Friendly reminder not to fall for the buy a house meme unless you are a real estate investor or landlord

friendly reminder not to fall for the buy a house meme unless you are a real estate investor or landlord.

youtube.com/watch?v=6wXQ-5KVRaQ

Oh wow, you posted a video of a retard talking.

It's nice they let people with mental disabilities talk at wherever this was filmed.

butthurt mortgage slave detected

In the uk mortgages are usually cheaper than actually renting a house.

Plus after 20-30 years you have a nice rent free house.

wait for interest rate changes

This in the places in the US I've lived as well
If you're going to be paying $800 a month you might as well choose the option that gives you an asset (yes a house is an asset) in due time. Unless of course you're one of those >"I'm not falling for the jewish tricks so I'm making my mother put up with me for another 20 years" people.

Fixed-rate mortgages

t. 26 yo that lives w/ mommy and daddy

not sure why this is bad still

little more context
I'm a 24 year old with $5500/mo. income and $150k invested and still dont understand why Im supposed to buy, rent, or move out period, except to keep your housing market inflated

If you're 24 that's fine provided it isn't affecting your career prospects. If five years from now nothing's changed it'll be a different story.

it's called being independant kiddo. you'll see when you mature in a few years

How come?
What makes 29 me different from 24 me, and why does 29 me suddenly need four bedrooms to sleep in and three toilets to piss in? I've only got one dick.

The difference between Schiff and the average person is he already has sufficient wealth to not care about pissing some of it away on rent. Whilst the average person spends the majority of their income on rent and once all living expenses are paid have very little left over. For these people, If you can buy for the same (or cheaper) than renting then why wouldn't you? You end up with some form of wealth instead of nothing and for most of these people, a house is their sole or main form of wealth.

Although I do agree with his general sentiments that you shouldn't buy if you can't afford to, shouldn't treat it as a guaranteed money maker and should understand there are downsides to owning a house.

the difference between being independent or not is paying rent or a mortgage?

do you have a girlfriend or boyfriend?

Some people become involved in sexual relationships with other people. This leads to more than 1 person living in a home. As well, some people do not want to live with their parents or in an apartment where they can hear their neighbors fuck.

There's nothing wrong with it. It's just stigma and societal expectations. If you're happy doing what you're doing, keep doing it and fuck everyone else man. It's your life. I'm 29 and still living with my parents. I have a shit ton of disposable income, a nice car, a motorbike, some investments and a decent amount of cash savings. None of that would be possible if I lived alone because my entire paycheck would go towards rent/utilities/living expenses. I do want to move out, it just doesn't make sense logically.

Peter Schiff is a master level troll.

He knows very well a house is a good investment as long as you make a good buy.

But he talks to the general public like everyone is a complete fucking moron, so thus he recommends renting.

Maximum autism right here.

Either roleplay or exaggerated numbers for a 24 year old, but anyways, it's about independence. I used to think like you as well and thought, hell, why don't I just move out at 60 and buy myself a great big mansion with all my glorious savings.

The truth is, moving out too late in life affects your psyche. I read about this somewhere, apparently moving out makes big changes in your perspective and way of thinking that you could never feel while leeching on to your parents. You'll devolve into a manchild if it's too late (at 35 or something) and will have problems adjusting to adult life. Being independent earlier awakens the adult in you once you move out and experience real life with all its hurdles and hoops, it will actually change you as a person. I definitely felt it when I moved out, started caring more about expenses and yearly goals, started having an easier time with women, started feeling more respectable and had more emotional stability, it's difficult to explain the overall feeling. But it's definitely justifiable.

gross
no

so suddenly a third of your income should vanish? because you need to get your dick wet?

Well sorry man but no matter what options I try and evaluate they all seem like a big hassle and big expense for absolutely no meaningful reason

I hope you've made sure to throw around some topsoil and fescue seeds around, or else your neighbors might get angry at the dirt spots in your lawn. After all, you're lowering their property values!

all you need is one lucky investment and to save for those number. theyre believable numbers

I dont understand why people are against purchasing a house. Why would you throw away 12k a year on rent? Id rather pay for something that will generally keep its value than pay for someone else to make a profit.
>b-b-but taxes and other expenses
If you are renting an apartment for a price that is costing your land lord money then good for you. The rest of us are paying over $800 a month in profit and we cant even claim the taxes at the end of the year.
Im looking at houses right now. $80 a month in property taxes. $250 in HOA fees. $80 a month in insurance.
How is that more than rent?
The only justification for not buying a house is that you live with your parents in a house they own.
Please red pill me on not buying a house because I dont get it.

