So investment firms buying SFH are actually helping you financially?!?!

[YoDoug]

I bought my first house in 2003 for 109k. Sold it in 2010 for 140k. Bought my next house in 2012 for 129k. Sold it in 2018 for 239k. Bought my current house in 2018 for 280k. Similar houses in my neighborhood are now selling for 375k-400k. Not a bad return for a commie.

[mkd]

I've never met Mason in person, but I suspect it would be like this.... 

Love you too, bro. It's all just fun arguing for sport. Trolling ends up with learning in the end.
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funnily enough, I look a like him to, along with the '70s porn-stash

[mkd]

I bought my first house in 2003 for 109k. Sold it in 2010 for 140k. Bought my next house in 2012 for 129k. Sold it in 2018 for 239k. Bought my current house in 2018 for 280k. Similar houses in my neighborhood are now selling for 375k-400k. Not a bad return for a commie.

When I do the accounting that way, it looks good for me too.  Congrats on that. You need to subtract all the interest, principle, maintenance and taxes paid in to fully realize what you've gained. When I do this, my equity position is basically what i've paid in over 20 years.
...and certainly not the following 1.25 million free and clear in this example of plowing the extra $1k monthly (inflation adjusted) into the market.
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=4YOObMajMIAX11l03vg78

[gcode]

funnily enough, I look a like him to, along with the '70s porn-stash

dude!!! if you look like him, the years have not been kind. 
It's been 10 -12(??) years since your worked here??
You sure didn't look like that back then.
I'm not bagging on you.
Father Time has kicked my ass too.

[mkd]

dude!!! if you look like him, the years have not been kind. 
It's been 10 -12(??) years since your worked here??
You sure didn't look like that back then.
I'm not bagging on you.
Father Time has kicked my ass too.

We should meetup for a beer diet coke sometime.

I'm a cross between ron swanson and ned flanders

[YoDoug]

When I do the accounting that way, it looks good for me too.  Congrats on that. You need to subtract all the interest, principle, maintenance and taxes paid in to fully realize what you've gained. When I do this, my equity position is basically what i've paid in over 20 years.
...and certainly not the following 1.25 million free and clear in this example of plowing the extra $1k monthly (inflation adjusted) into the market.
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=4YOObMajMIAX11l03vg78

It's not an either/or. If you don't have to pay a mortgage you have to pay rent. Since owing homes, 21 years, I would have paid approx 375k-425k in rent had I chosen not to buy. No matter how nice I ask, my mom won't let me move my family into her basement, so we have to pay to live somewhere.

[RobertELee]

It's not an either/or. If you don't have to pay a mortgage you have to pay rent. Since owing homes, 21 years, I would have paid approx 375k-425k in rent had I chosen not to buy. No matter how nice I ask, my mom won't let me move my family into her basement, so we have to pay to live somewhere.

Yup, and I'd rather have the opportunity to never pay a mortgage again once mine is paid off. You can't say the same while renting for the same price.

[Del.]

A mortgage is a great investment if you keep it up and don't borrow against it.

[YoDoug]

Yup, and I'd rather have the opportunity to never pay a mortgage again once mine is paid off. You can't say the same while renting for the same price.

My wife and I have been talking about that a lot lately. Her dad wants us to buy his house in eastern TN. We have enough equity in our house that we wouldn't need a mortgage to buy his. It is smaller, but has a 1.5 acre lot and a 2000 sq ft workshop. The property tax is like $1200 a year. The jobs don't pay as much down there, but we wouldn't need nearly as much to live on. The idea is make that move and instead of paying $1000-1500 a month in mortgage or rent, put that into my 401k for the next 15 years so I can retire at 65 comfortably.

[mkd]

It's not an either/or. If you don't have to pay a mortgage you have to pay rent. Since owing homes, 21 years, I would have paid approx 375k-425k in rent had I chosen not to buy. No matter how nice I ask, my mom won't let me move my family into her basement, so we have to pay to live somewhere.

How much would that have saved, if any, compared to the honest cost of 'ownership'?


yeah, the math is more complex than any of our examples given so far, as you also need to account for increasing rents over time and inflation eating away at the principle mortgage balance.

Renting should be more expensive since there is less risk, but it usually doesn't show up in the monthly payments.

I'd rather have the 1.25 million net worth from investing 1k/mo and renting than a paid for 600k house, but that's just me.

[mkd]

[mkd]

[gcode]

We should meetup for a beer diet coke sometime.

I'm a cross between ron swanson and ned flanders

you show up around here I'll chain you up in the basement and put you to work.
you remember A-Ron don't you???
We've upgraded from gruel to porridge these days and the lump of charcoal is now a sweet piece of chalk
but other than that, it's still the same old sweat shop it's always been.

[gcode]

Cliff Notes

Don't buy a house, give your money to me instead 

[Del.]

The problem with his approach is that most people won't invest or save any money they save from renting.

You also can rarely change anything at the place you are renting like a pool or updates unless landlord approves and pays for it.

My point is, a home is not just an investment but it's yours to do as you please and it can bring a lot of enjoyment.

Best way to buy a house is to do a 15 yr mortgage