Money Expert: "Don't buy a house"

[Sonic Boom of the South]

People ran the numbers and realized where we are now in many places you can rent cheaper than you can buy. If you are disciplined and invest that savings you can get ahead.

Also from an investment standpoint the stock market returns while more volatile in the short term outperform real estate long term. Owning a rental property is a whole different argument.

People don't need to run #s to know the can't afford to buy a home.


If it makes you feel better about it by making up rationale that's your coping mechanism.


If owning a home was such a bad investment, then no one would complain about the housing market and unaffordable home buying market.

 

[winb83]

People don't need to run #s to know the can't afford to buy a home.


If it makes you feel better about it by making up rationale that's your coping mechanism.


If owning a home was such a bad investment, then no one would complain about the housing market and unaffordable home buying market.

You can get a normal middle class home out here where I live for $220K or so. I am not wealthy and I have a very modest income of about $102K a year. You tell me I'm coping and can't afford a home. The only property I own is a $28K car with $6K in debt on it that technically I don't have to have the loan.

I just choose not to buy a home because I can lower my living expenses to a crazy degree not owning a home. My combined fixed monthly cost add up to less than a single mortgage payment with a 20% down loan would be for me.

 

[Sonic Boom of the South]

You can get a normal middle class home out here where I live for $220K or so. I am not wealthy and I have a very modest income of about $102K a year. You tell me I'm coping and can't afford a home. The only property I own is a $28K car with $6K in debt on it that technically I don't have to have the loan.

I just choose not to buy a home because I can lower my living expenses to a crazy degree not owning a home. My combined fixed monthly cost add up to less than a single mortgage payment with a 20% down loan would be for me.

You choose to have a car note and throw money away on interest.

Gtfoh financial guru.
Using your logic then you an idiot for getting a car when you could have lowered your transportation expenses walking, biking or public transportation.
Matta fact, using your logic you are wasting money paying to live anywhere, when you could lower your living expenses being homeless.
18 accounts under credit cards...

Matta fact, kill yaself and take lowering living expenses to the apex.

 

[Mike Nasty]

I just choose not to buy a home because I can lower my living expenses to a crazy degree not owning a home.

You win at the low living expenses game, congratulations.

 

[winb83]

You win at the low living expenses game, congratulations.

I mean you see all these people complaining about the cost of living and home / car / life unaffordability.

This paradigm of don't buy a house if about taking a look at your life and figuring out how you can control core cost. Buying a home should be a strategic purchase made from a financial position of strength knowing that it comes with additional high and rapidly growing cost you are in a position to bare. To the average person the thought they give it is if my rent cost X and I plan to stay a while I should buy a home because I could be building equity. They go out and buy the nicest home they can get with someone else's money and borrow a lot of it.

Even here just presenting the idea of not buying a house is meet with pushback. Instead of meeting it with "you know what that could work" people are clearly upset with the idea that home ownership isn't always the best way forward. People have been conditioned to think buying a home is consistently a smart decision when it's often an emotional one.

 

[KillerPups]

buying a house been the fastest money I ever made. literally buying houses in the hood got me out the hood but everybody got a different path

 

[OneManGang]

There are now more home sellers than buyers. Homes are available. Ppl just can’t afford them. This isn’t 10-20 years ago anymore. That’s the crux of this convo and the background of my comment earlier. As an investment mechanism the returns are disappearing

 

[Richard Glidewell]

The fix been in since covid....... shyt still made absolutely zero sense how houses were flying off the shelf left and right when people were supposedly shut in and was still done for convincing banks they had stable income

 

[L&HH]

Property tax raises higher in TX than CA...

This is because Texas doesn’t have income tax. So they offset that elsewhere by increasing property tax.

 

[Bboystyle]

The fix been in since covid....... shyt still made absolutely zero sense how houses were flying off the shelf left and right when people were supposedly shut in and was still done for convincing banks they had stable income

U do realize most those houses that were being bought were from banks and investors right? Its not like people just decided to get up and buy a house lol. They knew when covid hit, prices would soar every where and they can make a profit. And profit they did.

