anaylst states owning a home is a scam

[drebo]

The renting thing is not only ridiculous, but a complete contradiction in terms. From whom should we all rent? Owners. Retarded.

Clearly he wants us all to rent from the gubb'ment. I mean, we're obviously not capable of managing our own finances. Amirite?

 

[waggy]

only if you are one of the last dumbasses to sell.

be one in the middle when they try and snap it up quick to start doing emminent domain and you can sometimes get 150% of what the house is worth because they once they get emminent domain they start offering 60-80%


the calculator tells me with 1% appreciation Im good to go after 6 years. I will likely see more than that anyways, as most of the shit that lowered the price of home I can fix for about 1000 bucks total since I do it myself, and the yard was an absolute mess thats easy to fix

why should i have to sale? if a person pays off the house and the family has lived in it for generations it has more value then monitary.

just because Costco may want my property does not give them or the goverment the right to it...well i used to not give them a right to it. now they can take it if they want.

 

[dmcowen674]

yes and no.

what he i is saying is if they Government wants the land they will take it. sure they will give you a shit amount for it but they will take it.

better hope Costco does not want your land. they will get it and for a low amount.

Why don't he say that to all those people in Connecticut that the Government took their houses and gave to a Private Company that the whole Eminent Domain case was based on. The houses are still sitting their abandoned, the Project they took the houses away for never materialized.

 

[dmcowen674]

The sub division where I took a beating there are 28 homes in there out of 90 lots (everyone with a clue stopped building summer 08) and 21 are having 2nd birthdays - most everyone is bank owned now. Some builders tried to stopped the bleeding by moving into them though and sold thier own smaller home which are selling.


Most devolopers and builder are bankrupt. Thing is, in good times, you make dick on a 1400 sqft home...maybe 20K If you're good. vs 100-150 K off McMansions... Which are you going to build?

Is this subdivision made by anyone here?

http://tinyurl.com/yzg832h

Homes evacuated in San Antonio as hill crumbles


Construction crews moved dirt to shore up a group of houses precariously perched on a crumbling hill in San Antonio on Monday as engineers tried to figure out why the land below was shifting and whether dozens of evacuated families could return to their homes.

About 80 homes were evacuated on Sunday after a resident in the northwest side subdivision reported that his backyard was sliding down hill. Gaping crevices, some 15 feet deep, cut across his and other yards as dirt cascaded into a two-story-high stone retaining wall that began to give way.


Fences crumbled like accordions as the land fissured, splitting the nearby retaining wall nearly into two. No one has been injured since the soil started sliding beneath the homes on Friday, but aerial photos showed land had given way near the foundations of several homes in the upper-middle class neighborhood of sprawling two-story homes set among rolling hills.


By Monday, geologists and engineers hired by Pulte Homes Inc., the parent company of the subdivision's developer, had taken over monitoring of land movement. Pulte spokeswoman Valerie Dolenga said engineers were looking for a cause of the slide.


Utilities were cut off in the area, and construction crews using heavy equipment were moving dirt to shore up not just the homes on the hill but also those below the retaining wall.


Resident Lakeika James, 41, said she came home on Sunday to find her street blocked off, unsure what was going on. But she said had noticed odd noises over the three years she has lived in the house.


"I would hear, laying in my bed at night, grumbling and vibrations.



A few nails popped out lately," she said.


James said she hadn't planned on staying in the house long-term, and now after the land movement, the mother of a 5-year-old girl wants out.

 

[waggy]

Why don't he say that to all those people in Connecticut that the Government took their houses and gave to a Private Company that the whole Eminent Domain case was based on. The houses are still sitting their abandoned, the Project they took the houses away for never materialized.

yeah and you know what? that makes me laugh and happy. hope the fucking company goes bancrupt and the houses sit empty costing the city tax money. fuck em.

I understand if you need a road, school, park or safety issue. But this bullshit of takeing private property to give to a BUSINESS really rubs me the wrong way.

glad IL passed a law on it...though they left loopholes.

 

[Zargon]

why should i have to sale? if a person pays off the house and the family has lived in it for generations it has more value then monitary.

just because Costco may want my property does not give them or the goverment the right to it...well i used to not give them a right to it. now they can take it if they want.

*shrug*

I am from rural IL man, I have no idea why its an issue in the first place, plenty of open farmland around.

 

[BoberFett]

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

This.

If renting is so much better than owning, why would anybody be a landlord, and then who would rent to the renters? People who pay rent pay more than what it costs to maintain, otherwise the owner is losing money and they'd be better off not owning the property.

This seems like such basic logic.

 

[Slew Foot]

This.

If renting is so much better than owning, why would anybody be a landlord, and then who would rent to the renters? People who pay rent pay more than what it costs to maintain, otherwise the owner is losing money and they'd be better off not owning the property.

This seems like such basic logic.

I pay 2500 a month and the owner is paying 8K a month on his upside down mortgage. Whose the doofus there?

 

[BoberFett]

I pay 2500 a month and the owner is paying 8K a month on his upside down mortgage. Whose the doofus there?

The lesson here is "Don't buy high and sell low" and not "Never buy a home."

 

[Fern]

I pay 2500 a month and the owner is paying 8K a month on his upside down mortgage. Whose the doofus there?

Hard to say.

How will you feel when the owner defaults and the new owner (probably the bank) shows up and tells you to move out? (BTW: Hope that doesn't happen to you)

Usually not a good situation for anybody, it's just that some people's (the landlord's in this case) are worse than others.

Fern

 

[rchiu]

The lesson here is "Don't buy high and sell low" and not "Never buy a home."

