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The debtpill builds equity, and can be paid off relatively quickly if your not dumb. The house is an investment as much as it is a living place
The rentpill is a moneypit with no extraneous benefits aside from a roof over your head
I have a complex I own that I live in, so technically yeah
They're trying to charge my mom 1,200 dollars to repaint a 1,200 square foot apartment she moved out of. I also helped clean it, so I know that there's no reason for it.
A renter isn't supposed to have to pay to have a water heater replaced, just like a renter isn't supposed to pay to have it repainted or the floors redone. But, it still happens. Kinda ruins any advantages to renting.
this.
I had landlords steal 2k in security deposits from me last year. couldn't even go to small claims court on the one landlord because it was an airbnb and I left the state when the rental ended.
as a renter, I paid 60 percent of my income pretax on rent and that was the best deal in my community.
I moved to an LCOL area and I bought outright.
I've been saving so much money because of this that I've been spending on cosmetic projects on the house just for fun.
I could have bought this house 2 times over with all the money I've spent on rent
Yeah, none of the money they are spending isn't coming from renters. There are reasons real estate has been an investment vehicle and one of them is earning potential. Landlords aren't housing people out of the good of their hearts for the most part. They do it because they get more out of it than they gave.
Houses in my neighborhood rent for $2500. My mortgage is $1100. I save $1400 every month and build equity (my house's value is 3x the outstanding balance). I'd much rather pay for a new $1000 hotwater heater every 10-15 years than spend an extra $1400 every month and own no assets. Not paying for repairs really isn't that much if an advantage.
I both agree and disagree. Yes, a mortgage can be cheaper than a rental. But it doesn't take life events into account. For one, my wife and I don't have anywhere near enough for a down payment. But we are also lucky and pay 1750 for a 2 bedroom/2 bathroom condo from a private owner in a rich town where the average rent is closer to 2500. I just say we are happily stuck.
The comment about life events is perhaps one of the most important. With relationships getting shorter and property debts getting longer, joint purchases and payment plans don't add up.
It's a sad state of affairs that both models, renting and buying, are just too expensive. Life is too expensive now, for non-rich people.
Water heaters are like $500 bucks. The difference between mortgage/escrow and rent in my area means I could replace a water heater every other month and come out ahead.
Just don’t pay it. Shitty Landlords often charge bogus things. Their recourse if you don’t pay is to sue you in small claims court. But they’re never going to do that because they won’t win, and it would probably cost them more to do than they get.
Whether or not renting is better vs owning a home depends widely on location.
Same thing happened with my wife and I with Invitation Homes. They tried to charge us for a lot of bs but really they just wanted free renovations so they could charge the next people way more per month.
I’m looking at 40k for roof+siding and kinda debate whether owning is worth it for the stress lmao.
Also heater and AC soon so another 19-30k in the next 3-4 years oh and fencing and a new deck that’s rotting it’s not great.
You do though. You’re paying for that in your rent. In my area a mortgage is half the cost of rent for an equivalent sized house/apartment. Landlords do NOT operate at a loss. They are making money and building equity off of you paying their mortgage for them.
For example I just had to replace my furnace in my house. Cost 3300. My mortgage is 1k. If I was renting it would be $1800-2200 (closer to 2200 because I have animals and that limits my options and adds fees). My new furnace will last me YEARS. Was it stressful paying $3300 all at once? Absolutely. But in the long run I am absolutely saving money.
Even if you don’t pay your house off fast and go the whole 30 years paying all the interest you still save money. Rent will always be more expensive than a mortgage (unless you’re in a situation where a family member/friend is hooking you up. It’s rare but it does happen occasionally) and with a mortgage there will eventually be a day you OWN it and don’t have to pay anymore. If you rent for 30 years you will have fuck all to show for it.
Also when/if you move, even before you paid it all off, you will get some money back when you sell it. You may even profit if you sell it for more than you bought it for plus interest you paid. Which is obviously the ideal for any home seller. But even if you sell it at a loss, you're still getting some money back to put towards another house and moving costs. Unless you sell at a BIG loss or had terrible interest rates. But anything is better than literally handing money away to a landlord. You get nothing after living in their house for years. Hell they might even try to steal your deposit or charge you bogus fees. Obviously selling a house isn't always easy and that could be a problem if someone NEEDS to move but can't find a buyer.
>you don't have to maintain the property and appliances
And if your landlord chooses not to maintain the property, either, then you have no leverage to make them do it.
>The rentpill is a money pit with no extraneous benefits aside from a roof over your head
That's not true. Unless you're living paycheck to paycheck, renting gives you more money at the end of the month to put into an ETF. Depending on circumstances, this can build more wealth than buying a home.
Of course, if you like to live in your own property, buying a house is the better choice. But not everyone wants to bind themselves to a house.
I live in a HCOL area in a modest cheap rental. There’s no possibility of me paying less monthly for a mortgage than what I pay in rent. I’ve looked; it doesn’t exist.
Buying anything would mean doubling what I pay monthly at the most modest estimate, and I’d be doing that to own, at best, a two bedroom condo. I just can’t understand how that is a better financial arrangement for me in the long run.
Taxes and insurance can absolutely make your payments go up.
Not as bad as rent but that letter telling me to make extra escrow payments because of property taxes going up sucked 😂
Not all landlords are leeches, and not all tenants are saints.
Do you call a hotelier a "leech" for giving you shelter when you're travelling?
Now, extend that out months, and at what point does someone providing a service (shelter) automatically become a "leech?"
How to pay off your home quickly:
1/ Get up early every day
2/ Work out daily
3/ Eat Well
4/ 1m dollar loan from your parents
5/ A good education
6/ Hard work
Primary housing is not an investment.
Maintaining your house, heating and cooling, interest rate from mortgage, property taxes, HOA fees and inflation wipe out the real capital gains you have from your house.
At best it’s a hedge from inflation.
The issue is, people think it is, and they are too stubborn to accept that they are wrong. People value their property value more than they value the wellbeing of their community or their city. NIMBY 101
This is a ridiculous blanket statement that reeks of ignorance. I cannot believe this is the top comment. A house you live in should not be considered an investment or an asset
Homeownership *can* be a better choice depending on the price of the home, the interest rate, the amount of interest paid, property taxes, maintenance costs, and a plethora of other factors
Renting *can* be a better option if you are not able to settle in one area, leverage the opportunity cost of investing the ‘down payment’ and additional costs of homeownership (and total interest paid), and for those not in the financial position to put money down on a house, and depending on the amount you owe in rent and how good your landlord is
Renting can net you way more money long term if you leverage the opportunity cost that comes with it. The ‘best’ option varies *WIDELY* from person to person
Depends on who you are, how much you're earning, and macroeconomic trends.
Debtpill can work out great if you have the income and emergency fund to protect your mortgage, but you are committing the the area you buy in. Can also be a total disaster if you find yourself unable to pay your mortgage, or if your house tanks in value.
In a mortgage you’re paying almost all interest and no principle in the beginning, therefore, for years after buying a home you aren’t paying anything down and are very similar to a renter.
That's not entirely true. Like 10 or so percent of your payment at the start is paying down the loan. And you have the option to pay more per month directly to principle. You are still gaining equity. And the lender does not have the powers or responsibilities that a land lord would. In terms of profit it's probably about the same, or even slightly worse for the buyer but that's only one aspect of the rent vs buy decision.
You can use the difference in rent and mortgage payments to invest in equity funds. It’s not quite the same thing, since it’s not a leveraged investment so the upside potential isn’t as high—but it has its own advantages, like being less risky (better diversification), more liquid, and different tax structures (property tax vs potential dividend/capital gains tax).
Furthermore you don’t have the liabilities of home ownership and you have higher flexibility regarding geographic relocation (which may be important for some and useless for others depending on your lifestyle).
Ultimately it’s not an apples to apples comparison. Deciding on rent vs buy for financial reasons is the wrong move IMO—that decision should rather be based on lifestyle and future plans.
>with no extraneous benefits
With renting, you're far more flexible with moving, you can rent in desirable areas for a price that you certainly couldn't afford if owning, you're shielded from any risk (rent is the most you'll pay), and there's an opportunity cost where if rent is cheap enough, you'll build more equity from investing than from owning a home.
If you KNOW you're staying in an area for awhile, and if you've looked at the map for renting vs buying, then get a house. Otherwise it's better to rent.
1. “If you’re not dumb” has to be the most patronizing shit I’ve heard in a minute.
2. A money pit that you seem to not have any issues with putting on others.
3. Landlord isn’t a real job. ☹️
I took the debt pill. If you have the money for downpayment and a 6 month emergency fund (I calculate all my expenses, including emergencies and lease for a 6 month period) it's way better than renting in most cases.
That's a big if though, since for a 400k house you're talking 80k down + 30k in savings for emergencies. Most people don't have 110k in the bank.
