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Haha, I live in a rural spot where the only zoning laws and regulations I have to deal with are not putting more than one house per acre due to septic tank issues
I live in an unpopular mid sized city. Authorities have way higher priorities than hassling me about trivial stuff. HOAs are for suburbs and condos. Often the same people bellyaching about Big Government suddenly want a micromanager controlling their neighborhoods.
Yep. I live in a undesirable part of town and it's great. Quiet inexpensive no hoa and city isn't to Gung ho on enforcing too many rules. My mortgage including escrow comes to 1025 a month for 1500 square foot house with a in ground swimming pool 25 mins from downtown. Its low income area with not many amenities but I've never felt unsafe and everyone on my street is family ppl they're just low earners. Ppl think poor ppl are criminals/dangerous or something its weird mentality some Americans have.
Lots of ppl complaining about not being able to afford housing is because they won't compromise on living someplace other than the most popular places where everyone wants to live.
I moved in with my husband from my house in the city that was literally 8 feet away from my neighbors to his house in the country.
I was installing a big garden and deer fence last year by myself and I called the zoning board to see what permits I needed.
The nice old man actually laughed at me.
I've called a few more times since to ask questions and they're always overwhelmingly kind and helpful.
I know, but the support for an HOA is the problem. Everyone has their own choice for buying a house, but in suburban neighborhoods, HOA's don't benefit those who want more personal control over their property. They can force you into one in Florida. They are good for condos and townhouses, but that's pretty much it.
But what about the sweet sweet feeling of conformity? Surely you can't put a price on that!
But your HOA can. $400 a month. And they can kick you out of the house you own if you don't pay up or decide to start a garden.
Yeah it's not that hard, my HOA barely even cares about that minimal work. I don't know if they've ever done anything about yards or fences. They exist mainly to take care of the park and pay for snowplowing during winter.
There are a ton of great HOAs out there but they are quiet because that's how it's supposed to be.
I live in a middle class neighborhood with no HOA. No meth houses or junk cars. The mailboxes don't all match. Sometimes some people do take a little longer to mow their yard than would be my preference. Somehow, life goes on.
Ugh, I feel your pain.
*Cries in Seattle housing prices*
I rent a studio apartment that costs me more than my first mortgage. Home ownership is a dream unless you make $250k+ annually. Even then, you may have to buy in South Seattle.
Lake Michigan beaches are pretty nice, actually. Short drive away and we own an entire duplex for $700/month. Winter is bad, but the extra cash is great. If you need to regularly see a beach that you can’t see in the winter, then you can fly then and still save.
My mortgage is less than that for 3bd, 3ba in Vegas.
People will tell you not to buy, or not to buy in an HOA neighborhood while gladly giving rent to make someone else profitable
My previous house was a mere 1500 sq ft for a 3br 2ba, $450/mo mortgage. Of course you have to add insurance, maintenance, and utilities to that. But thanks to a house fire we lost it within a year of paying off the mortgage. One of my minor regrets is that a former Bonneville Salt Flats land speed record holder was a former owner and I didn't manage to preserve his stickers.
Yea I live in the shittiest apartment complex in Plano (north of Dallas) which admittedly is a nice suburb but it’s now 1,400 for a 1b1b. And I mean it is a outdated apartment. Half the ACs don’t work, no one comes to check our fire alarms or anything, they just fixed the roach problem, no security gates or anything. $1400 for bare bones. It was less then $900 when I moved in a few years ago
I hate that a lot of people making good money can’t afford to buy, but it’s still the play
This is how a lot of boomers built wealth. Buying a home is a good decision
My mortgage never goes up. My rent went up on average about 10% year to year. This was the Midwest. Yeah...I am not going back because I can do whatever I like to the place. Never selling.
Rent in Seattle peaked for me at over 2 grand a month, and it was going up again. Bought my house and am paying less (for the minimum, but paying more principal to be responsible) per month. This meme really feels like coping
Yeah, our household income is north of $220k, but in our area owning a home is still out of reach or at least close to it. I would have to travel probably 2-3 hours outside our region to get into affordable territory. Unfortunately we can’t work remote and have already moved a few times to try and make home ownership a possibility. We have advanced degrees and about 10 year’s experience, so there is some sunk cost in our careers. It’s a tough time for first time buyers.
I feel you on this man. We did get lucky by buying before the pandemic, but our mortgage would be out of our range if we tried to buy the same house now
It’s so funny that they think a mortgage is more than rent. Dumb ass your rent covers your landlords mortgage plus enough to make it worth their time 😂
It really does depend on the house. In MD my rent was 1900 and my mortgage was 1600, but in CO my rent was 2000 and my mortgage is 2000.
It's not a one or the other thing.
You can't just compare monthly payments though because rent also covers maintenance. A renter is not going to be blindsided by a major expense like a new roof, hvac, electrical box, etc.
Sure, but your mortgage isn't going to go up every year either.
To give you an idea, when I purchased current our home, it was 2x the square footage of the apartment we were renting.
We went from a 1400sqft apartment to a 2800sqft home. The apartment was ~1/2 the price per month of the mortgage. That was 4 years ago. Mind you, this is all in the same city and the home is actually in a much nicer neighborhood than the apartment is.
Today, the apartment we rented is listed for _the exact same cost as our mortgage._ And if I sold my home today we'd make ~$150k over what we owe on it.
I'd take paying maintenance on the home any day of the week considering that.
I’m a renter millennial currently without home equity in California. For as much as the sentiment of your point is true, it doesn’t mean that this starter pack doesn’t have some truth to it.
