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Does it make sense to buy a starter home?
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Date: August 2nd, 2013 12:19 PM Author: gaped potus Got a lot of friends doing this, buying themselves a starter home. Does it make sense to do this or is it better to just save until you can get the big house? Personally, I don't exactly understand the reason for a starter home. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767887) |
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Date: August 2nd, 2013 12:20 PM Author: Racy jap sex offender Renting is stupid (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767888) |
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Date: August 2nd, 2013 12:21 PM Author: gaped potus But explain to me like I'm five. Do you really save money buying a starter home to live in for a couple years? I feel like with maintenance and closing costs, you basically are losing money. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767893) |
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Date: August 2nd, 2013 12:24 PM Author: Racy jap sex offender Mortgage builds credit. Mortgage payments are less than rent even with amortized acquisition costs. Maintenance should be negligible unless you buy a fixer upper. You will most likely exit at a profit (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767906) |
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Date: August 2nd, 2013 12:24 PM Author: mustard heady library House could appreciate in value. If you're smart with the purchase, it's likely to. Money spent on rent is flushed away. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767913) |
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Date: August 2nd, 2013 12:31 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire TBF your first few years of mortgage is almost entirely interest and you don't build any substantial amt of equity beyond your down payment, plus you have the transaction costs. I sure as FUCK would not recommend buying a house for "a couple" of years. |
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Date: August 2nd, 2013 12:33 PM Author: gaped potus So if buying a house, how long would you recommend you need to plan to live there? (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767959) |
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Date: August 2nd, 2013 12:33 PM Author: mustard heady library Rule of thumb is 5 years. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767960) |
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Date: August 2nd, 2013 12:38 PM Author: Yellow University Really depends on the local rental market, though. I remember looking a a market where condos were so reasonably priced compared to comparable rentals that 2 years was the break even point.
It's all local. |
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Date: August 2nd, 2013 12:38 PM Author: mustard heady library http://en.wikipedia.org/wiki/Rule_of_thumb (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767984) |
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Date: August 2nd, 2013 1:48 PM Author: Yellow University Yeah, ok, but it's a shitty rule of thumb if it's off by 100% or more depending on local markets.
It's like saying a good rule of thumb is that lawyers can afford nice houses. |
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Date: August 2nd, 2013 12:37 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire http://www.nytimes.com/interactive/business/buy-rent-calculator.html Use that. |
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Date: August 2nd, 2013 12:41 PM Author: Thriller selfie state (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767996) |
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Date: August 2nd, 2013 12:42 PM Author: aromatic charcoal dopamine gas station These are tough because it isn't apples to apples. Eg I could rent a townhouse or buy a 4 br home on a half acre lot. There is additional consumption involved in most buy options (including, eg, better fixtures, etc) (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768004) |
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Date: August 2nd, 2013 12:54 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire Yeah, but those things are relatively minor considerations. You buy a new door handle one time for 100 or a bed for the guest room at 500-1000 or something, who fucking cares when you're dropping 200K on the house (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768073) |
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Date: August 2nd, 2013 12:26 PM Author: aromatic charcoal dopamine gas station Only buy a starter home if you're still several years away from kids. Small house is good for a couple and for kids in their 2s and 3s, but after that, you'll want big. If 3 to 5 years from kids, that can be 7-10 years before moving, so generally it makes sense. Also, allows you not to pay for good schools until kids are school age. If having kids now, it is probably too late for a starter home, so find something you're happy with indefinitely. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767926) |
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Date: August 2nd, 2013 12:30 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire Your problem is thinking you buy a starter home for 2 years. Of course buying a home for two years is flat out stupid. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767944) |
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Date: August 2nd, 2013 12:32 PM Author: Yellow University It will depend on your particular market and how much you value "ownership" v. having a landlord fix your shit. And how long you live there, of course. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767953) |
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Date: August 2nd, 2013 1:38 PM Author: exciting gay plaza water buffalo "Renting is stupid"
(guy who lives and dies by boomer flame) |
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Date: August 2nd, 2013 12:24 PM Author: dull office digit ratio IMO for nearly everyone, there are only 2 credited first home purchases:
1) condo that is cheap enough that it won't force you to alter your lifestyle and that you can hold onto and rent out after you eventually move out and 2) stand alone home that you are comfortable living in for at least 15 years and is within your price range.
