarded?

>> No.27971036

>>27970621
Dads don't know how to repair shit they just hire someone to do that.

>>27970763
>gambling your money on internet tokens instead of buying a hard asset like a house

HOLY SHIT IMAGINE HOW FUCKING STUPID YOU HAVE TO BE

>use that to aggressively make more money

Bro, that's how you LOSE all your money. You gamble with it.

>> No.27971057

>>27970082
so you recommend buying in cash? I'm not saying it's dumb to do that, but you'd be better off having a 30 year 3% fixed rate mortgage and investing the cash. And I really don't care what historical rate you apply to real estate appreciation. You can't count on that just like you can't count on an 8% return from a stock index. And even if your home appreciates a shitton, what are you gonna do? Sell because you're house poor? And buy what? Another house that costs more than it's worth? It's a trap. 30 year fixed allows for so much more flexibility provided you know what it means.

>> No.27971081

>>27969709
You'll need 2-3 hands to run all them back and forth. That sounds expensive and like lawsuits and grieving 20-something Latina wives with big titties coming to YOU for solace when their husbands go to jail for running YOUR cattle and ponies and sheep every damn which way left and right and left.

>> No.27971086

>>27968535
Prob owns a new car right of the lot kinda bloke.

>> No.27971092

>>27970995
Interest rates won't inrease until 2024.

>> No.27971094

>>27970763
They don't get it fellow crypto bro... Just em be and do your own thing.

>> No.27971178

>>27970265
Do you live in the northern territories? Then I doubt you paid 3 times the amount for a water heater.

>> No.27971227

>>27968535
You're so illiterate, buying properties on debt is the smartest thing.

>> No.27971315
File: 272 KB, 800x450, B23809C8-D659-4F57-9159-C816A95BA021.jpg [View same] [iqdb] [saucenao] [google]
27971315

>>27969765

>> No.27971337

>>27971092
What makes you say that? Won’t the fed need to raise interest rates to prevent inflation?

>> No.27971390

>>27967338
amortization, also most loan terms are 15/30

>> No.27971400

>>27971094
We do get it though. But the point is you need a place to live and you can do that cheaper by buying and it accumulates your net worth as a bonus.

>> No.27971408

>>27967338
Yes , the government could force niggers into your neighborhood which would crush the prices

>> No.27971433

>>27971337
Low interest rates actually leads to lower inflation after the initial price spikes. Plus the low velocity of money is keeping prices down anyway.

Clause Schwabs talks about this in "Covid-19 the Great Reset"

>> No.27971571

>>27970410
Beautiful place. Fun people...! Partied with a bunch of Scots in Thailand. Good people too.

>> No.27971575

>>27971315
If you're implying that I'm wrong then you only need to look at places that are ahead of the curve like world cities and densely populated nations, because that's what's keeping the house prices going there and that will eventually spread everywhere else. If you're implying that this is depressing then yes, you're right.

>> No.27971587

>>27970956
It works out to be around 5 years since I don't spend much on power to begin with (around $80 AUD a month). They arrays are on the North and also East faces of my house with no obstructions at all so I get a lot of sun. They've been on for about 2 months now and generated 2595kwh through Summer.

My last power bill was for minus $50

It cost me $5200 AUD for a 5kw Inverter and 6.6Kw of panels including installation.

>> No.27971608

>>27969855
>New roof in 10 years
The cement tile roofs in new constructions last 50

>> No.27971683

>>27971433
How low could they go? Interest rates.

>> No.27971696

>>27968827
>a fucking woman decorating the whole thing
Thats the most expensive part of owning a home.

>> No.27971716

>>27971683
0.001%
watch

>> No.27971791

>>27969095
> risk of depreciation

How do you manage this?

>> No.27971814

>>27970123
My house was built in 1864 from real hardwood lumber by the hands of a Civil War veteran. It's in better shape than many of the post-WWII composite-board bullshit you see on the market today.

>> No.27971830

>>27971400

bro, that’s literally wtf I’m telling you

it’s not cheaper

Buying literally neuters your financial situation.