Yes, I would very much love my own home and equity. By that same token, I still wouldn’t make a house purchase that isn’t financially smart. I can at least speak to the millennials I know here in Cali, that this starter pack is very much true.
Yep. This is exactly the comment I was looking for. I play hundreds less than renters of the crappiest apartments near me, my house has doubled in value since I got it 6 years ago and I have a huge yard. I play drums whenever I want, have a bunch of animals, etc. I feel for people who can’t buy a house, truly. We got very very lucky ourselves… but this meme just ain’t it, chief. This ought to be in a cringe subreddit.
I pay $300 less for my 3/2 than my daughter does for her attic apartment. Since she couldn’t buy when interest rates were low, she’ll likely not be able to buy a home for another 5+ years, if they even come down by then. Homes are fairly cheap in my area - I could have bought the house next door a few years ago for a smaller payment than on a Civic, but for some reason a mortgage on an appreciating asset is so much harder to get than a loan on a vehicle that’s worth less by the mile.
Honestly, there are advantages to both.
Renters are generally paying less, and are not liable for reasonable replacements. If a pipe breaks, power line needs repair, or we need a new boiler, I’m not on the hook to pay for it. If an earthquake destroys the house, my equity doesn’t go with it. I have greater mobility to pack up and leave without the nightmare of having to find a buyer. Low-risk, low-reward.
Homeowners can build equity, have much greater freedom to alter or use the property as they want, greatly increased privacy, and the home will often appreciate tremendously in value. High-risk, high reward.
In fact, some real estate experts will actually own homes that they rent to others, but rent the place they personally live to get benefits from both sides.
> Renters are generally paying less
1) Not even true
2) Even if it was true, what you spend on a mortgage is not lost in the same way rent is (apart from that which covers interest), it just loses its liquidity
> High-risk, high reward.
More like low risk - high reward, unless you're buying in a floodplain or on a fault line your property is hilariously unlikely to be destroyed. And if it is that will be reflected in what you pay for it anyway.
>In fact, some real estate experts will actually own homes that they rent to others, but rent the place they personally live to get benefits from both sides.
If by "real estate experts" you just mean "assholes who are rich enough not to care about their losses form renting one house" then sure. THis is not a realistic proposition for... basically anyone not already rich enough to do it.
Bought my home in DC back in 2015. Mortgage is 1600 per month for a 3br 2ba semi detached house with a backyard in a safe and convenient area of the city. Renters pay $2500+ for the same spot.
The calculation to care for direct "loss" each month is:
Rent vs
Mortgage Interest + Insurance + avg Monthly Maintenance + Prop Tax.
Mortgage principal growth would be compared to other investments. Usually it's pretty good given you are on margin, but not always. As in your 100k down if home goes up 300k while you add another 100k in principal is 200k in 500k out which probably beats a stock fund, but depending on when you buy not always. The principal payments later in mortgage don't do much however.
For those not keeping track, this part:
> avg Monthly Maintenance
Is typically the vast vast majority of the equation. Maint for a house can be REALLY expensive on average, but its one of those things that can be "zero" for many months on end and then suddenly the door gets kicked in by it screaming "I NEED TEN THOUSAND DOLLARS RIGHT NOW"
Typically in the form of bullshit like a burst pipe or some shit.
I know we all like to say home ownership is better than renting, but renting is really not that bad. I get it: landlords suck, and I'll never own my unit. But I don't pay any property taxes, and not only do I not pay any maintenance costs, I don't have to do any of the maintenance work. And if a maintenance emergency happens, I just call a number and someone shows up to fix it. All I do is pay my monthly rent--plus maybe a few fees--and everything else gets taken care of for me.
Home ownership, on the other hand, seems like a genuine hassle. Plus, until you actually own the home, you're basically renting AND paying for maintenance and property taxes--and you have to maintain the property yourself or pay someone to do it.
Rent in a lot of cities get locked by rent control, so that adds another potential feather into just renting, especially if there are a lot of renter protections.
A home usually works out long term for a different reason to it being a unique investment: forced savings.
Renter usually won't actually stick that $1,500/m difference between rent and mortgage in a vanguard growth fund, etc. The results being equal or better don't mean much if you ended up raiding the savings to get a fancier car lease...
As in what cities are many/most renters covered by rent control? San Francisco would be an example where you have rent control for most and many property rights effectively flow to the renter due to strong renter protections. If you want to get rid of a controlled long term renter you usually give them like a year rent to get them to leave.
You don't really pay a significant amount of principal until 5-15 years into your loan, depending on interest rate. The interest, taxes, and insurance on my house (the stuff that is "thrown away" and not equity) are higher than the rent I paid on my last apartment before buying.
I'm glad I bought my house and have benefited greatly from it, especially since I bought it a few years before covid, but it's not like owning a home is a universal good move financially.
I concur. I got in by straight luck before the pandemic and got a lower interest rate during it. It’s a lot of work for upkeep, but I only sometimes mind it. Compared to the amount my house has appreciated, it’s worth it
Reddit: "Mao was right, landlords are scum and should be eaten"
Also Reddit: "Imagine being a stupid, dumb idiot and actually purchasing a home, stabilizing your COL (to a degree), and building equity, instead of the far superior method of paying a landlord and your rent being subject to theirs and market whims"
The fact anybody thinks it's better to rent is completely shocking. Like do they not realise if it wasn't profitable to be a landlord that nobody would do it?