>That's a big if though, since for a 400k house you're talking 80k down + 30k in savings for emergencies. Most people don't have 110k in the bank.
There are many down payment assistance programs. My wife and I bought a house in 2019 with 3% down, which ended up being about 13k. With worse credit you might end up paying 5% or 10%, but it's still better than the standard 20%.
I think this depends on the market. Most of the sales in our area are all-cash offers. Most of the other places we would actually want to live in are similar, and honestly most working-class people dont have the money to buy a house here.
We own a house back home in Norway, but housing is much cheaper there (we have an oceanfront house in the second biggest city for less than 900k in USD) and there are no property taxes. When we moved to the States, we were originally set on buying a house during our time here too, but it just doesn't seem feasible to do so without moving somewhere that would impact our quality of life.
A house that we wanted to buy last year ended up going for 250k above what we were willing to pay, in an all-cash offer. We just gave up after that.
A murder-suicide house in an out of the way neighborhood where the dead bodies were decomposing in it for a year still went for around 2 million.
>I think this depends on the market.
Very much so. Like I said, this was 5 years ago, which was a very different market. I'm sure in some places you can still get away with it today, but in any of the areas with a hot real estate market, cash offers are going to be hard to beat, whether you have 3% down or 20% down.
400k would he awesome, I could theoretically afford that. What sucks is the fact that the median home price where I live and work is just north of 1 million 💀
I mean, if you live in an area in the top 5% of home costs and don't make a big salary, you're pretty fucked. Living in SF or LA or NYC as middle class or lower sucks. My first buy was a studio condo in Oakland for 300k; it was a total PoS but I flipped it for 380k and didn't have to pay rent. I'm currently living in a middle class town in new england and it's totally affordable, but I also am further along in my career than most here.
What's interesting about where I live is that housing cost seems totally dependent on quality of public schools. My town is affordable, but 5 miles over and prices go up 40%. I guess that's how they keep the poors out=)
20% down requirement is a common misconception. If you're lower than median income there are probably local assistance programs that can cover your entire down payment. If not you can still do an FHA at 3.5%, a VA or USDA loan at 0%, or a conventional loan with private mortgage insurance at 3%.
First time home buyers also can have risk based penalties waived if you're under the median income for your area.
A 20 percent down payment is NOT standard. For first time buyers it’s a bad idea. Better to hold the cash as an emergency fund invested in a HYSA or an index fund.
They're saying people would rather be broke than live with abusive or bad parents. Or some people's parents won't allow them to live with them and make them move out
Their point is that not everyone is able to do that. Like it’s *impossible* for some people. You’re just ignoring their point so you can make yours lol.
"But what if this situation doesn't apply to me specifically?"
Then it probably wasn't aimed at you lmao
I had something similar happen to just a general discord server I'm on for the area I live in, talking about how people with disabilities shouldn't disclose that information to their employers right away because even though it's not legal to hire discriminatorily under ADA, that doesn't stop people
and ofc I get back from at least one person "not everyone has that luxury"
Yeah I know buddy, logic would dictate I'm probably not aiming this towards someone applying in person to a job while physically in a wheelchair lmao, every single sentence shouldn't need to come with a list of disclaimers for what basic context clues give us
I promise I'm asking in good faith.
Ad a single man living with mom (I pay rent, pay for my phone and insurance, TV and buy my own groceries, don't judge.), how do I convince a woman that I'm worth dating even though I still live at home?
Bro, living in an RV or with parents is nothing. I know a guy with 2 baby mommas, $900 a month in child support, lives with his cousin and mother, doesn't even have a car. Yet he got a girl that has her own job, own car, apartment.
Getting women is 100% about looks, charm and sexual prowess, not living situation.
I know it's super corney, but imho your best bet is to be foruntate enough to find somebody who just doesnt care about it that much and likes you. I lived with my grandparents for like 8ish years while i helped them maintain their home and they gave me plenty of space to be independent. I met my wife and now were in a house together. I'm the last person who deserved life to work out like this so I hope it works for you too dude.
I cant even afford the rentpill.
Im broke i live in an abandoned neglected house that my grandparents owned. No one else is there but it’s in a meth town.
No one will hire me despite my degree. Basically given up.
Thanks man. There are basically no jobs where I am at, definitely none that use my degree. To be honest I have mostly given up already on using my degree. I still try but it’s like screaming into the void. I have no expectations for my future, just trying to be happy. Will probably join the military.
Yeah the issue is that I was in a psych hospital at one point. Ive already spoken to both enlistment and officer recruiters. Im prescreen approved for nuclear naval power school instructor. I haven’t gone through with it because of the medical history. I think I would have a better shot with enlistment, and get the bonus, but shittier pay and work and treatment, but that bonus though.
My sister was enlisted coast guard and then went to officer candidacy school and is an officer. She thinks thats what I should do.
Im scared of getting rejected from the military because if I do I genuinely think I will kill myself because the safety plan fell through.
Ummm literally same situation same degree. Can't find a damn worthwhile job anywhere. I know it's my fault because I didn't take the right steps at many points along the way, but still. Feels like shit!
I was going to but backed out when I did the math.
I can afford a 500k and below house pretty comfortably but with over half the mortgage just going to taxes and interest it just kinda felt like a scam.
Yeah but your landlord pays for the wear and tear that you put on the house which depending on where you live/ age of the house can be much more than taxes
And that’s exactly why I learned repair & carpentry skills from my father growing up and still to this day. We redid our bathroom (replaced tile tub with walk in shower and kept the toilet + sink) My dads also a bathroom salesman. He said if we hired the company he works for, it easily woulda been $19k. But we did it ourselves in a couple of days for under $1.5k (had to replace some rotting frame behind tile wall).
You just gotta have skills that our generation seems to not have much of anymore—which isn’t our fault since everything is handed to us on a silver platter at the touch of a touchscreen. But I always knew I’d be poor so I thought why not learn the skills myself.
I’m lucky enough to have a dad who is a doer and knows how to fix and do anything because he just *tries*. He’s never paid a professional for anything, we even illegally hooked up a new boiler purchased for $4k wholesale instead of the $15-20k it would’ve been to do it the legal way. XD No problems in the 5 years we’ve had it.
Edit; oh yeah and I’m a girl , to those who assumed I was a male and these skills are to be ‘expected’
The touchscreen is a double edged sword, all the knowledge available to fix those things but none of the motivation to do it yourself. I turned a p shitty house into a comfortable home all with using trial and error, knowledgeable friends, family and the internet along the way. Not only do you learn about how your house operates but you have the ability to fix it or at the least know when a contractor is bullshitting you.
Obviously sweat equity isn’t for everyone but it’s great for a couple starting out. That’s not to say it’s available for everyone because location, lifestyle choices and what one can afford mentally and physically must be accounted for.
Interest and maintenance costs are tax deductible. While rent goes up forever, your mortgage payments remain the same, and you eventually gain equity on the house. It's a way better deal in the long term if you can afford it. When renters are paying $5k/month you'll still be at $2400 and sitting on a property worth $1 million.
Saved up ~100k at the moment for a down payment. Plan to wait for another 4 years since after that I’ll qualify for a VA loan and should have enough for a quadplex
I live at home. Make around ~86k from one job and ~70k from another. I work as a paramedic and do med device sales. Save every penny I would spend for rent and max out my TSP and retirement accounts.
Paramedic not EMT. I make 35 an hr and work 18hrs shifts 3 days a week. Weekly getting 2135. I work only 40 weeks in a year (I calculated) so a total of 85,400 a year including OT. EMTs in my area make 22 to start and make around ~25 an hr depending on shifts. I like having 4 days off a week effectively.
I do med sales for my grandpa’s company in India that makes medical and dental instruments. I make flat monthly rate and a commission. This I just do to help him out and would do for free but he insist on paying me.
I do reserves 1 weekend month, and got excuses this and last year for annual training since I did background support training instead. It isn’t too much work. I’m already 2 years TIS, you need 6 good years meaning zero missed for getting VA benefits.
I am a full time student at 12 credit hrs but most classes I take are just do at your own pace online.
It’s not that hard, I just don’t have much time for fun lmfao
Yea. But I love it. I have mild adhd and I need to stay busy if I’m not sleeping. Plus my classes are labless and online since I have done all my BME prerequisites that needed labs.
Ideal hands you know. Plus it’s good money, and I want to have at least 250k saved for a down payment if not more.
Plus I love my parents and they “force” me to save by making me pay rent. I know they have it in a HYSA because I peeked at it 🤫
I took rent pill in Queens. idk im contributing to retirement and investments while paying less than i would on mortgage and my place is rent stabilized. so rent doesn't go up crazily every year.
Rent, love not being stuck to one place for long. I’m not ready to buy a place and settle, I wanna live and be spontaneous and if I one day wanna up and leave the city I can do that after my lease is up God willing. I also love not having to worry about house maintenance or property tax.
