|
Title: Debt free and $ in the bank Post by: spazzdla on July 11, 2014, 01:56:15 PM After the past 5 years of owning a house I sold it. It was the plan all along with the perosn I bought with.. I am now renting and it is utterly amazing. Such less stress.. It's great..
Now the only thing is what to do with me wealth... So far about 5-6% is in PM's 10% iss in crypto and the rest is paper.. .:S. I am considering uping my PM holding 10%. My fiat is CAD by the by. Title: Re: Debt free and $ in the bank Post by: Jamie_Boulder on July 11, 2014, 02:17:12 PM There is no bigger waste for an average individual than renting, not sure where the "stress free" is coming from, you still have to produce basically the equivalent of an interest repayment every month.
I suggest you re-purchase (unless real estate is having a bad year where you live). Title: Re: Debt free and $ in the bank Post by: wunkbone on July 11, 2014, 02:19:42 PM I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run..
Title: Re: Debt free and $ in the bank Post by: Lethn on July 11, 2014, 02:30:40 PM Why didn't you just sell the house and purchase a cheaper property you can actually afford?
Title: Re: Debt free and $ in the bank Post by: spazzdla on July 11, 2014, 02:41:13 PM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k.... The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax... Title: Re: Debt free and $ in the bank Post by: spazzdla on July 11, 2014, 02:43:55 PM I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run.. Many loaded people disagree with you. Google Kevin O'learys view on the housing market, I live in Canada... We are in a bubble of a bubble. Title: Re: Debt free and $ in the bank Post by: Lethn on July 11, 2014, 02:51:58 PM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k.... The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax... I wasn't talking about a mortgage, I was talking about a cash buy, but if your situation was really that bad renting clearly was the better option, save up next time and buy a wreck, that way you can repair it for cheap and still actually own it. He was right to do this though, there is absolutely no way you want to have debt of any kind or be tied down by a mortgage in this economy, this is why I've stayed with my parents for so long. Title: Re: Debt free and $ in the bank Post by: Sheldor333 on July 11, 2014, 02:53:49 PM Good for you. If you are happy about it then everything else doesn't matter!
Title: Re: Debt free and $ in the bank Post by: superresistant on July 11, 2014, 03:02:51 PM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k....The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax... Very well said !! 99% of people are not able to do these simple maths. I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run.. Many loaded people disagree with you. Google Kevin O'learys view on the housing market, I live in Canada... We are in a bubble of a bubble.Exactly. Housing market is a fucking bubble. Only dumb people buy during a bubble. It always end in tears and blood. I can't wait. So much fun. Title: Re: Debt free and $ in the bank Post by: spazzdla on July 11, 2014, 03:05:30 PM ^^ Thanks :).
Title: Re: Debt free and $ in the bank Post by: Jamie_Boulder on July 11, 2014, 03:14:30 PM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k....The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax... Very well said !! 99% of people are not able to do these simple maths. I dont understand why you did that but selling away your house and rent isn't a good idea. You will be poorer in the long run.. Many loaded people disagree with you. Google Kevin O'learys view on the housing market, I live in Canada... We are in a bubble of a bubble.Exactly. Housing market is a fucking bubble. Only dumb people buy during a bubble. It always end in tears and blood. I can't wait. So much fun. Canada is a special exception to this rule seeing as they're only now fixing the real estate bubble they currently have over there by putting a ban on foreign investments which was the single biggest reason the average citizen was being out priced of the home buyers market. @OP After reading your reply I agree that you have made the correct decision, also if I may ask, what are the interest rates in Canada ATM? Title: Re: Debt free and $ in the bank Post by: spazzdla on July 11, 2014, 03:21:52 PM Most mortages are still widly low rates... Usually 3%... which is awesome yes but a collapse of the housing market or a rise in rates would annihilate.
I believe the banks rate is 1%, http://ca.reuters.com/article/businessNews/idCAKBN0FF1YG20140710 . Title: Re: Debt free and $ in the bank Post by: tinof on July 11, 2014, 04:35:26 PM House in the US are very cheap compare to the rest of the world. That is the reason you see many Chinese buying in drove in the US and Europe.
Title: Re: Debt free and $ in the bank Post by: CoinsCoinsEverywhere on July 11, 2014, 05:35:29 PM There is no bigger waste for an average individual than renting, not sure where the "stress free" is coming from, you still have to produce basically the equivalent of an interest repayment every month. I now own a home. But when I rented an apartment, one of the best things was not having to worry about maintenance. When something broke, I just called the owner. That's one of the most stressful parts of being a homeowner.I suggest you re-purchase (unless real estate is having a bad year where you live). Title: Re: Debt free and $ in the bank Post by: HarryT1923 on July 11, 2014, 05:36:45 PM renting is horrible..... pay so much of my paychecks to rent. and it is constantly being raised, just to stay in some slum apt.