Anything else seems to be short sighted. |
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Date: August 2nd, 2013 12:32 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire The NYT has a calculator that shows whether you should buy or rent based on how long you expect to hold the house. For my area, something like 3yrs becomes the break even point. Fuck yeah Texas. FWIW we got lucky and actually found a really desperate buyer (moving across the country in like a week, no one had made an offer because owner had SICK upgrades, and apparently people are dumb as fuck and want boring conventional sinks, fans, toilets, etc.). So we bought like 10% under appraised value, adn appraised value is always less than what you'll sell it for absent some really weird scenario like utter desperation to sell. So we've already made back our transaction costs, and that's after only a year of owning, and not even counting tax benefits and that our house is 50% bigger than our previous apt not counting the land and garage and also $150 cheaper per month for mortgage, insurance, taxes than rent alone was. |
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Date: August 2nd, 2013 12:35 PM Author: gaped potus I don't understand this calculator. Based on where I live, and the rent I pay (low cost of living area), it says its never better for me to buy. What? (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767967) |
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Date: August 2nd, 2013 12:36 PM Author: Dashing Dilemma Sounds like you in a housing bubbalicious area where property prices are disconnected from rents that is to say reality. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767970) |
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Date: August 2nd, 2013 12:37 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767976) |
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Date: August 2nd, 2013 8:51 PM Author: Chocolate lay private investor Where you at? Houston or Dallas? Houston Heights?
How much were closing costs as a percentage of mortgaged amount?
How much did you spend? Even with low rates, taxes in Texas are pretty substantial and mortgage + taxes + PMI + insurance is usually more than rent. |
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Date: August 2nd, 2013 10:19 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire Down payment of 20% means no PMI. Not going to say which city I'm in. Not going to say the actual #, but we spent just barely over what my wife and I make combined in a year. So 1/3 what the rule of thumb says we could have afforded. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771138) |
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Date: August 2nd, 2013 10:51 PM Author: Shaky brilliant elastic band market "appraised value is always less than what you'll sell it for"
What? |
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Date: August 2nd, 2013 10:53 PM Author: Kink-friendly nighttime tanning salon tcq (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771369) |
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Date: August 2nd, 2013 1:49 PM Author: pontificating kitchen cuckold you will get blasted in the ass with condo fees (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768361) |
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Date: August 2nd, 2013 10:19 PM Author: Kink-friendly nighttime tanning salon tcr. And condo association drama can get brutal. If you're neighbor is an asshat who makes a ton of noise (or you are) then be prepared to deal with the endless hassle. If you rent then nbd, sublet/assign your lease and you're out. If you bought then you're fucked.
The other obnoxious shit is that you're limited on what renovations you can do. Have a place with only window a/c and want ductless? I ton of places ban that. Want to convert carpet to hardwood? A bunch have 80%+ carpet rules because of noise issues to downstairs neighbors. |
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Date: August 2nd, 2013 12:29 PM Author: appetizing people who are hurt no. you will lose money on it. get a normal home and expect to stay for 15 yrs.
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Date: August 2nd, 2013 12:30 PM Author: gaped potus So basically, if I can't afford a real home yet, better to just rent until I have the money? Dude above me is saying I'm an idiot to pay rent at all. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767946) |
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Date: August 2nd, 2013 12:32 PM Author: 180 mad-dog skullcap Depends on your analysis.
Don't forget, there is value in the optionality inherent in renting. |
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Date: August 2nd, 2013 12:43 PM Author: appetizing people who are hurt yes. you wait : 1. until you have money for deposit+$10,000. 2. until you find the right house for you now+15 yrs down the road.
