do you think the work you do over 20-30 yrs to pay off a home is fair?

[oldtimer1]

Why not just get a shorter loan term? I went with a 15 year note four years ago and it cut my interest rate almost  in half and my payment only went up about $300 a month.

That's one way to do it if you have the means. Many won't qualify for a 15 year mortgage loan.  Banks know it limits their profit so they make it hard for many to qualify. The best part of getting a 30 year and paying it off quicker is that you have the option to suspend the monthly extra payment when you want. If Christmas is coming up you can can suspend the extra payments for a couple of months.

[IroNat]

In the U.S. the mortgage interest and property taxes (capped at $10,000) can be written off to lower your tax liability.

Renting a home long term is pissing money away. 

Would you rather have:

1) a dollar in tax deduction

2) a dollar in cash?

If you picked the tax deduction you fail.

[JustPlaneJane]

Would you rather have:

1) a dollar in tax deduction

2) a dollar in cash?

If you picked the tax deduction you fail.

Would you rather have:

(1) Tax deductions to lower your AGI

(2) A rent payment

Life = you fail.

[Henda]

suppose when you consider you would probably be paying more in rent than you would for mortgage on the same property and after 25 years of paying rent every month you have fuck all to show for it and have another 25 years or however long you live of still paying it’s not really an issue working for many years to pay off your house, you have to pay either way may as well pay for to eventually own it

[JustPlaneJane]

suppose when you consider you would probably be paying more in rent than you would for mortgage on the same property and after 25 years of paying rent every month you have fuck all to show for it and have another 25 years or however long you live of still paying it’s not really an issue working for many years to pay off your house, you have to pay either way may as well pay for to eventually own it

Makes about as much sense as leasing a car every two years.

Imagine how much money you could save for barbeque sauce ?

[Henda]

Makes about as much sense as leasing a car every two years.

Imagine how much money you could save for barbeque sauce ?

Haha Would be be able to get one of those taps that dispense sauce installed

[friedchickendinner]

Its important with long term goals.

[JustPlaneJane]

Haha Would be be able to get one of those taps that dispense sauce installed

Giant squirt guns filled with barbecue sauce ?

[Theoak*]

I touched on this a few months back.

The previous real estate bubble that crashed has mostly re-inflated right back into the same bubble as before.  I guess a few rural places might have been left out, but not any contested places or high traffic areas.  Also, back in the old days (when really old people like pellius were alive) you could buy a house with like 2-3x the average yearly salary.  Now home prices are like 10x the average yearly salary.

This was solely a function of the bankers manipulating the market into a state permanent NINJA loans and getting the government to backstop their losses if it all blows up on them by everyone defaulting.  Meaning if banks did not exist and everyone had to pay cash for houses, the prices would be extremely low since nobody can extend the payment process over 30 years.  If everyone on the planet can take out a 30 year NINJA loan, this means people who wouldn't even need a loan to buy a house before now need to take out a loan to get one too.

People buying up all the houses using zero collateral (many times the bankers themselves) create artificial scarcity, thus skyrocketing prices so you're required to labor decades more than normal for the same house.  It's in the banker's interest to create housing bubbles because it forces the entire population into taking out loans which they otherwise would not need, or a giant transfer of wealth from the bottom 99% to the top 0.000000001% in other words.

The housing market is starting to look up, though.  Pretty soon we'll all be saying "remember back in the old days before the bankers were holocausted (this time for real)?":

[Mitch]

Girls and sons who have not been loved by their fathers seek attention once teens and adults to compensate for what they didnt have originally. Fathers either left them alone, or were distant most of the time and not encouraging them. Some even despised them which would shape their personality and the way they d interact with others for the rest of their life.
They are extremistic in everything they do, always looking exageratly for attention, and have troubles adapting to society's rules, because they also have troubles defining their own identity and respecting authority and hierarchy.


Also boys who got picked on by others during childhood and adolescence -often sons without a father figure- try to compensate by lifting weights, to develop muscles and survive in ther male world. They re insecure because they re girly, childish, feminine having been raised by a single mom. They lift obsessively hoping it will transform them into men, to compensate for their lack of influence from a father figure that was not there. Unfortunaltey they can get as big as they can it doesnt cure their insecurity and who they truly are, how they grew up being raised by a single mom. They re no as manly as other men whatever they do, and they often have a big lack of masculine presence they dont know how to balance, hence often being borderline homosexuals while trying to get their manhood back thru various manly activities (mma, cars, weight lifting etc). They are often the ones that, in order to get respect from other males will go the steroids route to get even "bigger" attemptint to cure their insecurity , but being natural not being "enough", they still feel "too small", insecure, amongst other males. The lack of a father figure also often means they didnt have guidance to continue studies and are often working shitty manual jobs.

haha yes! I was looking for that particular comment 

[oldtimer1]

Houses appreciate in the long term. My first house I paid 99k for brand new over 30 years ago and now it's worth close to 400K.  My next house is nearly paid off. I have about 5 years to go. If I decide to down size I will take that equity in this house and have a nice slush fund. I don't understand renting a residence or renting (leasing) a car for the long term. It's throwing your money away.