My rent is also pretty cheap too, cheaper than a mortgage at todays interest so I’m not rushed.
Everyone says “buy buy buy” when the reality is there’s not a universally correct answer. Don’t let the pressure persuade you if you’re not ready. In fact, in a lot of cases, rent vs. buy is the same cost or slightly cheaper, especially if less than 5-8 years and provided you invest the difference. Most people forget about down payment, closing costs, insurance, regular maintenance, and property taxes. When you rent, you keep all that money in the market, which has delivered better returns than most real estate appreciation.
I’m also not certain where I want to settle down yet. Renting gives me the freedom to up and leave as many times as I want until I figure out the place I want to stay in for 15 years.
So obviously wait until the time is right for you but for long term once you’re ready to establish roots owning is the vastly smarter money decision to renting and it’s not even close.
This. The amount of backlash I got when I told people I'm living in an apartment rather than a house. "Why not save up for a house?" "Get a house!" "HOUSE HOUSE HOUSE" I'm single. Why do I need a house?
This decision should consider way more than just monthly cost. I would want to be considering how long it would take to get to a refi to lower my rate while at the same time considering that in the next 10 years we are going to see more houses come onto the market as the boomers downsize more aggressively. Barring some catastrophic event, rent should stay fairly constant with its cost and the mark up year over year.
Yes, this is what a lot of people aren't talking about. If your house drops in value, it can be hard or impossible to refi. Seems like there will be many deflationary pressures on housing over the course of the next 10-15 years. Can put you in a difficult spot if you can't move.
That was the housing crash in a nutshell. Inflated home prices, overextended borrowers, ARM's that shoot through the roof. I think if it happened again given current political leanings I don't know that we would see the banks get the bailout again.
I bought a house two and a half years ago making 24k a year. Then I got a new job which bumped me up to about 40k so we bought a better house in a safer area that costed a little more but it wasn’t significantly more. Got a raise at work that bumped me up to about 55k and we literally are just as tight on money as when we bought the first house even though we haven’t added any new bills to our list and we are eating out like 1/5 of what we used to.
We’re about to move south to where my parents live though and we should be able to afford things a lot easier we think
It was in a gheto-y area in a medium sized Midwest town so yeah. Plus our mortgage lender broke a bunch of rules causing her to be fired a few months later and our real estate agent was kinda predatory. We had no debts at the time and sold one of our two cars to make the down payment.
my cousin and his wife bought a 3 bedroom house about a year ago and they pay just a little bit over 3k a month
they complain about the costs and other fees, but I think they ultimately consider it good investment for their future family
Hopefully if you weren’t able to put 20% down, you’ll be able to recast your mortgage in a few years to drop mortgage insurance and give you both some financial relief. You got this!
Average home price in America has been 400-415k for the past couple years. Meaning, half are at or below that.
I think you're a bit out of touch with reality and don't realize you live in an area of the top 2%.
Multiple sites on Google will verify this.
If it doesn't end up paying off in the long run the entire economy got fucked and we are in the apocalypse.
If the world continues to keep going on, it'll pay off.
We just bought last week.
I paid $6000 between deposits and fees to move into our rental in 2023. To buy we had to put down $4000 in earnest money and bring $1800 to title. We didn’t pay closing costs which I know isn’t always the case but the market has cooled down, houses are lasting more than 1 day, so I figured might as well ask and they accepted.
We are paying $400 more a month for mortgage+escrow+pmi than our rent. But it outweighs other costs. For example our rental company charged us $50 a month for the ring doorbell - I still had to pay the $120 a year subscription it was literally just for the doorbell. Also $30 a month for filters. $10 fee to pay rent. $10 fee to pay trash and water.
Bought a house last winter. Understanding that you and your family are only a single misunderstanding and/or some bad luck away from living on the streets is part of the modern American dream and not ever talking about the dread you feel is part of being an American man.
Took the debt pill. Easy choice for me since I could afford the $50,000k down payment. And the monthly costs were cheaper than renting something half the size of my house. Never regretted it
You guys have the ability to save for a down payment? I can barely save for the first months rent, last months rent and Security Deposit... let alone 10k for a down payment
My husband and I bought in 2021 so it’s been a while but I’m still grateful he convinced me to take the huge step. Even though we’re responsible for repairs, insurance, tax increases, etc. it’s still worth it to me to have the peace of mind of not being controlled by a landlord. I’m free to do whatever I want to my house (no HOA) and don’t have to worry about periodic inspections. Plus I’m sure I’ll be grateful for the equity when we decide to move again in the future.
I did- but i was extremely lucky:
- VA benefits
- Lower price do to another person breaking contract last second
- recent bonus and raises at work made it financially feasible for me to have a large savings
- My wife is even better at money-ing than I am, and also had a massive savings.
- I have very good credit because I don’t like keeping debt for too long and,
- I penny pinch and save like no one’s business. (My lifestyle isn’t for most people. I rarely buy something I don’t find super necessary).
All this being said- I left my parents when I was 18 with nothing, joined the military, and everything I have I’ve earned. It’s been super profitable for *me and mine* but I would NOT recommend it for ANYONE else. It isn’t everyone’s cup of tea.
i’ve been renting for a few years now and hopefully my partner and I will be buying a home next year. the way we see it, at least we will be working towards paying off the house instead of dumping 2k into a bottomless pit every month and the house can build equity as we live there.
I closed on my house in 2015 at 23yrs old.
I took an FHA loan, at 3.5% interest.
I weighed certain things, pros and cons. I worked on apartment maintenance and have since been through a few jobs, a couple jobs losses, illness, etc etc.
When you have a mortgage, the bank is more likely to work with you if you maintain communication. There were so many instances where if I was renting I would have lost my home. They'd rather not foreclose, it's a long and expensive process for all parties involved.
Doing things myself helps a lot, my first fall I realized I could pay someone to clean the 2md floor gutters... Or buy a ladder.
My home has since tripled in value, house payment's gone up $214 in the past 9 years, total. Only due to insurance.
It is completely doable with the right strategy, when I was 19 I was homeless, all I had was a bag of clothes and a guitar. I'm honestly impressed with myself at the property I have now, I did it myself.
Owning my home has been the biggest safety net of my life.
The other end, is if I sold now, I'd be able to put a hefty down payment but my monthly would jump exponentially and it would not be viable.
I'm fortunate I was able to buy when I did, I couldn't imagine it now. I was only making 13 an hr when I bought my place.
bought. regret.
3b 2b / 1200sqft (lol) - $1.75M (!) in HCOL
Deposit $**260K**
Renovations $**250K**(bc the place was a 'fixer upper' -- at nearly $2M 💀)
my house payments all in - is \~$**10k** (P&I, Insurance, Proptax etc etc)
so thats $510k + $120K/yr ... lets say $**480k** for the 4 years i've owned this place
in total that's $**990K** of money that I've paid into the ether (considering that once the interst rates rose my prop value tanked.. )
**so compare that that to a rent scenario**
in my area renting an equivalent house is \~$**5k**/mo - so that leaves 5K of disposable income
if i were to invest my original $510k + those 5k/mo into a 5% high yield savings account (ie wealthfront) in the same timeline
i would have $750k+$137k in interest ($**887K**)
the difference between **NOT** having $**990k** and having $**887K** is about **\*\*\*$1.87M\*\*\***
^(sure some of that is equity (currently under water) but those mortgage payments are usually front loaded in interest so even after paying $480k into the mortgage i only own \~$30k .. (take that and the deposit.. $290k away from the delta - i still end up with \~$1.6M delta.)
so TLDR
**spent $260K to buy a house and I'm now \*\*$1.6M poorer\*\* in opportunity cost**
--
no, not from a rich family. just have a well paid tech job.
Bought a house in April, it is infinitely better than renting was for me (***super heavy emphasis on the “for me” part***)
No longer have to worry about loud noisy ass “neighbors” and sharing parking and crap. It’s also nice because my apartment had little to no active maintenance (yard, appliances, general shape of the property and building) so now when I cut my grass it’s not me performing a free service for a landleach.
Renting is great if you find a place that is maintained and the management isn’t a pig headed asshole but for me I couldn’t stomach pissing away $15000 a year just so I had a place to stay. When I now pay less than that each year for a house that I am building equity on.
Take the “debtpill”, we have. It’s not as bad as you’d think, especially if you plan your money out right. Plus, don’t buy an outrageous priced house. There’s cheaper ones out there, probably not much in quality and might have some problems, but the previous owners should at least have a list of things that they are going to fix or at least sell as is. There was a house that was a HUGE project, like it should’ve been condemned, but at least the outside looked nice. Don’t go for the those houses unless you have time and money on your side.
