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

mkd · April 29, 2024, 08:29 PM

The commies are gonna be mad when they hear the investment firms are providing a valuable service by offering rentals, so we can grow our wealth by 10% annually instead of crappy 3.8% homeownership, minus maintenance.
SAY IT AINT SO!!!!!!!! OH THE HUMANITY!!!!!!!

mkd · April 29, 2024, 08:35 PM

So in my personal experience over the last 20 years, buying a house was a net negative financially speaking. Between not getting that far away job being tied down and underwater for a decade, maintenance and payments interest and taxes, I'd say i conservatively have half of the net worth i would have had if i didn't switch from a rental to a house at 180% of the rent.
what say you? feel free to call me an idiot and describe how i'm wrong.

mowens · April 29, 2024, 09:16 PM

depends on the landlord

neurosis · April 30, 2024, 03:17 AM

Quote from: mkd on April 29, 2024, 08:35 PMwhat say you? feel free to call me an idiot and describe how i'm wrong.

If I had to purchase a home right now, I don't think I would be able to afford to. Not if I was starting over.

I'm not sure what you're able to rent for $1200 a month. A small 2bdrm apartment in the community I live in is $2500 a month. You might be able to find a studio for $1200 in this area. It gets worse as you move closer to Seattle.

To your point, a small two bedroom house around here is about $600k (median small family home price in this area is $580k) so your payment on that would probably $4k per month.

I'm not sure the problem is more that people living in these $2500 apartments don't have enough money left over to invest? And if you can afford a $4k a month payment you're likely already doing pretty well financially? That's just a guess.

neurosis · April 30, 2024, 03:19 AM

My idea is to buy a cheap clunker RV and become one of Seattle's homeless. Free rent. No property tax. Just park on a different street every few days.

mkd · April 30, 2024, 04:31 AM

Quote from: neurosis on April 30, 2024, 03:17 AMIf I had to purchase a home right now, I don't think I would be able to afford to. Not if I was starting over.

I'm not sure what you're able to rent for $1200 a month. A small 2bdrm apartment in the community I live in is $2500 a month. You might be able to find a studio for $1200 in this area. It gets worse as you move closer to Seattle.

To your point, a small two bedroom house around here is about $600k (median small family home price in this area is $580k) so your payment on that would probably $4k per month.

I'm not sure the problem is more that people living in these $2500 apartments don't have enough money left over to invest? And if you can afford a $4k a month payment you're likely already doing pretty well financially? That's just a guess.

exactly.
I edited the actual dollar amounts to try and not be a money quoting dooshbag. lol. too late. Yeah 20 years ago we paid that for a house in a not ideal Kali neighborhood.
The american <propaganda> dream of owning a hose turns into a stretch for many, as it did for me.
It's a simple matter to put $1k/month in an investment calculator over the last 20 years and see where it would be today.
Now project that Bidenflation of todays 4000-2500=$1500/month and you'll see making the stretch to home ownership is a terrible 'investment'

Jim at Gentex · April 30, 2024, 04:34 AM

Quote from: neurosis on April 30, 2024, 03:19 AMMy idea is to buy a cheap clunker RV and become one of Seattle's homeless. Free rent. No property tax. Just park on a different street every few days.

mkd · April 30, 2024, 04:38 AM

Quote from: neurosis on April 30, 2024, 03:19 AMMy idea is to buy a cheap clunker RV and become one of Seattle's homeless. Free rent. No property tax. Just park on a different street every few days.

enough people doing that will depress the rent prices. Especially when the 1972 holiday rambler is parked out front permanently. Check out Bay area in Kali, if you think it's a hypothetical joke.

gcode · April 30, 2024, 04:59 AM

I don't know.
I sold a shit condo in the OC at the peak of the market and bought an older house in the Inland Empire in 2005 with $80K down
I was seriously underwater (45-60%) for years, but it's slowly come back.
When I bought my current home my mortgage was $2K/month and rent in the same neighborhood was 1200/month
19 years later the mortgage is still $2k, the house across the street rents for $3500 and the end of my mortgage is in sight.
mkd's rent and invest the difference scheme would have been a disaster for me.

YoDoug · April 30, 2024, 05:05 AM

Quote from: mkd on April 29, 2024, 08:35 PMSo in my personal experience over the last 20 years, buying a house was a net negative financially speaking. Between not getting that far away job being tied down and underwater for a decade, maintenance and payments interest and taxes, I'd say i conservatively have half of the net worth i would have had if i didn't switch from a rental to a house at 180% of the rent.
what say you? feel free to call me an idiot and describe how i'm wrong.

You must just be a shitty capitalist. I have made quite a bit of money on every house I have bought/sold.

YoDoug · April 30, 2024, 05:11 AM

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

gcode · April 30, 2024, 05:13 AM

Quote from: YoDoug on April 30, 2024, 05:05 AMYou must just be a shitty capitalist. I have made quite a bit of money on every house I have bought/sold.

The real estate market is much different in Kali that it is in the normal world.
The property tax schemes here distorts the market terribly and the housing shortages inflate the prices.
Add 7-8% mortgages and things look even worse.
Selling my house and purchasing one of the new ones up they've built a 1/2 mile away would quadruple my property tax and triple my mortgage payment.

YoDoug · April 30, 2024, 05:19 AM

It always amazes me. Guys from Kali that love to espouse free markets and constantly complain about communism, in a free country, still choose to live in Commie central. You guys must be closet commies or something. Otherwise you would use you free market freedom and move to, and spend your dollars, in a non-commie state.

Del. · April 30, 2024, 05:19 AM

What's wrong with you guys. You don't like your liberal utopia?

neurosis · April 30, 2024, 05:21 AM

Quote from: gcode on April 30, 2024, 04:59 AMWhen I bought my current home my mortgage was $2K/month and rent in the same neighborhood was 1200/month
19 years later the mortgage is still $2k, the house across the street rents for $3500 and the end of my mortgage is in sight.
mkd's rent and invest the difference scheme would have been a disaster for me.

When I bought my condo I paid $160k for it and it's worth about $400k now. My mortgage is $980 a month so under half of what the rent would be for a similar apartment. My only heartburn with owning the condo is that now, with inflation, the HOA fees have went through the roof.