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Date: August 2nd, 2013 12:22 PM Author: topaz voyeur pozpig as a general rule I think this is a bad idea, the wife will want to move up almost immediately, especially if there are any kids and you'll be fucked (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767902) |
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Date: August 2nd, 2013 12:26 PM Author: gaped potus That's my thinking as well. Just as an example, I've got married friends that bought themselves tiny 3 bedroom houses and their wives are already itching to move. Literally got a friend thats lived in his house for 2 years and already looking to sell and move. I just don't exactly see the money savings doing that, but I dont really know the costs of home ownership. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767922) |
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Date: August 2nd, 2013 12:28 PM Author: topaz voyeur pozpig at 2 yrs there is no way he's saving any money, closing costs alone have to eat up any little bit of equity
only upside is if the market gets hot |
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Date: August 2nd, 2013 12:36 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire closing costs (atty fees, RE broker/agent fees, escrow fees, etc.) will in 99% of scenarios outstrip any two-year appreciation in home value of course you could be OK w/losing some $ on home purchase my wife and I were we aren't looking to make money on a house, and we bought the cheapest house we were happy with, so even if we lose like 20% when we sell it's honestly not really that big of a deal to us in the grand scheme of things the psychic benefits of owning a house are that valuable to us (but obv not that valuable to everyone on xo) |
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Date: August 2nd, 2013 12:24 PM Author: Cracking filthy site ITE, starter homes are the new family homes (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767912) |
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Date: August 2nd, 2013 12:39 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire if you have 2 kids, they can share one bedroom until they're like 10yo anyway fuck them (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767988) |
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Date: August 2nd, 2013 12:41 PM Author: topaz voyeur pozpig ah, 8 yrs of your wife never shutting the fuck up about how you need a new place, sounds like heaven (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23767997) |
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Date: August 2nd, 2013 12:43 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire *cues prodigy smack my bitch up*
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Date: August 2nd, 2013 12:45 PM Author: topaz voyeur pozpig *comes to understand the joy in providing both child support and alimony payments sufficient to cover the mortgage on the starter home you used to live in plus getting to pay rent* (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768029) |
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Date: August 2nd, 2013 12:42 PM Author: Dashing Dilemma Anyone that plans to make money on their house is a fucking idiot -- full stop. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768002) |
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Date: August 2nd, 2013 12:42 PM Author: coiffed cerebral pit haunted graveyard (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768005) |
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Date: August 2nd, 2013 12:43 PM Author: topaz voyeur pozpig tbf, there is a point at which you can at least hope to break even or not lose money to rent (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768011) |
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Date: August 2nd, 2013 12:43 PM Author: hateful trump supporter athletic conference it's a great plan if you are in a highly desirable city (or an emerging market) (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768017) |
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Date: August 2nd, 2013 12:44 PM Author: Dashing Dilemma No, it isn't. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768027) |
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Date: August 2nd, 2013 12:48 PM Author: hateful trump supporter athletic conference (mfe)
i have a friend who just bought a place in kiev for 260k. the market is dead there, and will surely spike a lot in 5-10 years. in addition, he will be able to rent it out for about 2400-2500 per month. so, not only does he own an appreciating asset, but he gets a dividend of 11% per year (assuming 2400)
tell me how this is a bad investment? |
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Date: August 2nd, 2013 12:49 PM Author: Dashing Dilemma Spending weekends fixing toilets oh what a scholar (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768051) |
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Date: August 2nd, 2013 12:51 PM Author: hateful trump supporter athletic conference exactly, you dont know shit (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768062) |
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Date: August 2nd, 2013 12:57 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire yeah and sasha grey is worth millions of dollars by taking tons of baby batter in every orifice - doesn't make it a great idea for people in general to do in general, buying a home you are going to live in is a stupid business plan |
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Date: August 2nd, 2013 12:59 PM Author: hateful trump supporter athletic conference i qualified my statement above about desirable cities and emerging markets. and my buddy is not going to live there, he is going to profit from it (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768104) |
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Date: August 2nd, 2013 12:56 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire "Anyone that plans to make money on their house is a fucking idiot -- full stop. " (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768084) |
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Date: August 2nd, 2013 3:17 PM Author: curious greedy property The point should be to save on rent. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769056) |
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Date: August 2nd, 2013 12:42 PM Author: vivacious base new version people who say renting is throwing money away don't see how much money you throw away in buying a home which might equal or even exceed rental costs and people who sell their homes quickly, say, 2-3 years, generally lose money b/c their homes haven't had a chance to appreciate enough to offset closing costs, interest payments, property taxes, and other costs.
for example, i bought a starter condo for $335k. my monthly payment is around $1800/mo v. about $1400/mo renting. ~$700 of the ~$1800 is HOA plus taxes, so that's already money you throw away. in the first few years of a ~$1100/mo mortgage payment, the bulk of your payment is all toward interest so you're building very little equity. so in the end, after about 2 years of ownership, every month i'm throwing about ~$1500/mo on interest, hoa, and taxes, which exceeds the cost of renting. for buying to make economic sense, you need the market to appreciate enough to offset all your transaction costs, all your interest payments, taxes, and maintenance costs, which is extremely hard to do in a short amount of time.
