Falling for the mortgage jew instead of saving up and buying a house in cash

this is just shitposting or you are stupid

This. OP is a retarded faggot.

>what are recessions

They cal it the property ladder for a reason

Even if you are a faggot who lived with mommy and daddy for 2 years to save up the money to buy a house in cash you are still a retard. Your dollars you pay today are much more valuable than the dollars you would be paying 30 years from now due to inflation. Additionally, you forfeit the mortgage interest tax credit as well as the returns you could have returned investing the money. You could have bought 5 houses with 20 perecent down payment, a 4% interest rate, and earned a 10% cap rate. You are lighting money on fire.

i hate to entertain larpers but..

buying a house in cash is retarded unless you either have to put in a cash offer to be accepted (flipping houses that can't be loaned on) or you're part of the 1% buying a multi million dollar estate.

> Have $500,000
>Spend $500,000 for a house that appreciates slowly, possibly losing value and $0 leftover

or

> Pay .035% interest on $400,000 loan, have $400,000 to invest with immediately

At current house prices owners are subsidizing renters

>Don't live in a palace you dipshit. Live within your means.

A palace? Fuck, if you saw my house you wouldn't call it that, lamo

>buying a house in cash is retarded

^
Buying *anything* in cash is retarded, frankly. I have a string of 0% credit cards that I use for everything I can, which has given me an extra ten grand to lose in crypto this winter.

This is completely untrue in my market. Maybe this is the case in certain bubble markets though

I'm Canadian so house prices here are FUCKED

>spending a million in cash on a house that will yield maybe 5% return a year plus dividends in the form of rent rather than just renting and putting the cash into investments that can yield 20% interest a year

peeps gonna get blown the fuck out when the fed starts normalizing rates

You can't be cool and stay off the grid if you have a mortgage. enjoy anyone being able to look up where you live on google.

>implying you can just buy a house here and wont be taxed to death if you dont take a mortgage
its actually not smart to ever pay off a mortgage here

rolling

So.....you lived with parents and saved over $1,000,000 in cash (minimum amount for a house here), without having a good crypto moon help.

Kek, sure you did OP.

Ausfag here, this is the reality for us. Net yields are negative, for some reason there are still tax incentives for this but the money is made on the capital gain, we are pic related.

>What is leverage

Don't forget equity.

>what is leveraging stocks with stocks as collateral

>getting a 30 year mortgage
>not getting a 15 year

Please stay in your mother's basement.

everyone on this board is such a cocky asshole now, I hope you all go bankrupt

>buying depreciating assets
>paying property taxes
>calling other people poor.

And this greedy faggot is why the housing market is the way it is.

This whole thread is funny.
Thank you all for posting.

>interest rates are 0.035% today so they always will be

KYS

>HE DOESN'T KNOW WHAT A FIXED RATE LOAN IS

u can pay in extra to better the ratio
beats living with parents for most kids

Not having a mortgage does not protect you from this. County GIS tools will tell you the owner of every parcel.

>t. underage poorfag who doesn't understand fixed-rate mortgages nor would qualify for one

this thread really shows the absolute state of Veeky Forums

the whole point of a house is leverage

you can achieve outsize returns by putting 20% down and keeping the rest of your money in stocks

You will only get like 2x leverage on your stocks, but 5x leverage on your real estate equity

What ? Hahahaha
So, fixed interest rates mean 15 years fixed rates ?
By the way , interest rates cannot be suppressed forever , the time is at hand and once they begin climbing pink wojacks will be seen spamming the streets of the world .

20% a year? Sounds like it is super risky.

Buying anything for a lot of cash is stupid. The interest rate is under 4%, you can pretty safely make 7-8% return a year through managed funds or dividends. So if you got a loan for say 500k on a home the mortgage interest is at most 20k, then you invest your 500k cash and you could nearly guarantee 35-40k a year that's your interest and principal repayments or just pay interest and dump the excess into managed fund to earn even more. Only time there will be a problem is if stock market has a huge crash or house prices drop. Remember though house prices in good suburbs won't drop to much as long as they weren't hyper inflated.

>he doesnt know how to buy undervalued property in developing neighborhoods and rent to the greater idiots.
>he thinks keeping his wealth in cash is ever going to make him rich
>he thinks missing out on the passive gains of real estate appreciation won't outweigh the losses from interest rates.

debt is the name of the game my man.
the whole economy works buy paying someone just in time.