Title: Re: Debt free and $ in the bank Post by: spazzdla on July 11, 2014, 05:48:04 PM renting is horrible..... pay so much of my paychecks to rent. and it is constantly being raised, just to stay in some slum apt. Find a new place to rent from? IMO your rent should be dirt cheap.. Just rent a room in a house? Title: Re: Debt free and $ in the bank Post by: superresistant on July 11, 2014, 06:08:22 PM renting is horrible..... pay so much of my paychecks to rent. and it is constantly being raised, just to stay in some slum apt. Flatshare, single room, live with old people, ... there are many ways of renting cheap. Title: Re: Debt free and $ in the bank Post by: Miz4r on July 11, 2014, 06:47:36 PM renting is horrible..... pay so much of my paychecks to rent. and it is constantly being raised, just to stay in some slum apt. Find a new place to rent from? IMO your rent should be dirt cheap.. Just rent a room in a house? This is what I'm doing. Fuck the housing market, I don't want to make banks richer or play their games. Now I rent really cheap and I'm planning on staying here until the financial system gets the complete overhaul it needs and maybe then I will think about buying a house directly in bitcoins hopefully. ;) Title: Re: Debt free and $ in the bank Post by: drmundo on July 11, 2014, 06:52:41 PM If your in profit, then theres no debate here lol.
You made your money, and you can do whatever with it. But, if you want really buy a house without any debt, it would be moving to the U.S living in a tax free state. Then again, if your comfortable where your at then just stay there lol. I personally live in california, but I`m about making plans to buy a place in las vegas just to avoid taxes. The people who pay taxes are fools for the gaming world of banks. If you dont understand how the IRS works, you dont get it lol. Title: Re: Debt free and $ in the bank Post by: CoinsCoinsEverywhere on July 13, 2014, 10:47:38 AM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k....The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax... Very well said !! 99% of people are not able to do these simple maths. All of that said, of course, the math is very different if you buy during a bubble. Edit: Even once you own your home, you'd still be paying homeowners insurance in addition to property taxes...forgot about that. Title: Re: Debt free and $ in the bank Post by: Crypt0Keeper on July 13, 2014, 11:04:00 AM Go to college, get married, buy a home, have kids. That's what the government wants you to do. It's not the American Dream, it's the banker's dream. Those four steps right there all but guarantee that you will be a tax and interest cow for the ruling elite your entire life.
Get off the financial carousel and stay off. That is why each and every one of us found Bitcoin. Title: Re: Debt free and $ in the bank Post by: Sydboy on July 13, 2014, 11:08:45 AM took the words out of my mouth
what you said = thread over. There is no bigger waste for an average individual than renting, not sure where the "stress free" is coming from, you still have to produce basically the equivalent of an interest repayment every month. I suggest you re-purchase (unless real estate is having a bad year where you live). Title: Re: Debt free and $ in the bank Post by: Gumbork on July 13, 2014, 01:23:54 PM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k.... The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax... Sounds like it is better to actually rent based on what you wrote. $440 per month a really cheap if the property value itself is 200k. Now use the money wisely to generate more money (even cd is good enough, just don't burn it). Title: Re: Debt free and $ in the bank Post by: CoinsCoinsEverywhere on July 14, 2014, 08:02:35 AM Go to college, get married, buy a home, have kids. That's what the government wants you to do. It's not the American Dream, it's the banker's dream. Those four steps right there all but guarantee that you will be a tax and interest cow for the ruling elite your entire life. A lot of people seem to enjoy those four things, or at least 2 or 3 of them. So I'm curious--what's your dream if it doesn't include any of those?Get off the financial carousel and stay off. That is why each and every one of us found Bitcoin. Edit: How do you believe these things help the government? Yes, you pay more taxes if you make more money, spend it on a house and kids, etc. But you also get significant tax breaks that offset at least some of that. Title: Re: Debt free and $ in the bank Post by: CoinsCoinsEverywhere on July 14, 2014, 08:07:29 AM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k.... The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax... Sounds like it is better to actually rent based on what you wrote. $440 per month a really cheap if the property value itself is 200k. Now use the money wisely to generate more money (even cd is good enough, just don't burn it). Title: Re: Debt free and $ in the bank Post by: superresistant on July 14, 2014, 08:25:04 AM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k.... The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax...Yes you will pay property tax + insurance that also increase every year. Then it's a gamble : you have no guarantee that the bubble (housing market) will continue to grow at that rate in the next 20 years. 20 years ! Come on, with all the events that are happening right now, how can someone make a plan for the next 20 years ?? Any shit can happen, any time. This old thinking of taking a 20 years mortgage for owning your house is obsolete. We do not live in the same world as our parents and grandparents. The world has changed, rules as changed and the speed of changes is increasing exponentially. The are 2 kinds of people : dead and alive. We all die but the ones who adapt the changes of time tend to live much longer and better. Title: Re: Debt free and $ in the bank Post by: Sydboy on July 14, 2014, 08:56:24 AM Things must be different in Australia, where I am.
