Home Owner Thread

[David.]

Are you also factoring property taxes, insurance, and maintenance on owning a place vs renting?

No but am I correct ultimately that if my rent increase will remain constant, in x years I'm losing a shit ton of money by not buying now

 

[Out of the Rafters at the Q]

No but am I correct ultimately that if my rent increase will remain constant, in x years I'm losing a shit ton of money by not buying now

Yes.

You're even failing to account for the rise in the value of your home over that same period.

When you're calculating mortgage payments, make sure you remember property tax. For me, that's like a third of my monthly payment.

 

[Cavatt]

I'm busting a stump with an ax. Very hard good exercise. This is one of those spending $2000 dollars of my time to save 400 on the machine that will do it

 

[bob2the2nd]

Yes.

You're even failing to account for the rise in the value of your home over that same period.

When you're calculating mortgage payments, make sure you remember property tax. For me, that's like a third of my monthly payment.

tax, hoa fees, any utilities rent might cover, PMI (if applicable), insurance. those are the big ones. also depending on the age of the house you are looking at anywhere from a couple to several thousand a year in home improvements.

i think now is a terrible time to buy from a mortgage rate stand point, but it's looking less and less likely the market is going to suddenly lose 20%

 

[David.]

Yes.

You're even failing to account for the rise in the value of your home over that same period.

When you're calculating mortgage payments, make sure you remember property tax. For me, that's like a third of my monthly payment.

This place is ridiculous. I'm at 6 figures and probably can't even buy.

 

[Out of the Rafters at the Q]

This place is ridiculous. I'm at 6 figures and probably can't even buy.

Yeah, plus with interest rates, that's pain.

I bought in 2018. Have a 2.79% rate, house was 405k when I bought. Zestimate is currently 550K.

I think you're out in SD, right? Man, I'm envious of the area--not of the cost of living. I bet all those houses in PB and OB are absurd now.

 

[Huber.]

This place is ridiculous. I'm at 6 figures and probably can't even buy.

Condo?

 

[Hurl Bruce]

I'm busting a stump with an ax. Very hard good exercise. This is one of those spending $2000 dollars of my time to save 400 on the machine that will do it

I snagged some sections cut up from a tree removal to split and use in my backyard firepit. I have one of those splitter/sledghammer combos. The sweat I get from swinging that thing is insane. I'm almost 50, so after a few attempts, I have to pretty much sit down, take a drink, and catch my breath. That and shoveling snow are seriously underrated workouts.

 

[Randolphkeys]

This place is ridiculous. I'm at 6 figures and probably can't even buy.

My wife and I saved up for five years and still found that a stand alone house in the neighborhood we wanted was just out of reach. Values in our little Bay Area town are comparable to S.D. I still think it's worth it to do a "starter home" in a condo or townhouse complex.

People in my complex tend to own for six to eight years and then sell for their stand alone house. As mentioned up thread, they gained equity in the condo while the property gained value.

 

[inliner311]

I'm busting a stump with an ax. Very hard good exercise. This is one of those spending $2000 dollars of my time to save 400 on the machine that will do it

I almost always find the reason to buy the tool or at least a tool to make the job easier. Rental is always an option too.

For a stump removal I would have justified an electric chainsaw and/or air hammer that I want.

 

[David.]

Given the numbers provided would you guys buy or just continue to rent and invest in an index fund?

At 10% annual return, once I hit like 400k (maybe less)invested I don't HAVE to work anymore. That covers rent plus a bit every month anyways

 

[Out of the Rafters at the Q]

Given the numbers provided would you guys buy or just continue to rent and invest in an index fund?

At 10% annual return, once I hit like 400k (maybe less)invested I don't HAVE to work anymore. That covers rent plus a bit every month anyways

I don't feel safe trusting my life to "stocks always go up"

But it's been a winning mindset in modern history, so who am I to recommend anyone else thinks the same way I do.

 

[Lee]

Tell me where I'm wrong

I pay 1800 a month to rent and that is going to raise 6% every single year.

Mortgage on a 450k place, let's call it 2500.

I'm down 700 a month (and shrinking) for a handful of years until like 7 years from now when my mortgage would be less than my rent at that point, and I'd have equity should I buy.

I'm losing a lot of money not buying right?

How much do you have to put down?

 

[David.]

How much do you have to put down?

I have like 60k, not sure how much I want to put where.

My dad said my aunt may be up for selling a 2/1 in Oregon for 200k, rental prices look like 1800/mo up there if this changes any calculus. I look at that math and I'm at even between rental vs mortgage so no profit, I'm just waiting for the home to appreciate. Not sure if prices are rising as quickly there, but if they are, 6% annually in 7 years does look decent



Used a rent vs buy calculator and it came up with this



Break even is 6 years from now?

 

[Lee]

I have like 60k, not sure how much I want to put where.

My dad said my aunt may be up for selling a 2/1 in Oregon for 200k, rental prices look like 1800/mo up there if this changes any calculus. I look at that math and I'm at even between rental vs mortgage so no profit, I'm just waiting for the home to appreciate. Not sure if prices are rising as quickly there, but if they are, 6% annually in 7 years does look decent



Used a rent vs buy calculator and it came up with this

View attachment 15734

Break even is 6 years from now?

Really depends on market, those web sites are garbage.

Do you work a W2 job, issue buying where you dont work you just dont get to call a place a primary because its your only house. Also rates are high right now, maybe 7.5 percent right now, higher and points if you buy your aunts house, and if you move, job history becomes an issue