This

[WildWill]

It’s south park bro...

@DouglasR be like.

 

[SAJ-99]

1. never treat your home as an investment, it's where you live, and you can't realize any gains without not living there.

I don't think that is the real point. I think you can expect financial gains from homeownership, I just think the expectation of that return is inflated. Agree that your bigger return is the freedom and comfort from owning the home and raising a family in it, etc. Mostly people underestimate the maintenance costs...but a wide margin, opportunity cost of investment, time spent fixing stuff, etc. I'm sure at the end of this adventure, Wllm will own a bunch of tools he will never use again.

Returns in any asset will vary. Simply take the S&P 500 as a proxy for the stock market. Some 7yr periods...

1994-2000 CAGR 17.9%
2000-2006 CAGR 1.1%
2003-2009 CAGR 5.4%
2015-2021 CAGR 14.8%
Purchase one year later
2016-2022 CAGR 11.4%

2. When has rent stayed the same for 7 years let alone 30? My mortgage will never increase. The next 30 years, it will always stay the same, then at 30 years, I effectively reduce it by 20x and only pay prop taxes. You play the game for the long run, never the short term.

True, but it doesn't mean there is no risk. You end up taking on debt with the thought your revenue will always be there and grow a little with little consideration of Job loss? Serious illness? Divorce?

Part of the housing market problem now is exactly what you described. Boomers who have lived in the same house, own it outright, and have a fixed income that reduces flexibility. So why move, even if downsizing makes sense? Hence why the entire market is locked up.

 

[Ben Lamb]

It’s south park bro...

Dude's making spreadsheets on a Saturday night. He's not hip to the cool stuff.

 

[Deleted member 28227]

Dude's making spreadsheets on a Saturday night. He's not hip to the cool stuff.

View attachment 281477

Too Nerdy to have touched a boob... but also a cuckologist who will bang your wife



FIB logic I guess

 

[Ben Lamb]

SE MI has changed you, man.

 

[Deleted member 52098]

Too Nerdy to have touched a boob... but also a cuckologist who will bang your wife

View attachment 281478

FIB logic I guess

moves to Michigan recently and already using FIB?!? dang

 

[more_cowbell]

I mean if you want to N=1 the topic lol

I paid the same rate for rent for 3 years in Boston and got to write my rent off my state income taxes. I made spreadsheets till I was blue in the face, there was no possible way that I could have beaten renting in Boston, even if I'd lived there a decade.

Also, some cities have rent controlled units, you also can easily move when renting to find the best price.

Just kinda depends, not really a "correct" answer, but the idea that renting is always a poor choice is inaccurate.

If there are government incentives to help out renters, then agree that's a plus.

 

[Ben Lamb]

moves to Michigan recently and already using FIB?!? dang

We sent him a packet once we heard about the move to help with his transition.

 

[Irrelevant]

You need a new roof every what 20, furnace ever 15-25... hot water heater, etc, etc. and while your loan doesn't increase your property taxes will as your home appreciates over time.

Dude, you are paying for all of those as a renter, plus you're probably paying for your landlords roof too via profit, and his annual trip to Cabo.

 

[Irrelevant]

True, but it doesn't mean there is no risk. You end up taking on debt with the thought your revenue will always be there and grow a little with little consideration of Job loss? Serious illness? Divorce?

Even under all of those "what-if" scenarios, it takes what... like 5 years, before my mortgage is less than any rent I could ever find. I have to live somewhere. The "risk" is grossly overestimated.

 

[more_cowbell]

Dude, you are paying for all of those as a renter, plus you're probably paying for your landlords roof too via profit, and his annual trip to Cabo.

Back when I rented there were some times when property management wasn't super responsive to concerns or issues.

Then when too many neighbors started continually "blazing fatties" and stinking up the entire building, it was time to exit the rental market.

 

[Deleted member 28227]

We sent him a packet once we heard about the move to help with his transition.

I don't care what your stupid flyer says Ben, yellow means accelerate, Red means floor it, if you don't roll through the stop sign you're getting the horn and a 4 way stop is always a game of chicken.

 

[Deleted member 28227]

Dude, you are paying for all of those as a renter, plus you're probably paying for your landlords roof too via profit, and his annual trip to Cabo.

That's kinda a hard one to agree or disagree with...

I mean sure if the home owner needs a new roof you might get a rent increase... but it's also not going to be a 20k in a year increase. Plus you can always just walk if they do hit you with a rent increase.

Landlords are subject to market rates, some areas rental rates are great some they suck, just kinda depends.

Also the assumption that I'm operating under is that the cost if the fixed item not the size or quality of the house. So rental to homeownership is not like to like property.

 

[Deleted member 52098]

We sent him a packet once we heard about the move to help with his transition.

as a born and bred FIB... I'm proud of the tradition continues in MI and WI. I married a 'sconnie... so I get called a FIB all the time when I visit the in-laws.

 

[Ben Lamb]

I don't care what your stupid flyer says Ben, yellow means accelerate, Red means floor it, if you don't roll through the stop sign you're getting the horn and a 4 way stop is always a game of chicken.

Son,

You're in Michigan now. There are no rules. Just traffic suggestions.

 

[Deleted member 28227]

Son,

You're in Michigan now. There are no rules. Just traffic suggestions.

Only someone from WY with think that, Michigan driver's are polite and overly cautious to the point of obscenity. Rubbing is racing is actually printed on the back of a MA license.

 

[Ben Lamb]

Rubbing is racing is actually printed on the back of a MA license.

That doesn't mean what you think it means, at least in MA.

 

[WildWill]

You need a new roof every what 20, furnace ever 15-25... hot water heater, etc, etc. and while your loan doesn't increase your property taxes will as your home appreciates over time.

My roof will be replaced next week for the 2nd time in the 8 years we've been here (Oklahoma hail). But insurance covered every penny.

 

[TOGIE]

My roof will be replaced next week for the 2nd time in the 8 years we've been here (Oklahoma hail). But insurance covered every penny.View attachment 281481

been in my 1st house for 18 months and we're already on free roof no. 1 scheduled for next month.

when does insurance just start saying screw you and your hail we're done with you?

dealing with insurance is fun... buy a house they said

 

[CPAjeff]

Congrats on the purchase - should be a 'fun' adventure!