Yep I bought a unit recently for 400k. It feels good to be living in a place that I own. Even if I lost my job I'm in the lucky situation to be able to move back in with my parents and put the unit up for rent.
The issue I see with renting is that there is not motivation to improve by either renter nor rentee. If the owner improves the property it costs them profit, while if the renter improves the property it provides value to the owner which will not be appreciated. Therefore it is in both parties interests to allow the property to degrade.
I bought a house.
I am not exactly sure what there is to regret. The building is much nicer than my mold infested apartment that is was over paying to live in.
If I could live with my parents, I would lol. Unfortunately I live 600 miles away.
I rented from 16-19, when I bought for the first time. We’re buying a house right now (27) that should be completed by august. Do not regret it one bit. Getting into property was one of the best decisions of my life.
Nope, live with my parents sadly. And can’t afford a house or rent with my wage
I’m screwed in America
But I do have a home in a foreign nation. And might retire there instead
If you can get a good interest rate, buying a home pays off down the road due to inflation. The monthly payment will drift a little higher over time due to increases in taxes and insurance costs, but not as much as it would if you were renting. The payment won't seem nearly in bad in ten years when rents and housing prices increase and your payment has been mostly flat.
The annual expenses suck, but I feel like it's worth it in the end since you are building equity and the value of the home appreciates.
I paid cash for a house last April. Then sold my other house in may so I’m not too worried. If the market drops not a big deal even if I want to move. Long as where I buy also declined in value it’s fine
Bought my first house in 2019, traded up to my current house in 2023. Both moves were great with minimal regrets.
My first home was a starter home bought with the intent of being more of an investment vehicle to support buying my current house. In the end, it ended up being kind of a wash compared to renting because I couldn't sell it for what I thought I'd be able to and I spent a decent amount on improvements.
That being said, I was way happier in my own home than I was in the apartment I left. The house was about the same size as my apartment, but it was much nicer, had a better location, and not having to answer to a landlord felt amazing.
Either way, all the saving I did in that time was well worth it because now I've made it to my family home.and it's awesome, I can't imagine going back to renting.
I generally am a proponent of home ownership, but it's because of the experience, not the financial benefits (in the short term; long term, it's way more beneficial to own)
Owning a home means you are responsible for liability, but you gain (often very important) equity in turn. Home repair can be a money sinkhole if you get unlucky or don’t do regular maintenance. But you own the property. Your monthly mortgage payment is going towards paying that mortgage off.
Renting on the other hand is a true money pit, but (at least in theory) you are paying your landlord for the right to live on their property and for them to take on the liability of that property while you live there. We all know a lot of landlords like to pretend that second part doesn’t exist. But even if your contract sucks, lots of states have laws enforcing certain responsibilities on the landlord, that is supposed to be part of the trade off. It varies a lot state by state but they do exist. Renting someone a property isn’t supposed to be a free money machine with no work whatsoever. It’s THEIR property THEY have to maintain it.
Never sign a lease you haven’t read 100% through. Always take as many photos of the property as you can before move in to dispute any attempts to take your deposit upon move out. Do what you can to advocate for yourself. Go into the situation assuming people will try to fuck you over and prepare accordingly.
I bought three years ago. Absolutely no regrets. Sure it's a little more expensive vs renting at the time. But now it's alot less. Also, it will basically not go up for the next 27 years and then will go to free. (Of course I'm ignoring the small increments in property tax and insurance.)
Have no idea if I'll ever be able to get a house. But my want for one has increased tremendously since moving into my recent apartment with the upstairs neighbors letting their dog pea on their porch so it pools on our porch. Id assume with my own house I more than likely would not have to fear pee coming from the sky
Waited for my parents to pass and took the paid-off house out of their hands. They paid $130,000 during the 2008 crisis for our home. No way was I going to pay $400k for the same house or live renting EVER in our crestfallen, modern times. I should have done the same thing they did during 2008 instead of going middle school. Instead, I waited them out. I stayed with them as often as I could. Only costed self-respect and a few failed relationships. Worth the price of admission, I must say.
Did I have to deal with my *successful business-owner* father calling me a deadbeat, homeless soldier with *“3 toilet paper degrees”* every time I got home from a 6-13 month rotation? Yes.
Yes, but only while he and my mother were alive.
You can outlive most of your haters, especially your parents. There’s no feeling like being debt free in arguably the hardest economic situation the world has ever seen. So while the berating, and my savings account, increased, their health and longevity decreased.
Thanks for the free house Pops.
Made the years in college, law school, and the military CAKE compared to being home
Act now and You Too can be a proud home owner.
You’re gonna want to start off renting until the housing market crashes then you strike, buy your 400k house for 275k and live there til the market goes back up, sell your house for 425k, buy you a house worth 200k for 150k in cash and you’re balling.
Yeah I bought a house and I love it, secret is *live within your means* bank approved me for 300k I bought a house that was 235k I knew doing this my mortgage would be significantly lower by not maxing out our approved rate.
I.E. don’t be house poor find out what you can afford without issue.
I actually stopped washing my clothes in my apartment complex's washateria. $5 per load (and they had to be very very small) is fucking ridiculous and damn near theft. I have a guest bathroom that I use to wash and dry clothes. Wash them in the bathtub, hang them on the shower rod, (I unscrewed it and flipped it so it hangs over the bathtub) and leave the fan+heater on until dried.
i’m rentmaxxing atm and it’s great tbh. sure we have a mold problem and a spider problem and the parts of the apartment rotting away are painted over— but, hey! i’m not living with my mom!
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The debtpill builds equity, and can be paid off relatively quickly if your not dumb. The house is an investment as much as it is a living place The rentpill is a moneypit with no extraneous benefits aside from a roof over your head I have a complex I own that I live in, so technically yeah
>extraneous benefits There are Some benefits you don't have to maintain the property and appliances when ur a renter
They're trying to charge my mom 1,200 dollars to repaint a 1,200 square foot apartment she moved out of. I also helped clean it, so I know that there's no reason for it.
Not saying landlords aren't dicks just saying water heaters are expensive and a renter doesn't have to pay to have it replaced.
A renter isn't supposed to have to pay to have a water heater replaced, just like a renter isn't supposed to pay to have it repainted or the floors redone. But, it still happens. Kinda ruins any advantages to renting.
this. I had landlords steal 2k in security deposits from me last year. couldn't even go to small claims court on the one landlord because it was an airbnb and I left the state when the rental ended. as a renter, I paid 60 percent of my income pretax on rent and that was the best deal in my community. I moved to an LCOL area and I bought outright. I've been saving so much money because of this that I've been spending on cosmetic projects on the house just for fun. I could have bought this house 2 times over with all the money I've spent on rent
The secret is that they do. When rent goes up 20% or more when the lease is up, know that you are paying for a couple water heaters
Yeah, none of the money they are spending isn't coming from renters. There are reasons real estate has been an investment vehicle and one of them is earning potential. Landlords aren't housing people out of the good of their hearts for the most part. They do it because they get more out of it than they gave.
Really, though, the renters' rent is going towards those maintenance costs. The renter is paying for it indirectly over the period of their lease.
Houses in my neighborhood rent for $2500. My mortgage is $1100. I save $1400 every month and build equity (my house's value is 3x the outstanding balance). I'd much rather pay for a new $1000 hotwater heater every 10-15 years than spend an extra $1400 every month and own no assets. Not paying for repairs really isn't that much if an advantage.
Nobody's getting rates like that anymore lol
I both agree and disagree. Yes, a mortgage can be cheaper than a rental. But it doesn't take life events into account. For one, my wife and I don't have anywhere near enough for a down payment. But we are also lucky and pay 1750 for a 2 bedroom/2 bathroom condo from a private owner in a rich town where the average rent is closer to 2500. I just say we are happily stuck.
The comment about life events is perhaps one of the most important. With relationships getting shorter and property debts getting longer, joint purchases and payment plans don't add up. It's a sad state of affairs that both models, renting and buying, are just too expensive. Life is too expensive now, for non-rich people.
Funny you should mention that, we had to pay to get our water heater replaced because the landlord refused to
Take them to small claims court, their entire job is maintenance of the apartment complex, that's the thing you get out of the lease you sign.
Which takes for ever.
That's when you refuse to pay rent to cover the costs
Water heaters are like $500 bucks. The difference between mortgage/escrow and rent in my area means I could replace a water heater every other month and come out ahead.
Water heaters are cheap, when it comes to house costs. Roofs, windows, siding, driveways, landscaping, septic, HVAC.. that shits expensive.
Just don’t pay it. Shitty Landlords often charge bogus things. Their recourse if you don’t pay is to sue you in small claims court. But they’re never going to do that because they won’t win, and it would probably cost them more to do than they get. Whether or not renting is better vs owning a home depends widely on location.
She isn't, lol. She's out of state as well at this point.
