Stay or sell, home related

[coposrv]

I disagree. It’s one of the best investments out there and one that gives tax advantages that most investments don’t. As with all investments they could go up or down in any given year.

15 year loan 25% of take home pay and you will be set op.

Renting one of my parents properties now. It’s a nicely renovated townhouse they developed in 02/03. I’d like to buy a house but I am by no means considering it an investment. 550/600k is a starter family house in our town and It’s not something I’m rushing to purchase. I have a few years more of business building before I’m willing to take a risk like that.


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[GNBRETT]

Im not saying there are not exceptions. Im sure there are thousands of them. But on average it just doesn't work out that way for most. Your situation is not what the average person experiences when buying a home.

Im sure many have good reasons why it is an investment and I'm sure it was for them. And in certain circumstances it surely is an investment. But if we're talking on average it's is NOT an investment, not by a long shot!

A house has a far more important purpose. A house is to provide u shelter. U can't control the timing of ur ownership of a house. Meaning, u cant buy it and sell it at times they are most profitable to u. U buy it when u need shelter and u sell it when that time in ur life comes to sell and move on.....

The housing market may be shitty when u now want or need to sell or it may be great! Some people are forced to buy high and sell low which hardly makes owning a house an investment. Just because ur house appreciates doesn't make it an investment. Inflation makes ur house worth more over the long haul nothing more nothing less.

Investments generate some sorta cash flow. There is no cash flow here. Just cash dumping!

And plenty of people buy into a house later in life with no plans on selling it ever. Hardly makes that an investment. I'ts just trapped equity in the end when never planning to sell. Again, hardly qualifies as an investment.

The taxes, up keep, home owner insurance, PMI's, etc..... U have to maintain it! Not to mention the major repairs that houses need over time. Windows, floors, roofs, HVAC, drive ways, yard work, etc.... They are 10's or thousands of dollars over time. Not to mention the fees u pay buying and selling the house.

a lot of economics factor in to a lot of this.

I pay a lot less for a mortgage on a nice sized townhome that has already gone up in value over the 2 years I've "owned". Now that I'm trying to sell it I'm going to end up making a nice chunk of money off of it. If I was renting I'd get nothing.

 

[coposrv]

a lot of economics factor in to a lot of this.

I pay a lot less for a mortgage on a nice sized townhome that has already gone up in value over the 2 years I've "owned". Now that I'm trying to sell it I'm going to end up making a nice chunk of money off of it. If I was renting I'd get nothing.

We recently moved. I’m paying 2k a month now to rent a town house from my parents. If I were to buy a similar sized 1800/square ft home in Holliston or Sherborn I would be paying 500k minimum and another 10k in property taxes.

Call it 3k a month to replicate what I have, I also currently don’t have to plow the snow, mow the lawn, replace appliances, fix the roof, repair the boiler, paint the siding or do anything other than live in it and keep it tidy.

We do have a house keeper that comes once a week to keep it nice and clean. If anything happens to me or my wife work wise we can drop it and leave. It’s a good situation.


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[Stanley]

I can see renting being a better option when in a city with an out of control housing market. $500k in my part of town gets you a giant house. haha

 

[BlckBox04]

@GNBRETT & @coposrv

I get where the both of you are coming from. For millions of Americans homeownership is out of the question.
With that said though, you, I, Jim, Bob, whoever can actually stand to make money off an investment of a home in the right market and in the right situation. I don't believe saying it's not a good investment is an ideal choice of words.

 

[coposrv]

@GNBRETT & @coposrv

I don't believe saying it's not a good investment is an ideal choice of words.

That may be your opinion but it gets the conversation started. Too many are fooled into thinking they cannot go wrong buying a home when there are many other ways to see a better return on an investment. This mentality is what I believe leads to many people reaching far above their means. I see it constantly. I quote work for people all the time in a house who can’t afford to maintain it.


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[Crimson2v]

A home is not an investment. It's simply where u lay ur head at night. A house is one the worst investments one could make on average.

Which is why it's widely known that a house is not an investment its simple where u live so live in a place that makes u happy just don't get too carried away and become house poor.

Have u tried paying bi-weekly vs. monthly? U pay the same amount u just end up making 13 payments a year vs. 12. U save a lot in interest over time.

We haven't paid bi-weekly we pay monthly. I was thinking of putting extra towards the principal to help pay it down quicker. I read that you can divide the monthly payment by 12 and pay that towards principal and it is like an extra payment a year.

