61–70 of 380 posts
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I would argue in the current situation of 3.5% mortgage rate, the best scenario is to invest the cash in the stock market. If your returns are anything above 3.5% over the 30 year load amount, you're good.
I read this counter-point a lot. Its never clear to me how you invest the mortgage payment and also pay rent to live somewhere. Am I missing something? Sincere question.
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I don't own, but if I did I'd love a "landlord as a service" where I could just call or email someone about a problem and have them fix it.
This I think is important because I sure as hell have never rented anywhere where a landlord was some one to call if you needed to fix a problem.
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I would argue in the current situation of 3.5% mortgage rate, the best scenario is to invest the cash in the stock market. If your returns are anything above 3.5% over the 30 year load amount, you're good.
I read this counter-point a lot. Its never clear to me how you invest the mortgage payment and also pay rent to live somewhere. Am I missing something? Sincere question.
I ended up just buying and crashing in a van, exiting that mode of being, and am much happier because of it. Now I get to save money, research and build what I want when I want, and generally am very much less stressed. I'm no longer beholden to a landlord, or feel like I must participate in activities that just serve to entertain but not enlighten. I can spend the day at the beach just reading if I wish.
You start to look at time as something that you can control again, and you start seeing how much life truly is a gift, and that life itself should be nurtured and cherished. There is also a sense of independence and DIY that comes along with the lifestyle that feels like I'm leveling up in good ways.
Will this mode change for me? Sure. Change is inevitable. But for now I've found more peace and focus than I have in a long time. I'm now able to concentrate on longer stretches of time that hold bigger ideas, and then asking myself how I might use that time to start refocusing my energy making new markets.
The American Dream is looking more like a middle level marketing organization with false advertising for most. The problem is we just keep stripping away the middle class and lower class consumer power[1][2] and the solution is getting wages up to fix these issues. People wonder what happens in a consumer driven economy after stagnant wages since 2001, well this. It leads to Great Recessions, a sideways investment ma…
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Actually the best thing to do is just to have a lot of money. Problem solved! Your scenario assumes a location (or person) with: - Desirable housing in the $60-100K+ range - Employment sufficient to generate high paying positions - The will to sock away a large part of your income for close to a decade, just to have a paid-off home (which is not a big enough benefits to be a means unto its own) 20% down at a minimum…
This makes me wonder if 30 year mortgages even end up making housing more affordable. (I guess it would be a prisoners dilemma situation, where individuals benefit by taking them out but the overall situation is made worse)
I think it's possible to "game" the system by getting a 30yr mortgage but set it up so any extra payments above and beyond the minimum amount get applied against principal - in effect reducing the amount of money they can leverage interest against. Then you make as many extra payments as possible over the life of the mortgage and pay it off ASAP.
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This I think is important because I sure as hell have never rented anywhere where a landlord was some one to call if you needed to fix a problem.
Where I live, if the landlord doesn't fix the problem within a reasonable amount of time, you can fix it yourself and deduct the repairs from your rent payment. You should educate yourself on your local laws surrounding rentals if you haven't already; there are likely similar terms where you live.
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Not having your rent increase or being told to move, as are being able to make your home exactly what you need. My home has a 15x15' home gym with all kinds of upgrades I like.. finding a ready made house with my exact ideal gym? Low odds....
Apples to Oranges. If you are renting you are prioritizing the location rather than the house. You can't find a house with your ideal gym, but you can't change your city to New York city. The way I see it: If you don't plan to live in that place for the next 15-20 years, then you shouldn't buy. You can always invest your money in more liquid assets.
Why are mortgage debtors referred to as home owners? Edit: I was being a bit facetious. With liar loans, no down payment mortgages, deferred interest, "prices only go up," etc, it's been too easy to sell home "ownership" to people without their requisite understanding of the risks involved and the constantly changing market realities. I'm all for personal responsibility but the use of language is powerful.
Because in the US we like to sell people on the idea of "ownership", when the reality is that the bank retains all the real value. Only a fraction of so-called "homeowners" actually own more than 50% of their home. Most homeowners just rent from the bank. Many will rent from the bank for life. The way homeownership is sold in the US is nothing more than a way to get people to give up hundreds of thousands of dollars…
This explains why many struggling families can "get" "reverse mortgages" in which they sell their earned equity back to the bank that has always owned the majority share. Until they have sold all their shares, and are evicted, that is.
I don't think I'd have any interest in every buying a house if it weren't for the insane tax deductions for mortgage interest. Why be stuck in one house when your living situation changes over time (new kids, kids get bigger, kids move away, job changes).
You mention kids a lot, several studies show that kids grow up happier in a house owned by their parents. Somehow it makes them feel safer or something. They have consistency in terms of going to school, etc.
Once the kids are gone, you are allowed to sell your house to downsize.