Money Expert: "Don't buy a house"

[OneManGang]

I'm from Brooklyn. Purchased a crib in staten island at 2.85% during pandemic. I did not want to move to SI but it was the only place out of the boroughs where I could get the most bang for my buck (backyard, driveway, garage). I currently pay 3850, that includes mortgage and property tax. Average rate is now what? low 5%? So I wonder how much my bill would be if I purchased today.

Average rate with great credit probably closer to 6%

Let’s just say you’d be paying more, a lot more

I’d slap mom dukes for a 2.85% rate lol

 

[™BlackPearl The Empress™]

I hate how "you need to buy a house" was pushed on generations of people. It's not a good deal for everyone. I work with a guy who bragged about paying off his house...which is great expect he's put at least 20k into it in 2025 alone. It needs a ton of work and pipes keep breaking left and right.

I would only buy a house if I had a husband. Otherwise I don't see the point.

 

[Raw Lyrics]

Average rate with great credit probably closer to 6%

Let’s just say you’d be paying more

I wouldn't be able to afford it. I didn't factor in the price increase on the house. smfh

 

[OneManGang]

I wouldn't be able to afford it. I didn't factor in the price increase on the house. smfh

That too

The housing market is cooked, purchasing a crib is genuinely out of reach for a lot people today. Foreclosures are ticking up for the ones that do too.

 

[duckbutta]

When I bought my house over 10 years ago everyone i knew said it was a waste of money bad investment i could have taken that money and put it in stocks we could have stayed in apartments for x amount of years what about all the property taxes and upkeep blah blah blah...

Now those same people are paying as much and more in rent than I pay in mortgage to live in an apartment smaller than my kitchen and living room combined

They also constantly complain about how they wish they bought a house 12 years ago when houses were much cheaper while totally forgetting how they called me dumb for buying a house 12 years ago

"Financial experts" harp on the upkeep of a house like your apartment rent aint going up to exactly whatever the legal limit is in your state every 365 days

A few years ago I was looking at the rent at the apartments we stayed at before buying a house that shyt had almost DOUBLED IN PRICE for the exact same square footage

 

[Lord_nikon]

Guarantee dude got assets, shares etc in blackrock lol

 

[desjardins]

When I bought my house over 10 years ago everyone i knew said it was a waste of money bad investment i could have taken that money and put it in stocks we could have stayed in apartments for x amount of years what about all the property taxes and upkeep blah blah blah...

Now those same people are paying as much and more in rent than I pay in mortgage to live in an apartment smaller than my kitchen and living room combined

They also constantly complain about how they wish they bought a house 12 years ago when houses were much cheaper while totally forgetting how they called me dumb for buying a house 12 years ago

"Financial experts" harp on the upkeep of a house like your apartment rent aint going up to exactly whatever the legal limit is in your state every 365 days

A few years ago I was looking at the rent at the apartments we stayed at before buying a house that shyt had almost DOUBLED IN PRICE for the exact same square footage

Exactly
like any financial decision if the numbers don't make sense then don't do it
but anyone making a blanket statement against buying real estate is a person not to be trusted on financial issues
I bought my first crib in 2016 and somebody tried to be negative and said I bought at the top of the market
decade later that price is an absolute BARGAIN and that property has more than 2x'd in value
people act like we haven't been sitting here watching real estate valuations our entire lives. Combine that with inflation and you'd have to be retarded to think stabilizing your biggest expense shouldn't be a top priority as an adult

 

[beenz]

Sightly off topic but I gotta pay for water and I'm a renter in a apartment in Florida



Is anybody else here a renter and pay for water? I've heard water bills really be hurting homeowners pockets. My yearly SS increase got wiped out by that Water bill bullshyt I was hot



What is the point of moving to FL from NYC if my pockets aren't gonna be fatter

I have NEVER in my life heard of any renter paying water.

and that's typically cuz buildings only have one meter for water for the entire building. not one for each unit.

 

[jadillac]

No, buy a house. But buy smart and don't buy overpriced.

