Topic: Mortgage are most wrong financial decision you can make - page 2. (Read 402 times)
I don't think this is a right or wrong situation. Mortgage may be the least preferred solution when you need a house. Often the problem arises because you don't really need a house, but society (or your wife lol) pushes you to overspend. Anyway, when you really need a house, as long as the monthly instalment doesn't make you more suffer, it's a good decision IMO.
The best method IMO is to buy an acre or more of land for $2k to $15k. Purchase a prefabricated home kit for $20k to $50k.
Or buy a tent....
The gas you will pay for commuting, the extra heating for that prefabricated home, the discomfort from living in a dollhouse, for what? We had those 70sqm2 deals around here too, it costs 40k euros one, but with VAT, delivery, assembly, permits, utility cost it went to 75k.
And good luck finding an acre of land for 10k anywhere in Europe, there is no way to get it under 10E/sqm2 unless you go somewhere in the wilderness with no roads and no water or electricity.
Expertise is available through the internet and youtube.
Would you let your kids alone in the house you've done the electrical wiring yourself after watching youtube tutorials? There are limits to DYI and to being cheap.
I've seen enough mining rig accidents and fires and burned electronics in the mining section and this from poeple who really had a clue about it, imagine what somebody who doesn't know the difference between watts and ampers would do.
What a dumbass,
Lol, I wouldn't have put it that way, but I find the OP lecturing us on this subject amusing to say the least.Amusing? It's not even amusing anymore, if he only presented his idea and asked for feedback it would have been a bit funny, but he has started calling others dumbasses and he thinks he is a genius while all the others are too stupid to understand.
Put all your money into IPOs and make x10 in two years.
No, it's not funny, it's quite alarming that there are poeple who would think like that.
The best method IMO is to buy an acre or more of land for $2k to $15k. Purchase a prefabricated home kit for $20k to $50k. There used to be listings for them everywhere. Even amazon used to sell them before Jeff Bezos stepped down as CEO.
It is possible to have land and a house for the cost of your $15k to $30k down payment. If the labor, equipment and DIY construction time can be accounted for. Tools, compressors, tractors and trucks can all be rented from places like home depot. Expertise is available through the internet and youtube. While building codes and permits can normally be an obstacle. There are prefab home kits that do comply with building code via default.
I think the sad truth is, many $20 million dollar mansions only costed $500k to $1 million in materials to build. The rest of the $19.5 million is the cost of, labor, land and neighborhood. Real estate and homes are usually overpriced.
It is possible to have land and a house for the cost of your $15k to $30k down payment. If the labor, equipment and DIY construction time can be accounted for. Tools, compressors, tractors and trucks can all be rented from places like home depot. Expertise is available through the internet and youtube. While building codes and permits can normally be an obstacle. There are prefab home kits that do comply with building code via default.
I think the sad truth is, many $20 million dollar mansions only costed $500k to $1 million in materials to build. The rest of the $19.5 million is the cost of, labor, land and neighborhood. Real estate and homes are usually overpriced.
With crypto u can make easy one year 100k of this if you divide this money small percentages.
We're all believing in crypto but don't make this look confident and easy. This is like a false promise to a newbie that would see this and you don't get easy $100k unless you have a greater capital to start with.And buying dips of btc and some othet good coins.
I agree with this, this is a known strategy but doesn't make it look easy that people can make $100k without going through difficulties.But you know what, you don't know someone's financial situation and way of living. If they want to own a house with the best that they can and confidently that they can, let them do what they think is right.
But I can see where you're getting at, mortgage is expensive but to say that it's a bad investment isn't really a fair statement.
We can not be considering if mortgage is cheap or not but the purpose first which is shelter. We need to remember that when talk of mortgage, we are talking of properties or building that is the focus , so being expensive is not the issue because it looks as if a house is being in mortgage.
However, talking about benefit of mortgage, it has given many pentionals houses that they have settled in.