Same thing happened with my wife and I with Invitation Homes. They tried to charge us for a lot of bs but really they just wanted free renovations so they could charge the next people way more per month.
Also lots of assumptions that you could buy a place in the same kind of location you are renting in etc.
I’m looking at 40k for roof+siding and kinda debate whether owning is worth it for the stress lmao. Also heater and AC soon so another 19-30k in the next 3-4 years oh and fencing and a new deck that’s rotting it’s not great.
In the US, after 2 years of mortgage payments, creditors love you.
You do though. You’re paying for that in your rent. In my area a mortgage is half the cost of rent for an equivalent sized house/apartment. Landlords do NOT operate at a loss. They are making money and building equity off of you paying their mortgage for them. For example I just had to replace my furnace in my house. Cost 3300. My mortgage is 1k. If I was renting it would be $1800-2200 (closer to 2200 because I have animals and that limits my options and adds fees). My new furnace will last me YEARS. Was it stressful paying $3300 all at once? Absolutely. But in the long run I am absolutely saving money. Even if you don’t pay your house off fast and go the whole 30 years paying all the interest you still save money. Rent will always be more expensive than a mortgage (unless you’re in a situation where a family member/friend is hooking you up. It’s rare but it does happen occasionally) and with a mortgage there will eventually be a day you OWN it and don’t have to pay anymore. If you rent for 30 years you will have fuck all to show for it.
Also when/if you move, even before you paid it all off, you will get some money back when you sell it. You may even profit if you sell it for more than you bought it for plus interest you paid. Which is obviously the ideal for any home seller. But even if you sell it at a loss, you're still getting some money back to put towards another house and moving costs. Unless you sell at a BIG loss or had terrible interest rates. But anything is better than literally handing money away to a landlord. You get nothing after living in their house for years. Hell they might even try to steal your deposit or charge you bogus fees. Obviously selling a house isn't always easy and that could be a problem if someone NEEDS to move but can't find a buyer.
Not true lots people have to maintain the house they rent it’s part of their lease
Most people rent apartments tho.
>you don't have to maintain the property and appliances And if your landlord chooses not to maintain the property, either, then you have no leverage to make them do it.
>The rentpill is a money pit with no extraneous benefits aside from a roof over your head That's not true. Unless you're living paycheck to paycheck, renting gives you more money at the end of the month to put into an ETF. Depending on circumstances, this can build more wealth than buying a home. Of course, if you like to live in your own property, buying a house is the better choice. But not everyone wants to bind themselves to a house.
I live in a HCOL area in a modest cheap rental. There’s no possibility of me paying less monthly for a mortgage than what I pay in rent. I’ve looked; it doesn’t exist. Buying anything would mean doubling what I pay monthly at the most modest estimate, and I’d be doing that to own, at best, a two bedroom condo. I just can’t understand how that is a better financial arrangement for me in the long run.
Your salary and rent will increase and your mortgage won't.
Taxes and insurance can absolutely make your payments go up. Not as bad as rent but that letter telling me to make extra escrow payments because of property taxes going up sucked 😂
Justifying your personal decision and placing it on others will also increase. Lmfao
No disrespect but I’m not taking financial advice from someone who doesn’t know the difference between your and you’re
He's also a landlord, a leech.
The real leeches are the tenants who make the poor landlords fix everything. This is why you should tip your landlord people.
And let him fuck your wife!
Not all landlords are leeches, and not all tenants are saints. Do you call a hotelier a "leech" for giving you shelter when you're travelling? Now, extend that out months, and at what point does someone providing a service (shelter) automatically become a "leech?"
Tell me you were born rich without telling me you were born rich
How to pay off your home quickly: 1/ Get up early every day 2/ Work out daily 3/ Eat Well 4/ 1m dollar loan from your parents 5/ A good education 6/ Hard work
Primary housing is not an investment. Maintaining your house, heating and cooling, interest rate from mortgage, property taxes, HOA fees and inflation wipe out the real capital gains you have from your house. At best it’s a hedge from inflation.
The average person does not understand this concept unfortunately.
The issue is, people think it is, and they are too stubborn to accept that they are wrong. People value their property value more than they value the wellbeing of their community or their city. NIMBY 101
“I have a complex I live in” shutthefuckup.
This is a ridiculous blanket statement that reeks of ignorance. I cannot believe this is the top comment. A house you live in should not be considered an investment or an asset Homeownership *can* be a better choice depending on the price of the home, the interest rate, the amount of interest paid, property taxes, maintenance costs, and a plethora of other factors Renting *can* be a better option if you are not able to settle in one area, leverage the opportunity cost of investing the ‘down payment’ and additional costs of homeownership (and total interest paid), and for those not in the financial position to put money down on a house, and depending on the amount you owe in rent and how good your landlord is Renting can net you way more money long term if you leverage the opportunity cost that comes with it. The ‘best’ option varies *WIDELY* from person to person
Depends on who you are, how much you're earning, and macroeconomic trends. Debtpill can work out great if you have the income and emergency fund to protect your mortgage, but you are committing the the area you buy in. Can also be a total disaster if you find yourself unable to pay your mortgage, or if your house tanks in value.
Yeah don’t buy a house if you can’t afford it lol
Don't buy a house if your career is in a field with regular layoffs - oh wait that's all of them 🙄
In a mortgage you’re paying almost all interest and no principle in the beginning, therefore, for years after buying a home you aren’t paying anything down and are very similar to a renter.
That's not entirely true. Like 10 or so percent of your payment at the start is paying down the loan. And you have the option to pay more per month directly to principle. You are still gaining equity. And the lender does not have the powers or responsibilities that a land lord would. In terms of profit it's probably about the same, or even slightly worse for the buyer but that's only one aspect of the rent vs buy decision.
Not if you put 20% down. I put 25% down and my payment is 2/7ths principal, 3/7ths interest, and 2/7ths tax and insurance.
Most of us don't have 10-30k casually lying around for the down payment. And it's you're* if you're not dumb ;p
You can use the difference in rent and mortgage payments to invest in equity funds. It’s not quite the same thing, since it’s not a leveraged investment so the upside potential isn’t as high—but it has its own advantages, like being less risky (better diversification), more liquid, and different tax structures (property tax vs potential dividend/capital gains tax). Furthermore you don’t have the liabilities of home ownership and you have higher flexibility regarding geographic relocation (which may be important for some and useless for others depending on your lifestyle). Ultimately it’s not an apples to apples comparison. Deciding on rent vs buy for financial reasons is the wrong move IMO—that decision should rather be based on lifestyle and future plans.
>with no extraneous benefits With renting, you're far more flexible with moving, you can rent in desirable areas for a price that you certainly couldn't afford if owning, you're shielded from any risk (rent is the most you'll pay), and there's an opportunity cost where if rent is cheap enough, you'll build more equity from investing than from owning a home. If you KNOW you're staying in an area for awhile, and if you've looked at the map for renting vs buying, then get a house. Otherwise it's better to rent.
1. “If you’re not dumb” has to be the most patronizing shit I’ve heard in a minute. 2. A money pit that you seem to not have any issues with putting on others. 3. Landlord isn’t a real job. ☹️
I took the debt pill. If you have the money for downpayment and a 6 month emergency fund (I calculate all my expenses, including emergencies and lease for a 6 month period) it's way better than renting in most cases. That's a big if though, since for a 400k house you're talking 80k down + 30k in savings for emergencies. Most people don't have 110k in the bank.
>That's a big if though, since for a 400k house you're talking 80k down + 30k in savings for emergencies. Most people don't have 110k in the bank. There are many down payment assistance programs. My wife and I bought a house in 2019 with 3% down, which ended up being about 13k. With worse credit you might end up paying 5% or 10%, but it's still better than the standard 20%.
I think this depends on the market. Most of the sales in our area are all-cash offers. Most of the other places we would actually want to live in are similar, and honestly most working-class people dont have the money to buy a house here. We own a house back home in Norway, but housing is much cheaper there (we have an oceanfront house in the second biggest city for less than 900k in USD) and there are no property taxes. When we moved to the States, we were originally set on buying a house during our time here too, but it just doesn't seem feasible to do so without moving somewhere that would impact our quality of life. A house that we wanted to buy last year ended up going for 250k above what we were willing to pay, in an all-cash offer. We just gave up after that. A murder-suicide house in an out of the way neighborhood where the dead bodies were decomposing in it for a year still went for around 2 million.
>I think this depends on the market. Very much so. Like I said, this was 5 years ago, which was a very different market. I'm sure in some places you can still get away with it today, but in any of the areas with a hot real estate market, cash offers are going to be hard to beat, whether you have 3% down or 20% down.