 

[bglf83]

How many of you all have stayed in the first house you purchased and payed it off? We have 16 years left until ours is payed for which would leave us at being in our 50’s with no mortgage. We would love to sell now and get into something with more room and a little larger lot but would have to start over with a 30 year loan. We have two kids and our home is 1650 sq feet and is on .16 acre lot. The other issue is that we live within a couple of miles of a land fill and have noticed the smells are getting worse over time. Houses are selling quickly where we live and would give us an opportunity to move into a bigger home. We would really love to move to the beach when we retire and don’t want to mess that up by making a bad decision now. What would y’all do in this situation?

You should have a huge pile of equity on the old house. Finance the new one on a 15 or 20 year.

 

[ViciousJay]

damn lol, I think you'll miss the space.

Honestly, living in Chicago burbs, I WON'T, my upstairs is mostly bare, I have next to nothing on my second floor, 2 bedrooms and the loft only have space used otherwise the other rooms are completely empty. I just need a master, spare bedroom for a company like my parents or friend and an office, otherwise, I'm good. I'm near 40 and don't want or see my self again getting married or having kids. I'm sick of cutting a huge lawn and shoveling crazy amounts of snow. Also my job is totally remote if and when I feel like going into a corp office which I would do to check the tail out but other wise I'm a remote user, only child and like being alone. I just need a garage to house a fun car and a pick up incase I need to haul something.

 

[ViciousJay]

We haven't paid bi-weekly we pay monthly. I was thinking of putting extra towards the principal to help pay it down quicker. I read that you can divide the monthly payment by 12 and pay that towards principal and it is like an extra payment a year.

From a guy who's re-fied 3 times and bought dirt cheap and took my interest rate from a 5.5 to a 3.10 overtime I'll admit this is not a buyer's market, I plan to make about 150K cash (before paying an agent off, and $400 for the deed to the bank for pay off. I'll have to go to an apartment lease for a couple of months and schedule a trip to DFW which my boss said I can use as a business expense but the stressful part will be scheduling a week off and finding a trustworthy MB and licenced inspector in the area.

 

[Chersch7406]

I’ll say this, people have moved for MANY reasons. What really matters is doing it for the right reasons. I am currently moving from a home that I love, the neighborhood is great except the ONE neighbor next to me. However, that didn’t determine if I left or stayed, I can deal with an ass hat. With that being said the wife and I decided to have another child and that’s why we ultimately decided to move 5 years into that house. You can’t take money with you, nor can you really enjoy life if your not happy. I say move and reevaluate in a few years. If houses are selling like hot cakes in your area it won’t be an issue to sell again years down the road. I sold my house in 4 days in my market.

 

[Chersch7406]

View attachment 1620912

What a joke


Wow, sweet Jesus.‍

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[ON D BIT]

On average it's very true. In fact, renting isn't any cheaper or more expensive in the end than owning a house would be especially when u factor in taxes, maintenance costs, up keep, etc....

Most of us paying $5-10k a year in taxes some way more. Own a house for ten years and u pay say $6k a year in taxes in 10 years that's $60k. Its unlikely the house went up in value $60k in 10 years. In fact, for millions they would happy to just break even.

A house is not an investment! Its where u live period! Yea, some score no doubt but most don't no doubt.

I still disagree.
$2k a month for 10 years is $240k.
Mortgage on a $400k house plus $5k taxes and 2400 maintenance a year is $270k
If it did no go up at all you sell minus fees would be $372k.
Purchase has cost you $58k over 10 years....Rent has cost you $240k. Owning has just earned you about $180k

I agree completely. A single family home after property taxes, maintenance, interest on the money you bought, it is not a great investment at all. Most people think because they bought for 500 and sold for a million after 20 years they made 500 grand. Not so is the case.


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As opposed to paying $2500 a month for 20 years. A loss of $600k.

Think critically about it first after you learn the term opportunity cost.


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How does this apply as you will need to pay rent/mortgage regardless? If real estate lost 50% value in 4 years like cars I would agree. That is just not the case.

Renting one of my parents properties now. It’s a nicely renovated townhouse they developed in 02/03. I’d like to buy a house but I am by no means considering it an investment. 550/600k is a starter family house in our town and It’s not something I’m rushing to purchase. I have a few years more of business building before I’m willing to take a risk like that.


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Your parents have multiple properties, why? If it’s not an investment they seem to be throwing their money away. Multiple times....