I'm not a big fan of mortgage and don't do any of that myself but, we cont completely rule it out to be a bad choice. In one instance, it gives many a chance to own some property and if one is diligent enough and follow his or her payment plan, one might archive the payment of all that is owed.
Paying rent and investing for a few years might seem like the best way to go but, let's not forget that, investing is never a 100% chance for success. It could go sideways too and that too pushes years of expectation into the distance. Hence, it becomes less an option you one who doesn't have the foresight for a good investment idea.
Paying rent and investing for a few years might seem like the best way to go but, let's not forget that, investing is never a 100% chance for success. It could go sideways too and that too pushes years of expectation into the distance. Hence, it becomes less an option you one who doesn't have the foresight for a good investment idea.
Realistically, if you have the money for a house, you might be better off taking out a mortgage at 2% interest and investing in stocks and making 4% though so it depends on where you are I guess (stocks were used as an example as I'd consider them more stable and you can diversify globally quite easy with them and 4% is often returned from utilities)...
[not financial advice]
[not financial advice]
not financial advice either.
The fact that you buy a house with x5 or more leverage is what makes it an interesting business. You are basically doing business with someone else's money. If inflation is around 2% and you are paying a 2 o 3% is quite difficult to end worse than you started even if things go south. The main risk is not being able to pay or get into a large negative equity, but that is not really common unless you buy at the peak of a bubble or have very bad luck on your choices.
On top of that, if you are buying a house to live in, you would always need to consider that anyway you would need to pay to live somewhere, so the alternative is not to spend zero.
What a dumbass,
Lol, I wouldn't have put it that way, but I find the OP lecturing us on this subject amusing to say the least.
The whole argument of investing the money you have instead of paying a down payment is garbage and does not take into account the risk. If you pay 10% of your mortgage from the beginning you already have 10% equity, and every month that goes by, you have more equity. Having a paid off house gives you a lot of peace of mind.
I don't deny that some people might do well with what the OP says, but most people will do better with a simpler way and low risk.
I think paying rent then invest the rest on crypto or gold ipo according to op is not a bad idea, there is a good chance you can double that invested amount then you can buy a house without having to go through a mortgage, although the crypto market is not predictable, anything can happen, but the chances of getting good returns is high.
Lets do the little calculation why
You buy house or apartment with total 300,000$
You have to put down payment of 15-30k ...wich is all ready bad.
With this 15-30k you can make more money in 1-2 years by investing it on gold stock IPO usually 5x-10x return of good ipo if u buy before listing.
You buy house or apartment with total 300,000$
You have to put down payment of 15-30k ...wich is all ready bad.
With this 15-30k you can make more money in 1-2 years by investing it on gold stock IPO usually 5x-10x return of good ipo if u buy before listing.
This is the dumbest financial advice you could possibly give. You're advocating for someone to essentially gamble with the money they could use to buy a house, or pay for rent (the roof over their head essentially). You do not invest with money you need to live, you invest with excess fund you have in order to grow wealth.
Gambling the house payment away is a great way to end up homeless. You seem so sure you could get a 5x-10x return on any investment, are there contingency plans? Doesn't sound like it from your post. In the event you end up with a net loss, then what? You have no assets, and you ended up with less money after investment.
Genius thinking.
That sounds easy 
But that is not easy as we think because some people can take a loan for their lives and use it to develop or grow their business. But most people are afraid to take a loan because they think that it will feel hard to repay the loan. There is no guarantee we can make a big profit investing in crypto in one year because we already saw that crypto is unpredicted and sometimes, we need to have big patience to see our investment value is growing.
People can invest in crypto but they should use the money they can afford and not take a big risk if they can not handle the risk. People can gamble with their lives while others just do not want to risk their lives with the loan.