The retarded way is going “HURR DURR IM BUILDING EQUITY”

the real opportunity cost factors in the fact that you remove flexibility for living which is huge

you have property taxes and overall higher costs owning a home that you don’t factor in, which is also big

and biggest one of all, you have a downpayment which again, when levered properly can legit be the only source to break out of wage slavery or at least make it way more comfortable

you’re also massively ignoring the psychological effect a mortgage has. It makes men way more risk averse and boring. I’ve seen it time and time again

i used to work in the mortgage business for 2 years and I made over 200k in my early 20s helping to “sell the dream” of home ownership. It’s a super bad decision for anyone with any ambition in their 20s/30s

if you have 5M+ at 40 and want to buy a home that’s different

I should also say, if you want to be average, which clearly you are, buy a home. nothing guarantees mediocrity like a mortgage early in life

>> No.27971837

>>27971683
-0.5% maybe lower

>> No.27971860

I bought a house. My mortgage taxes and insurance are around $800 a month and I rent out the upper floor for $700 a month and live in the basement.

Real estate and stocks both made around 7% a year historically after inflation, but both real estate and stocks are overvalued.

Basically, buy a house if it’s affordable/reasonable. Otherwise, hope for the best.

>> No.27971914

>>27971433
I see a lot of movement out of USD right now. Even the local tards around here are playing in the crypto markets. It’s like XBOX. Something big is about to happen.

>> No.27971972

>>27971830
>it’s not cheaper
It literally is if you're comparing like for like. Your dumbass friends presumably moved out of rented 1 bedroom apartments into 4 bed suburban houses. Obviously that costs more. Buying a single bedroom condo is cheaper than renting a single bedroom apartment though.

>> No.27972024

>>27971683
They can go negative if they really want

>> No.27972142

>>27970261
Banks sell your loan to other banks, after collecting the fees from you.

>> No.27972156

>>27971830
Bro you're an idiot

When you rent, the property taxes and utilities is factored into the price you rent.

If you take out a mortgage and make payments, you can just set money aside for that and it will literally be cheaper than rent, just forget about your mortage at that point and let equity building do the rest.

You can then use any cash to gamble like you say.

>> No.27972181

>>27971716
Hmmm. Nice. But if a significant portion of millennials dont want homes(rv ownership has skyrocketed) or inherit them because the boomers passed this would perpetuatethe low rates for a loong time.

>> No.27972225

>>27971972
The moron doesn't understand that the landlord literally has a mortgage and has to factor that into the cost of rent.

>> No.27972250

does anyone here own a condo?

What City?
What Year?
How Much Cost/Space?

>> No.27972256

>>27971972

>recommending buying a condo

wont even go into all the reasons to never buy one

Again, you’re looking at literally the comparison of a mortgage payment vs a rent payment

What you’re not doing is factoring in EVERYTHING ELSE that buying a home brings with it, which I mentioned

Easily better off putting you’re fucking downpayment in the S&P lmao and getting better gains, even though there are better ways to grow your cash

It’s hilarious how pointing out how home ownership is a meme short circuits peoples brains

>> No.27972262

>>27972156
Home owners can also borrow against the equity in their homes, if things get bad.

>> No.27972279

>>27970763
Do you have a family? Usually people make money to reach their goals and making money itself isn't the goal.

>> No.27972355

>>27970204
You're both right. I own my house outright with '17 ETH gains and bought a house for my elderly mother with a mortgage on the first property. Then I took a mortgage on the second property to buy back into ETH last year. However, interest rates are so low now that any first-time homeowner should get a mortgage and then use their cash for high-return investments, paying off the principal as fast as possible to reduce interest accumulation in the long-term.

>> No.27972436

>>27970239
From a business perspective you have to pay more, so it's a "good business decision" to make something that doesn't last. How are you supposed to get more money if something lasts forever?

>> No.27972479

>>27972256
>What you’re not doing is factoring in EVERYTHING ELSE that buying a home brings with it, which I mentioned
That's still cheaper than renting. You know why I know? Because I rent out two properties to dumbass bugmen like yourself that fell for the renting meme. Their rent pays the mortgage, the insurance, repairs and a small surplus each month. They probably think they're saving money too.

>> No.27972530

>>27972262
Good point. You can always get a HELOC loan, but you still need a job to qualify lol

>> No.27972590

>>27968767
That's the rental property dream. In reality you get fucked up the ass as renters slowly destroy your property, especially if a darkie shows up.

>> No.27972601

>>27971914
Boomers n low IQ types don't front run nascent indusrties except cutting edge hedge funds and smart money in crypto... enjoy your stonks and paying off your house, ffs

>> No.27972618

>>27969471
this pic makes me feel funny inside

>> No.27972685

>>27972618
it's missing 2 panels

>> No.27972732

>taxes
>depreciation
>costs of renters
>interest
Here is Aus land we have a thing called negative gearing, you can claim all of above as a loss and offset your income. I can't find reason not to buy a property and use it as a store of value and a revolving line of credit with a wagie in it providing me income.
>t. Made it this year and have money left over after outright buying 50 acres of farmable land and contract for house build and considering taking the boomer investment house pill

>> No.27972779

>>27972685
let me guess, he replaces the cookie mix with his shit or something. I suppose that would be more in line with the fucked up cynical, jaded expectation I've learned to have.