Yeah, there are some very good pointers on buying home, like look for location, look for size not fancy decor, and don't go after areas with inflated prices. If you watch all those factors, a home will be pretty safe investment.

Plus buying a house is a personal decision. Life is not all about investment, if it was, we wouldn't be buying new cars with the huge depreciation, or nice clothes or food. It's enjoyable living in your own house, where you can build a home theater if you like, paint it, remodel it to anyway you like. This is a place you are going to spend lots of time and maybe raise a family in, it would be a mistake to purely look at it as an investment.

 

[JS80]

I pay 2500 a month and the owner is paying 8K a month on his upside down mortgage. Whose the doofus there?

I'm in a similar situation. $3200 a month rent on a $5k mortgage (not upside down though). This ownership "premium" is pervasive in prime areas in LA (and I'm sure in bay area).

 

[rchiu]

I'm in a similar situation. $3200 a month rent on a $5k mortgage (not upside down though). This ownership "premium" is pervasive in prime areas in LA (and I'm sure in bay area).

Well don't forget the owner walks away with a property that worth ~750k or more (assuming 30 years @7%) after 30 years and you walk away with nothing after paying $3200 every month. So yeah of course owner will be paying some premium.

 

[LegendKiller]

yes and no.

what he i is saying is if they Government wants the land they will take it. sure they will give you a shit amount for it but they will take it.

better hope Costco does not want your land. they will get it and for a low amount.

Only a dipshit like McOwned would equate owning/ED with renting.

1. The government does give you consideration for your home.

2. The government usually just doesn't take it with no warning.

3. The % of houses in the entire country seized through ED has been basis points.

Only a loser like McOwned would not want to own based upon ED, but hey, the guy is already perfectly irrational.

 

[JSt0rm]

Things are different in the big cities. Renting works for a lot of people in the cities. Renting when you can buy a 50k condo doesn't make as much sense to me but that's not the reality here.

 

[zephyrprime]

Well don't forget the owner walks away with a property that worth ~750k or more (assuming 30 years @7%) after 30 years and you walk away with nothing after paying $3200 every month. So yeah of course owner will be paying some premium.

FAIL AT MATH. In that time, the mortgage owner will have paid 648K in net mortgage costs over what he gains in rental income. AND he has also had to pay property tax, insurance, maintenance and upkeep and the down payment. Even with inflating rental income over the course of 30 years, that mortage is a huge money loser. He is a fool for not walking away from the mortgage.

 

[JS80]

Well don't forget the owner walks away with a property that worth ~750k or more (assuming 30 years @7%) after 30 years and you walk away with nothing after paying $3200 every month. So yeah of course owner will be paying some premium.

You want to try that again? Here's a hint, what do I do with $5k - $3200?

 

[Vic]

I pay 2500 a month and the owner is paying 8K a month on his upside down mortgage. Whose the doofus there?

If you bought the house today, what would your mortgage payments be?

 

[Vic]

I'm in a similar situation. $3200 a month rent on a $5k mortgage (not upside down though). This ownership "premium" is pervasive in prime areas in LA (and I'm sure in bay area).

Assuming the ridiculous unlikelihood that the rent is never increased, $3200 for 360 months is $1,152,000. At the end of which, you have nothing.

Market fluctuations aside, if homeownership is such a poor investment, then why have I never met a wealthy person who did not own their home? And by wealthy, I mean long-term and set, not some kid out of college with high income but little net worth.

 

[DrPizza]

Assuming the ridiculous unlikelihood that the rent is never increased, $3200 for 360 months is $1,152,000. At the end of which, you have nothing.

Market fluctuations aside, if homeownership is such a poor investment, then why have I never met a wealthy person who did not own their home? And by wealthy, I mean long-term and set, not some kid out of college with high income but little net worth.

Bingo. As someone mentioned earlier in the thread, you don't see estate sales for someone who has rented all their life. And, I'll point out again. After 30 years, the home owner is DONE! taxes & insurance, plus some maintenance from that point on. The renter will be paying rent for another 30 years.

 

[Zebo]

I just realized this article doesn't track inflation. Author is insane. Go look how much your places you rented 20 years ago in college are renting for today. 2-4x guaranteed.

Now factor if you bought a $100K house 20 years ago... same ole $600 a month.

Buying effectively freezes inflation for you. Am I right?

 

[Zebo]

Bingo. As someone mentioned earlier in the thread, you don't see estate sales for someone who has rented all their life. And, I'll point out again. After 30 years, the home owner is DONE! taxes & insurance, plus some maintenance from that point on. The renter will be paying rent for another 30 years.

I only know one rich dude who rents. Euro capital founder and contrarian Peter Shiff.

 

[Zebo]

I'm in a similar situation. $3200 a month rent on a $5k mortgage (not upside down though). This ownership "premium" is pervasive in prime areas in LA (and I'm sure in bay area).

So you're renting as RE is at all time lows? Buy low sell high.


....I think it has far to fall still because we have seen nothing yet! but Benny the B says otherwise and we are on road to recovery. (who you trust more)

Regardless $3200 a mo for rent is about retarded unless you live in NYC and make over 500K.

 

[rchiu]

You want to try that again? Here's a hint, what do I do with $5k - $3200?

Beer, fast car and women? Everyone says they will invest with the money they save but in reality they find ways to spend it unless they have some set obligation like monthly mortgage payment.

 

[Vic]

I just realized this article doesn't track inflation. Author is insane. Go look how much your places you rented 20 years ago in college are renting for today. 2-4x guaranteed.

Now factor if you bought a $100K house 20 years ago... same ole $600 a month.

Buying effectively freezes inflation for you. Am I right?

You are correct.