But that is not easy as we think because some people can take a loan for their lives and use it to develop or grow their business. But most people are afraid to take a loan because they think that it will feel hard to repay the loan. There is no guarantee we can make a big profit investing in crypto in one year because we already saw that crypto is unpredicted and sometimes, we need to have big patience to see our investment value is growing.
People can invest in crypto but they should use the money they can afford and not take a big risk if they can not handle the risk. People can gamble with their lives while others just do not want to risk their lives with the loan.
I find a lot of people that think this way. They basically say it’s stupid buying cars cash when you can get a loan for like 3% and invest the rest and make 10%. Or people like the OP who say mortgage is stupid when you can rent and just invest your down payment in crypto or stock market and make at least >10%.
I got news for you. The stock market or crypto market won’t always go up. Sure if you are guaranteed 10% then it’s a different story but just because the stock or crypto markets had a good run the last decade doesn’t mean that the next 10 will be the same.
I got news for you. The stock market or crypto market won’t always go up. Sure if you are guaranteed 10% then it’s a different story but just because the stock or crypto markets had a good run the last decade doesn’t mean that the next 10 will be the same.
Not really.
Mortgages give you tremendous leverage at a cheap price (at least at current ridiculously low interest rates) which allows you to make great profits when housing even goes up by just a little.
It's the reason why housing markets are as attractive if not more so compared to the stock market - without this leverage, it is not very attractive at all.
Mortgages give you tremendous leverage at a cheap price (at least at current ridiculously low interest rates) which allows you to make great profits when housing even goes up by just a little.
It's the reason why housing markets are as attractive if not more so compared to the stock market - without this leverage, it is not very attractive at all.
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To give out 20-30k for down payment i dont get nothing for this really just more the obligatoion to pay debt.
Better use money smart way why should u give to banks ?
Take the 30 years mortgage plan u are 30...you get payed when you are 60 its grazy anything could happening ...
When you take ur mortgage down payment just keep that money wait for crash and buy things cheap in this inflationary money printing scenario we are in now more often crashes occurs.
Or take ur 30k go some cheap place buy house there and rent it out not good to just give away for so called " mortgage down payment"
Also ur morgtage monthly payment are quite similar with rental payment adding up your 30k also we get quite bad financial decision here to get mortgate
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To give out 20-30k for down payment i dont get nothing for this really just more the obligatoion to pay debt.
Better use money smart way why should u give to banks ?
Take the 30 years mortgage plan u are 30...you get payed when you are 60 its grazy anything could happening ...
When you take ur mortgage down payment just keep that money wait for crash and buy things cheap in this inflationary money printing scenario we are in now more often crashes occurs.
Or take ur 30k go some cheap place buy house there and rent it out not good to just give away for so called " mortgage down payment"
Also ur morgtage monthly payment are quite similar with rental payment adding up your 30k also we get quite bad financial decision here to get mortgate
Its a bad situation to be in debt 30 years that big without down payment it might be option but u make urself in debt u might lose ur house also u lose down payment and also the money what u did payed as life have no guarantees its not smart to put urself in more not beneficial situation.
If u do have money to put down paymemt u might just considereing the option to rent as u dont need to put down 30k
Second thing is buying car with 30k is same dumb move as using this 30k for mortgage downpayment.
In case of car always its good to lease with zero or near zero down payment.
Remember guys you always neeed cash reserves in ur life so live the way u never give away ur reserves so think whts most beneficial for you.
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To give out 20-30k for down payment i dont get nothing for this really just more the obligatoion to pay debt.
Better use money smart way why should u give to banks ?
Take the 30 years mortgage plan u are 30...you get payed when you are 60 its grazy anything could happening ...
When you take ur mortgage down payment just keep that money wait for crash and buy things cheap in this inflationary money printing scenario we are in now more often crashes occurs.