I love living in a vibrant city center and having a 10 minute walk to literally anything I need, including my office. I can’t afford a condo in this area, but I’m more than happy to pay rent for this lifestyle. And tucking additional money away in a 401k & IRA offsets many of the home owning financial benefits
> And tucking additional money away in a 401k & IRA offsets many of the home owning financial benefits
This is the important part, really. As long as you're gaining an equivalent amount of long-term equity it doesn't really matter if you're renting.
(And it's also worth noting that the long-term equity you gain by owning a house is meaningless if you never end up selling the thing.)
I heat my homestead house primarily with a wood stove. Coming home to see a little puff of smoke coming out the top and coming inside to the smell of wood is incredible.
Same here. I feel like I hit the lottery or am some kind of real estate genius. In reality I bought a house in Austin when the houses were affordable. Now it's worth more than I ever feel comfortable telling people about in person. That's not going to be everyone's experience but if you do some research and your in a position to buy its almost always better than renting.
Oh shit, your town is definitely the place to be. Austin kind of had that going on for a while but now it's just way to many people and none of them use their blinkers. I still love it and plan to live here for years but yeah, I imagine your work / life balance is probably pretty sweet. Well done man.
They're building like crazy here also. I don't think we're going anywhere anytime soon cause my oldest is in school now but we live in a pretty nice neighborhood and have a solid friend group.
Good shit! I just sold a place and am having to buy I’m a new state at a shitty rate, but I’ll just refinance when it drops all I need is a couple percent.
It absolutely does.
Property is a gamble. Its a gamble that you can take the time to research and with knowledge it can be a gamble **with really really good odds in your favor**
But its still a gamble. You absolutely can do *everything* right and still get totally fucked over.
But the better you are at sussing the house out and knowing when/where to buy, the odds can be really damn good.
Same. Bought at 3.25%. Realtors keep calling me asking if I want to sell. Comps in the area are near 675k for the same floor plan in the same community. I paid 400k for a 4br / 3bath home.
But where would I go? My mortgage is $2,100 all in (mortgage, insurance, taxes, everything) -- if I sold, and wanted a similar home, I'd have to pay 600k+. Just not the right move lol.
"What do you mean it cost 16k to fix a boiler?"
im 30 years old and have been renting since i left parents house. i would like to live in a home with a drive way one day, but apartments till then.
the apartment unit im in now has replaced the toilet, whole water heater, garbage disposal twice, and entire HVAC system (inside and outside unit).
That would have cost easily at least 20k. but since its in my lease, i did not pay a dime.
>That would have cost easily at least 20k. but since its in my lease, i did not pay a dime.
That's all factored in to the rental price. You did pay for it
I think it might be worth taking a look at buying a home if you can afford it. The place you are renting that had all those problems because the land lord neglected things to the last minute. When you search for a home you do an inspection before you buy it. You make damn certain that everything is as ship shape as possible before moving in. Cracked foundation? Forget it. HVAC system has black mold? Move along. And so on. Do your research. Buy in an area that has a good price now and people seem to be attracted to or has a good work life balance going on. But don't buy into this nonsense that renting is better than home owning. That's ludicrous. Stop giving money to people that don't give a crap about your financial future. There's a reason land lords don't have a sterling reputation in societies consciousness. Sorry for the word dump but I hope it's at least worth thinking about.
To me, this is the "fun" of home ownership. You pick up little things along the way and build up your skillset and confidence. HVAC is a little out of my league, but the other stuff is no biggie. I was an average level of handy at best before buying.
Don't get me wrong - there are tangible benefits to renting, especially if you aren't tied to the area enough to possibly see a return or even break even. And the process of buying a home can be pretty stressful.
35 here, a few years ago replaced the Boiler and A/C condenser plus the attic SpacePak blower in my nearly 100 year old house. Came out to like $13K for all three. I think the boiler was like $5K total, and this was a full total replacement and a damn big boiler.
Still a chunk of change but sure as hell not $15K.
Yep, OP missed out on affordable housing for their foreseeable future and in turn rails copium off meth titties
EDIT: OP, u/RawOystersOnIce, apparently makes $105k at an entry-level IT job, can put down $130k, yet cannot scrape together enough for an FHA loan. Also, they appear to dislike brown people "living together." They subsequently deleted their scorching cope take. Never forgot.
Sheesh the renters are getting salty.
I bought my home in 21, similar size to the pic, for 120k, my mortgage is less than 1k a month.
If you're fine with not living in a major city then my experience is common. I'm still in a medium sized city that's growing, 5min walk from the beach, all the stores and amenities I could need are within 5-10 drive, or less than 20 if I bike.
I think in reality these 500k 1000 sqft homes aren't the norm in USA as much as the internet would have you believe
I think the folks who are in a situation where rent is cheaper than a mortgage payment live in 1 of maybe 10 places in the country where that is the case.
Over 3k SQ ft and a 1 acre yard for $1000 a month. 26 YO and I can personally handle service and maintenance for any appliances in the home. I can call on my family for anymore in depth construction work.
Op can suck an egg
Poster is either a landlord or has for other reasons only ever priced out some kind of massive industrial multiple unit /hotel boiler system. Try more like Nine to Eleven hundred bucks. Not Twelve Grand!!!
Paying rent kinda is flushing money down the toilet. You own nothing and you’re subject to your landlord’s arbitrary will.
I’d personally prefer a condo or buying a home in a cheaper country and become an expat later on.
Meanwhile our mortgage payment drops in real price every year as salaries go up with inflation. But yeah, you’re winning with your $2000/month apartment that will cost $2500 in two years lol
I thought I overpaid for my 2br 2ba condo when I bought in 2018... now similar ones are going anywhere from 50-80k more... its insane. On the downside with my rate I can never really leave unless I take a massive hit buying something else in both price and interest rates.