for me, buying a condo made sense b/c it's not something i need to dump in 2-3 years when i want a single family home. i can easily keep it and rent it out for $2k/mo, which would cover all the costs and i can wait to sell it in 10 years. but theoretically, if i were to sell this now, i would, at best, break even on the transaction despite the fact that the market has appreciated quite a bit in the last 6 months. you certainly would get a better return in the stock market than in RE. |
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Date: August 2nd, 2013 12:45 PM Author: Dashing Dilemma Explain how holding a home longer can offset property taxes. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768032) |
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Date: August 2nd, 2013 12:46 PM Author: mustard heady library Explain spending $500+ a month on HOA. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768036) |
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Date: August 2nd, 2013 12:47 PM Author: Dashing Dilemma LOL. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768040) |
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Date: August 2nd, 2013 1:00 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire lol yeah exactly *assumes literal worst case scenario* my HOA fee is like $200/yr gated community | upper middle class | no one wants a community pool |
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Date: August 2nd, 2013 1:31 PM Author: Cracking filthy site HOA can be a lot more than 500/mo for an urban condo in a major city (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768277) |
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Date: August 2nd, 2013 1:45 PM Author: exciting gay plaza water buffalo CR (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768331) |
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Date: August 2nd, 2013 10:21 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire well sounds like buying a condo is dumb as fuck then i mean, if you buy a condo you're basically living in an apt anyway, shared walls, no fences b/w you and neighbor, no yard, etc., wtf's the point? |
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Date: August 2nd, 2013 10:28 PM Author: Kink-friendly nighttime tanning salon I agree. And the other thing is that the condo fees are outside of your control. If your association decides to jack your fees you're really fucked. For one, selling for a decent price has just become much harder. So your choices are 1) sell at a loss (often substantial), or 2) get raped by fees and hope the same shit doesn't happen again in the next few years (or less). (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771195) |
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Date: August 2nd, 2013 1:36 PM Author: vivacious base new version i don't where i said my HOA is anywhere close to $500 (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768293) |
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Date: August 2nd, 2013 1:46 PM Author: mustard heady library "~$700 of the ~$1800 is HOA plus taxes"
My bad. I assumed you paid ~$2400 a year in taxes. A quick check puts that number more like ~$4000.
Explain spending $400 a month on HOA. |
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Date: August 2nd, 2013 1:50 PM Author: vivacious base new version i pay $300 in HOA for basically zero amenities other than some outdoor common space for the dog which is nice, but that's about as low as you're going to find in LA or any other major urban area. bldg with actual amenities will run $700-800/mo at least. when houses start at $1M+ for a hovel in a desirable hood in LA, people who can't afford to buy a house have no choice but deal with a HOA. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23768378) |
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Date: August 2nd, 2013 5:04 PM Author: mustard heady library Hmmn ... so you're saying you pay ~$4,800 in taxes on your condo? That means your tax rate is roughly 1.43, well above nearly every municipality within LA county. Santa Monica's is 1.11, LA is 1.22, El Segundo is 1.07. Seems off. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769551) |
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Date: August 2nd, 2013 5:48 PM Author: vivacious base new version there are always special assessments and other charges in addition to taxes on the property tax bill. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769734) |
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Date: August 2nd, 2013 5:00 PM Author: fishy passionate newt In the Phoenix/Scottsdale area (which isn't particularly expensive), HOA fees at nicer condos are close to $0.50 per square foot per month. So a 1,000+ sf condo gets you to $500. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769539) |
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Date: August 2nd, 2013 1:44 PM Author: exciting gay plaza water buffalo (sells savvy real estate investment starter condo in 10 years)
(uses profit to finances 2.25 years of private school tuition for one of planned future generation of gunners)
(lives the dream!) |
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Date: August 5th, 2013 12:44 PM Author: Kink-friendly nighttime tanning salon (Regrets not having the extra condo when junior moves back home with no job after prestigious education) (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23783992) |
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Date: August 2nd, 2013 3:21 PM Author: Vibrant crackhouse death wish "my monthly payment is around $1800/mo v. about $1400/mo renting."
"i can easily keep it and rent it out for $2k/mo, which would cover all the costs and i can wait to sell it in 10 years."
Do you see the flaw here? |
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Date: August 2nd, 2013 3:24 PM Author: vivacious base new version yes, the flaw is that you assumed that my actual/potential rental cost is the same as the cost of renting out my particular condo.
