Debt free and $ in the bank - page 2.

CoinsCoinsEverywhere

hero member

Activity: 532

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Quote from: Jamie_Boulder on July 11, 2014, 10:17:12 AM

There is no bigger waste for an average individual than renting, not sure where the "stress free" is coming from, you still have to produce basically the equivalent of an interest repayment every month.

I suggest you re-purchase (unless real estate is having a bad year where you live).

I now own a home. But when I rented an apartment, one of the best things was not having to worry about maintenance. When something broke, I just called the owner. That's one of the most stressful parts of being a homeowner.

tinof

full member

Activity: 343

Merit: 100

House in the US are very cheap compare to the rest of the world. That is the reason you see many Chinese buying in drove in the US and Europe.

spazzdla

legendary

Activity: 1722

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Most mortages are still widly low rates... Usually 3%... which is awesome yes but a collapse of the housing market or a rise in rates would annihilate.
I believe the banks rate is 1%, http://ca.reuters.com/article/businessNews/idCAKBN0FF1YG20140710 .

Jamie_Boulder

sr. member

Activity: 378

Merit: 250

Quote from: superresistant on July 11, 2014, 11:02:51 AM

Quote from: spazzdla on July 11, 2014, 10:41:13 AM

Quote from: Lethn on July 11, 2014, 10:30:40 AM

Why didn't you just sell the house and purchase a cheaper property you can actually afford?

My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k....
The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245.
Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00
Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years.
It would literally cost me double to own a house.
This also does not include realstate fees, lawyer fees, land transfer tax...

Very well said !!

99% of people are not able to do these simple maths.

Quote from: spazzdla on July 11, 2014, 10:43:55 AM

Quote from: wunkbone on July 11, 2014, 10:19:42 AM

I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run..

Many loaded people disagree with you. Google Kevin O'learys view on the housing market, I live in Canada... We are in a bubble of a bubble.

Exactly. Housing market is a fucking bubble.
Only dumb people buy during a bubble.
It always end in tears and blood.

I can't wait. So much fun.

You realize this wasn't mentioned in the original post right? there was no 'maths' other than general knowledge in property investment.

Canada is a special exception to this rule seeing as they're only now fixing the real estate bubble they currently have over there by putting a ban on foreign investments which was the single biggest reason the average citizen was being out priced of the home buyers market.

@OP After reading your reply I agree that you have made the correct decision, also if I may ask, what are the interest rates in Canada ATM?

spazzdla

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Activity: 1722

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^^ Thanks

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superresistant

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Merit: 1131

Quote from: spazzdla on July 11, 2014, 10:41:13 AM

Quote from: Lethn on July 11, 2014, 10:30:40 AM

Why didn't you just sell the house and purchase a cheaper property you can actually afford?

My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k....
The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245.
Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00
Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years.
It would literally cost me double to own a house.
This also does not include realstate fees, lawyer fees, land transfer tax...

Very well said !!

99% of people are not able to do these simple maths.

Quote from: spazzdla on July 11, 2014, 10:43:55 AM

Quote from: wunkbone on July 11, 2014, 10:19:42 AM

I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run..

Many loaded people disagree with you. Google Kevin O'learys view on the housing market, I live in Canada... We are in a bubble of a bubble.

Exactly. Housing market is a fucking bubble.
Only dumb people buy during a bubble.
It always end in tears and blood.

I can't wait. So much fun.

Sheldor333

sr. member

Activity: 406

Merit: 250

Good for you. If you are happy about it then everything else doesn't matter!

Lethn

legendary

Activity: 1540

Merit: 1000

Quote from: spazzdla on July 11, 2014, 10:41:13 AM

Quote from: Lethn on July 11, 2014, 10:30:40 AM

Why didn't you just sell the house and purchase a cheaper property you can actually afford?

My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k....
The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245.

Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00

Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years.

It would literally cost me double to own a house.

This also does not include realstate fees, lawyer fees, land transfer tax...

I wasn't talking about a mortgage, I was talking about a cash buy, but if your situation was really that bad renting clearly was the better option, save up next time and buy a wreck, that way you can repair it for cheap and still actually own it.

He was right to do this though, there is absolutely no way you want to have debt of any kind or be tied down by a mortgage in this economy, this is why I've stayed with my parents for so long.

spazzdla

legendary

Activity: 1722

Merit: 1000

Quote from: wunkbone on July 11, 2014, 10:19:42 AM

I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run..

Many loaded people disagree with you. Google Kevin O'learys view on the housing market, I live in Canada... We are in a bubble of a bubble.

spazzdla

legendary

Activity: 1722

Merit: 1000

Quote from: Lethn on July 11, 2014, 10:30:40 AM

Why didn't you just sell the house and purchase a cheaper property you can actually afford?

My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k....
The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245.

Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00

Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years.

It would literally cost me double to own a house.

This also does not include realstate fees, lawyer fees, land transfer tax...

Lethn

legendary

Activity: 1540

Merit: 1000

Why didn't you just sell the house and purchase a cheaper property you can actually afford?

wunkbone

sr. member

Activity: 420

Merit: 250

I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run..

Jamie_Boulder

sr. member

Activity: 378

Merit: 250

There is no bigger waste for an average individual than renting, not sure where the "stress free" is coming from, you still have to produce basically the equivalent of an interest repayment every month.

I suggest you re-purchase (unless real estate is having a bad year where you live).

spazzdla

legendary

Activity: 1722

Merit: 1000

After the past 5 years of owning a house I sold it. It was the plan all along with the perosn I bought with.. I am now renting and it is utterly amazing. Such less stress.. It's great..

Now the only thing is what to do with me wealth... So far about 5-6% is in PM's 10% iss in crypto and the rest is paper.. .:S. I am considering uping my PM holding 10%. My fiat is CAD by the by.

Topic: Debt free and $ in the bank - page 2. (Read 1344 times)