On my 83k mortgage, I will pay 161k over 30 years, making minimum payments. That means with 0 inflation I will have paid almost 80k just to live there for 30 years. But… if I sold the house in 30 years, I bet it would go for 120 +, making it 40k or less to live there for 30 years. Then you have to factor the tax rebates, write-offs, etc…
if you rent for 30 years, you’re going to pay 700+ now a month, and then it’s going to go up every year. You don’t get ANY of that back.
So yes, it’s an expense, but less of an expense than renting :tup:
If you do rental properties, it’s less of an expense, maybe even an investment.
Ugh it is still in investment even if you take a loss. You are investing in your satisfaction, quality of life, financial stability, and equity to name a few. Also lets not forget if you are not owning you are probably renting so after maybe losing a few k over 30years of owning isn’t as bad as losing 15-20k a year to rent a COMPARABLE house. I hate it when renters try comparing $$$ figures. Yeah bro your 640sqft place in a complex is totally as nice as my 3200sqft house lol.
the only time renting makes sense is when you think you might be moving in a couple years max… especially those who bought houses 2 years ago here for 400k and lost their jobs and now have homes worth 200k with a 400k note.
remodeling can swing both ways. Im putting a couple grand into redoing my bathroom which will probably increase the value of my house more than what i put into it. However I’d love to knock out the small bedroom next to it and turn it into half glamour bath, half walk-in closet for the master. But that would make it from a 3br to a 2br and actually knock money off.
Yeah, uh… just dont take out a 200k loan on 30years and not make any advanced principle payments, seeing as you’re paying the cost of the house JUST in interest…
If you buy a house today for a $1000 monthly payment and inflation occurs (it will), you’ll still by paying $1000 a month in 10 years while your friends who rent will continue to see rent increases along with inflation.
My Aunt got lucky and did the opposite. I know I posted about this in the past but, my Aunt got out in and out at the right times and made huge money on her Sarasota and Wash. DC properties in just a few years. I mean more than you could make in WNY in 40 years. Again, location, location, location.
I’m just proposing that a person doesn’t normally turn a profit on a single family home when you add up interest, taxes, repairs, some kinds of remodeling, etc.
It can definitely be cheaper than renting if you do it right, and you definitely get a better quality of life for your money. :tup"
You can definitely get some good return on investment if you do some types of remodeling by yourself. I plan on finishing my garage for around $1,000, but I guarontee that it will up the value of my house when I sell it more than that initial $1,000.
With that said though, there are definitely good and bad things to do, if you want to make a good return on them, you have to pick your battles.
I agree that it may or may not return on investment. I feel given a long enough term(20+years) most people will actually return though to be honest. Given inflation and tax deductions and such. However no matter what if you are going to seek a certain standard of living regardless then owning is a wealth building tool as in over x amount of years it is likely your loss would be much less hence still having more monies!!! This is how owning builds wealth not just ROI.
my father bought a house for something in the high 2’s, they’ve been living there for maybe 4 or 5 years, but it’s now worth somewhere in the 7’s-8’s, maybe 9s
it really depends on where you buy the house, and how the market is
:word:
Renters will always pay rent. Home owners will someday not have to pay a mortgage. Plus all the tax perks, I get more money back in taxes then when I just ranted. My rent and mortgage payments are close too. So it’s not like I’m spending an ass load more. Sure if something breaks I gotta fix it, but thats why I bought a brand new house, so I wont have to worry about it for along time. :loopie:
When I rented, I hated it, there was always trash in renting situations, atleast in mine. Now I own in a nice area and don’t have to worry about what might happen to my car at night or who might be trying to bang my door down at 4am for someone whom used to rent before me. :bloated:
I wish i could call maintenance for everything