$1400/mo is what I was paying for a 1BR apt in LA. I bought a 2BR which I can easily rent out for $2k. |
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Date: August 2nd, 2013 3:25 PM Author: Vibrant crackhouse death wish No, moron. Your original comparison is meaningless. The only relevant question is what your payment is vs. what your rent would be for the same property. God, you are one of the dumbest bitches I've ever come across. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769108) |
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Date: August 2nd, 2013 3:29 PM Author: vivacious base new version the original comparison isn't meaningless given that i would've been perfectly fine spending $1400/mo on a 1BR for the foreseeable future and is absolutely relevant in figuring out at what point i'd be break even v. profiting off my decision to buy a condo. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769125) |
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Date: August 2nd, 2013 6:28 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire this still makes no sense you're basically saying you're so lazy you were willingly and knowingly letting yourself get gouged, and therefore you will have no problem finding someone else to do the same thing |
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Date: August 2nd, 2013 7:19 PM Author: vivacious base new version i'm not letting myself get gouged at all. i got a great deal on my condo at the bottom of the market.
i'm just not going to overinflate how much i'm gaining from buying a 2BR when i know that i wouldn't have moved into a 2BR for at least 2 years of ownership. after my bf moved in with me, i would now compare renting of comparable properties since we would've gotten a 2BR together. |
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Date: August 2nd, 2013 9:41 PM Author: Vibrant crackhouse death wish Post removed by moderator for violating The Law of The Land. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23770958) |
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Date: August 2nd, 2013 3:28 PM Author: Cracking filthy site He's right, when it comes to determining the cost of owning vs cost of renting, and where your breakeven poin would be in selling. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769120) |
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Date: August 2nd, 2013 4:45 PM Author: Claret marvelous nursing home Everyone buys a nicer home than they would rent. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769482) |
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Date: August 2nd, 2013 4:47 PM Author: Vibrant crackhouse death wish That doesn't make the value comparison correct, White Knight. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769493) |
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Date: August 2nd, 2013 4:51 PM Author: Claret marvelous nursing home If you are going to live in the house and not rent it out, why does that not make a difference? The "throwaway" cost of interest, taxes, HOA should be compared to what you would actually rent no? As far as your equity investment, that grows however it grows. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769507) |
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Date: August 2nd, 2013 4:58 PM Author: Vibrant crackhouse death wish "I would rent a shitty 1br (worth $1,400/mo) that costs $1,400 in non-equity building payments."
"Instead I buy nicer 2br (worth $2,000/mo) that costs $1,500 in non-equity payments)."
Not even factoring in appreciation, the "utility" of a $600 better apartment is less than $100? Don't be fucktarded. |
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Date: August 2nd, 2013 5:01 PM Author: Claret marvelous nursing home I mean how much utility do you get from the extra bedroom if you arent renting it out like a old woman like Doodikoff?
If most of that $2000 goes into the extra bedroom and bathroom which you have to clean, but dont live in, is that really any more utility than a perhaps nicer 1 bedroom? |
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Date: August 2nd, 2013 5:17 PM Author: Vibrant crackhouse death wish Are you even TRYING to make sense at this point? Is this how LA shitlaw lawyers write? (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769584) |
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Date: August 2nd, 2013 5:26 PM Author: Claret marvelous nursing home or you could just answer my question about how much utility is nutella getting out of her second bedroom and bathroom on a day to day basis? (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769604) |
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Date: August 2nd, 2013 5:43 PM Author: Vibrant crackhouse death wish Answer >>>>> $100/month - appreciation of property - rental profit potential. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769715) |
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Date: August 2nd, 2013 5:46 PM Author: Vibrant crackhouse death wish Not to mention the unmitigated fucktardedness of the initial premise that "everyone buys more house than they would rent."
"Renting is smarter because I'm a fucking financially retarded shrew." |
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Date: August 2nd, 2013 6:04 PM Author: vivacious base new version in reality, when people buy, they generally don't buy for what they need right now or even what they need in the next 2-5 years since their preference is to stay longer-term and they also want to buy something that's ultimately easier to move on the market.
in my case (and in the case of my friends who own more house than they currently need), it doesn't make sense compare the same property for rent v. buy purposes at the point where you're getting no utility out of having a few extra bedrooms and, in fact, it increases your expenses by paying more in utilities, cleaning, furnishing it, etc. |
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Date: August 2nd, 2013 6:11 PM Author: Vibrant crackhouse death wish Keep blabbing on about the fucking idiot decisions you and your imaginary friends have made. It doesn't make your fucktarded analysis correct, it just makes you sound dumber.