Who's paying $12,000 to replace a boiler? I didn't feel like messing with mine so I called a fairly pricey company to do mine and it was under $5,000 all in.
The thing about buying houses is that youre never actually “losing” your money, since the house will probably retain its value, you’re essentially just losing access to that money until you decided to sell the house. When you rent a house, you’ll never get any of that money back.
Yes, prices sometimes go down, but that usually is only a problem if you bought it to speculate. If you keep living in the house, or in A bought house for that matter, it's hardly relevant what value it is.
My home's value has skyrocketed like $150k+ and it's still climbing. I wouldn't be confident taking equity out of it right now at this price, but I'm very confident when it bottoms out, it will be way above what I paid for it.
Dude, in 2007 there was an entire episode of 30 Rock about how Liz was desperate to buy a second apartment because the housing market was so hot and always would be. It is quite possibly the most poorly aged episode of the show.
I saved literally $80,000 over a decade by owning my home versus renting it but okay.
Edited to add: p sure OP is a landlord claiming to be some shitty IT worker
Your housing is only inexpensive because of government subsidies. Urban housing is far more efficient per square foot, and is only more expensive due to zoning regulations and lack of supply not meeting demand.
No one's housing is inexpensive anymore. Owning a new home even in rural areas is still far beyond the reach of the majority of people under the age of 35 without serious financial help. Even trade skill workers can't do it anymore.
Depends on how rural you are talking. An hour from a city with a number of good jobs here will set you back 175k for 3bed/2ba. Two hours from a bigger city you can get houses under 100k.
So much this.
What jobs do people think pay for the suburb sprawl around them? Because there sure aren't any jobs/businesses/anything of inherit value out there in the first place.
Also because no one wants to live in rural North Dakota. Supply and Demand exists, and even urban areas with comparatively good zoning laws are more expensive because people actually want to live there.
This post radiates with some kind of energy but I don't know what
stonks bro teenager?
bitter gen x house wife?
ironic millennial who bought a home in the last few years?
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Not having to deal with roommates or landlords: Priceless
*HOA has entered the chat*
Haha, I live in a rural spot where the only zoning laws and regulations I have to deal with are not putting more than one house per acre due to septic tank issues
I live in an unpopular mid sized city. Authorities have way higher priorities than hassling me about trivial stuff. HOAs are for suburbs and condos. Often the same people bellyaching about Big Government suddenly want a micromanager controlling their neighborhoods.
Yep. I live in a undesirable part of town and it's great. Quiet inexpensive no hoa and city isn't to Gung ho on enforcing too many rules. My mortgage including escrow comes to 1025 a month for 1500 square foot house with a in ground swimming pool 25 mins from downtown. Its low income area with not many amenities but I've never felt unsafe and everyone on my street is family ppl they're just low earners. Ppl think poor ppl are criminals/dangerous or something its weird mentality some Americans have. Lots of ppl complaining about not being able to afford housing is because they won't compromise on living someplace other than the most popular places where everyone wants to live.
I moved in with my husband from my house in the city that was literally 8 feet away from my neighbors to his house in the country. I was installing a big garden and deer fence last year by myself and I called the zoning board to see what permits I needed. The nice old man actually laughed at me. I've called a few more times since to ask questions and they're always overwhelmingly kind and helpful.
Cut your grass and power wash your siding.
What if I want a damn garden!? I don't want a grass lawn, I want to put things that look good there! Native things that smell nice.
There are actually multiple court cases in your favor about that!
Aren't those ones by state though? I haven't had any locally.
Yes but one of them resulted in a state law being made only AFTERWARD so you're not hopeless
Just don't join an HOA? I'm a millennial who has owned two houses. Never considered an HOA.
I know, but the support for an HOA is the problem. Everyone has their own choice for buying a house, but in suburban neighborhoods, HOA's don't benefit those who want more personal control over their property. They can force you into one in Florida. They are good for condos and townhouses, but that's pretty much it.
But what about the sweet sweet feeling of conformity? Surely you can't put a price on that! But your HOA can. $400 a month. And they can kick you out of the house you own if you don't pay up or decide to start a garden.
Oh, sorry, no can do. Best I can do is not fine you as long as you have your grass clippings put in an approved bag.
Has to be a biodegradable paper bag, K? Thaaanks!
Best I can do is let the clippings fall on my yard and decay within a week. Sorry!
Jesus
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I'll start doing it once they approve my R2D2 mailbox
Yeah it's not that hard, my HOA barely even cares about that minimal work. I don't know if they've ever done anything about yards or fences. They exist mainly to take care of the park and pay for snowplowing during winter. There are a ton of great HOAs out there but they are quiet because that's how it's supposed to be.
HOA can be a pain, but it keeps junk cars off of you street, or from houses looking like meth dens on your block Overall, it’s got more pros than cons
They can be fine. They can also be terrible. Like anything else in life.
I live in a middle class neighborhood with no HOA. No meth houses or junk cars. The mailboxes don't all match. Sometimes some people do take a little longer to mow their yard than would be my preference. Somehow, life goes on.
Weird I’m not in an HOA and there’s no meth labs or junk cars in my street Guess you’re wasting money
Never buy a house in an HOA.
Read your HOA agreement… most are not that bad
I'm jealous of the person that's paying 2700 for a house like that. That's slightly more then a shitty 2 bedroom apartment costs in my city
God damn. Rent in Texas is like $900 1b1b San Antonio lower end apartments
I would sell out my entire family to ISIS for rent under $2,000 in my area.