Hum... no
The point of a house is a roof under one’s head .
In any case , your statement should be telling about Ponzi schemes .
See, people speak of crypto as a bubble and it may well be . The real issue of a true bubble is when it’s attached directly to credit .
>he forgot about the GFC lol

> The point of a house is a roof under one’s head

you can rent a roof and invest into equities if that is more profitable

Owning your home allows you to make riskier investments then you otherwise would if you were worried about paying your mortgage. If you want to stay leveraged on rental property while your tenant pays your bills, I understand. But nothing beats the peace of mind of owning your home outright.

Pic related

Learn the difference between leveraged and unleveraged IRR

Sure. Problem is to be involved in debt based investments when ridiculously low interest rates ( artificial ) have been running for a extend period of time . Anybody with little sound economics knowledge knows that interest rates cannot be kept close to zero forever . Once they start rising towards the mean average ( 5 - 6 % ) the word bloodbath will need to be redefined .

buy shares of a young company that you like

>So, fixed interest rates mean 15 years fixed rates ?
Yes, that is literally the definition of a fixed rate mortgage. Now please stop fucking posting you underaged foreigner retard.

Expanding a little further .
In a not distant past , a house deposit was around 50%.
Today , the whole thing is a ponzi scheeme designed to trap people and turn them into scared faggots .
Those who think they’re smart taking investment loans to put in real state at very low interest rates will be destroyed in the near future .
Obviously , the same boomer who criticise crypto do so for a number of reasons , one of it is the fact that a 20k “ deposit “ on BTC 2 years ago would have been sufficient to buy a house outright today.
They’re understandably angry .

Just stop posting, you didn't even know what a fixed rate mortgage was. Your lack of knowledge is just embarassing.

HAHAHAHHAHAHAHHAHAHAHHAHAHAHHAHAHAHAHHAHAHAHAHHAHAHAHAHHAHAHAHHA.
The world is fucked . The retardation level is way beyond the bankers wildest dreams .

Why should I take any of your posts seriously when you learned what a fixed rate mortgage was 5 minutes ago?

sage for retardation

You can’t possibly be that dumb . It’s simply not possible .

Please don’t tell that you took a mortgage thinking the fixed rate is for the life of the debt .

You didn't understand the concept of a fixed rate mortgage 5 minutes ago. Embarrassing.

Uh yeah, you can get a 15 year fixed rate if you want.

If you did , call the bank now and ask them . Just don’t be mad at them , it’s written in the contract you should have read .

we will never have above 5% interest rates in your lifetime (5-5.25% short term rates set by the Fed)

You're retarded my dude. Not a single argument.

>when you realise how easy it is to fool retards

Oh fuck me. Call the the bank and ask them if your rates are fixed for the life of the loan . Do it

>Oh fuck me. Call the the bank and ask them if your rates are fixed for the life of the loan . Do it
That's literally the definition of a fixed-rate mortgage.

I'm suspecting this guy is either a kid or a brainlet foreigner, judging by his English.

>be me
>18
>put $4400 in crypto
>buy house with $1500 down
>motgage is cheaper than rent
>appraises $10,000 over buy price

>be me now
>20
>crypto portfolio worth more than mortgage even in the dip

I actually think banks used to do an important job for society . The problem is that now they deliberately fool innocent people like you who don’t have even a basic understanding of economics . It’s criminal .

Why the fuck can't you wrap your head around the idea of a fixed rate mortgage you fucking idiot.

He's probably a pajeet.

Look at the way he types and his punctuation.

>brainlet foreigner
It's this. Punctuation indicates he's probably from vietnam or some shithole like that. Maybe they don't even have fixed rate mortgages there.

Why are you so retarded ?
The sentence was:
Call them and ask if ...
As far as the definition goes , I have a background in economics .
You on the other hand , cannot even comprehend basic sentences .

>I have a background in economics .
Background in economics and can't comprehend a fixed interest rate.

Sure you do Ranjeesh.

What do you think a fixed rate mortgage is? Since you seem to think we have it wrong.

