anaylst states owning a home is a scam

[dmcowen674]

But I was smart unlike other tards builders I know

smart? That's highly debatable

 

[IndyColtsFan]

You're rich.

You are not among Americans hurt by any of this you are one of the doing the hurting and profiting from it.

Disgusting

WTF? How is he hurting people, you fool? He bought a wrecked home, fixed it up, and sold it for a decent profit. There is nothing wrong with that at all. I wish I were as handy as Zebo seems to be so I could do things like that as well.

I sold my first house in early fall 2008 and moved into my new house a month later. Luckily, I made a little money (very little) on my sale and got a good deal on the house we bought. Had it been in the boom years, the house we bought probably would've cost $50K to $60K more than we paid and we probably would not have bought it. I suppose I am "hurting" people too because I got a good deal on a home?

Seriously, seek some professional help. Just because you're a complete failure in life doesn't mean you should constantly insult people who have used some common sense and sound financial judgment to get ahead.

 

[IndyColtsFan]

smart? That's highly debatable

Yes, it certainly is debatable if it is ever applied to you.

 

[Zebo]

Yeah david forgets the intangibles and psychological value. Nice to not worry about eviction, steady rent payment, mods to home fixing it up just the way you want it, etc all these have indeterminate value but some value nevertheless we all need to judge on an individual basis. If strictly looking at things from an actuarial POV home ownership is generally not a good investment comparatively and should only be purchased during downturns.

 

[Zebo]

smart? That's highly debatable

You have you cut your loses, David - even if you're losing sometimes losing less is a win. My big bust was a 3700sqft tudor, marble & wood floors granite counter tops etc etc etc which in 2008 I finished and listed for 525K. Then SHTF with RE implosion. I immediately told Realtor 'get it sold at what market will bear' ended up selling for $375 - after commission I lost 55K.

Compare that to is I waited like so many did in same neighborhood. Interest is $3000 a month, property taxes another $200, untilities and lawn matentianece is $400... so $3600 gets chewed off your profit each month. Today two years later those houses are worth $275. That's over $220K loss just by waiting, and you still have not sold it yet. Each house is similar loss and many builders had 6-10 going at once! Yeah bankrupt!!! and keep in mind you have to personally guarantee each loan you take even if incorporated - builders are losing their personal homes!

I'd say I made a wise decision taking loses.

 

[Patranus]

Owning is much more a liability than many people think.

Say for instance you own a house but don't have earthquake insurance. Well, you still owe the money if there is an earthquake and the house falls down.

 

[IndyColtsFan]

Owning is much more a liability than many people think.

Say for instance you own a house but don't have earthquake insurance. Well, you still owe the money if there is an earthquake and the house falls down.

Insurance FTW.

 

[LegendKiller]

Your envy and jealousy is out of control. I happen to agree with what he said and have owned two homes myself and would never consider renting.

Keep in mind, Dave has failed at everything he has done in life. He bought a bar, only to run it into the ground. He somehow bought a big boat, only to lose that also. He was educated in a community college in NY, only to end up having to travel the country to find shit jobs.

He feels cheated by the world, but the only thing he was cheated out of was brain cells. He can't understand basic concepts, which is why he's failed. It's pretty sad, actually.

The apex of this was here, when he demanded from ATF the information of specific posters, or else he would sue Anandtech. What was he going to do with this information? I'm sure he was going to sue the posters.

 

[dmcowen674]

Keep in mind, Dave has failed at everything he has done in life. He bought a bar, only to run it into the ground. He somehow bought a big boat, only to lose that also. He was educated in a community college in NY, only to end up having to travel the country to find shit jobs.

He feels cheated by the world, but the only thing he was cheated out of was brain cells. He can't understand basic concepts, which is why he's failed. It's pretty sad, actually.

The apex of this was here, when he demanded from ATF the information of specific posters, or else he would sue Anandtech. What was he going to do with this information? I'm sure he was going to sue the posters.

I've owned three homes and I did not run anything into the ground.

Lying won't make you feel better about your miserable conniving self.

 

[LegendKiller]

I've owned three homes and I did not run anything into the ground.

Lying won't make you feel better about your miserable conniving self.