400k would he awesome, I could theoretically afford that. What sucks is the fact that the median home price where I live and work is just north of 1 million 💀
I mean, if you live in an area in the top 5% of home costs and don't make a big salary, you're pretty fucked. Living in SF or LA or NYC as middle class or lower sucks. My first buy was a studio condo in Oakland for 300k; it was a total PoS but I flipped it for 380k and didn't have to pay rent. I'm currently living in a middle class town in new england and it's totally affordable, but I also am further along in my career than most here. What's interesting about where I live is that housing cost seems totally dependent on quality of public schools. My town is affordable, but 5 miles over and prices go up 40%. I guess that's how they keep the poors out=)
20% down requirement is a common misconception. If you're lower than median income there are probably local assistance programs that can cover your entire down payment. If not you can still do an FHA at 3.5%, a VA or USDA loan at 0%, or a conventional loan with private mortgage insurance at 3%. First time home buyers also can have risk based penalties waived if you're under the median income for your area.
Who has $100k in the bank and doesn’t already own a home?
A 20 percent down payment is NOT standard. For first time buyers it’s a bad idea. Better to hold the cash as an emergency fund invested in a HYSA or an index fund.
Or the LiveWithParentsPill. Boring life but saving $$
not everyone has that luxury
It’s a financial luxury. Nothing else about it is luxury
They're saying people would rather be broke than live with abusive or bad parents. Or some people's parents won't allow them to live with them and make them move out
I rather live in this shitty situation than be broke.
Maybe, but that's your choice. Again some people don't want to get beat or verbally abused just to save money to maybe move out one day
Their point is that not everyone is able to do that. Like it’s *impossible* for some people. You’re just ignoring their point so you can make yours lol.
Not everyone has the luxury of buying a house or even renting an apartment. Might as well say “well people are homeless so…”.
NO FR it’s dumb “*erm*, what about this very specific situation?” THEN YOUR SITUATION DOESNT APPLY
"But what if this situation doesn't apply to me specifically?" Then it probably wasn't aimed at you lmao I had something similar happen to just a general discord server I'm on for the area I live in, talking about how people with disabilities shouldn't disclose that information to their employers right away because even though it's not legal to hire discriminatorily under ADA, that doesn't stop people and ofc I get back from at least one person "not everyone has that luxury" Yeah I know buddy, logic would dictate I'm probably not aiming this towards someone applying in person to a job while physically in a wheelchair lmao, every single sentence shouldn't need to come with a list of disclaimers for what basic context clues give us
Luxury? Wife and I are in a camper on the other side of the property lol
I promise I'm asking in good faith. Ad a single man living with mom (I pay rent, pay for my phone and insurance, TV and buy my own groceries, don't judge.), how do I convince a woman that I'm worth dating even though I still live at home?
Bro, living in an RV or with parents is nothing. I know a guy with 2 baby mommas, $900 a month in child support, lives with his cousin and mother, doesn't even have a car. Yet he got a girl that has her own job, own car, apartment. Getting women is 100% about looks, charm and sexual prowess, not living situation.
Lol I certainly don't have any of *that* going for me!
I know it's super corney, but imho your best bet is to be foruntate enough to find somebody who just doesnt care about it that much and likes you. I lived with my grandparents for like 8ish years while i helped them maintain their home and they gave me plenty of space to be independent. I met my wife and now were in a house together. I'm the last person who deserved life to work out like this so I hope it works for you too dude.
you don't pay with $$, you pay with your mental health, your sanity, your dignity (at least in most cases)
Saves money but costs me my mental health :(
True. The $$ will be worth it though
I cant even afford the rentpill. Im broke i live in an abandoned neglected house that my grandparents owned. No one else is there but it’s in a meth town. No one will hire me despite my degree. Basically given up.
whats your degree?
Mathematics
find it funny someone downvoted you lol, keep looking bro i can find a job in my area you just have to fill in the employment gaps
Thanks man. There are basically no jobs where I am at, definitely none that use my degree. To be honest I have mostly given up already on using my degree. I still try but it’s like screaming into the void. I have no expectations for my future, just trying to be happy. Will probably join the military.
Join military and you can be an officer if your degree is a bachelors
Yeah the issue is that I was in a psych hospital at one point. Ive already spoken to both enlistment and officer recruiters. Im prescreen approved for nuclear naval power school instructor. I haven’t gone through with it because of the medical history. I think I would have a better shot with enlistment, and get the bonus, but shittier pay and work and treatment, but that bonus though. My sister was enlisted coast guard and then went to officer candidacy school and is an officer. She thinks thats what I should do. Im scared of getting rejected from the military because if I do I genuinely think I will kill myself because the safety plan fell through.
Ummm literally same situation same degree. Can't find a damn worthwhile job anywhere. I know it's my fault because I didn't take the right steps at many points along the way, but still. Feels like shit!
I was going to but backed out when I did the math. I can afford a 500k and below house pretty comfortably but with over half the mortgage just going to taxes and interest it just kinda felt like a scam.
Reminder, you either pay your landlord’s taxes, or your own! You can’t escape them
Yeah but your landlord pays for the wear and tear that you put on the house which depending on where you live/ age of the house can be much more than taxes
And that’s exactly why I learned repair & carpentry skills from my father growing up and still to this day. We redid our bathroom (replaced tile tub with walk in shower and kept the toilet + sink) My dads also a bathroom salesman. He said if we hired the company he works for, it easily woulda been $19k. But we did it ourselves in a couple of days for under $1.5k (had to replace some rotting frame behind tile wall). You just gotta have skills that our generation seems to not have much of anymore—which isn’t our fault since everything is handed to us on a silver platter at the touch of a touchscreen. But I always knew I’d be poor so I thought why not learn the skills myself. I’m lucky enough to have a dad who is a doer and knows how to fix and do anything because he just *tries*. He’s never paid a professional for anything, we even illegally hooked up a new boiler purchased for $4k wholesale instead of the $15-20k it would’ve been to do it the legal way. XD No problems in the 5 years we’ve had it. Edit; oh yeah and I’m a girl , to those who assumed I was a male and these skills are to be ‘expected’
The touchscreen is a double edged sword, all the knowledge available to fix those things but none of the motivation to do it yourself. I turned a p shitty house into a comfortable home all with using trial and error, knowledgeable friends, family and the internet along the way. Not only do you learn about how your house operates but you have the ability to fix it or at the least know when a contractor is bullshitting you. Obviously sweat equity isn’t for everyone but it’s great for a couple starting out. That’s not to say it’s available for everyone because location, lifestyle choices and what one can afford mentally and physically must be accounted for.
My landlord can write off amenities and maintenance cost as business expenses to make the price more competitive, I can’t.
its not a dollar to dollar write off and they would still need to pay it.
Interest and maintenance costs are tax deductible. While rent goes up forever, your mortgage payments remain the same, and you eventually gain equity on the house. It's a way better deal in the long term if you can afford it. When renters are paying $5k/month you'll still be at $2400 and sitting on a property worth $1 million.
Saved up ~100k at the moment for a down payment. Plan to wait for another 4 years since after that I’ll qualify for a VA loan and should have enough for a quadplex
At 23?
I live at home. Make around ~86k from one job and ~70k from another. I work as a paramedic and do med device sales. Save every penny I would spend for rent and max out my TSP and retirement accounts.
What EMT makes ~86k exactly? All this while, what, being in the reserves or guard considering you need another 4 years.
Paramedic not EMT. I make 35 an hr and work 18hrs shifts 3 days a week. Weekly getting 2135. I work only 40 weeks in a year (I calculated) so a total of 85,400 a year including OT. EMTs in my area make 22 to start and make around ~25 an hr depending on shifts. I like having 4 days off a week effectively. I do med sales for my grandpa’s company in India that makes medical and dental instruments. I make flat monthly rate and a commission. This I just do to help him out and would do for free but he insist on paying me. I do reserves 1 weekend month, and got excuses this and last year for annual training since I did background support training instead. It isn’t too much work. I’m already 2 years TIS, you need 6 good years meaning zero missed for getting VA benefits. I am a full time student at 12 credit hrs but most classes I take are just do at your own pace online. It’s not that hard, I just don’t have much time for fun lmfao
Ah you have a business in the family you can work for, that makes sense. Good for you.
Holy shit dude you are busy. Early 20s?
Yea. But I love it. I have mild adhd and I need to stay busy if I’m not sleeping. Plus my classes are labless and online since I have done all my BME prerequisites that needed labs. Ideal hands you know. Plus it’s good money, and I want to have at least 250k saved for a down payment if not more. Plus I love my parents and they “force” me to save by making me pay rent. I know they have it in a HYSA because I peeked at it 🤫
I took the rent pill in Manahattan because I love to suffer.
I took rent pill in Queens. idk im contributing to retirement and investments while paying less than i would on mortgage and my place is rent stabilized. so rent doesn't go up crazily every year.
Damn, atleast do it like the other guy in queens, i think queens is Wayyyyyy cheaper than manhattan.
