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I refinanced 2 years ago to a 4.25%
Rent Forever, Donât Buy A Home
- Thread in 'General' Thread starter Started by DCAllAfrican,
- Start date
I refinanced 2 years ago to a 4.25%
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.......this type of thinking has always been silly to me.
- like, why do people atomatically link buying a home to being married and/or settling down?
.....so let me get this straight?
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.......this type of thinking has always been silly to me.
- like, why do people atomatically link buying a home to being married and/or settling down?
.....so let me get this straight?
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1200 monthly on a 30 year is about a 175k loan?
If you have a 400k loan that 200/month will not shave off 15 years. I feel like I'm talking to %#!$%#% trees.
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1200 monthly on a 30 year is about a 175k loan?
If you have a 400k loan that 200/month will not shave off 15 years. I feel like I'm talking to %#!$%#% trees.
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......but i'd BET that you do think about making money.
- owning a home has little to nothing to do with being married......if AT ALL.
......then:
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......but i'd BET that you do think about making money.
- owning a home has little to nothing to do with being married......if AT ALL.
......then:
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Have you actually done what you are saying though? After closing costs, agent fees, repair fees, and all that good stuff how much money do you really think you would make on a decent house? Not to mention the headache of putting the home on the market.
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Have you actually done what you are saying though? After closing costs, agent fees, repair fees, and all that good stuff how much money do you really think you would make on a decent house? Not to mention the headache of putting the home on the market.
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......but i'd BET that you do think about making money.
- owning a home has little to nothing to do with being married......if AT ALL.
......then:
DCAllAmerican wrote:
Plus I view it as a form of debt. Since it is debt. So, I don't really want any debt associated with my name.
......except for the fact that owning a home is the type of debt that historically appreciates in value. and if you do your homework can earn a great deal of money for you. (current recession and housing bubble aside)
- only afoolnon-thinker today would buy a home with a 30 year mortgage and stay there for 30+ years paying on it. thats what our parents and grandparents have told us to do (because they did it)....but its horrible advice.
- buy a home with whatever fixed rate mortgage you can afford....upgrade it, and sell it within 3-5 years. take the profit and move on. by the time 30 years comes around you should have enough money to buy a home outright or make a considerable dent in the down payment......if you do it right.
- look for homes in developing areas, somewhere close to shopping or attractions (getting in while the shopping/attraction construction is going on helps). preferably buy new construction. upgrade your kitchen and bathrooms is a must and do it before anything else (i cant stress that enough). upgrade all else as you see fit. 3-5 years later you should have enough equity built up to feel good about moving on, and the upgrades to demand your price and get you a quicker sell...........SIMPLE.
So you talk about debt that historically increases value but you forgot to mention over LONG TERM. 3-5 years and you could be stuck in a recession or dead market and make zero/take a loss. Within three to five years you better make enough to cover the interest repairs and taxes you spent before even seeing a profit. Dont act like you know anything from watching real estate shows. The only way flipping may work is with extreme steals which most people dont have access to.
Don;t listen to the fool.
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......but i'd BET that you do think about making money.
- owning a home has little to nothing to do with being married......if AT ALL.
......then:
DCAllAmerican wrote:
Plus I view it as a form of debt. Since it is debt. So, I don't really want any debt associated with my name.
......except for the fact that owning a home is the type of debt that historically appreciates in value. and if you do your homework can earn a great deal of money for you. (current recession and housing bubble aside)
- only afoolnon-thinker today would buy a home with a 30 year mortgage and stay there for 30+ years paying on it. thats what our parents and grandparents have told us to do (because they did it)....but its horrible advice.
- buy a home with whatever fixed rate mortgage you can afford....upgrade it, and sell it within 3-5 years. take the profit and move on. by the time 30 years comes around you should have enough money to buy a home outright or make a considerable dent in the down payment......if you do it right.
- look for homes in developing areas, somewhere close to shopping or attractions (getting in while the shopping/attraction construction is going on helps). preferably buy new construction. upgrade your kitchen and bathrooms is a must and do it before anything else (i cant stress that enough). upgrade all else as you see fit. 3-5 years later you should have enough equity built up to feel good about moving on, and the upgrades to demand your price and get you a quicker sell...........SIMPLE.
So you talk about debt that historically increases value but you forgot to mention over LONG TERM. 3-5 years and you could be stuck in a recession or dead market and make zero/take a loss. Within three to five years you better make enough to cover the interest repairs and taxes you spent before even seeing a profit. Dont act like you know anything from watching real estate shows. The only way flipping may work is with extreme steals which most people dont have access to.
Don;t listen to the fool.
Don't be fooled, flipping is here to stay and has definitely had more activity in the Bay Area as of late. My bestfriend does this as his job. It's no different from any other type of asset management/analyst work. He has a focused niche "starter home" and studies the area. He's handy and can do a lot of work himself. Plus he does a budget and sticks to it.
It's the "weekend warrior" types who got into this, fueled by greed and "gotta keep up with the Jones'", who lost their shirts.
Things are different, in terms of underwriting, but the mortgages are still being moved on the secondary market and more funds are launching with a debt/credit focus.
It's the "weekend warrior" types who got into this, fueled by greed and "gotta keep up with the Jones'", who lost their shirts.