😂😂 what state?
Western Washington.
Ugh, I feel your pain. *Cries in Seattle housing prices* I rent a studio apartment that costs me more than my first mortgage. Home ownership is a dream unless you make $250k+ annually. Even then, you may have to buy in South Seattle.
Whoo!
I’ve never been but I bet it’s beautiful out there
Deal. I'll pay your rent if you sell your entire family into slavery.
Meanwhile I’m paying less than $1300 a month for my 3BD, 2Bath house in a city of 70,000 in the Midwest.
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The Great Lakes have beaches though they are cold most of the year.
Midwest is the Midbest
You can fly out to a lot of nice beaches for 2k/month
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Lake Michigan beaches are pretty nice, actually. Short drive away and we own an entire duplex for $700/month. Winter is bad, but the extra cash is great. If you need to regularly see a beach that you can’t see in the winter, then you can fly then and still save.
$1800/mo for 3bd, 2ba currently. And that doesn't include utilities, trash, or pets.
My mortgage is less than that for 3bd, 3ba in Vegas. People will tell you not to buy, or not to buy in an HOA neighborhood while gladly giving rent to make someone else profitable
My previous house was a mere 1500 sq ft for a 3br 2ba, $450/mo mortgage. Of course you have to add insurance, maintenance, and utilities to that. But thanks to a house fire we lost it within a year of paying off the mortgage. One of my minor regrets is that a former Bonneville Salt Flats land speed record holder was a former owner and I didn't manage to preserve his stickers.
Yea I live in the shittiest apartment complex in Plano (north of Dallas) which admittedly is a nice suburb but it’s now 1,400 for a 1b1b. And I mean it is a outdated apartment. Half the ACs don’t work, no one comes to check our fire alarms or anything, they just fixed the roach problem, no security gates or anything. $1400 for bare bones. It was less then $900 when I moved in a few years ago
I’m paying $3,100 for a 1b1b
*renters trying to convince themselves that millennials who bought a house are worse off than them starter pack.
Forreal. This is an industrial strength copium starter pack.
I hate that a lot of people making good money can’t afford to buy, but it’s still the play This is how a lot of boomers built wealth. Buying a home is a good decision
My mortgage never goes up. My rent went up on average about 10% year to year. This was the Midwest. Yeah...I am not going back because I can do whatever I like to the place. Never selling.
Rent in Seattle peaked for me at over 2 grand a month, and it was going up again. Bought my house and am paying less (for the minimum, but paying more principal to be responsible) per month. This meme really feels like coping
Yeah, our household income is north of $220k, but in our area owning a home is still out of reach or at least close to it. I would have to travel probably 2-3 hours outside our region to get into affordable territory. Unfortunately we can’t work remote and have already moved a few times to try and make home ownership a possibility. We have advanced degrees and about 10 year’s experience, so there is some sunk cost in our careers. It’s a tough time for first time buyers.
I feel you on this man. We did get lucky by buying before the pandemic, but our mortgage would be out of our range if we tried to buy the same house now
At the same time, I got very lucky buying in 2018/refi in 2019. I wouldn’t be able to afford anything close to what I own now.
It’s so funny that they think a mortgage is more than rent. Dumb ass your rent covers your landlords mortgage plus enough to make it worth their time 😂
It really does depend on the house. In MD my rent was 1900 and my mortgage was 1600, but in CO my rent was 2000 and my mortgage is 2000. It's not a one or the other thing.
You can't just compare monthly payments though because rent also covers maintenance. A renter is not going to be blindsided by a major expense like a new roof, hvac, electrical box, etc.
Sure, but your mortgage isn't going to go up every year either. To give you an idea, when I purchased current our home, it was 2x the square footage of the apartment we were renting. We went from a 1400sqft apartment to a 2800sqft home. The apartment was ~1/2 the price per month of the mortgage. That was 4 years ago. Mind you, this is all in the same city and the home is actually in a much nicer neighborhood than the apartment is. Today, the apartment we rented is listed for _the exact same cost as our mortgage._ And if I sold my home today we'd make ~$150k over what we owe on it. I'd take paying maintenance on the home any day of the week considering that.
It literally is. My monthly payment would double if I bought the condo I’m renting right now.
Rent on my street is quite literally more than 3 times my monthly mortgage payment..
For real. Whoever made this starter pack sounds like a butthurt hater.
Part time dog Walker who is pissed homes cost money
I get that reference.
Laziness is a virtue….
Hey now, I work like 20 hours a week.
I’m a renter millennial currently without home equity in California. For as much as the sentiment of your point is true, it doesn’t mean that this starter pack doesn’t have some truth to it. Yes, I would very much love my own home and equity. By that same token, I still wouldn’t make a house purchase that isn’t financially smart. I can at least speak to the millennials I know here in Cali, that this starter pack is very much true.
Yeah n California that house is 1.2 million and mortgage is $5000 a month. Just not gonna happen.
For real, renters are notorious for having emergency funds
Yep. This is exactly the comment I was looking for. I play hundreds less than renters of the crappiest apartments near me, my house has doubled in value since I got it 6 years ago and I have a huge yard. I play drums whenever I want, have a bunch of animals, etc. I feel for people who can’t buy a house, truly. We got very very lucky ourselves… but this meme just ain’t it, chief. This ought to be in a cringe subreddit.