It's ok, we understand living with autism can be tough. You're doing a good job arguing with people on the internet though.

not sure what about my position is autistic
ad hominem is for people with no good arguments

It's because the only reason people live with their parents well into their 20's is because they're disabled. Most grown adults will move out strictly to be able to have long bouts of loud sex and not have to deal with parental rules they've found disagreeable for years. Defending your non participation in those coming-of-age rituals to save a few bucks on an anime image board strongly suggests you're a fucking autist.

Rental yields in my city about 3%, I can make more than 3% with the money and believe property has just about reached the moon, more profitable to rent.

It's pretty disingenuous to say you are throwing away money renting. You're getting a place to stay and the flexibility to move without nearly as much headache as trying to move from and sell a house (or rent it out.) Yea obviously they are making money on you but owning a home isn't cheap either.

>Im looking at houses right now. $80 a month in property taxes. $250 in HOA fees. $80 a month in insurance. How is that more than rent?

It's not when you conveniently leave out the mortgage. Also those numbers are irrelevant because the costs of owning a home differ per location. You're also ignoring eventual repair costs.

Owning a home at this point in my life would be foolish as I am not near peak earnings in my career (IT), so being able to move for any potential job is something I need.

Honestly you're just gaslighting yourself with the flexibility meme. Lot of times you're just going to get stuck with the lease if you go all free spirit. Also if you're any kind of professional who needs to move for work there will be a relocation package that includes a house buyout.

>grown adults will move out strictly to be able to have long bouts of loud sex
you don't think this is pathetic? you think doing the opposite of this is indicative of mental disorder?

>to save a few bucks
how exactly do you think it is I have the net worth I do now? cryptocoins and kneepads?

if an employer has to foot the bill for relocation, you are critical to the growth of that location, but most likely you're just a run of the mill employee, so that is extremely rare

we all know the stats, the highest income growth these days results from moving companies, not transferring within the same one

No I guess people have been doing things like purchasing houses to have sex and have children for a long time now and it's generally not considered a mental disorder.

Most people don't need that explained to them.

>grown adults will move out strictly to be able to have long bouts of loud sex
>you don't think this is pathetic? you think doing the opposite of this is indicative of mental disorder?
Without adults making purchases with their romantic relationship and sex in mind our economy would maybe be 1/3 of the size.

didn't imply that it was
just that the opposite wasn't

why does that mean you should do it too?

Every time one of these threads pops up I post the same thing and no one cares

Your primary residence, whether rented or bought, is not an effective investment. People purchase a house out of NEED. Yet somehow, every time, people come in and argue that you should still do it even if you don't NEED or WANT it.

That's why this time I thought it be fun to try to see the mental gymnastics that come out given my own circumstances.

this guy trolling us or maybe just content having his bloodline die out from being a virgin for life

>mortgage
Im paying for my house in cash and any money you pay on principle doesnt vanish. The real factor is how much you are paying in interest and I cant account for your credit score or the amount you need to borrow and the amount you overpay to negate interest. Paying $10000 a year for the rest of your life with that money disappearing in thin air vs paying $250,000 between one day and 30 years and the house retaining at least 70% of its cost even with major repair damage which in theory is negated by the insurance. Liquidity is the biggest concern.
The area Im talking about is $1200 a month average for rent and is a sellers market right now. I have taken this into account in my own planning. Im also not saying that someone who makes $20k a year should go out and buy a house.
You also have to take into account that rent is not fixed. You have to renegotiate every year and might have your lease terminated for reasons outside of your control.
You would need to make at least $8k a year just to offset the money you waste on rent. So 3% of a $200k house is $6k so in total you would need to make $14k a year to really make a profit. Plus you can always take a loan against your house and invest that money. This has really been the deciding factor for whether or not to buy for me. Crunching the numbers for my own skill in the market makes this infeasible for me. I dont have the skill to pull 10% on my investments every year.

The opposite is literally a mental illness. Have fun raising a fish and leaving all your vidya game skins to your nephew.

If you own or borrow your home from a bank you are going to lose 10% of it's value every time you move. It makes sense if you are retired and looking for a cheap place to live for the rrst of your life, but for young professionals living in high cost of living areas and with opportunities for career advancement by changing jobs "owning" a home is retarded financially.