>> No.27972824

>>27972355
17 ETh bought your house out right?

>> No.27972830

Okay /biz/, gimme some wisdom
>£125k in assets
>wanting to buy first home
>£150k max, nothing too expensive
>minimum LTV is 10%
>potentially wanting to look into BTL properties in the future, minimum LTV ratios on BTL are 25% in the UK due to higher risk for the Bank
>banks assess the LTV ratio of your entire portfolio when deciding whether to approve you for a BTL

I have a lot in savings and can put down a hefty deposit. With interest rates so low should I just put down the minimum deposit of 10% and reinvest the rest in equities or put down as much as possible to maximise the LTV of my entire portfolio and make it easier to acquire a buy to let property?

>> No.27973075

>>27967407
This is the only correct answer unless you're a useless bitch that can't maintain your own investment you're golden.

>> No.27973232

>>27971791
by realising you're ultimately paying for the land and also learning how to maintain a home. it's not hard but it's not easy either. consider your mortgage as just a cap on your most basic living costs. you've got to live somewhere. taxes will go up, but rent will go up more.

>> No.27973352

>>27969234
europoor detected.

>> No.27973426

>>27973075
All tax deductible in aus land, any investment property expense can be used to offset crypto gain tax

>> No.27973496

>>27972824
ETH gains from 2017.

>> No.27973617

>>27972250
buying a condo is not a good idea. you have to abide by whatever bs homeowners association rulebook they have, so it is a better idea to get property.

>> No.27973916

>>27972181
>if a significant portion of millennials dont want homes
i don't believe this to be true at all. it's entirely a jewish media creation. most blue collar and working class millennials want to or already do have a family and own some land and they understand the value in it. it's the moral-highground-claiming anti-white quasi-bourgeoisie rage against the machine listening yet system-sycophantic millennials that are living in cities on purpose. and they aren't even real people at this point.

>> No.27974071

>>27971683
some countries have been flirting with the idea of negative rates. That's a pandoras box in my uneducated opinion though.

>> No.27974237

>>27967338
>could have
There's no guarantee that it will. Zero. For all you know your house will have burned down by that time, the housing bubble will collapse again, your neighbourhood will be a crime-ridden warzone nobody wants to live in, etc.
Why would you even assume housing prices will always rise, they don't have to, except to some extent due to inflation.

You are paying the bank 65k for a loan that's easy for them to make since they receive unlimited loans from the federal reserve at much lower interest. The money is completely free for them and you are taking a huge risk by putting all that money in an asset and essentially making it into more money.
They now own you and your future income and assets until you pay back the loan, meanwhile you're not entitled to your house rising in value or even existing in the future.

>> No.27974270

>>27974071
Negative loan rates will never reach the consumer, they're only for the financiers and consumer savings accounts.

>> No.27974364
File: 58 KB, 976x850, 1595755228193.jpg [View same] [iqdb] [saucenao] [google]
27974364

>>27974270
>Negative loan rates will never reach the consumer
>just their savings accounts

>> No.27974527

>>27972830
wtf is this symbol: £

>> No.27974535

>>27974364
Lol was going to point this out.

Also something doesn't have to directly affect consumers for it to have wide ranging effects on the economy that indirectly hurt consumers.

>> No.27974596

>>27974527
Pound instead of dollars, how new are you?

>> No.27974655

>>27974364
Savings accounts are a compete scam anyway, their interest rates will always be below inflation and just Rob the consumer of purchasing power. At leafy with negative interest they'll be less inclined to sit on their savings because they think earning 0.02% is vendor then in any way. Maybe they'll learn to invest, who knows (or more likely but Funko Pops instead)

>> No.27974671

let me give you a sneedful rundown
>buy house in cash for $500k
>initial loss of -$500k
>net gain $0
OR
>get mortgage for $500k
>put $500k in cash into investment fund
>20% yearly returns - cost of upkeep and interest
>10% yearly returns
>$50k per year pure profit
do the needful sirs, get many debts

>> No.27974672

>>27974596
that was bait

>> No.27974675

>>27970410
And the toilet never breaks. The windows never need changed. The flooring lasts forever. The gutters never leak. I don't know why homes in Scotland are immune to repair?