[Primemuscle]

If you want to make good money, go into something that provides essentials, such as food and shelter. Pretty much anything else we can get by without when push comes to shove.

Do people actually ever pay off their houses these days?

[SOMEPARTS]

Rural land is under-priced and most houses on small lots are well overpriced.

Of course I thought land was high before Covid-19, but it can only go up from here. People with $$$ will be getting out of cities and setting up second homes.

A house that you live in is generally not an investment or asset. It can inflate in price as the dolllar loses value, but that is not the same as being worth more. Obviously you have to live somewhere but the biggest benefit is that you can borrow against it.

Imagine how much prices would drop if banks only offered 10 years terms.

[FitnessFrenzy]

suppose when you consider you would probably be paying more in rent than you would for mortgage on the same property and after 25 years of paying rent every month you have fuck all to show for it and have another 25 years or however long you live of still paying it’s not really an issue working for many years to pay off your house, you have to pay either way may as well pay for to eventually own it

yes you would just be making the landlord rich by renting.

[Teutonic Knight 1]

vince is in a bad neighborhood lots of dirty heroin zombies there and gay polygamy

     

     

[Teutonic Knight 1]

Be nice to your grandmother & get that shack for free 

[IroNat]

It's interesting that people spit out the usual reasons about what a great investment owning your own house is.

The usual things are:

Tax deduction
Appreciation

These reasons have been pounded into our heads by the R/E industry.  We accept them as valid.

When you actually run the numbers you see how these things are not so hot.  For many folks owning a home has been awful and life destroying.

People who buy at market highs get killed.  Being fortunate enough to buy when the market is low is the best way but not always possible.  More luck than anything else.

Owning your own home can be a great thing from a lifestyle standpoint but as an investment it's not great.  Unless you get the land and house for nothing it's a luxury to own a home.

Even owning your home free and clear has costs.  R/E taxes, upkeep, opportunity cost of the money tied up in the house, lack of liquidity in getting the money, lack of mobility if you have to move to change jobs.

Don't forget the time value of money and the effects of inflation on your investment.

Borrow the money out of the house?  Then you owe it again and have to pay it back with interest.  

Sell the house to get the money?  Then where will you live?  Rent again?

There are many good reasons to buy your own home but investment return is far down the list.




 

[joswift]

Makes about as much sense as leasing a car every two years.

Imagine how much money you could save for barbeque sauce ?

Never buy anything that drives, sails or flies...

Always lease...

[joswift]

We have bought and sold houses and made money each move, we now own a home worth around £230k outright, when we sell we will down size for a smaller property and we have a wad of cash to holiday with..

over the years we have probably got a return on our mortgage investments

We bought one house for £45k and sold it for £118k 6 years later

[Henda]

Giant squirt guns filled with barbecue sauce ?

Haha even better, if have enough left over to pay for a prostitute with a giant cottage cheese ass to come round kwon would be in heaven

[Primemuscle]

yes you would just be making the landlord rich by renting.

Some economists disagree. They say that the return on your real estate investment is too low and that it does not keep up with inflation. My experience indicates that it has been a good investment for me. However, when I think about it, if many of us took the total monthly expense in home ownership and put that into a diversified investment the return would likely be greater. Of course, one of the costs involved would be paying rent. My conclusion is that investing in your primary residence is a good idea for most people. Buying income property may not provide you the highest returns.

[El Diablo Blanco]

The mortgage industry is a sham.  Get a $165k loan for a Porsche 911 GT3 and they’ll base it in a couple % interest for 6 years. Get a mortgage for $165k and they give you a 30 year loan where you pay more than double the initial loan value.

[Teutonic Knight 1]

Old guys like Saggy or mr.Safety Fat should go back to work.

Younger guys should relax on the beach 24/7

[Primemuscle]

Old guys like Saggy or mr.Safety Fat should go back to work.

Younger guys should relax on the beach 24/7

You should go to work. It would be a new experience for you. You might like making money. Then you can pay rent on your basement room at your mom's house.

[JustPlaneJane]

Haha even better, if have enough left over to pay for a prostitute with a giant cottage cheese ass to come round kwon would be in heaven