I bought my condo for $340k last March. I bought a condo that was about 1,200 sq feet because....wait for it...that's all I needed. Four units in my building with similar floorplans, view, and features have sold for between $525k and $610k in the last 5 months. Zillow values my unit at $455k with a high range of $580k.
And I could rent it for $3,000 within a day or two. |
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Date: August 2nd, 2013 7:07 PM Author: vivacious base new version lol, you can brag all you want about what a great investment you've made but it actually looks like we have similar specs. my condo is 1150 sq feet. it was a bank owned property at the time that was poorly marketed and sitting stale for over 300 days. it was priced $80k below the next shittiest apt available in the area. i just checked the est on zillow on my apt is estimated at $448k with a high of $572k. there are no 2BR/2BA sold in the last 4-5 months in my zip code for less than $475k. i also put about $25k into renovations which should significantly raise the value of my place should i decide to sell.
but unlike you, i'm not going to assume the best case scenario where i can sell my home at the top of the market and compare it to renting the exact same place when i know i would've stayed in a 1BR otherwise. i'm also realistic and not going to say that buying v. renting makes sense for everyone, particularly after all the costs. i find the phrase "throwing money away on rent" to be misleading when there are tons of throwaway costs associated with buying in the transaction fees, interest, taxes, insurance, renovations where you don't get back the value, etc. the fridge broke a year after i bought my condo and shit like that adds up and need to be factored in when you calculate where your break even point is.
bottom line is that i don't think people should ever look at homes as investments. all the other money you're spending on the home would do much better being invested in the stock market. |
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Date: August 2nd, 2013 3:55 PM Author: pontificating kitchen cuckold yes, living in a 1br vs. a 2br tends to save people money. good work nutella. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769262) |
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Date: August 2nd, 2013 4:44 PM Author: Claret marvelous nursing home people buy more home than they rent. The utility of that larger home is not that great for people starting out. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769479) |
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Date: August 2nd, 2013 5:05 PM Author: fishy passionate newt "in the first few years of a ~$1100/mo mortgage payment, the bulk of your payment is all toward interest so you're building very little equity."
At current rates, about 28% of the first year's payments go to interest and about 72% goes to interest.
http://www.zillow.com/mortgage-calculator/ |
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Date: August 2nd, 2013 6:30 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire ok so 100% goes to interest (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23770006) |
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Date: August 2nd, 2013 1:47 PM Author: Godawful toilet seat ticket booth buying a free standing home on a 30 year fixed and living in it for anywhere between two and five years is a good idea IMO - just because of how low the mortgage rates are now, and the fact that you are saving money by living there (literally fractionally purchasing more of the house each month instead of throwing money out the window for rent). If you can rent the house and its cashflow positive with a CAP rate above 5% with 20% down I'd say go for it.
You can also deduct the mortgage interest from your taxes and depending on if you want to move out or not you can pay a little extra (depending on your terms) and get the house to be even more cash flow positive and generate another 10K or so a year, plus the equity in the house. |
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Date: August 2nd, 2013 5:07 PM Author: fishy passionate newt "If you can rent the house and its cashflow positive with a CAP rate above 5% with 20% down I'd say go for it."
Yeah, which non-shitty city offers that?
It's not 2010 anymore. |
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Date: August 2nd, 2013 3:16 PM Author: curious greedy property Often it does, but generally you want to keep 5+ years
http://www.nytimes.com/interactive/business/buy-rent-calculator.html |
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Date: August 2nd, 2013 3:22 PM Author: blue coffee pot ah the never ending "should I buy a house" debate
just do it, bro. I did, and I love it. I'm finally not getting raped by rent all the time. |
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Date: August 2nd, 2013 4:51 PM Author: mauve chapel dog poop you have roommates though and are literally an faggot (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23769504) |
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Date: August 2nd, 2013 5:14 PM Author: blue coffee pot I have one roommate who is never there. Lived 6 months without one and could easily handle it. He's also a good friend of mine, and the rent money is really nice. My roommate literally has his own floor of the house and bathroom. But that's not the point - the fact that I can get rental income is 180, so is that fact that I am not flushing rent money down the toilet, so is the fact that I have tons of space to entertain and do whatever the fuck I want.
So all of you renting h8ers can suck it.