We all know you're a perennial fuckup, dave.

You're only bitter because you can't succeed in life. It's ok, you're a 45 year old loser, just don't drag the rest of us down with you in your depression.

 

[Pneumothorax]

Insurance FTW.

Have you looked on how expensive CA earthquake insurance is? And to add insult to injury it doesn't cover the full price of the home loan. So if this place goes 7.0+, if I survive, I'm cutting my losses and leaving this god-forsaken state.

 

[IndyColtsFan]

Have you looked on how expensive CA earthquake insurance is? And to add insult to injury it doesn't cover the full price of the home loan. So if this place goes 7.0+, if I survive, I'm cutting my losses and leaving this god-forsaken state.

We weren't referring to specific states. Of course certain insurance will be more expensive in high risk areas, I realize that. It might not be cost effective to own a home in California even after the bubble has burst. I am in the midwest, however, and nice, big homes are cheap, as is insurance for them.

 

[Genx87]

Look at the video... the guy is a loser who lives in his mom's basement.

Two scenarios:
I want to spend $1000 a month on a place to live for the the next 10 years.

Option 1: I rent for $1000 a month for ten years. At the end of ten years I walk away with nothing.

Option 2: I buy a $185,000 house using a USDA no money down loan at 5% interest. My payment is approx. $1,150 a month. (that includes taxes and insurance) However, thanks to the mortgage interest deduction I save $150 a month on federal taxes thus making my effective monthly payment $1000.

At the end of 10 years my house is now worth approx. $200,000 (based on 1% appreciation per year)
And my loan balance is $150,000.

Selling the house will cost me 10% of its value or $20k.

So selling the house after 10 years will leave me with $30,000

I think I'll take option 2, thank you

Well you have to factor in the interest payments of 5%\year for 10 years. Which should be about 86000 dollars.

 

[Genx87]

My take is you have to live somewhere. If you arent in need of sq footage a home isnt a great investment. The only time you come out on it is if it appreciates faster than inflation + interest. It makes more sense to pay down your mortgage as soon as possible if you decide not to rent.

 

[Zebo]

A boat? Who buys boats expecting to make money? Boats and RVs are second to depreciation to diamonds. Always buy used, in the winter months when people need cash for an item they are not using. Sell in late spring.Then you might break even.

 

[piasabird]

A while back there was a video set put out by Mr Trump. He claimed that a house was not an investment. Anyone that has ever owned a house will tell you that there is a lot of maintenance cost involved in owning a house. As soon as you buy or build a home it is in need of constant upkeep and repair. Driveway and sidewalks need repair. Yards need upkeep. Furnaces and air conditioning need repairs, roofs need to be replaced, garages need to be repaired. You need a new lawnmower or snow blower or leafblower or hedge trimmers. The list just goes on and on. A house is a money pit and there is no guarantee the housing market will be up when you want to sell or move.

If you are a highly mobile in your job market like the typical analyst, and need to move around a lot, then maybe owning a home has no real advantage. It can be easier to relocate when you rent.

 

[Vic]

Someone has to own wherever you live. And that someone might as well be you.

 

[Slew Foot]

http://finance.yahoo.com/tech-ticke...09285.html?tickers=REZ,IYR,XHB,HD,LOW,DHI,PHM
It would cost me about $1200-1500 to rent out a similar property that I live in now, with taxes, mortgage, insurance, $ for major repairs, I probably invest close to $1200-1500 per month to actually live here. (sometimes much less sometimes more, case and point I'm buying a new 30 year roof tomorrow)

Only diff is that I am at least paying down principal and after about 10 years, I will not have a loan. that is the HUGE return on investment, not having to pay for a freaking mortgage!!

It costs me about 2500 to rent out what would cost about 8000/mo to buy. Renting all the way. The mortagage interest dedcution doesnt helpa s much as eoppel think. In many cases theyre better off with the standadrd deduction, and the wealthy people with expensive houses get hit with AMT.

 

[piasabird]

I have a small brick home with a basement. Even with an attached garage it cost me around $4,800 to replace the old shingles (Asphalt) and redo the roof. They did the entire job in one day. I think most houses are just too large. If you add a couple of rooms and then the typical 3 car garage, plus complicate the roof design then the Roof could easily be twice the size. It is a matter of size of the house.