 

[coposrv]

I still disagree.
$2k a month for 10 years is $240k.
Mortgage on a $400k house plus $5k taxes and 2400 maintenance a year is $270k
If it did no go up at all you sell minus fees would be $372k.
Purchase has cost you $58k over 10 years....Rent has cost you $240k. Owning has just earned you about $180k


As opposed to paying $2500 a month for 20 years. A loss of $600k.


How does this apply as you will need to pay rent/mortgage regardless? If real estate lost 50% value in 4 years like cars I would agree. That is just not the case.

Your parents have multiple properties, why? If it’s not an investment they seem to be throwing their money away. Multiple times....

The 400k house is a downgrade from what we are currently in. A comparable home would be mid-500’s.

They had something around 30/35 buildings. Over all the structures call it 120 “units”. They buy, when leases run out they renovate them to different degree based on location and keep or condo them form a condo association and sell off the pieces. The house were in is being rented to us for less than market but they’re not losing anything, but not making anything either if that makes sense.


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[Crimson2v]

I’ll say this, people have moved for MANY reasons. What really matters is doing it for the right reasons. I am currently moving from a home that I love, the neighborhood is great except the ONE neighbor next to me. However, that didn’t determine if I left or stayed, I can deal with an ass hat. With that being said the wife and I decided to have another child and that’s why we ultimately decided to move 5 years into that house. You can’t take money with you, nor can you really enjoy life if your not happy. I say move and reevaluate in a few years. If houses are selling like hot cakes in your area it won’t be an issue to sell again years down the road. I sold my house in 4 days in my market.

You have a good point. I took some recycling out earlier and could smell that foul landfill. I just need to get a move on the repairs that need to be done. The market here is still good, not as hot as earlier last year but they are still selling in less than a month. Last year they were selling in days to a week and usually for more than what it was listed for. I have been finding a lot of nail pops in the ceiling and I need to put some flooring down and paint.

 

[ON D BIT]

The 400k house is a downgrade from what we are currently in. A comparable home would be mid-500’s.

They had something around 30/35 buildings. Over all the structures call it 120 “units”. They buy, when leases run out they renovate them to different degree based on location and keep or condo them form a condo association and sell off the pieces. The house were in is being rented to us for less than market but they’re not losing anything, but not making anything either if that makes sense.


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I was comparing a $2500 rental to a $400k house, because they are comparable. I was not associating it with you in anyway.

Your parents have multiple housing because it is an investment and they seem to have done very well with their investments.

 

[Kevins89notch]

Most of us paying $5-10k a year in taxes some way more. Own a house for ten years and u pay say $6k a year in taxes in 10 years that's $60k. Its unlikely the house went up in value $60k in 10 years.

Say it went up only 10K in value, yet you paid 60K in taxes in 10 years.

At the same time to rent said house would be $1,500 a month. That's $180,000 in rent...down the drain.

The difference of 180 - 50 is 130K, which invested even in less than awesome ways, it still good. Ok, new AC, water heater took a crap...you still have 110K more via buying than renting.

 

[Geno-04]

I think owning a home is an investment, or think of it as a saving account. At the end of the day you have to pay to live somewhere. Why pay rent, if you can own. When paying rent that money is just gone. In a home you will get that money back, (in most cases) or at least own it out right one day. I sold my first home after 5 years and walked away with over 100k in my pocket. Granted I probably put more out in mortgage, taxes, updates and so on. But if I was renting I wouldn’t have been able to save that 100k while paying rent somewhere in 5 years. Just my opinion.

 

[nxhappy]

sell that bitch in March/April/May (best time to sell). I'm selling in March. You won't regret it, if you are looking for a bigger house. Also: statistically most people move/sell every 5-7 years.

 

[nxhappy]

Our kids are 4 and 6, I have about 22 years until I can retire. My wife has about 24 years. We bought our house in 06 for 178k, we have refinanced a couple of times. The last was to get rid of pmi. We owe 143k and could possibly sell for 240-250 but I need to do the flooring before that is possible. The new houses in my area are going for 350 and up with same or less land. The area we are looking at seems up and coming, we could get a 2600 square foot house with .75 acre for low to mid 300’s. I don’t think we can afford a 15 year mortgage with the prices the way they are. The landfill is supposed to be capped in 2033. The thing I worry about of course is our health and our kids health, also if people keep complaining and word gets out our property value will plummet. Another concern is college, we have two kids and that’s going to cost a ton of money too.

100k profit ....WALK .... put $50k in a 401/roth .... 50k down on the new house. It's a no brainer.