I also don't appreciate your homophobic insult, sir |
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Date: August 2nd, 2013 6:31 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire I fully agree with you. I just don't like this constant harping on it being a "financially shrewd investment." "Buy a home = financial investment" is literally boomer flame. No one thought that before boomers, and no one should think that after boomers. At best, it's a long-term store of wealth and nothing more. |
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Date: August 2nd, 2013 8:56 PM Author: Sapphire main people Mortgage interest and property taxes are tax deductible.
I bought a starter trailer and it has been so much cheaper than renting. |
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Date: August 2nd, 2013 10:22 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire tbf i don't think your trailer payments are enough to pass the standard deduction (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771149) |
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Date: August 2nd, 2013 10:25 PM Author: Sapphire main people It is not really a trailer. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771172) |
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Date: August 2nd, 2013 9:28 PM Author: laughsome self-absorbed jewess casino I think the experience of having a cheaper place where you can try things out, renovate a little, make mistakes, etc. before you buy your "real" house has some value to it. You'll be a lot more educated and less intimidated by house-related shit. I'm not claiming it's a foolproof investment or anything. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23770890) |
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Date: August 2nd, 2013 10:22 PM Author: Well-lubricated Iridescent Fortuitous Meteor Multi-billionaire This. I learned some important shit like MAKE SURE THERE'S NO FUCKING AC VENT ABOVE YOUR BATHROOM SINK OR IT WILL SUCK DICK TO SHAVE, SUCK DICK TO DO CONTACTS, ETC. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771152) |
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Date: August 2nd, 2013 10:25 PM Author: Kink-friendly nighttime tanning salon You really couldn't figure out how to shut off/redirect the vent? (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771174) |
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Date: August 2nd, 2013 10:25 PM Author: Kink-friendly nighttime tanning salon Details are everything when buying. The one consistent thing is that 2 years isn't worth it unless you plan on buying a fixer upper and fixing it up yourself as you live there and then flipping it. That plan depends on your aptitude for rehabbing houses. Average millenial Joe isn't qualified to do this and will end up hiring people and will sell at a comparative loss when adding initial purchase cost to total spent on renovation. In general I wouldn't recommend on a two year schedule absent additional information. Now, if you go 5+ years then probably, assuming all the other factors are reasonable. (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#23771169) |
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Date: May 14th, 2025 12:47 AM Author: nyuug (Gangnam WGWAG Playboy) STARTER homes now $1 million but ONLY ABSOLUTE INCOMES MATTER DURR DURR: The number of cities with 'million-dollar' starter homes has nearly tripled since 2019
The number of cities where a starter home is worth $1 million or more has grown from 84 five years ago to 237 today.
Nearly half of these cities with "million-dollar" starter homes are in California.
https://finance.yahoo.com/news/1-million-starter-home-norm-120300606.html
http://www.xoxohth.com/thread.php?thread_id=2173998&forum_id=2#47894117 |
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Date: May 14th, 2025 1:13 AM Author: nyuug (Gangnam WGWAG Playboy) ONE POINT FIVE MILLIE DURR DURR (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#48928977) |
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Date: May 14th, 2025 1:14 AM Author: nyuug (Gangnam WGWAG Playboy)
try $1.5M a year and $100 to eat good food vs $70k a year and $10 포장마차 slop
Date: May 14th, 2025 12:46 AM Author: Pope Leo XXX
http://www.autoadmit.com/thread.php?thread_id=2388973&forum_id=2#48928957
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Date: May 14th, 2025 1:39 AM Author: .,.,....,.,.,.,:,,:,....,:::,....,:,.,.:...,:.::, yeah bro, just go to SouthKorea, where you have to may a huge downpayment to *checks notes* rent an apartment!
DURR DURR
"In South Korea, apartments are often rented using the Jeonse system, which involves a large deposit (also called "key money") instead of monthly rent. This deposit can be 50% to 80% of the property's market value, and it's returned to the tenant at the end of the lease. While not a traditional down payment like in property purchases, it functions similarly as an upfront payment securing the rental. "
https://en.wikipedia.org/wiki/Jeonse
SUPERIOR GOOK CULTURE!
DURR DURR |
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Date: May 14th, 2025 1:39 AM Author: .,.,....,.,.,.,:,,:,....,:::,....,:,.,.:...,:.::, Gooktard, why do u keep coming back? Don't you get tired of being ASSRAPED every day? (http://www.autoadmit.com/thread.php?thread_id=2326944&forum_id=2Elisa#48929012) |