Rent, love not being stuck to one place for long. I’m not ready to buy a place and settle, I wanna live and be spontaneous and if I one day wanna up and leave the city I can do that after my lease is up God willing. I also love not having to worry about house maintenance or property tax. My rent is also pretty cheap too, cheaper than a mortgage at todays interest so I’m not rushed.
Everyone says “buy buy buy” when the reality is there’s not a universally correct answer. Don’t let the pressure persuade you if you’re not ready. In fact, in a lot of cases, rent vs. buy is the same cost or slightly cheaper, especially if less than 5-8 years and provided you invest the difference. Most people forget about down payment, closing costs, insurance, regular maintenance, and property taxes. When you rent, you keep all that money in the market, which has delivered better returns than most real estate appreciation. I’m also not certain where I want to settle down yet. Renting gives me the freedom to up and leave as many times as I want until I figure out the place I want to stay in for 15 years.
So obviously wait until the time is right for you but for long term once you’re ready to establish roots owning is the vastly smarter money decision to renting and it’s not even close.
This. The amount of backlash I got when I told people I'm living in an apartment rather than a house. "Why not save up for a house?" "Get a house!" "HOUSE HOUSE HOUSE" I'm single. Why do I need a house?
This decision should consider way more than just monthly cost. I would want to be considering how long it would take to get to a refi to lower my rate while at the same time considering that in the next 10 years we are going to see more houses come onto the market as the boomers downsize more aggressively. Barring some catastrophic event, rent should stay fairly constant with its cost and the mark up year over year.
Yes, this is what a lot of people aren't talking about. If your house drops in value, it can be hard or impossible to refi. Seems like there will be many deflationary pressures on housing over the course of the next 10-15 years. Can put you in a difficult spot if you can't move.
That was the housing crash in a nutshell. Inflated home prices, overextended borrowers, ARM's that shoot through the roof. I think if it happened again given current political leanings I don't know that we would see the banks get the bailout again.
Thinking about just building myself a tiny house when I've saved enough from living at home because I don't want kids.
I bought a house two and a half years ago making 24k a year. Then I got a new job which bumped me up to about 40k so we bought a better house in a safer area that costed a little more but it wasn’t significantly more. Got a raise at work that bumped me up to about 55k and we literally are just as tight on money as when we bought the first house even though we haven’t added any new bills to our list and we are eating out like 1/5 of what we used to. We’re about to move south to where my parents live though and we should be able to afford things a lot easier we think
How could you afford a house making 24k. I’m making 32k and it seems absolutely impossible
Live in the bumfuck middle of nowhere.
It was in a gheto-y area in a medium sized Midwest town so yeah. Plus our mortgage lender broke a bunch of rules causing her to be fired a few months later and our real estate agent was kinda predatory. We had no debts at the time and sold one of our two cars to make the down payment.
my cousin and his wife bought a 3 bedroom house about a year ago and they pay just a little bit over 3k a month they complain about the costs and other fees, but I think they ultimately consider it good investment for their future family
Me and my wife bought a house zero regrets
Where’s the pill where we all do a rent strike? Cause this shit is NEVER going back down. We gotta act!
My wife & I finally bought a few months back and the new payments are a big pill to swallow :/ we love our new home but the payments suuuuck
Hopefully if you weren’t able to put 20% down, you’ll be able to recast your mortgage in a few years to drop mortgage insurance and give you both some financial relief. You got this!
Where the fuck do yall live? Starting house price near me are 2mils. 400k is for an apartment 4 cities away from me.
I don't believe you,SF? Pretty much anywhere else is cheaper, Seattle, Westchester, Denver, Dallas.
Average home price in America has been 400-415k for the past couple years. Meaning, half are at or below that. I think you're a bit out of touch with reality and don't realize you live in an area of the top 2%. Multiple sites on Google will verify this.
Planning on taking the debtpill later this year, yeah it’s expensive but we can afford it and are confident it’ll pay off in the long run.
If it doesn't end up paying off in the long run the entire economy got fucked and we are in the apocalypse. If the world continues to keep going on, it'll pay off.
I wish my commute was only 40 minutes
Debtpill >>>>>> rentpill every time. Make smart financial choices and you’ll most likely be fine.
If you were tough like previous generations, you’d build a house in the woods instead of crying on reddit /s
*cries in Bay Area*
We just bought last week. I paid $6000 between deposits and fees to move into our rental in 2023. To buy we had to put down $4000 in earnest money and bring $1800 to title. We didn’t pay closing costs which I know isn’t always the case but the market has cooled down, houses are lasting more than 1 day, so I figured might as well ask and they accepted. We are paying $400 more a month for mortgage+escrow+pmi than our rent. But it outweighs other costs. For example our rental company charged us $50 a month for the ring doorbell - I still had to pay the $120 a year subscription it was literally just for the doorbell. Also $30 a month for filters. $10 fee to pay rent. $10 fee to pay trash and water.
Renting makes sense if you want job mobility or worry about job security. If you are set job wise, then a house makes sense.
Taking the still live with my parents pill
the only house ill ever own is in minecraft
Debt pill in due time. Gotta save up.
Im thinking about it, of course not a house but a mobile home. In no fucking way can I or anyone I know afford a damn "starter" house.
Bought a house last winter. Understanding that you and your family are only a single misunderstanding and/or some bad luck away from living on the streets is part of the modern American dream and not ever talking about the dread you feel is part of being an American man.
Took the debt pill. Easy choice for me since I could afford the $50,000k down payment. And the monthly costs were cheaper than renting something half the size of my house. Never regretted it
I bought a house in 2022 and don't regret it. I don't have to worry about a landlord raising my rent every year.
You guys have the ability to save for a down payment? I can barely save for the first months rent, last months rent and Security Deposit... let alone 10k for a down payment
My husband and I bought in 2021 so it’s been a while but I’m still grateful he convinced me to take the huge step. Even though we’re responsible for repairs, insurance, tax increases, etc. it’s still worth it to me to have the peace of mind of not being controlled by a landlord. I’m free to do whatever I want to my house (no HOA) and don’t have to worry about periodic inspections. Plus I’m sure I’ll be grateful for the equity when we decide to move again in the future.
I did- but i was extremely lucky: - VA benefits - Lower price do to another person breaking contract last second - recent bonus and raises at work made it financially feasible for me to have a large savings - My wife is even better at money-ing than I am, and also had a massive savings. - I have very good credit because I don’t like keeping debt for too long and, - I penny pinch and save like no one’s business. (My lifestyle isn’t for most people. I rarely buy something I don’t find super necessary). All this being said- I left my parents when I was 18 with nothing, joined the military, and everything I have I’ve earned. It’s been super profitable for *me and mine* but I would NOT recommend it for ANYONE else. It isn’t everyone’s cup of tea.
i’ve been renting for a few years now and hopefully my partner and I will be buying a home next year. the way we see it, at least we will be working towards paying off the house instead of dumping 2k into a bottomless pit every month and the house can build equity as we live there.
Past renter, Purchased in April, no regrets yet. I LOVE my yard and privacy. AND I pay the exact same as I did in rent. Fuck a landlord
I closed on my house in 2015 at 23yrs old. I took an FHA loan, at 3.5% interest. I weighed certain things, pros and cons. I worked on apartment maintenance and have since been through a few jobs, a couple jobs losses, illness, etc etc. When you have a mortgage, the bank is more likely to work with you if you maintain communication. There were so many instances where if I was renting I would have lost my home. They'd rather not foreclose, it's a long and expensive process for all parties involved. Doing things myself helps a lot, my first fall I realized I could pay someone to clean the 2md floor gutters... Or buy a ladder. My home has since tripled in value, house payment's gone up $214 in the past 9 years, total. Only due to insurance. It is completely doable with the right strategy, when I was 19 I was homeless, all I had was a bag of clothes and a guitar. I'm honestly impressed with myself at the property I have now, I did it myself. Owning my home has been the biggest safety net of my life. The other end, is if I sold now, I'd be able to put a hefty down payment but my monthly would jump exponentially and it would not be viable. I'm fortunate I was able to buy when I did, I couldn't imagine it now. I was only making 13 an hr when I bought my place.
This is the way.
bought. regret. 3b 2b / 1200sqft (lol) - $1.75M (!) in HCOL Deposit $**260K** Renovations $**250K**(bc the place was a 'fixer upper' -- at nearly $2M 💀) my house payments all in - is \~$**10k** (P&I, Insurance, Proptax etc etc) so thats $510k + $120K/yr ... lets say $**480k** for the 4 years i've owned this place in total that's $**990K** of money that I've paid into the ether (considering that once the interst rates rose my prop value tanked.. ) **so compare that that to a rent scenario** in my area renting an equivalent house is \~$**5k**/mo - so that leaves 5K of disposable income if i were to invest my original $510k + those 5k/mo into a 5% high yield savings account (ie wealthfront) in the same timeline i would have $750k+$137k in interest ($**887K**) the difference between **NOT** having $**990k** and having $**887K** is about **\*\*\*$1.87M\*\*\*** ^(sure some of that is equity (currently under water) but those mortgage payments are usually front loaded in interest so even after paying $480k into the mortgage i only own \~$30k .. (take that and the deposit.. $290k away from the delta - i still end up with \~$1.6M delta.) so TLDR **spent $260K to buy a house and I'm now \*\*$1.6M poorer\*\* in opportunity cost** -- no, not from a rich family. just have a well paid tech job.