Apparently spaces before punctuation is a classic indian fuck up. Literally pajeet lmao.
english.stackexchange.com/questions/4645/is-it-ever-correct-to-have-a-space-before-a-question-or-exclamation-mark

I’ll try again for you imbeciles .
CALL THE BANK AND ASK IF
definition
Interest rates are fixed for the LIFE of the contract ( 15-30 years).
Answer :
They’re not . In Australia for example , the maximum fixed rates are for a period of 5 years ( significant premiums must be paid ) . After 5 years in this case , you go back and a new contract is signed giving you options to choose between packages wich are related to interest rates available at that time .

>pajeet still doesnt understand what a fixed rate mortgage is
This is just sad.

Not the case in the US, you can have a 15 year fixed

In any case , call the fucking bank and ask if you’re gonna be paying the same rates as you’re paying now in 20 years .
Do it you fucking retards .

Kill yourself. Never take another breath. If I could kill you one hundred times over I would.

>in my shitty pajeet country the max fixed rate loan is 15 years therefore its the same in all countries
Pajeet logic at its finest.

You should go to whatever Bangalore diploma mill you got your economics """degree""" from and ask for a refund, you disgusting street shitter.

It’s not possible . They would only do that if they knew what interest rates would be in the distant furture. You people clearly don’t understand how banks make make and manage risk .
You should educate yourselves .

>doesn't even own a toilet
>thinks he knows about mortgages

not if you find a good price for an apartment. I know people paying like 500 and all utilities payed.

>it's not possible to get 15 year fixed
>it literally is
POO IN LOO RANJEESH

you can buy a 15 year long bond, you stupid motherfucker

a 15 year fixed mortgage is a bank SELLING you a 15 year duration bond

? I work at a bank and all our yield curve data goes atleast 30 years into the future

flags when?

Oh boy, sorry about that guys . Apparently you can take a 30 y fixed rate loan in the US. The bloodbath will be even worse . Your economy will be destroyed forever in the near future on the next bank collapse .

Sure, and that means your yield curve is without a doubt perfectly accurate and not subject to thousands of possible events that may take place in the future and thus what you have is a real crystal ball that sees 30 years ahead .

What to you think the ‘08 crash was all about? They were giving 30 year fixed loans to people with no money down, no credit history and no proof of income. This pumped up the market to insane levels until the whole thing collapsed.

They have started doing it again recently, I give it 2 years tops before it pops again.

Also , I apologise for forgetting “ managing risk “ is just a meme there .
My bad .

Sure , I actually study te crisis in depth . However I didn’t know they were doing
The exact same thing , perhaps worse considering the state of the world economy now .

It's true. Except it's a tax deduction, not a tax credit.

This is Economics 101, user. Before you lay out any huge amount of cash instead of financing something, you should ask yourself whether you can make more money investing the cash instead of borrowing it. When you can get an interest rate below 7-8%, it's a fucking no brainer that you should finance. If you're a good/diligent investor and the market is healthy, you can up that to 10-12%.

Like this user said, paying cash for large purchases is basically throwing thousands or tens of thousands of dollars in the trash.

Oh man , it keeps getting worse .
I’m truly scared now .
The word Ponzi scheme needs to be redefined ASAP.
Buy Bitcoin .

This is true . However , most people go all in . They save money and put it all in a deposit and from then work their whole lives to pay that debt with little room for any savings .

Last one guys, I can’t control myself
>they call Bitcoin a Ponzi scheme
HAHAHHAHAHAHHAHAHHAHAH

Yep, most people are “house poor” spending their entire live wage cucking to pay off their mortgage. Worse, they usually move every 5-7 years restarting the 30 year clock having paid off almost no principle on the amortization schedule.

For those saying invest the money instead, most people don’t have any additional funds to invest. They stretch themselves to the absolute limit of the 30 year qualification at 42%+ debt to income ratio. They are slaves to their bank for the rest of their lives.

>For those saying invest the money instead, most people don’t have any additional funds to invest. They stretch themselves to the absolute limit of the 30 year qualification at 42%+ debt to income ratio. They are slaves to their bank for the rest of their lives.
Yes, but irrelevant. For those people the notion of buying a property in cash outright is already off the table. The better option is to rent and carefully save until they can afford the down payment on a mortgage that will still leave them plenty of money every month to save/invest.

>usually move every 5-7 years restarting the clock on the amortisation Paying almost no principle .
Someone actually has some real understanding how shit works .
>some called me a pajeet
HAHAHAHAHAHHAHAHAHHAHA

>have daddy's money lol why do you need a mortgage