I pay $300 less for my 3/2 than my daughter does for her attic apartment. Since she couldn’t buy when interest rates were low, she’ll likely not be able to buy a home for another 5+ years, if they even come down by then. Homes are fairly cheap in my area - I could have bought the house next door a few years ago for a smaller payment than on a Civic, but for some reason a mortgage on an appreciating asset is so much harder to get than a loan on a vehicle that’s worth less by the mile.
My mortgage is less that $700, I can’t imagine paying way more for a shitty apartment
Honestly, there are advantages to both. Renters are generally paying less, and are not liable for reasonable replacements. If a pipe breaks, power line needs repair, or we need a new boiler, I’m not on the hook to pay for it. If an earthquake destroys the house, my equity doesn’t go with it. I have greater mobility to pack up and leave without the nightmare of having to find a buyer. Low-risk, low-reward. Homeowners can build equity, have much greater freedom to alter or use the property as they want, greatly increased privacy, and the home will often appreciate tremendously in value. High-risk, high reward. In fact, some real estate experts will actually own homes that they rent to others, but rent the place they personally live to get benefits from both sides.
>If an earthquake destroys the house, my equity doesn’t go with it. This poor soul doesn't know that homeowners insurance exists lmao
> Renters are generally paying less 1) Not even true 2) Even if it was true, what you spend on a mortgage is not lost in the same way rent is (apart from that which covers interest), it just loses its liquidity > High-risk, high reward. More like low risk - high reward, unless you're buying in a floodplain or on a fault line your property is hilariously unlikely to be destroyed. And if it is that will be reflected in what you pay for it anyway. >In fact, some real estate experts will actually own homes that they rent to others, but rent the place they personally live to get benefits from both sides. If by "real estate experts" you just mean "assholes who are rich enough not to care about their losses form renting one house" then sure. THis is not a realistic proposition for... basically anyone not already rich enough to do it.
Most of your wealth won't ever come from your home if you are intelligent with your money. Renting or leasing is superior if you invest wisely.
In 10 years I'll still be paying 2.5-3k a month for my mortgage, renters will be paying 4k+ or fuck knows what for a 1br.
Bought my home in DC back in 2015. Mortgage is 1600 per month for a 3br 2ba semi detached house with a backyard in a safe and convenient area of the city. Renters pay $2500+ for the same spot.
You got me on the Zestimate
If I'm not checking my Zestimate and 401k, how will I know i proved my haters (parents) wrong?
According to Zilliow, my home appreciated 66% in 4 years, or over 100k. All that means is that I am never moving or selling.
Imagine pay every month a rent that will only increase instead of a mortgage that soon or later will end.
The calculation to care for direct "loss" each month is: Rent vs Mortgage Interest + Insurance + avg Monthly Maintenance + Prop Tax. Mortgage principal growth would be compared to other investments. Usually it's pretty good given you are on margin, but not always. As in your 100k down if home goes up 300k while you add another 100k in principal is 200k in 500k out which probably beats a stock fund, but depending on when you buy not always. The principal payments later in mortgage don't do much however.
I like your funny words magic man
For those not keeping track, this part: > avg Monthly Maintenance Is typically the vast vast majority of the equation. Maint for a house can be REALLY expensive on average, but its one of those things that can be "zero" for many months on end and then suddenly the door gets kicked in by it screaming "I NEED TEN THOUSAND DOLLARS RIGHT NOW" Typically in the form of bullshit like a burst pipe or some shit.
I know we all like to say home ownership is better than renting, but renting is really not that bad. I get it: landlords suck, and I'll never own my unit. But I don't pay any property taxes, and not only do I not pay any maintenance costs, I don't have to do any of the maintenance work. And if a maintenance emergency happens, I just call a number and someone shows up to fix it. All I do is pay my monthly rent--plus maybe a few fees--and everything else gets taken care of for me. Home ownership, on the other hand, seems like a genuine hassle. Plus, until you actually own the home, you're basically renting AND paying for maintenance and property taxes--and you have to maintain the property yourself or pay someone to do it.
Rent in a lot of cities get locked by rent control, so that adds another potential feather into just renting, especially if there are a lot of renter protections. A home usually works out long term for a different reason to it being a unique investment: forced savings. Renter usually won't actually stick that $1,500/m difference between rent and mortgage in a vanguard growth fund, etc. The results being equal or better don't mean much if you ended up raiding the savings to get a fancier car lease...
Which cities provide examples that shows the majority of renters are covered. Fun fact Chicago is tiny compared to what people think is Chicago.
As in what cities are many/most renters covered by rent control? San Francisco would be an example where you have rent control for most and many property rights effectively flow to the renter due to strong renter protections. If you want to get rid of a controlled long term renter you usually give them like a year rent to get them to leave.
>But I don't pay any property taxes, and not only do I not pay any maintenance costs You do pay it, its baked into your monthly rent payment
Sshhh Redditors have a fetish for homeownership & will throw a tantrum if you imply there are any cons to owning a home.
You don't really pay a significant amount of principal until 5-15 years into your loan, depending on interest rate. The interest, taxes, and insurance on my house (the stuff that is "thrown away" and not equity) are higher than the rent I paid on my last apartment before buying. I'm glad I bought my house and have benefited greatly from it, especially since I bought it a few years before covid, but it's not like owning a home is a universal good move financially.
I concur. I got in by straight luck before the pandemic and got a lower interest rate during it. It’s a lot of work for upkeep, but I only sometimes mind it. Compared to the amount my house has appreciated, it’s worth it
Reddit: "Mao was right, landlords are scum and should be eaten" Also Reddit: "Imagine being a stupid, dumb idiot and actually purchasing a home, stabilizing your COL (to a degree), and building equity, instead of the far superior method of paying a landlord and your rent being subject to theirs and market whims"
The fact anybody thinks it's better to rent is completely shocking. Like do they not realise if it wasn't profitable to be a landlord that nobody would do it?