Renting you are throwing money in a bottomless hole.

If you put that same rent money in a house, if you get in a jam, you can refinance and get equity money out of your house to sustain you. Or you can do a line of credit.

Always use someone else's money.

 

[Koapa]

If I had listen to my step pops who never owned a home, I wouldve made a mistake.

Ive been owning my home since Jan 2022. I luv my house. I got a house that I knew I could afford.

It depends on your situation. Dont get into a house that you cant afford and dont get a piece of shyt house.

Dont let your partner or peers convince you into a unrealistic mortgage.

 

[Sterling Archer]

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

it really just depends on the math. the phrase is "marry the house, date the rate". this means if you can afford a home with rates at like 6.5% and it's not gonna break you, then go for it. cuz if worse come worse, if there's ever an opportunity to refinance, you will drop your housing expense.

the house I live in I bought in 2015, and it was only $240K. now this house is worth like 350K-400K.

also, when I bought this house, my mortgage rate was 4.125%. then I refinanced it down to 3% in 2021 (dropped payment about $300).

what I'm getting at is for me, it would actually cost more money to rent a nice 1BR apartment as opposed to mortgage the 5BR house I currently have.

I currently have enough money to pay off my current mortgage today if I chose to (yes, I would deplete the majority of my cash and investments), but I am HYPER focused on having it paid off within 5 years. in 2 years, I get a huge income increase cuz I won't be paying child support anymore, and I will split that excess between this mortgage and increasing my investing.

I don’t know why y’all even bothered to entertain it. Let those fools watch YouTube videos about finances and run here to post about how smart it is. We already know that everything is situational and depends on the numbers. These fools still using their fingers to count by trying to tell you something that something that has already worked, don’t work.


nikkas really said that interest and taxes are “hidden fees” of home ownership. In what fukking world

 

[beenz]

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

the two things I bolded are NOT mandatory.

I don't know what an escrow fee is. banks don't charge you to put money in or set up an escrow account. they want to do it for you in order to make sure your insurance and taxes are paid.

that said, I do my own escrow. meaning that I allocate X amount of dollars every two weeks to a high yield savings account that I use to pay my own property taxes and insurance. it makes it easier if I want to shop around for lower insurance rates.

however in order to NOT have escrow, you must have at least 20% equity in your home. this also applies to mortgage insurance. cuz mortgage insurance is a junk fee and a COMPLETE waste of money. you're paying the entire cost for the banks to insure your mortgage. if you are near 20% mortgage and your bank hasn't dropped that fee, call them and have them remove that bullshyt ASAP. they are supposed to drop it automatically at 22%, but once you hit 20%, make sure you get that removed.

 

[Windows 91]

Buying my house at a 3% interest rate in 2020 was the best financial decision I've made in my adult life.

But beyond the financial benefits, I just enjoy having a house. I started gardening, the dog can run around in the yard, I bought a classic car because now I have space to work on it and store tools. It fits my lifestyle well and I know I want to live in this metro area for life, so it made sense for me.

 

[Windows 91]

however in order to NOT have escrow, you must have at least 20% equity in your home. this also applies to mortgage insurance. cuz mortgage insurance is a junk fee and a COMPLETE waste of money. you're paying the entire cost for the banks to insure your mortgage. if you are near 20% mortgage and your bank hasn't dropped that fee, call them and have them remove that bullshyt ASAP. they are supposed to drop it automatically at 22%, but once you hit 20%, make sure you get that removed.

This is good advice and what I did. My home value increased so much that my LTV dropped way below 80% before naturally hitting that through regular mortgage payments. I called my lender and they sent someone out to do some abbreviated appraisal and they removed the PMI. Cut my mortgage payments by nearly $100 monthly by doing nothing.

 

[Chrishaune]

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

And they will raise the appraisal of your house and go up on the property taxes like clockwork.

They are trying to take most people's homes.

If people don't see this scam that the United States and the West is running, they are about to get hurt.