When can you "afford" a house?

[Tweak155]

In that case, if the difference in cost is a reason why you can't compare the two scenarios, WHY DID YOU MAKE THE COMPARISON IN THE FIRST PLACE?

I honestly don't think I know what you're getting at here. I made the comparison, someone pointed out why the comparison was flawed, and I agreed with them. Thus I agreed my comparison was flawed, but then you interjected additional reasoning behind it. I just added to your reply.

What's with the caps man?

 

[JM Aggie08]

There's really no objective way to look at this.

If you want to throw away money with an apartment until you can pay for a home in cash, have at it.

 

[Vdubchaos]

I think in most markets, a 20% down with a healthy emergency fund where the payment will cost you no more than 25-30% of your take home seems reasonable.

Here is everything you need to know OP

 

[Tweak155]

Here is everything you need to know OP

Seems reasonable, and probably close to what most people would estimate.

 

[Vdubchaos]

There's really no objective way to look at this.

If you want to throw away money with an apartment until you can pay for a home in cash, have at it.

So are you saying buying a house does not = throw away money?

Last year I paid about $6000 in taxes. I'm pretty sure that money is down the drain. That's about $500 a month.

Then there is interest.....which is about 13k worth last year alone. That's about $1000 a month. And no, none of this is a write off as I don't pay much taxes.....(So it depends on each person/situation, most people can probably write this off).

But in my case, over $1500 A MONTH is going down the drain by "owning a house".

Then there is repairs/upkeep and labor associated with it....not even getting into that...and my house is fairly new!

For me, it's not "better"....not yet anyways (in time).

But don't tell me "owning a house" is NOT money down the drain. It is.

 

[Vdubchaos]

Seems reasonable, and probably close to what most people would estimate.

It's a good "general rule of thumb" but as ANY, there are always exceptions to the rule and it might not apply to your situation, location/market.

But it's a good/healthy rule to go by.

In general, DO NOT fall into "american dream of owning a house" crap. In general, yes you will be better of buying a house vs renting BUT if you can't swing it....it is what it is.

Owning a house is NOT a "dream". It's really not much different from renting......it's simply another place to live.

Also, when you do buy a house, by it "for a place to live in"........do NOT think of it as an "investment". Sure it can be, and probably will be....but don't count on it or treat it as such.

Good luck

 

[Tweak155]

It's a good "general rule of thumb" but as ANY, there are always exceptions to the rule and it might not apply to your situation, location/market.

But it's a good/healthy rule to go by.

In general, DO NOT fall into "american dream of owning a house" crap. In general, yes you will be better of buying a house vs renting BUT if you can't swing it....it is what it is.

Owning a house is NOT a "dream". It's really not much different from renting......it's simply another place to live.

Also, when you do buy a house, by it "for a place to live in"........do NOT think of it as an "investment". Sure it can be, and probably will be....but don't count on it or treat it as such.

Good luck

Yeah I already own a home so I'm not really asking about any decisions I need to make in the near future or anything. I currently pay about $1700 in taxes so I like where I'm at now as far as that goes (in regards to your other post).

 

[Vdubchaos]

Yeah I already own a home so I'm not really asking about any decisions I need to make in the near future or anything. I currently pay about $1700 in taxes so I like where I'm at now as far as that goes (in regards to your other post).

Sounds like I need to move to Michigan...

 

[alkemyst]

I have a pretty black and white opinion about the topic. In my opinion, you truly can't "afford" anything if you don't have the cash on hand to buy it straight out. If you take a loan because you lack the cash on hand, the bank "afforded" the house for you. Even if you can easily "afford" the payments each month, I don't think you can truly afford the house.

Now, if you took a loan due to the great rates and have the cash on hand that could buy out the rest of the loan, I'd still say you could afford it.

Might sound backwards as it is possible to easily afford the payments whether or not you have the cash on hand, but I just don't think you've met the criteria for truly being able to afford it.

What say you? Is it % down, is it % of monthly income the payment is, even though it will take you 15-30 years to actually not have a payment?