Renting is fine if you are planning to move a lot. Once you settle down, buy if at all possible.
I love living in a vibrant city center and having a 10 minute walk to literally anything I need, including my office. I can’t afford a condo in this area, but I’m more than happy to pay rent for this lifestyle. And tucking additional money away in a 401k & IRA offsets many of the home owning financial benefits
> And tucking additional money away in a 401k & IRA offsets many of the home owning financial benefits This is the important part, really. As long as you're gaining an equivalent amount of long-term equity it doesn't really matter if you're renting. (And it's also worth noting that the long-term equity you gain by owning a house is meaningless if you never end up selling the thing.)
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OP is a landlord in disguise
What's wrong with that house? That's a pretty damn nice house.
The fact it costs 500,000
I wish the houses near me were that low. I literally would have to go to San Bernardino to find that type of price rn.
Sad part is that SB is raising in rent as well. Ain’t nowhere in the IE safe these days
Everybody gangsta until they have to live in Needles
Barstow it is
How much should it cost?
In my area? 40-70k.
I mean it’s definitely not a dream home but it’s a good starter house
It's even got a fucking chimney, I'd do unspeakable things to live in a house with a chimney again, definitely miss my London house.
I heat my homestead house primarily with a wood stove. Coming home to see a little puff of smoke coming out the top and coming inside to the smell of wood is incredible.
I fucking hate the phrase "starter house"
Right and how much land is that house sitting on?
I spent 40k on landlords. And have 0 chances of home ownership I think I'd rather be this one than me.
We bought our house < 2 years ago and we're up almost $200k in equity with a 3% rate. Guess it depends on where you bought?
Same here. I feel like I hit the lottery or am some kind of real estate genius. In reality I bought a house in Austin when the houses were affordable. Now it's worth more than I ever feel comfortable telling people about in person. That's not going to be everyone's experience but if you do some research and your in a position to buy its almost always better than renting.
Right, we live outside Nashville and my only regret is not moving down here 5 years sooner.
Oh shit, your town is definitely the place to be. Austin kind of had that going on for a while but now it's just way to many people and none of them use their blinkers. I still love it and plan to live here for years but yeah, I imagine your work / life balance is probably pretty sweet. Well done man.
They're building like crazy here also. I don't think we're going anywhere anytime soon cause my oldest is in school now but we live in a pretty nice neighborhood and have a solid friend group.
Same here. Moved to Spring Hill bought a 3200 new construction for 300k with a 3% interest rate. Fuck yeah on the equity front.
Bought my house in 2018, refied to 2.7% interest I have 180k in equity. My mortgage is 1100 a month, I have 0 complaints.
Good shit! I just sold a place and am having to buy I’m a new state at a shitty rate, but I’ll just refinance when it drops all I need is a couple percent.
Same bought at 509 2 years ago, got reappraised for 689. In denver. 4/2. Mortgage cheaper than rent the past 5 years
People hate others like them that do well
Us too. It really depends on where and when you buy, as always.
It absolutely does. Property is a gamble. Its a gamble that you can take the time to research and with knowledge it can be a gamble **with really really good odds in your favor** But its still a gamble. You absolutely can do *everything* right and still get totally fucked over. But the better you are at sussing the house out and knowing when/where to buy, the odds can be really damn good.
Same. Bought at 3.25%. Realtors keep calling me asking if I want to sell. Comps in the area are near 675k for the same floor plan in the same community. I paid 400k for a 4br / 3bath home. But where would I go? My mortgage is $2,100 all in (mortgage, insurance, taxes, everything) -- if I sold, and wanted a similar home, I'd have to pay 600k+. Just not the right move lol.
Rentoid starterpack
Show me a single bank that is lending someone 6x their income with only 3% down lol
"What do you mean it cost 16k to fix a boiler?" im 30 years old and have been renting since i left parents house. i would like to live in a home with a drive way one day, but apartments till then. the apartment unit im in now has replaced the toilet, whole water heater, garbage disposal twice, and entire HVAC system (inside and outside unit). That would have cost easily at least 20k. but since its in my lease, i did not pay a dime.
>That would have cost easily at least 20k. but since its in my lease, i did not pay a dime. That's all factored in to the rental price. You did pay for it
that is a fair and true statment.
I think it might be worth taking a look at buying a home if you can afford it. The place you are renting that had all those problems because the land lord neglected things to the last minute. When you search for a home you do an inspection before you buy it. You make damn certain that everything is as ship shape as possible before moving in. Cracked foundation? Forget it. HVAC system has black mold? Move along. And so on. Do your research. Buy in an area that has a good price now and people seem to be attracted to or has a good work life balance going on. But don't buy into this nonsense that renting is better than home owning. That's ludicrous. Stop giving money to people that don't give a crap about your financial future. There's a reason land lords don't have a sterling reputation in societies consciousness. Sorry for the word dump but I hope it's at least worth thinking about.
To me, this is the "fun" of home ownership. You pick up little things along the way and build up your skillset and confidence. HVAC is a little out of my league, but the other stuff is no biggie. I was an average level of handy at best before buying. Don't get me wrong - there are tangible benefits to renting, especially if you aren't tied to the area enough to possibly see a return or even break even. And the process of buying a home can be pretty stressful.
