Buy house?

you plan on living in it yourself?

atleast rent the shit out of the rest, then its probably paying itself or more

1 Room = 600
1 Room = 600
1 Room (me)

1200 a month renting it out.
Mortage = 1700 -1200 = $500 for me to pay

Flipping houses it's one of the stupidest things. With that kind of money you could start a business. Hell, if you are smart and take loans you could start your own construction company. It's a booming business everywhere.

I can't speak to your specific situation, but some food for thought...

When we are in a bubble, people never ask whether they are paying too much, or whether the product is worth the cost they are paying.

Instead, they look at what they think the future price will be. So, they don't mind over-paying because they think they will still wind up ahead later.

This happened a WHOLE lot in the US during the bubble.

So ask yourself one question to start with... what makes a home go from 250k to 700k in only 7 years?

If you ask this honestly, you will figure out that there is no reason, other than the fact that people are willing to pay more than they need.

In the evening I work on my own game software company (which so far is a failure )

The stupidest advice I have ever heard on this board..
>> HURR STARTA COMPANI ITS EAZZIE HURRRRRRRRRRRR ESPECIAWWY A CONSTWUCTION ONE, MY FRWIEND THOMAS TOLD ME HUUUUR

Kill yourself you neet fuck.

It went from 250k to 400k

Which isnt massive given the crazy economy.

Also I am wastin 20k in rent every year in this expensive city

You're deluding yourself. A 60% increase in 7 years IS crazy.

And you said so yourself.... "this crazy economy"

Again, it's your choice. But also consider this...

When you spend 700k to buy it, and it drops back down to 250k but you still owe 700k, are you going to be able to live with that or will you be screaming about how unfair it is, like so many Americans did?

I know its fucking retarded

but I got to the age where I need a house man I am in my thirties

You could always do it like people have done for generations...

1. Buy a house you can afford
2. Continue to save
3. Later on, buy a more expensive house.
4. Repeat steps 2&3 a few more times.
5. When you retire, go back to a cheap house and pocket the difference.

How much do you think I should spend on the house then? You are implying that I cannot afford a 400k house on a 90k salary ?

Thanks for your advice dude

Historically, assuming a 20% down payment, banks would never loan for anything more than 2.5 times your annual income.

During the US bubble, Washington Mutual used to loan to 4-5 times annual income. But then again, they later went broke for giving loans to people who couldn't afford them.

With an extra note... when you read , you're probably thinking "that's crazy, you can't find homes for that amount";

But it's important to realize that the only reason homes are going for this much is because people have been willing to pay this amount.

Once people stop overpaying for homes, the price will drop; and will drop fast.

There's an old phrase that says "no single drop of water feels responsible for the flood".

Just because everyone else is driving themselves to financial ruin by taking out loans they can't afford, that doesn't mean you have to.

>banks would never loan for anything more than 2.5 times your annual income
Maybe that was true for the lowest incomes.
If you have a high income, percentages don't work out quite the same way.

>be me
>100k / year before tax
>after tax: 50k / year (worst case scenario)
>30k / year for a house (600k loan)
>20k left after tax and housing

That means I have 1500 per month left to live on.

Am I crazy, or is this perfectly reasonable?

Again, it's going to be up to you to decide what you can or cannot afford.

Just make sure to take into account other possible costs...

... insurance on the home
... the cost of utilities (electric, gas, water).
... nest-egg for a new roof in the future.
... car expenses, if you have them.
... other costs.

Of course you could just buy a $350k home and then not have to worry about any of this.

>Of course you could just buy a $350k home and then not have to worry about any of this.
... and pay taxes out the ass for lack of business expenses, or buy cars and such.

Not sure what you mean.

I'm simply suggesting buying a cheaper home and saving the rest.

I'm a self-employed European with zero business expenses to my name.

If I don't pay out the ass for a house, I have to buy a bunch of shit I don't need (computers, cars, ...) to keep from having to pay a buttload of taxes.
Or put my money into some retarded government-sponsored retirement fund where I can't get to it for 30 years.

In my experience, you should never, EVER buy something as motivation to keep you working, you're literally forcing yourself to wagecuck for decades without taking any financial risks whatsoever. Any financial book will tell you that you are about the make the worst mistake possible. Just buy a smaller house so you can grow your wealth instead of dumping everything you have into a mortgage

I am in a place where housing is in very short supply though, i believe the house is a good investment (just not as good as crypto probably)

If you're a crypto-hound there's no reasoning with you.

Do whatever you want.

I have like 1 coin

If you want to be upside down on your mortgage in 3 years, and be trapped in your mortgage for at least 5 years after that (before you'll break even), then buy the house.