Americans do not need these large houses, they just think that is what they need. Just watch a few of those home design and house hunting shows and you will understand that Americans are nuts. In a lot of locations in Europe you just cant get a house as large as some locations in the USA. It is a matter of the cost of real estate. There is just not enough room.

 

[Slew Foot]

keep in mind, dave has failed at everything he has done in life.

qft

 

[waggy]

Why do you think all the builders and developers are or are going broke? Why am i buying fixers in the 1400-1800 sqft range instead and sitting on lots? Everyone and their brother was building McMansions last 10 years and it's over. Only the small stuff moves now and only because Obama has an extra 8K out there still over extending people. When that ends in April SWHTF IMO coupled with Alts/options and Benny the B gonna raise rates.. Trifecta disaster coming IMO but in the meantime there is some short term deals out there.

There was a builder that did a a sub-division. It is full of 3500-5000 sqft homes. When you talk about homes in forclosure and not being sold this sub-division has the most. you can walk down any street and still find 4-5 houses for sale or owned by the bank.

Another builder did a sub-division on the other end of town. The houses are 1200-2300 sqft. this area if you put a house on the market its getting sold in a few months vs year +.

when we were looking for a house i was amazed at how many huge houses were being built. I wanted a newer 2k-2300 sqft house. but they were hard to find since nobody was building them.

We own a nice 2000 sqft house and its far larger then we need. 3 bedrooms upstairs, a nice kitchen, dinning room, living room and a office (actually another bedroom).

plus we do have a full basement with a bedroom +family room.


I don't see the need for a 3-4k sqft house. i would rather have more yard.

 

[Darwin333]

Our roof would cost $37,000 normally. I got a deal. 230 squares of shake removal, re decking, lots of copper in eves, and Singles - call around. Took 10 Mexicans 2 weeks. This aint a little job by any means.

230 roofing squares = 23,000 SF. That is one huge friggen roof for a residence, bigger than a lot of commercial buildings around here.

How bad off are the roofers in your town that they can reroof anything for $160 a square with redecking and copper flashings? At that rate I can afford to pay them per diem and still make a ton of money.

 

[Zebo]

Read on Darwin it was 230 bundles. 3865 sqft ranch home with 12/14 pitch and lots of hips. 22K was cheap as fuck. You should should know that.

PS like I said neighbor spent over 50K for same job although his house is 6000+ sq ft..he owns the local electrical wholesaler so he had contacts too but not as good as mine. Plus he's a dick and I don't talk to him.

 

[MJinZ]

http://finance.yahoo.com/tech-ticke...09285.html?tickers=REZ,IYR,XHB,HD,LOW,DHI,PHM


I think he is basically right on some of his general points, but the fact that renting is far superior to me is sort of a joke.

I mean, when you rent, you pay for the upkeep, maintenance, and all of those other things and you don't get the benefit obtaining a principal interest in the property.

Renting gives you a 0% return or even a a negative return.

I'm not saying homes should be looked at as an investment, thats where I agree with him, but the fact we should ALL be renting is preposterous.

It would cost me about $1200-1500 to rent out a similar property that I live in now, with taxes, mortgage, insurance, $ for major repairs, I probably invest close to $1200-1500 per month to actually live here. (sometimes much less sometimes more, case and point I'm buying a new 30 year roof tomorrow)

Only diff is that I am at least paying down principal and after about 10 years, I will not have a loan. that is the HUGE return on investment, not having to pay for a freaking mortgage!!

Homes USED to be an excellent investment vehicle. I know people who bought in '90s and basically don't have to work any more from renting out to tenants.

But, absolutely no longer in today's day and age.

 

[Darwin333]

You're rich.

You are not among Americans hurt by any of this you are one of the doing the hurting and profiting from it.

Disgusting

So are all successful Americans hurting people? I don't know a damned thing about Zebo but from what he says it sounds like he provides a real service and delivers a real product at great personal risk but you think he shouldn't profit?

How many of your paychecks have you gave back to your employer?