Debt free and $ in the bank

[spazzdla]

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.

[Jamie_Boulder]

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).

[wunkbone]

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..

[Lethn]

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

[spazzdla]

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...

[spazzdla]

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.

[Lethn]

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.

[Sheldor333]

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

[superresistant]

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.

[spazzdla]

^^  Thanks .

[Jamie_Boulder]

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.

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

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

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

[spazzdla]

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  .

[tinof]

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.

[CoinsCoinsEverywhere]

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

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

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

[HarryT1923]

renting is horrible..... pay so much of my paychecks to rent. and it is constantly being raised, just to stay in some slum apt.

[spazzdla]

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?

[superresistant]

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.

[Miz4r]

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.

[drmundo]

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.

[CoinsCoinsEverywhere]

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 was doing a little more thinking about this, and I realized that you didn't factor inflation into your rent calculations.  You may only be paying $440 a month in rent now, but at 3% inflation, you'll be paying close to $800/month 20 years from now.  With these numbers, it's true that over 20 years your rent will always be lower than a mortgage.  But after that time, you'll also have equity in the house, whereas with renting of course you'll have nothing.  And when looking at that equity, don't forget that that will also be affected by inflation.  So that $165k house that you could have bought now would also have almost doubled in value (again assuming the same 3% inflation rate).  And finally, don't forget about what happens after 20 years.  If you stay in that house, you now pay nothing except property taxes, which should be a lot less than rent, which would continue to increase.  So in the long run, owning still has a good shot at beating renting, but it obviously depends on your particular situation.

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.