Money Expert: "Don't buy a house"

[Sonic Boom of the South]

What dumb ass propaganda to make gen z feel better about the housing market boxing them out.


If you can "afford" to purchase and live in a home, it is a smart investment.

I purchased a small home when I was in college and made it a rental property and flipped it.

Any purchase is dumb when you can't "afford" it.

 

[WesCrook]

It depends. If you have an affordable mortgage then the equity you can get from the house makes more sense than renting in the long-term. You can also pull out equity from the home.

One thing people are not mentioning is that that a house can be passed down generationally.

I'm not debating you, however, some folks act as if owning a home is the be-all end-all when it comes to investment. You can rent on the cheap (if you have a good deal) and still invest in other things....with whatever remaining discretionary income you may have.

Again, I'm not suggesting that one is better than the other

 

[UpAndComing]

The hidden cost of Home ownership is more of a problem than the sticker price


- Mechanical Maintenance
- Insurance (Property, Mortgage Insurance, Insurance related to environmental disasters)
- Property Taxes
- Escrow fees
- Mortgage Interest
- Etc etc

 

[Orange cream shake]

It's all relative. I'm saying this as a renter.

Everyone's situation is different.

Right. To rent my house its several hundred dollars more than what i pay for my mortgage not to mention once that lease is up, owner can tell you to kick rocks. Then i gotta find another house to rent for my family. If you single its probably more cost effective to rent. Not when you need 4 bedrooms and an office.

 

[StretfordRed]

Makes no sense in the UK (considering he is British too) where we do not pay additional money after purchasing the house (besides stamp duty)

For example, for many mortgage is cheaper than rent or a few hundred of £ cheaper. Interest rates rise and fall, rent will only rise if you stay with the landlord. If you move, say if you have kids, the likelihood is that it will be for somewhere bigger and expensive.

My mortgage is £1950 a month I was renting for £1750 a month almost 5 years ago and now I have two kids. So renting would have been worse.

 

[WesCrook]

Right. To rent my house its several hundred dollars more than what i pay for my mortgage not to mention once that lease is up, owner can tell you to kick rocks. Then i gotta find another house to rent for my family. If you single its probably more cost effective to rent. Not when you need 4 bedrooms and an office.

Yep.

Property owners should be on your short list of people to always be on good terms with, along with your boss at work.

 

[inndaskKy]

It's all relative. I'm saying this as a renter.

Everyone's situation is different.

Actually, it's pretty absolute. People who do business with banks are sh*tty people who should be shot and never be allowed access to medical care of any kind. If they get cancer, tough luck...

 

[IIVI]

It all depends.

Real Estate is good as an investment because it’s reliable to go up if the conditions are right.

However, while it’s less volatile, it won’t beat the opportunity cost/Discount Rate/time value of money you get from putting the same money into a stock that also has the right conditions.

Plus it’s not nearly as liquid as a stock is and that matters a lot. Moving $100k from one investment into another High Quality stock that was beaten down for the dumbest reason is something you can’t do with Real Estate. In a matter of minutes can go from one investment into really good investment into a better one.

 

[UpNext]

If you can comfortably afford a house (this includes upkeep) you should buy one. If you cannot, then don't. Very simple. It makes sense to rent an apartment if you're going to be house poor, if you are going to be just fine with a house it makes no sense to rent.

Unless you're in a situation where you can rent the house you own and have the house pay your rent.

 

[desjardins]

Complain about corporations buying up single family homes
Also advise people not to buy homes

 

[Raw Lyrics]

I am firmly a believer in this. Unfortunately it took me buying a house to realize I could’ve been saving and investing so much more money had I just kept renting.

Being house poor is not the wave. The thousand+ I could’ve been saving renting and investing keeps me up sometimes. fukk it we ball though

Doesn't it depend on the city as well? in NYC average for a 3 bedroom is anywhere from $3,500 to $5,000. That's a mortgage and property taxes.

 

[Mike Nasty]

Ya'll act like renting is free and cheap. I remember being broke and the rent increased just because the calendar changed. fukk all that. So what if I have to buy a new fridge, still better than living in an apt.

.....and what are you going to do after you retire and you still have to come up with rent from your fixed retirement income?

 

[Damba]

my primary purchased for $425k is worth about a mill
my rental purchased for 160k is worth 600k
my other rental purchased for $450k sold for $800k

yes i live paycheck to paycheck a lot living in a high cost of living area. yes i would rather be putting that $6k a month i pay for mortgages in the stock market but real estate changed my life.

everything is super expensive right now but if if you can buy low definitely buy

Exactly, I bought a house in 2020 for 419k today it’s valued at 530k. Also bought a foreclosure as is in 2011 for 115k, put in a hot water heater, new central unit, paint and sold it for 225k.

 

[Strapped]

You don't really own that property in the United States, miss couple property taxes & the county will sell it under you .

 

[Apollo Creed]

I am firmly a believer in this. Unfortunately it took me buying a house to realize I could’ve been saving and investing so much more money had I just kept renting.

Being house poor is not the wave. The thousand+ I could’ve been saving renting and investing keeps me up sometimes. fukk it we ball though

But why do we keep assuming the only homes to buy are ones we can’t afford? I bought in a gentrifying area low and my value has 3-4x and my mortgage was cheaper than rent