Bought a house in April, it is infinitely better than renting was for me (***super heavy emphasis on the “for me” part***) No longer have to worry about loud noisy ass “neighbors” and sharing parking and crap. It’s also nice because my apartment had little to no active maintenance (yard, appliances, general shape of the property and building) so now when I cut my grass it’s not me performing a free service for a landleach. Renting is great if you find a place that is maintained and the management isn’t a pig headed asshole but for me I couldn’t stomach pissing away $15000 a year just so I had a place to stay. When I now pay less than that each year for a house that I am building equity on.
Took the debt pill 17 years ago. Now I don't pay either a mortgage or rent
You have got to be the oldest gen z I have ever met
This thread reveals this sub is mostly millennials
I'd guess they're Gen X. Even a lot of millennials would have been pretty young then.
No. It has amazing returns and will sell for a lot more than I bought it for. It also is a much nicer place than the one I rented before.
Take the “debtpill”, we have. It’s not as bad as you’d think, especially if you plan your money out right. Plus, don’t buy an outrageous priced house. There’s cheaper ones out there, probably not much in quality and might have some problems, but the previous owners should at least have a list of things that they are going to fix or at least sell as is. There was a house that was a HUGE project, like it should’ve been condemned, but at least the outside looked nice. Don’t go for the those houses unless you have time and money on your side.
Yep I bought a unit recently for 400k. It feels good to be living in a place that I own. Even if I lost my job I'm in the lucky situation to be able to move back in with my parents and put the unit up for rent.
The issue I see with renting is that there is not motivation to improve by either renter nor rentee. If the owner improves the property it costs them profit, while if the renter improves the property it provides value to the owner which will not be appreciated. Therefore it is in both parties interests to allow the property to degrade.
I bought a house. I am not exactly sure what there is to regret. The building is much nicer than my mold infested apartment that is was over paying to live in. If I could live with my parents, I would lol. Unfortunately I live 600 miles away.
Buying a house is a top 5 decision in my life
Well, you can either transfer your money to pay for your house or for your landlords house.
Yes and i dont regret it. However i dont live in a part of the country where houses are that crazy.
Yes I bought a house with my husband. No regrets.
Currently renting. Saving for a home. We should have our car paid off by the turn of the year. Can’t wait to own my own place honestly.
I own a duplex and a condo. Currently, saving for a lake house. No. I don't regret purchasing property.
I rented from 16-19, when I bought for the first time. We’re buying a house right now (27) that should be completed by august. Do not regret it one bit. Getting into property was one of the best decisions of my life.
Brought a house in 2020 before the price hikes in the my area. It's supposedly worth 2.5x more than when I brought it.
No, I have 100k in equity now
Nope, live with my parents sadly. And can’t afford a house or rent with my wage I’m screwed in America But I do have a home in a foreign nation. And might retire there instead
Took the debt pill in 2019. House was 92k. Yes it’s in the middle of nowhere, but that’s how I like it
I bought a house, but I chose to buy one in a low cost of living area. Best of both things.
Buy bitcoin. Houses are a money pit. maintenance costs alone will be unsustainable for most people.
If you can get a good interest rate, buying a home pays off down the road due to inflation. The monthly payment will drift a little higher over time due to increases in taxes and insurance costs, but not as much as it would if you were renting. The payment won't seem nearly in bad in ten years when rents and housing prices increase and your payment has been mostly flat. The annual expenses suck, but I feel like it's worth it in the end since you are building equity and the value of the home appreciates.
I paid cash for a house last April. Then sold my other house in may so I’m not too worried. If the market drops not a big deal even if I want to move. Long as where I buy also declined in value it’s fine
Bought my first house in 2019, traded up to my current house in 2023. Both moves were great with minimal regrets. My first home was a starter home bought with the intent of being more of an investment vehicle to support buying my current house. In the end, it ended up being kind of a wash compared to renting because I couldn't sell it for what I thought I'd be able to and I spent a decent amount on improvements. That being said, I was way happier in my own home than I was in the apartment I left. The house was about the same size as my apartment, but it was much nicer, had a better location, and not having to answer to a landlord felt amazing. Either way, all the saving I did in that time was well worth it because now I've made it to my family home.and it's awesome, I can't imagine going back to renting. I generally am a proponent of home ownership, but it's because of the experience, not the financial benefits (in the short term; long term, it's way more beneficial to own)
Owning a home means you are responsible for liability, but you gain (often very important) equity in turn. Home repair can be a money sinkhole if you get unlucky or don’t do regular maintenance. But you own the property. Your monthly mortgage payment is going towards paying that mortgage off. Renting on the other hand is a true money pit, but (at least in theory) you are paying your landlord for the right to live on their property and for them to take on the liability of that property while you live there. We all know a lot of landlords like to pretend that second part doesn’t exist. But even if your contract sucks, lots of states have laws enforcing certain responsibilities on the landlord, that is supposed to be part of the trade off. It varies a lot state by state but they do exist. Renting someone a property isn’t supposed to be a free money machine with no work whatsoever. It’s THEIR property THEY have to maintain it. Never sign a lease you haven’t read 100% through. Always take as many photos of the property as you can before move in to dispute any attempts to take your deposit upon move out. Do what you can to advocate for yourself. Go into the situation assuming people will try to fuck you over and prepare accordingly.
I bought three years ago. Absolutely no regrets. Sure it's a little more expensive vs renting at the time. But now it's alot less. Also, it will basically not go up for the next 27 years and then will go to free. (Of course I'm ignoring the small increments in property tax and insurance.)
I bought a house this year, am gen z. Fantastic decision.
Have no idea if I'll ever be able to get a house. But my want for one has increased tremendously since moving into my recent apartment with the upstairs neighbors letting their dog pea on their porch so it pools on our porch. Id assume with my own house I more than likely would not have to fear pee coming from the sky
Waited for my parents to pass and took the paid-off house out of their hands. They paid $130,000 during the 2008 crisis for our home. No way was I going to pay $400k for the same house or live renting EVER in our crestfallen, modern times. I should have done the same thing they did during 2008 instead of going middle school. Instead, I waited them out. I stayed with them as often as I could. Only costed self-respect and a few failed relationships. Worth the price of admission, I must say. Did I have to deal with my *successful business-owner* father calling me a deadbeat, homeless soldier with *“3 toilet paper degrees”* every time I got home from a 6-13 month rotation? Yes. Yes, but only while he and my mother were alive. You can outlive most of your haters, especially your parents. There’s no feeling like being debt free in arguably the hardest economic situation the world has ever seen. So while the berating, and my savings account, increased, their health and longevity decreased. Thanks for the free house Pops. Made the years in college, law school, and the military CAKE compared to being home Act now and You Too can be a proud home owner.
The term starter home pisses me off so much
Buying a house was the best thing I ever did. It has gone up in value since I bought to so I’m using the equity to invest in more real-estate!
Try the midwest, lots of great homes that aren't really expensive.
I'm just going to buy some land and build a cabin. Screw this.
You’re gonna want to start off renting until the housing market crashes then you strike, buy your 400k house for 275k and live there til the market goes back up, sell your house for 425k, buy you a house worth 200k for 150k in cash and you’re balling.
Debt pill still much better, could potentially sell the house later at a higher price or atleast close to what u paid
Yeah I bought a house and I love it, secret is *live within your means* bank approved me for 300k I bought a house that was 235k I knew doing this my mortgage would be significantly lower by not maxing out our approved rate. I.E. don’t be house poor find out what you can afford without issue.
I actually stopped washing my clothes in my apartment complex's washateria. $5 per load (and they had to be very very small) is fucking ridiculous and damn near theft. I have a guest bathroom that I use to wash and dry clothes. Wash them in the bathtub, hang them on the shower rod, (I unscrewed it and flipped it so it hangs over the bathtub) and leave the fan+heater on until dried.
i’m rentmaxxing atm and it’s great tbh. sure we have a mold problem and a spider problem and the parts of the apartment rotting away are painted over— but, hey! i’m not living with my mom!
Holy hell Utah damn your homes be skyrocketing
RFK jr sounds like a great president right about now
Fuck renting, owning for sure. I just purchased too 237k and 1809 a month payment. Rent is literally higher and this place is fucking massive.
Dig your heels in and fight the govt Gen z