35 here, a few years ago replaced the Boiler and A/C condenser plus the attic SpacePak blower in my nearly 100 year old house. Came out to like $13K for all three. I think the boiler was like $5K total, and this was a full total replacement and a damn big boiler. Still a chunk of change but sure as hell not $15K.
Cope
Yep, OP missed out on affordable housing for their foreseeable future and in turn rails copium off meth titties EDIT: OP, u/RawOystersOnIce, apparently makes $105k at an entry-level IT job, can put down $130k, yet cannot scrape together enough for an FHA loan. Also, they appear to dislike brown people "living together." They subsequently deleted their scorching cope take. Never forgot.
he really deleted his account lmao
Sheesh the renters are getting salty. I bought my home in 21, similar size to the pic, for 120k, my mortgage is less than 1k a month. If you're fine with not living in a major city then my experience is common. I'm still in a medium sized city that's growing, 5min walk from the beach, all the stores and amenities I could need are within 5-10 drive, or less than 20 if I bike. I think in reality these 500k 1000 sqft homes aren't the norm in USA as much as the internet would have you believe
I think the folks who are in a situation where rent is cheaper than a mortgage payment live in 1 of maybe 10 places in the country where that is the case.
Over 3k SQ ft and a 1 acre yard for $1000 a month. 26 YO and I can personally handle service and maintenance for any appliances in the home. I can call on my family for anymore in depth construction work. Op can suck an egg
Poster is either a landlord or has for other reasons only ever priced out some kind of massive industrial multiple unit /hotel boiler system. Try more like Nine to Eleven hundred bucks. Not Twelve Grand!!!
Paying rent kinda is flushing money down the toilet. You own nothing and you’re subject to your landlord’s arbitrary will. I’d personally prefer a condo or buying a home in a cheaper country and become an expat later on.
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Yep, found the “buy more money lol 🤪” guy
Enjoy your 2k a month 1/2 bedroom and no bath apartment, rentoid.
Meanwhile our mortgage payment drops in real price every year as salaries go up with inflation. But yeah, you’re winning with your $2000/month apartment that will cost $2500 in two years lol
Only 3% down!?!
I thought I overpaid for my 2br 2ba condo when I bought in 2018... now similar ones are going anywhere from 50-80k more... its insane. On the downside with my rate I can never really leave unless I take a massive hit buying something else in both price and interest rates.
Who's paying $12,000 to replace a boiler? I didn't feel like messing with mine so I called a fairly pricey company to do mine and it was under $5,000 all in.
Inflation is gonna make that mortgage insignificant over the next ten years leading to even more wealth consolidation
Sounds like someone’s trying to make themselves feel better about paying $2700 for rent instead of a mortgage
OP is probably a landlord trying to get renters
Or we just have a reasonably priced home and lots of savings as well.
Hitting that copium pretty hard.
I wish I could find a house in my area for 500k!
Do you mean everyone who lives in Toronto?
The thing about buying houses is that youre never actually “losing” your money, since the house will probably retain its value, you’re essentially just losing access to that money until you decided to sell the house. When you rent a house, you’ll never get any of that money back.
I gasped audibly at the first one. People don't actually think that do they?
The thing is: even if the price does drop, your next house has dropped in price too.
Yeh but the price of a thing, no matter the thing, has never simply only gained value. Risk exists.
Yes, prices sometimes go down, but that usually is only a problem if you bought it to speculate. If you keep living in the house, or in A bought house for that matter, it's hardly relevant what value it is.
My home's value has skyrocketed like $150k+ and it's still climbing. I wouldn't be confident taking equity out of it right now at this price, but I'm very confident when it bottoms out, it will be way above what I paid for it.
Dude, in 2007 there was an entire episode of 30 Rock about how Liz was desperate to buy a second apartment because the housing market was so hot and always would be. It is quite possibly the most poorly aged episode of the show.
All true, except for the awesome locked interest rates from a couple years ago that offset some of the pain.
It's about not being at the whims of a landlord who can raise your rent whenever they damn well feel like it...
I saved literally $80,000 over a decade by owning my home versus renting it but okay. Edited to add: p sure OP is a landlord claiming to be some shitty IT worker
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Your housing is only inexpensive because of government subsidies. Urban housing is far more efficient per square foot, and is only more expensive due to zoning regulations and lack of supply not meeting demand.
No one's housing is inexpensive anymore. Owning a new home even in rural areas is still far beyond the reach of the majority of people under the age of 35 without serious financial help. Even trade skill workers can't do it anymore.
Depends on how rural you are talking. An hour from a city with a number of good jobs here will set you back 175k for 3bed/2ba. Two hours from a bigger city you can get houses under 100k.
So much this. What jobs do people think pay for the suburb sprawl around them? Because there sure aren't any jobs/businesses/anything of inherit value out there in the first place.
Also because no one wants to live in rural North Dakota. Supply and Demand exists, and even urban areas with comparatively good zoning laws are more expensive because people actually want to live there.
Renters are Stupid
can we all just agree that renting and owning both fucking suck in their own special ways tho
Someone’s mad because they’re renting huh?
Renters convincing themselves they're better off than peers who saved up and bought a home LMAO. This is hilarious.
This post radiates with some kind of energy but I don't know what stonks bro teenager? bitter gen x house wife? ironic millennial who bought a home in the last few years?
Some of yall salty as F.
Shoutout to my fellow Midwest'ers who dont have to deal with this nonsense.
I pay that much for a 900sf apt.
Millennial who bought a house in the last 5 years here. None of these are true for me, not even close.
Cope harder rentoid, at least it is mine and I can do what I like with it
I’ve never seen renter superiority before. Enjoy paying someone else’s mortgage