Renting vs owning a home and vehicles.

[DHG1078]

California isn't really just a California example. It's more of a "Supply and Demand" example.

High demand for housing in the state, therefore supply runs low and price goes up. Doesn't matter if it's Charleston, California, or Denver. You're talking about a hot real estate market.

Own where people want to move to. That way you can sell if you need to. Most people that get in trouble with mortgages and homes tend to buy in the most obscure areas with little demand and cry afoul when they can't sell.

I'm guessing you didn't mean to quote me lol.

 

[IronSnake]

I'm guessing you didn't mean to quote me lol.

I just wanted you to feel special today lol

 

[Screw-Rice]

Any of the bigger cities have similar situations. Dallas, austin, huston, NYC, miami, tucson, pheonix, Denver, etc. Anywhere there is an apparent desire for people to move to.

If you build a new house in an area that has had a population of 200 for the last 100 years, and no one has built a house in 10, ya thats not going to be a great investment.

New construction is typically well planned and shoots up during each phase as mentioned. Builders aren't randomly building subdivisions in areas that aren't showing strong signs of growth. So you don't lose money on a new house like you would a new car.

I tend to over analyze, and if I hadn't drug my feet, could have bought a new house for $280k in a subdivision that now is on phase 3 and priced at $400k.

California isn't really just a California example. It's more of a "Supply and Demand" example.

High demand for housing in the state, therefore supply runs low and price goes up. Doesn't matter if it's Charleston, California, or Denver. You're talking about a hot real estate market.

Own where people want to move to. That way you can sell if you need to. Most people that get in trouble with mortgages and homes tend to buy in the most obscure areas with little demand and cry afoul when they can't sell.

Others get in trouble with ARM loans and sold on the idea of everything will be better at that 5 year mark, only to have their payments shoot up and no equity. Know a couple people who barely managed to keep their houses doing those type of loans.

 

[DHG1078]

Arm loans are a terrible strategy now since rates are so low. They may have made sense 30 years ago when rates were much higher and plummeting though.

 

[jrandy]

Arm loans are a terrible strategy now since rates are so low. They may have made sense 30 years ago when rates were much higher and plummeting though.

I understand the appeal of an ARM, but god is it a dumb idea for 99% of people.

 

[Iamchris]

It can go either way. You can get way more screwed over in buying a home than renting if you don't make a smart buy.

Understand though that when it comes to renting anything, you are paying money into something which returns nothing.

I think that when it comes to buying cars or homes, you can buy smart and get a lot of value for your dollar, especially if you are willing to compromise.
In the cases of homes you can buy low and easily increase the margin for gaining in value if you are willing and capable to put in the work. On the slip side, you can buy big and lose big because "ballers" have money to piss away.

As far as buying a car before buying as house? I think the best answer is buy a used car that you can afford to pay for now. Then save money and therefore increase your buying power by not being a slave to the money machine that is banking.
Most people wont do that though because our culture is kind of opposite of that.

 

[trxcobra]

Lots of good opinions in here. I am 26 and had been shopping for my first home about a year ago, however I work in the Boston suburbs where the market is very hot. I got discouraged after being out-bid on 3 places, and can't justify some of these sub par homes selling >$400k. I'm not a huge fan of the area in general, so need to figure where I want to be over the next couple years. I do however keep my eyes open for potential rental property.

For now, I am renting a little $1,195/mo apartment, which is about what my monthly interest payment would be if I were to buy something at the prices here. Guess I'll keep saving!

 

[DaleM]

No.

Nothing wrong with renting and owning a car, new or not or expensive. Now, it is weird seeing a Porsche Panamera Turbo and a E63 outside a rental but they could be transplants waiting for new construction-never asked.

Now, IMO, when you have a family, it may make sense to not have a huge car note when you have little kids and are paying rent cause you can't afford to buy a house.

Screw
the kids, let them eat cake...at their best friends house!

Sent from my XT1650 using the svtperformance.com mobile app

 

[96 cobra]

I worked on my cars in the parking lot of every apt I ever lived in with zero problems.

+1...

my current place actually states "vehicle work must be finished by the end of the work day", hood closed etc. Plus people around here actually look out for each other (e.g. no one ratting on each other). It's unheard of in an apt complex, a true blessing if you prefer to work on your vehicle, or don't always have the money to bring it to a shop for every little wear & tear maintenance.

 

[Equalbracket]

Some people just prefer not to have any responsibility with home ownership, or simply don't have the time to maintain it. I see alot of DPS officers in new rentals due to having to do border patrol. Lots of variables.

One of my builders has a few rentals and one guy has rented from him for 17 years at 1200 a month. Find you an idiot like that and you're set.

 

[Never_Enough]

One of my builders has a few rentals and one guy has rented from him for 17 years at 1200 a month. Find you an idiot like that and you're set.

SMH @ you

 

[jeffh81]

How about everyone just do whatever works for them and others just mind their own business like it used to be.

 

[Screw-Rice]

SMH @ you

 

[nxhappy]

How about everyone just do whatever works for them and others just mind their own business like it used to be.

well.....because this is svtp LOL

 

[nxhappy]

Lots of good opinions in here. I am 26 and had been shopping for my first home about a year ago, however I work in the Boston suburbs where the market is very hot. I got discouraged after being out-bid on 3 places, and can't justify some of these sub par homes selling >$400k. I'm not a huge fan of the area in general, so need to figure where I want to be over the next couple years. I do however keep my eyes open for potential rental property.

For now, I am renting a little $1,195/mo apartment, which is about what my monthly interest payment would be if I were to buy something at the prices here. Guess I'll keep saving!

move to an outer city with cheaper housing ....