Hey Bro!

You aren't going to believe this shit!

People used to have to do just that, like holy frack!

Then the mortgage was born!

Now you know, Bro!

 

[alkemyst]

Yeah I already own a home so I'm not really asking about any decisions I need to make in the near future or anything. I currently pay about $1700 in taxes so I like where I'm at now as far as that goes (in regards to your other post).

So tell us your story. Paid with mad stacks or inheritance?

 

[Tweak155]

Sounds like I need to move to Michigan...

Certain places or home prices you'll definitely pay that much even in MI. I just happen to live in a decent area not far from work, so I'm happy with it. It isn't a large house or a "real nice" city, it's just kind of in between I guess.

Hey Bro!

You aren't going to believe this shit!

People used to have to do just that, like holy frack!

Then the mortgage was born!

Now you know, Bro!

 

[Tweak155]

So tell us your story. Paid with mad stacks or inheritance?

I'm assuming you mean my house? We earned all our money, no inheritance.

 

[PricklyPete]

So am I getting this right that you have paid off your house and now feel the need to belittle others who have mortgages by saying that they can't "afford" their house? How does ATOT attract so many douches.

 

[Tweak155]

So am I getting this right that you have paid off your house and now feel the need to belittle others who have mortgages by saying that they can't "afford" their house? How does ATOT attract so many douches.

I don't know, what brought you here?

 

[smackababy]

So are you saying buying a house does not = throw away money?

Last year I paid about $6000 in taxes. I'm pretty sure that money is down the drain. That's about $500 a month.

Do you not use any public services? You don't use any roads, mail service, utilities owned by the municipality? I take it you also aren't being protected by a police force or have your house responded to in event of an emergency by the fire department? Your kids aren't attending a public school?

Yep, throwing that money away!

And you aren't throwing away money on interest. You are paying for the service of them lending you a large sum you didn't have or were unwilling to spend.

 

[jlee]

It's a good "general rule of thumb" but as ANY, there are always exceptions to the rule and it might not apply to your situation, location/market.

But it's a good/healthy rule to go by.

In general, DO NOT fall into "american dream of owning a house" crap. In general, yes you will be better of buying a house vs renting BUT if you can't swing it....it is what it is.

Owning a house is NOT a "dream". It's really not much different from renting......it's simply another place to live.

Also, when you do buy a house, by it "for a place to live in"........do NOT think of it as an "investment". Sure it can be, and probably will be....but don't count on it or treat it as such.

Good luck

Sure it is. When your AC unit, furnace, water heater, etc. dies, someone else doesn't pay for it.

 

[DrPizza]

So are you saying buying a house does not = throw away money?

Last year I paid about $6000 in taxes. I'm pretty sure that money is down the drain. That's about $500 a month.

Then there is interest.....which is about 13k worth last year alone. That's about $1000 a month. And no, none of this is a write off as I don't pay much taxes.....(So it depends on each person/situation, most people can probably write this off).

But in my case, over $1500 A MONTH is going down the drain by "owning a house".

Then there is repairs/upkeep and labor associated with it....not even getting into that...and my house is fairly new!

For me, it's not "better"....not yet anyways (in time).

But don't tell me "owning a house" is NOT money down the drain. It is.

Are you saying that when you rent an apartment, the owner magically doesn't have taxes? Or that apartment owners simply are idiots who lose money because they have to pay taxes and pay for the building? Or, could it be that regardless, if you live somewhere, you're paying those taxes either directly or indirectly.

Also, how the heck can $12k in interest, and $6k in taxes not exceed your standard deduction, allowing you to itemize on your tax return?

 

[smackababy]

Are you saying that when you rent an apartment, the owner magically doesn't have taxes? Or that apartment owners simply are idiots who lose money because they have to pay taxes and pay for the building? Or, could it be that regardless, if you live somewhere, you're paying those taxes either directly or indirectly.

Also, how the heck can $12k in interest, and $6k in taxes not exceed your standard deduction, allowing you to itemize on your tax return?