>buying a depreciating asset
Of course. It's dumb.

Fixed rate mortgage, idiot.
Learn how to Google more than chanCoins you fucking pleb.

33 year old neet loser here. I gave up on societal expectations long ago...

Just waiting on an old relative to croak then i inherit 2 houses... I'm going to rent them both out and spend the rest of my days sitting on a beach in Hawaii or Miami. You guys can have your career bullshit. I'm gonna enjoy what youth i got left, Money ain't gonna do me any good when im 60 and in a rocking chair.

You have the same mentality as a welfare queen except of sucking from the government you're latched onto your parents. You're a parasite. Something that should be exterminated.

because living with your parents is awful and you will never get a GF.

Because you will never fully be an adult without living on your own.

No, the difference between being independent or not is not being reliant on your parents and living on your own.

>None of that would be possible if I lived alone because my entire paycheck would go towards rent/utilities/living expenses
>utilities/living expenses
See this is the thing. How are you saving money without shifting some expenses to your parents? And if you are shifting expenses to your parents then you ARE being a leech, regardless of if you pay rent or not, because there are other things besides rent and the fact that you don't know this shows how much you need to live alone because you clearly have no idea how the world functions (this is going to Veeky Forums in general, not you).

You're focusing on a few specific words and not the overarching statement. It's autistic because you have no desire to be independent and don't care about personal freedom because what you have is already working.

>how exactly do you think it is I have the net worth I do now?
At the expense of your parents being financially, personally, and physically burdened by you. Again, right now it isn't an issue since you're only 24, they should have no problem supporting you for a few more years than they were supposed too. But when you're 30+ you're putting an unreasonable burden on them that they never asked for. They want to retire and live their life but they can't because you're dependent on them like a child. Sure, their kid will be wealthy, but I don't think they care if it means they have to take care of you until they physically can't anymore and never get an ounce of freedom after you were born.

>If you own or borrow your home from a bank you are going to lose 10% of it's value every time you move
?

Please explain to me in at least 50 words how a house is a depreciating asset.

>paying a mortgage

might as well make the check out to (((Goldberg)))

I'm trolling you? I clearly have the savings and income to move but I don't because it's a stupid idea. The clear majority of reasons presented have been
>muh dick
and some vague concept of "independence" (I wonder how often independent twenty somethings cook their own food vs. eat out, or change their own oil)

what mental illness
what will the shrink tell me if I tell him this
record numbers of people don't want kids, ever
what does the DSM say about that

I'm a parasite because I don't pay rent? Sounds like my attitude is a threat to your way of life, since I'm compensated for my labor but don't consume, thereby subverting your capitalist system.

>33% of your income vanishes because of this insecurity

>multiquoting all of Veeky Forums
This is not the correct way to use this site.

Every time you sell a home you lose 6% to realtor costs and at least 5% because of the lack of liquidity. If you leave it on the market for longer, then there are potential returns in other places that you are forgoing. You are financially illiterate if you think that "buying" a home is a good idea for anyone not retired.

>here are other things besides rent
list them
I came up with utilities, groceries, insurance, phone bill, transportation
if you lump rent with utilities, that dwarfs the other things
why is your central implication that inhabiting a room in your parents house equivalent to them wiping your ass every morning?

>I wonder how often independent twenty somethings cook their own food vs. eat out, or change their own oil
i going hope you know how to cook by now. does mommy pack your lunch for work still? i wish you luck when you become a big boy.

Oil change costs a whoping 23 dollars at any jiffy lube. Food is sold at grocery stores. You go in, Pick out the kind of food you want and then buy it and eat it.

Wow being independent is so hard. I'm a loser neet and even i know this.

my point is switching from your parents cooking for you and doing everything to paying someone else to do it isn't independence

no but it took a lot of convincing to get her to stop making breakfast when I moved back in

Actually it is. Why should i change my oil when i can pay someone else to do it for me?

I can cook my own food btw.

>I can cook my own food btw
wow, good job being 33 and all youre really ahead of the game

>makes thread with a dumbass topic
>argues with everyone that they should stay at home and live with their parents

What if you got a job that paid twice as much on the other side of the country? You would probably turn it down cause 'family' or some cucked reason. You think you're some star making 5.5k (post tax I hope?) per month. You're living at home with a slightly above average salary. It's a fine thing to do, but if you don't see the utility in having a house you're a fucking autist.