Rates are down and prices are cooling off now. Id say it will be a buyers market in the next 5 years.

And lol at u broke renting nikkas justifying not getting a house. If u single, cool, stay renting or get a small condo. But if u married and want or have kids, u need a house to pass it down.

 

[OneManGang]

U do realize most those houses that were being bought were from banks and investors right? Its not like people just decided to get up and buy a house lol. They knew when covid hit, prices would soar every where and they can make a profit. And profit they did.

Rates are down and prices are cooling off now. Id say it will be a buyers market in the next 5 years.

And lol at u broke renting nikkas justifying not getting a house. If u single, cool, stay renting or get a small condo. But if u married and want or have kids, u need a house to pass it down.

Prices are cooling down? Rates are down for now, that’s true. But that doesn’t mean prices are cooling off. If anything that may just drives prices up due to more demand and bidding wars. Unless prices and insurance and economy turns around wholesale it won’t be a buyers market for a long time. Even 5 years is a long time to wait for this current generation considering average homebuyers age is 40+ rn

 

[Bboystyle]

Prices are cooling down? Rates are down for now, that’s true. But that doesn’t mean prices are cooling off. Unless prices and insurance and economy turns around wholesale it won’t be a buyers market for a long time. Even 5 years is a long time to wait for this current generation considering average homebuyers age is 40+ rn

I guess it depends on your area. Where im at, i see houses getting price reduced by 10k-30k due to being on the market for so long. Mattered of fact, haggling for a house atm is something that can be done. So in a sense, its starting to cool off but still far and away to where it should be

 

[OneManGang]

I guess it depends on your area. Where im at, i see houses getting price reduced by 10k-30k due to being on the market for so long. Mattered of fact, haggling for a house atm is something that can be done. So in a sense, its starting to cool off but still far and away to where it should be

Ok I can see that. At the end of the day just don’t over leverage yourself. Buying is great just don’t think you’ll be a real estate guru these days

 

[Bboystyle]

Ok I can see that. At the end of the day just don’t over leverage yourself. Buying is great just don’t think you’ll be a real estate guru these days

I bought my house in 2018, im straight.

I do feel for the younger generation though.

 

[Strapped]

If you buy a condo you'll have to pay HOA fees & property taxes which could cost you a lot of money
Buying a house in a HOA community is no different
Buy property outside of an HOA is your best bet but you'll still deal with property taxes unless you live in a rural area where you can get a farm or death burial exemption from property taxes or low taxes



Property tax exemptions are reductions in the assessed value of a property for tax purposes, which lower or eliminate the amount of property tax owed. These exemptions are typically granted by local governments to eligible individuals or organizations based on specific criteria such as age, disability, veteran status, or property use.

• How they work: Exemptions reduce the taxable value of a property. For example, if a home is valued at $500,000 and a $100,000 exemption applies, taxes are calculated on $400,000 instead of the full value.
• Common types:
  • Homestead exemptions: Protect a portion of a primary residence’s value, often available to all homeowners.
  • Senior exemptions: For homeowners aged 65 or older, sometimes with income limits.
  • Veteran exemptions: Available to veterans, especially those with service-connected disabilities (e.g., up to 100% exemption in Texas).
  • Disability exemptions: For individuals with qualifying disabilities, including those resulting from military service.
  • Nonprofit and religious exemptions: Properties used exclusively for religious, charitable, or educational purposes may be fully exempt.
• Application: Most exemptions require an application to the local tax assessor or appraisal district. Deadlines vary by state (e.g., May 1 in Texas).
• Key distinction: A tax exemption reduces the tax bill directly, unlike a tax deduction, which reduces taxable income for income tax purposes.

Eligibility and benefits vary significantly by state and locality. Check with your local tax authority or visit their official website to determine what exemptions you may qualify for.