>> No.27974714

>>27974527
Are you literally retarded? There is an entire world outside of your trailer park, DeShawn

>> No.27974724

>>27967338
From what I understand now, owning a home and living in it isn't that economically sound as boomers seem to think, instead you need to rent it out to actually get money out of it
>I sold my home for twice what I bought it for!
minus property tax, interest, maintenance costs, inflation adjustments. How much did you really make off of it

>> No.27974737

>>27974675
scots live in mud huts, they are niggers
they shit outside

>> No.27974765

>>27969509
PMI only applies when you don't put enough down on the property. It's basically broke bitch default insurance
Also, a lot of banks require you to have life insurance when you take a mortgage. You know in case you croak before you pay it off

>> No.27974809

>>27974655
*At least
*0.02% is benefitting them

Fuck me

>> No.27974827

>>27974724
The difference is the apartment you cannot sell for anything when you move.

>> No.27975022

>>27974671
What about this
>Have 500k
>Buy house and rent it out
>Equity loan for 80% property value at inflation interest rate.
You now can put your cash from equity loan into investments but you also have renter income? Wouldn't this be better

>> No.27975090

>>27967658

Shkreli was right. How confident are you that 30 years from now the city is going to be desirable? Buying a house is buying a futures contract on a location, with a delivery date 30 years out. Talk about rolling the dice.

>> No.27975154
File: 79 KB, 446x435, 1569437187927.png [View same] [iqdb] [saucenao] [google]
27975154

>>27975022
>loan

>> No.27975157

Everything the fed, WEF and the federal government are doing is to essentially bankrupt the middle class white man. If you wanna be successful, think like a nigga.

>> No.27975242

>>27974827
yeah I guess it also depends on these factors
>do you have a wife and want to start a family
>do you need to be in a city center for work
>do you have a career that is close to houses or can be done from home
>do you plan on moving more than once every few years

>> No.27975314

>>27969263
When I own my home I can shit on the floor and not get evicted. Plus no annual checkups.

>> No.27975342

>>27975022
Why not? If you lose that 80% LTV you can always file bankruptcy and they can’t take your house.

>> No.27975474

>>27969500
It’s nice to be able to experience and learn trade skills so you don’t atrophy into a useless limp wristed faggot

>> No.27975538

>>27967658
plenty of "safe neighborhoods" in Chicago went to absolute shit in the 70s and became gang turf. property values crashed as a result. this happened in plenty of other cities too.

>> No.27975596

>>27975090
Correct. Re futures contract on location.
Looking at the 20th century it seemed no brainier to bid up the price of anything in superstar cities such as NYC and SFO but with covid and remote work they are projected to struggle next few years while other cities bounce back OK.

>> No.27975672

>>27969854
I almost fell off my roof. Now I genuinely fear it.

>> No.27976464

>>27967580
>$4k leaf bucks
Did you hire the Pope to install it? Fucks sake, I installed a new water heater in my moms house a month ago. $500 freedom units total for the water heater and materials. Even if someone else had been hired to do the labor it would have been under $1k

>> No.27976533

>>27967338
>hidden cost
Utilities, insurance, repair, and upkeep. But you're supposed to live in a home or rent it out.

>> No.27976537

>>27967658

then go for it anon

>> No.27976795

>>27975538
And plenty of shit areas got gentrified and are desirable now. If you feel like your neighborhood is going to shit, just sell and move away.

>> No.27976816

I know it’s not the “smartest” thing to do but my goal is to buy a house outright. For me there’s a personal part or not being a slave to a bank and I still plan to have enough money to invest anyway.

>> No.27977198

>>27976816
I used to think like this anon. You aren't a slave to the bank.. you can dump the house whenever you want.

However, if you DO have the option, sure, buy the place outright, nothing wrong with it, it's even an alpha move. But if you aren't a poorfag and you have the OPTION of buying the house outright, consider the mortage+stock route as well. You aren't a slave by definition if you could close the mortgage in cash whenever you want.

>> No.27977338

>>27977198
Yeah, makes sense. I don’t want my pride to get in the way of making a better overall decision.

>> No.27978327

>>27976795

Selling a house (and moving all your stuff) involves a lot of time, effort, and includes closing costs. Real estate is very illiquid as it is, and you shouldn't assume it will be easy to offload your house if your neighborhood is taking a dive. Not quite so simple.

>> No.27978824

>>27971027
Are you?