Housing prices just go up and up and up. inner city continues to sky rocket. it is bit of a silly attitude to not be interested in property in case it does not go up in value. certain areas will always go up as they are wanted be many people. if you can get a house in a good area pretty cheap why wouldn't you take it ? you might as well not buy bitcoins, for investmeny purposes as that has a much much greater chance of crashing than the house market, atleast here. Title: Re: Debt free and $ in the bank Post by: spazzdla on July 14, 2014, 02:34:03 PM Soo did some gandering into Canadain housing vs Canadain Income...
95.. Avg House price: 140k, income: 35k Now.. Avg house price: 410k, Income: 48k.. .. House price: (410-140)/140 = 192% INCEASE... Income: (48-35_/35 - 37% increase... Title: Re: Debt free and $ in the bank Post by: ScryptAsic on July 14, 2014, 02:59:07 PM Soo did some gandering into Canadain housing vs Canadain Income... 95.. Avg House price: 140k, income: 35k Now.. Avg house price: 410k, Income: 48k.. .. House price: (410-140)/140 = 192% INCEASE... Income: (48-35_/35 - 37% increase... Sounds like a property bubble is coming.. Title: Re: Debt free and $ in the bank Post by: spazzdla on July 14, 2014, 03:01:44 PM Soo did some gandering into Canadain housing vs Canadain Income... 95.. Avg House price: 140k, income: 35k Now.. Avg house price: 410k, Income: 48k.. .. House price: (410-140)/140 = 192% INCEASE... Income: (48-35_/35 - 37% increase... Sounds like a property bubble is coming.. The fact that no Canadian I talk to can even consider it's possible... Makes me consider it.. Everyone I talk to views a house as an investment and not a place to live.... This is a huge problem IMO and is a very bad train of thinking.. A house is a place to live not a peice of gold. Title: Re: Debt free and $ in the bank Post by: minerpumpkin on July 14, 2014, 11:04:35 PM If you actually believe we're (/respectively your country's economy is) in another housing bubble, it may be wise to sell now and wait for prices to go down in order to buy something cheaper or don't lose a lot of money in the process. If you don't believe in a bubble, I don't quite see how houses can be that bad of an investment (unless located in a crappy neighborhood or needing to be fixed big time)
Title: Re: Debt free and $ in the bank Post by: CoinsCoinsEverywhere on July 14, 2014, 11:18:54 PM Why didn't you just sell the house and purchase a cheaper property you can actually afford? My rent is $440 a month, PLEASE PLEASE do show me a mortage where my interest rates are less than that.. any house near me is +200k.... The house when I bought it was 179... Me and a freind bought it with the plan to fix it up and sell it in 5 years, we stuck to the plan added a 2nd bath. Sold for 245. Now I rent at $440 a month.. even with a mortage of $800 + $220 a month property tax that's $1020. That $220 is a total waste. So $220 vs 800.... now if I save $680 every month instead of paying it into a house over 20 years that's $163,200.00 Now to actually take out a loan of $163,200.00 would cost me $1,103.00 a month for 20 years. It would literally cost me double to own a house. This also does not include realstate fees, lawyer fees, land transfer tax...Yes you will pay property tax + insurance that also increase every year. Then it's a gamble : you have no guarantee that the bubble (housing market) will continue to grow at that rate in the next 20 years. 20 years ! Come on, with all the events that are happening right now, how can someone make a plan for the next 20 years ?? Any shit can happen, any time. This old thinking of taking a 20 years mortgage for owning your house is obsolete. We do not live in the same world as our parents and grandparents. The world has changed, rules as changed and the speed of changes is increasing exponentially. The are 2 kinds of people : dead and alive. We all die but the ones who adapt the changes of time tend to live much longer and better. I don't think there's any single solution that works best for everyone. If you're single and move fairly often, then renting makes a lot of sense. If you have kids and intend to stay in the same area for a long period of time, then owning makes more sense. And as I said, the state of the housing market certainly matters. It will be much harder for an investment in a house to pay off if you buy at the top of a bubble period. But as long as your timing isn't too bad, I think you will end up with more wealth in the end if you own rather than rent. Look at it this way: if you own, you pay mortgage, interest, property tax, insurance, and maintenance. If you rent, unless the owner paid for the property with cash, you're basically paying all of those things plus profit; you're just paying them all through your landlord. And when renting, after 20 or 30 years, your landlord still owns the property, not you. Title: Re: Debt free and $ in the bank Post by: superresistant on July 15, 2014, 02:25:20 PM Bubbles are bursting regularly. http://en.wikipedia.org/wiki/Spanish_property_bubble It is always the same story : It's all good until the day it burst. I would totally consult experts and do deep research before investing in housing market. Title: Re: Debt free and $ in the bank Post by: spazzdla on July 15, 2014, 03:33:19 PM Bubbles are bursting regularly. http://en.wikipedia.org/wiki/Spanish_property_bubble It is always the same story : It's all good until the day it burst. I would totally consult experts and do deep research before investing in housing market. I'm convinced Canada has a housing Bubble.. Not 100% for in my area though, well I would say it depends on the location some really ghetto spots in my city and some widly over priced ones too. |