Thanks. It's pretty cool being a big boy.

Who the fuck wants to be tied down to a single house in a single city for all their life?

Fuck off.

How would you lose 5% from liquidity? Also its a lot easier to sell without a realtor than it was before. Why do you think 30 something moms do it? The problem is that you might not find a buyer for months. Your property will generally increase in price over time depending on where you are buying. Cheap property on the country will depreciate but you can look up properties history right this second to prove how the market has been.

>$5500/m
>33% of your income
Can you please keep your lies consistent. 20% is more realistic. Roleplaying in your childhood bedroom is fine and dandy but this is a business and finance board. Living in your parents house is fine but your parents paid for that house which proved its worth when their manchild son refuses to leave. So if your parents had listened to your advice you would have been fucked.
>dont consume
Inheritance tax is way higher than sales tax. If you dont have anyone that can claim your inheritance then it all goes to government. The only way you could fuck the system would be if you lived out in the woods self sufficiently.

I'm not OP and I never said it's best for everyone

>You think you're some star
projection, the point was that I clearly have the savings and income to move anywhere in the country, but wouldn't do so locally because it a bad deal all around

>What if you got a job that paid twice as much on the other side of the country?
then I would have to do the math to adjust for cost of living and change in tax, seeing as your cost to move would at a minimum increase to roughly 33% of my now doubled income, so I'm not REALLY paid double

>post tax I hope
>slightly above average salary
insecurity

>if you don't see the utility in having a house
as a single person who literally just moved to a new city?
what definition of utility are you using, exactly?

>20% is more realistic
On a 30 year mortgage on a starter home that smells like cat piss in the darkest asscrack of the suburbs, yes it's more like 20%

Parents bought a house near city centre of Amsterdam 20 years ago for (now) around €225k
Now worth more than €800k

The whole fucking neighboorhood went from shitty subcity to yuppies and places that sell smugaccionos friendly neighbourhood

>bought
>paid off in 10 years @ average wage
>now friends renting and handing over half their pay to a landlord.
How silly of me to have fallen for the buy meme

You live with your parents, babysteps would be renting not owning.

why
I rented when I moved out at 18
I could find a small townhome with low association fees somewhere

>you insulted me
>you must be insecure

No, I'm just trying to get you out of your fucking head. You're the one who posted their mid-tier salary in here.

When you pay rent, all of your money goes to the landlord's mortgage. When you pay your own mortgage about half goes into equity for the house. If you're going to be somewhere for a few years or more, get a house. Most people do not have the opportunity to live with their parents.

>utility

My mortgage is around 17% of my post-tax income. I should really say it is half that because my girlfriend pays me rent. I have the loan paid down about 30k since I've been living here a few years, that's money that did not go into a landlord's pocket. I have a yard for my dogs. I don't listen to my neighbors fuck. I have a driveway and a yard to keep my vehicles off the street.

I see your point though, I'll sell this and go move across the country to live with my dad so I can be a special snowflake like you.

you sound boring.

I've lived on my own for 5 years, it's nothing special. Anyway, I spent all my time working/at school, so home is literally just a place for me to sleep.

I'm not sure how you got to 14, if we're using 3% on a 200k property it would be 6k pa to rent, if at the same time we have the 200k making 4%, we're in front 2k pa.

gee I wonder who could be behind this post

So many little manlets. Bought a house, halfway paid off, took a line of equity on it bought another house, its a duplex 4 units, RENT it. Bought another house i like it the most k move in nake my original house a duplex RENT IT. I make money off of all you retards that cant buy a house. Stay poor fags. Protip i started in miami.

>renting a house
live in the basement while owning 3 houses and collecting rent monies you dip

Not that user but
>Implying moving out is what's going to make women like me

I've dabbled in being homeless here and there but haven't graduated college yet or gotten a well-enough paying job to move out. 21 here.

Fixed rate for 3 years, variable rates for 27 years after. Remember to read the small print.

>rent
might as well flush money down the toilet while living under a bridge.

This. (((They))) want you to fall into debt slavery so they push the house, car, wife, kids meme.

your net worth would be way higher if you split rent with the roommate and stuck all the house money in equities

There are more important things than net worth.

i own my own home, i am better than everyone on earth that does not. suck my dick rent cucks and NEET fags

The entire "b-b-but it's a liability" argument is based on the retarded idea that renting can't also in itself be a liability.