30% housing market correction coming in T-MINUS 2 years.

I can talk you out of that. Too much risk due to property taxes. You're better off buying a home you can afford and then stacking up to a more expensive home. I've heard homes being that expensive halfing in price.

No, a home is where you live, go to sleep. Don't screw with that idea or you're stupid.

Make. Your. Gf. Get. A. Fucking. Job.
Before you let her live with you
FFS

Thought I loved this cunt now I've been comfy cucked I'm gonna have to get a lawyer to evict her if I don't actually kill her. Jesus fuck she's lazier than all the Neets of Veeky Forums combined.
She texts me
>buy more toilet paper
as I'm driving home from 12hr of wageslave to go to the store bc she couldn't be bothered to get out of bed today

she was 40k job :/

its not much but i dont want to get a joint mortgage because I like to be in control

Look, man. I've been homeless. Being homeless is not easy. But if there's something I've learned is that it can get you into some bad situations.

The simple fact is that you simply want a cheap place to live with a low probability of getting shot when you walk out. Commute is also an issue when talking about money. But, really, you're being an idiot. That's like saying you want to take out a $200k USD loan to be an artist who only draws (and not having any talent, clients, rapport, etc.).

No, you don't understand what it means to own a home yet. You're not an adult yet. It's a place to be safe. Get it?

But does she still put out?

Locations?

What are similar homes selling for in the area?

These 2 pieces of info are critical.

If a house is paid off for is it better to rent it out or sell it?

I still want to know how exactly you plan on magically adding two bedrooms to a house

...walls?

Want to be rich?

>Buy with FHA loan

>Convert it to 5+ bedroom. You have a year to do this because you need to satisfy occupancy requirements of the loan.

>rent each room by the semester

>Have parents consign the lease.

>Students are taking out loans so they have the money.

>install coin-op laundry or something

You now have 200k in unrealized capital gains and a double digit cap rate. You can take a loan against the equity for down payment on your next house.

If you would rather sell I think you need 2 years occupancy for cap gains tax exemption.

economist.com/blogs/graphicdetail/2016/08/daily-chart-20

maybe you're a visual learner, find your city normie

Not hating on buying a house but the amount of risk you're about to take on money and time on speculation of the housing market is huge. You think you can sell it for 700k after buying for 400k and adding rooms. Lets give that value near 500K if they had the rooms you're still speculating that you can sell this house for 140% its current value. I dont know any details about the house so i cant really help you there that is your call but do your research.

>7 years ago
>2010
>Market in shambles

Now THAT guy bought at the right fucking time, why are you so sure you are?

thanks for starting this thread OP, I'm a young professional making my first chunk of money and have been debating on buying a house. I'm expecting a HUGE crash soon because of student loan / auto loan defaults so I have been afraid to buy a home. Everyone says "Don't time the market." but its so obvious..

Rig.. right.. guys.

Met a guy at a conference in Vegas last year.

>Buys Section 8 apartments in shit neighborhood
>Keep them barely legal (im talking no door windows on the lobby doors)
>Taxes coons on 1br Apartments in the biggest shithole you can imagine
>Hires a property management company so he never has to deal with nigger

>everyone
Same boat man and by everyone I assume you mean boomers who are close to retiring.
Makes me all the more sceptical. Its probably a lie and they know it.

...but renting is no better either

>1500 per month to live on
fucking top kek, you're delusional if you think someone in a 600k house has expenses that low

have fun eating ramen on your bare kitchen floor

I already know the heating is going to be less than where I live now, and the garden is pretty similar. What expenses are you talking about?

There's always something looming on the horizon in people's minds. Even during the best of times.

Look at any book, movie, series, ... from any decade during the past 100 years, and someone is always talking about some crisis or bad economy.

And even monumental crashes like the 1929 stock market crash are followed only years later by better times than ever before.

Don't buy the toilet paper. Kick her out.

Now add another 1200 for the extra 2 rooms you will build.

so are you the one person in the thread who thinks I should try and buy the house?

This guy is right. We're hitting the bubble peak point all over again since 2008. I'd wait it out personally. I myself want a home so bad but up here in Canada it's just not financially feasible right now. I'm waiting for the next crash which might be sooner than people think. Right now people are skipping out on home inspections because if they wait the extra day or 2 then the home gets scooped out and bought by someone else. It's fucking nuts right now here.

Renting is better(right now) because the money you save can be invested elsewhere. No point in buying into an overpriced inflated market.

I'd say by the end of 2017. At least in Canada.