Things are different, in terms of underwriting, but the mortgages are still being moved on the secondary market and more funds are launching with a debt/credit focus.
Don't be fooled, flipping is here to stay and has definitely had more activity in the Bay Area as of late. My bestfriend does this as his job. It's no different from any other type of asset management/analyst work. He has a focused niche "starter home" and studies the area. He's handy and can do a lot of work himself. Plus he does a budget and sticks to it.
It's the "weekend warrior" types who got into this, fueled by greed and "gotta keep up with the Jones'", who lost their shirts.
Things are different, in terms of underwriting, but the mortgages are still being moved on the secondary market and more funds are launching with a debt/credit focus.
It's the "weekend warrior" types who got into this, fueled by greed and "gotta keep up with the Jones'", who lost their shirts.
Things are different, in terms of underwriting, but the mortgages are still being moved on the secondary market and more funds are launching with a debt/credit focus.
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.......doing it now.
- its one of those things that once you jump in the pool it aint so bad.......and you can cross repair costs off that list, i was talking about new construction. there will be some repair costs but no where near an already established home would cost.
- ive posted my house in here before not too long ago, and after i sell ill put up the before and after pics as well as what i bought and sold for.
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.......doing it now.
- its one of those things that once you jump in the pool it aint so bad.......and you can cross repair costs off that list, i was talking about new construction. there will be some repair costs but no where near an already established home would cost.
- ive posted my house in here before not too long ago, and after i sell ill put up the before and after pics as well as what i bought and sold for.
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3 years and you are also subject to a 15% gains tax to IRS. 10 houses in 30 years I consider that flipping. All that and in three years house values may be lower or the same as it is now. Call it an excuse but 6 grand a year for taxes in 5 years = 30k, broker fees another 3% off, repair fees at least 10k. Also interest(since the first 5 years will all be interest NOT EQUITY)/prepayment penalties.d There are muchhh better investment strategies. Now if you are buying a home for yourself to keep because you just want one and have lots of cash theres no problem
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3 years and you are also subject to a 15% gains tax to IRS. 10 houses in 30 years I consider that flipping. All that and in three years house values may be lower or the same as it is now. Call it an excuse but 6 grand a year for taxes in 5 years = 30k, broker fees another 3% off, repair fees at least 10k. Also interest(since the first 5 years will all be interest NOT EQUITY)/prepayment penalties.d There are muchhh better investment strategies. Now if you are buying a home for yourself to keep because you just want one and have lots of cash theres no problem
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400K loan?Originally Posted by wawaweewa
1200 monthly on a 30 year is about a 175k loan?
If you have a 400k loan that 200/month will not shave off 15 years. I feel like I'm talking to %#!$%#% trees.
Then double it. The concept is the same.
Please take a look at a monthly mortgage statement before you post again.
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400K loan?Originally Posted by wawaweewa
1200 monthly on a 30 year is about a 175k loan?
If you have a 400k loan that 200/month will not shave off 15 years. I feel like I'm talking to %#!$%#% trees.
Then double it. The concept is the same.
Please take a look at a monthly mortgage statement before you post again.
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lolOriginally Posted by Supermanblue79
400K loan?Originally Posted by wawaweewa
1200 monthly on a 30 year is about a 175k loan?
If you have a 400k loan that 200/month will not shave off 15 years. I feel like I'm talking to %#!$%#% trees.
Then double it. The concept is the same.
Please take a look at a monthly mortgage statement before you post again.
OMG, easy, double it! You're assuming that people can just add extra principal payments. Do people deficate USD that I don't know of?
If they could add these extra payments they would've either purchased a more expensive home (larger or better area) or put down a larger down payment in many cases.
What you're proposing doesn't make sense. DUCY?
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lolOriginally Posted by Supermanblue79
400K loan?Originally Posted by wawaweewa
1200 monthly on a 30 year is about a 175k loan?
If you have a 400k loan that 200/month will not shave off 15 years. I feel like I'm talking to %#!$%#% trees.
Then double it. The concept is the same.
Please take a look at a monthly mortgage statement before you post again.
OMG, easy, double it! You're assuming that people can just add extra principal payments. Do people deficate USD that I don't know of?
If they could add these extra payments they would've either purchased a more expensive home (larger or better area) or put down a larger down payment in many cases.
What you're proposing doesn't make sense. DUCY?
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truthfully if you are doing the repairs yourself and you buy forclosed homes you can make a killing right now. a 2 fam house nice neighborhood near the train and bus just sold for 279k
if you invest on these kinda homes its a gold mine. my mom always said she wanted to buy property and bought 9 houses that are all free and clear today. so i guess if you delt your cards right even in a rough market you will still be caking. if you are looking to buy put 20% down stay away from fha loans and make bi weekly payments as you will make an extra payment a year.
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truthfully if you are doing the repairs yourself and you buy forclosed homes you can make a killing right now. a 2 fam house nice neighborhood near the train and bus just sold for 279k
if you invest on these kinda homes its a gold mine. my mom always said she wanted to buy property and bought 9 houses that are all free and clear today. so i guess if you delt your cards right even in a rough market you will still be caking. if you are looking to buy put 20% down stay away from fha loans and make bi weekly payments as you will make an extra payment a year.