>b-b-but on paper tenants are protected by law!!
It's simply incoherent and even hypocritical to criticize buying based on a pragmatic argument, and then to refuse to apply pragmatic thinking to renting. If you're going with "on paper", then buying is objectively MUCH better than renting. If you're going with a pessimistic "but in practice" argument, then you also have to recognize that the entire value of your rent is always at risk of going to shit if your landlord is enough of a fuckwit. And if you think no such thing exists and landlords never do things which royally fuck with their tenants, and that "the system" will always flawlessly protect tenants, then you're applying wishful thinking.

All of this being said, it is true (and fairly obvious) that one should always take into account that the value of buying a house is always going to be higher than simply the value of the house itself (especially if you're unskilled in and/or unwilling to do home repair).

Actually there's a simple algorithm

If you know you want to stay in one place for considerable amount of time
>buy
If you want to have freedom of movement and change location according to your whims/career
>rent

>Section 8 moves in tmr
>you can't do shit
COMFY?

>section 8
>blacks even dreaming of affording my zip code

hindsight investing sure is fun!

due to unforeseen circumstances, im currently homeless, have a little bit of savings but they wont last long.

any rich user want to give me 5,000? cheers.

>tfw you're a buyer of houses ruined by irresponsible home owners
>tfw you fix'em up and rent them out
>tfw when irresponsible retards are entering the housing market every day, providing you with an endless supply of cheap wrecked houses
>tfw OP is actually kinda right for once

Its pretty simple folks, live below your income and you wont live paycheck to paycheck just so you can have the fanciest cuck-shed in the yuppy neighborhood.

If you are a real estate investor or landlord you should kill yourself

I can mortage a home for 200-300$ less than it would be to rent it, because my town is retarded and has a high demand because of the navy and noggers that dont know how to own homes.

>Live in NYC
>heater leaks upstairs
>they are out of town
>It floods their apartment
>Causes leaks down onto my apt
>Any damage to my stuff in my apt is my liability

N A N I
i'd rather lived in New Jersey in a small cramped house and at least own my shitbox than live in a towering fuckbox with angry psychopaths living in various places.

Why is being a landlord a bad idea?

peers, parents and family is always pushing hard on us to buy a house and I always explain them that a house is a fucking liability and that a 300k mortgage isn't an asset but they're always acting like "oh poor little boy". Fuck them I've got almost 100k in investments. I don't need to scrap it all on a fucking shit shack. Right /biz?... Right?

In the same boat user. 25. What SHOULD we spend this money we've saved up on?

>an average of $934 a month and get nothing
>pay an average of 1,061 a month and own a house
Someone explain to me how renting is ever a good idea. It seems like a retarded scam on paper.

That's why I stopped myself from getting my RE license. Couldn't do it. It wasn't that I didn't want the money, I damn sure did. Just didn't like the fact that I had to kiss niggers asses, follow the FHA letter by letter, and sell houses to idiots with more money than sense.

There's honestly no point in owning a home in this day and age. I'd rather rest easy knowing my management company or landlord will take care of any issues with my HVAC unit instead of having to get a personal loan to fix the fucking thing.

Either that or buy a goddamn condo. You get the privilege of owning something (somewhat) but the luxury of not having to do shit.

According to these idiots? Yes.

oh right, being owned by a bank for a few decades is being independent right? COOL!

Enjoy your meme

Sometimes yes, right. Sometimes no, wrong.

Land

Fucking right. But most people view property as the best possible investment, and it looks fucking excellent because the only alternative they can fathom is stock market. Even on /biz it's nothing but buy a house and rent it, or learn to trade.

Kids are convinced their mixed tape is going to be fire and they don't want to be burdened by a mortgage when they have to move to LA.

renting is great that's why the rich landed gentry all rent haha we sure showed those mortgage cucks r-right guys

Finally someone who makes a bit of sense.

FYI: I'm in an apt with a wife, not a neet

Keep saving it, if some day you NEED it, you'll have it. If you NEED a home for a family, go buy a house with your big pile of cash. But otherwise I cannot comprehend why I should move out in a house doing the same as I do no but with a shit ton more home-related work and bills. My nice and big yet cheap apartment is perfect. I guess it always comes down to your needs user

If you are moving around a lot, property is not a good idea for an investment. You need some degree of proximity and personal use to get out of it.