Or take ur 30k go some cheap place buy house there and rent it out not good to just give away for so called " mortgage down payment"
Also ur morgtage monthly payment are quite similar with rental payment adding up your 30k also we get quite bad financial decision here to get mortgate
I mean come on what to say, I need house to live in so that I can save myself and my family from rain, winter, summer man. My house won’t be mine forever, it will surely passéd down to the children, their children and their children so on. So in my family or anyone’s family someone has to take this bright step to build a base. In my country this is by default big thing and our houses stay as it is for generations to come. It’s our pride as well as hereditary property which we keep passing on and on.
Making money is good thing, and if I’m earning 100k every year from crypto currency then I’m sure my life’s way easier to buy house without mortgage.
It’s not wrong by the way, you have to do it and you need basic thing like shelter to breath in peace.
Making money is good thing, and if I’m earning 100k every year from crypto currency then I’m sure my life’s way easier to buy house without mortgage.
It’s not wrong by the way, you have to do it and you need basic thing like shelter to breath in peace.
What a dumbass, not all your money should be put in an investing instrument, there are other forms besides the investing that you're talking about and the one that you're saying that's bad way to spend money is actually a really good investment which is real estate and we all know that real estate will only go up in value thus placing mortgage to pay for your own home is an investment itself especially if you want to settle down, renting would be bad long-term. But I can see where you're getting at, mortgage is expensive but to say that it's a bad investment isn't really a fair statement.
To give out 20-30k for down payment i dont get nothing for this really just more the obligatoion to pay debt.
Better use money smart way why should u give to banks ?
Take the 30 years mortgage plan u are 30...you get payed when you are 60 its grazy anything could happening ...
When you take ur mortgage down payment just keep that money wait for crash and buy things cheap in this inflationary money printing scenario we are in now more often crashes occurs.
Or take ur 30k go some cheap place buy house there and rent it out not good to just give away for so called " mortgage down payment"
Also ur morgtage monthly payment are quite similar with rental payment adding up your 30k also we get quite bad financial decision here to get mortgate
I'm just not sure why people only think of 1-2 year gain in bitcoin. This investment is risky where no one can guarantee that we will get 100% annual return on investment. I know that in the long term we will be very happy with the return, but when they invest in the ATH price, they have to hold on to it longer. Indeed, this investment is profitable, but must consider the risks. I only talk about bitcoin investing because I think crypto (altcoin) are generally no better than bitcoin.
Mortgage, it really depends on what purpose you are doing it. I don't have to do it just because I want to own a house because generally I only need a minimum of $20K to own a simple and minimalist house in my country. Some people in my work environment have been doing it for a period of 5-10 years, but generally they are not people who have an interest in investing (stocks or crypto) but if they buy gold.
Mortgage, it really depends on what purpose you are doing it. I don't have to do it just because I want to own a house because generally I only need a minimum of $20K to own a simple and minimalist house in my country. Some people in my work environment have been doing it for a period of 5-10 years, but generally they are not people who have an interest in investing (stocks or crypto) but if they buy gold.
U dont neeed to invest ATH time price !!
U buy low
I'm just not sure why people only think of 1-2 year gain in bitcoin. This investment is risky where no one can guarantee that we will get 100% annual return on investment. I know that in the long term we will be very happy with the return, but when they invest in the ATH price, they have to hold on to it longer. Indeed, this investment is profitable, but must consider the risks. I only talk about bitcoin investing because I think crypto (altcoin) are generally no better than bitcoin.
Mortgage, it really depends on what purpose you are doing it. I don't have to do it just because I want to own a house because generally I only need a minimum of $20K to own a simple and minimalist house in my country. Some people in my work environment have been doing it for a period of 5-10 years, but generally they are not people who have an interest in investing (stocks or crypto) but if they buy gold.
Mortgage, it really depends on what purpose you are doing it. I don't have to do it just because I want to own a house because generally I only need a minimum of $20K to own a simple and minimalist house in my country. Some people in my work environment have been doing it for a period of 5-10 years, but generally they are not people who have an interest in investing (stocks or crypto) but if they buy gold.
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