Because "doesn't itemize" means "can't itemize" on the internet, obviously.

 

[alkemyst]

So are you saying buying a house does not = throw away money?

Last year I paid about $6000 in taxes. I'm pretty sure that money is down the drain. That's about $500 a month.

Then there is interest.....which is about 13k worth last year alone. That's about $1000 a month. And no, none of this is a write off as I don't pay much taxes.....(So it depends on each person/situation, most people can probably write this off).

But in my case, over $1500 A MONTH is going down the drain by "owning a house".

Then there is repairs/upkeep and labor associated with it....not even getting into that...and my house is fairly new!

For me, it's not "better"....not yet anyways (in time).

But don't tell me "owning a house" is NOT money down the drain. It is.

Based on your financial posts I don't believe you are living in a house you paid around $400k for or really got screwed on APR.

 

[Capt Caveman]

So are you saying buying a house does not = throw away money?

Last year I paid about $6000 in taxes. I'm pretty sure that money is down the drain. That's about $500 a month.

Then there is interest.....which is about 13k worth last year alone. That's about $1000 a month. And no, none of this is a write off as I don't pay much taxes.....(So it depends on each person/situation, most people can probably write this off).

But in my case, over $1500 A MONTH is going down the drain by "owning a house".

Then there is repairs/upkeep and labor associated with it....not even getting into that...and my house is fairly new!

For me, it's not "better"....not yet anyways (in time).

But don't tell me "owning a house" is NOT money down the drain. It is.

:biggrin:

 

[alkemyst]

I'm assuming you mean my house? We earned all our money, no inheritance.

Oh wait, I see you are in Michigan.

A house is like the price of a used 1985 Aries K car there.

Good Game!

Who is 'we all'.

 

[Belegost]

So are you saying buying a house does not = throw away money?

Last year I paid about $6000 in taxes. I'm pretty sure that money is down the drain. That's about $500 a month.

Then there is interest.....which is about 13k worth last year alone. That's about $1000 a month. And no, none of this is a write off as I don't pay much taxes.....(So it depends on each person/situation, most people can probably write this off).

But in my case, over $1500 A MONTH is going down the drain by "owning a house".

Then there is repairs/upkeep and labor associated with it....not even getting into that...and my house is fairly new!

For me, it's not "better"....not yet anyways (in time).

But don't tell me "owning a house" is NOT money down the drain. It is.

Perhaps you're with Mizzou and feel that housing is a luxury?

Most people put a non-zero value on having housing - hence the idea of rent, or the price to purchase a house/condo. As such the money spent on interest and taxes to have the house, is paying for having a place to live. If you feel that the cost of having a place to live is money down the drain I'm sure you could find an amenable bridge and cardboard box and not waste money.

 

[JM Aggie08]

So are you saying buying a house does not = throw away money?

Last year I paid about $6000 in taxes. I'm pretty sure that money is down the drain. That's about $500 a month.

Then there is interest.....which is about 13k worth last year alone. That's about $1000 a month. And no, none of this is a write off as I don't pay much taxes.....(So it depends on each person/situation, most people can probably write this off).

But in my case, over $1500 A MONTH is going down the drain by "owning a house".

Then there is repairs/upkeep and labor associated with it....not even getting into that...and my house is fairly new!

For me, it's not "better"....not yet anyways (in time).

But don't tell me "owning a house" is NOT money down the drain. It is.

So what's your solution, exactly, if owning is such a colossal waste of money.

 

[Tweak155]

Oh wait, I see you are in Michigan.

A house is like the price of a used 1985 Aries K car there.

Good Game!

Who is 'we all'.

Just me and my wife.

 

[ghost recon88]

Oh wait, I see you are in Michigan.

A house is like the price of a used 1985 Aries K car there.

Good Game!

Who is 'we all'.

Idk, we have some nicer houses here http://www.zillow.com/homedetails/960-Vista-Dr-Bay-Harbor-MI-49770/2112244012_zpid/

Detroit is not the standard or example for the whole state. By the way if you want a walk through of that house, I can have my agent schedule one.