Buying A House is a VERY BAD IDEA - Page 3 - GoFuckYourself.com

lazycash · 07-25-2012, 06:21 PM

Quote:

Originally Posted by Choker

This is what I tried telling her. Depreciation here accelerated last quarter and the economy is looking worse overall, not better. I was going to buy a $500k house back in 2007. Today that house is worth maybe 300k. People here posting that they would buy a house, and I appreciate everyones feedback, but the stats don't lie. Homes are going down in value here in Florida with no signs of stopping. When I do the math it simply makes no sense to buy right now. $7000 a year depreciation on a 100k house. No matter how I run the numbers renting is better.

Most all of your comments in this thread suggest a very short sighted view when looking at renting vs buying. Looking at a longer view of 7-10 years, eventually a property that has been depreciating will at some point most likely turn around and start appreciating. In your area I would say the most a property has left in depreciation is 10%, your definitely close to the bottom. If your daughter could buy an undervalued property via short sale/foreclosure it would provide enough cushion to eliminate what I believe may be the last bit of depreciation in your area.

Also, you suggest a possible 7k/yr depreciation for a 100k home in your area, but your daughter would piss away more than 7k for the year should she rent. When you were thinking of buying in 2007 you would have been buying at the market's peak for your area, far different scenario then buying today. Homes values are not dropping in all areas of Florida and there are actually many signs that point to mild appreciation in some areas of Florida.

mce · 07-25-2012, 06:33 PM

Buy it if you're going to live in it for a long time....

potter · 07-25-2012, 07:14 PM

Quote:

Originally Posted by Choker

This is what I tried telling her. Depreciation here accelerated last quarter and the economy is looking worse overall, not better. I was going to buy a $500k house back in 2007. Today that house is worth maybe 300k. People here posting that they would buy a house, and I appreciate everyones feedback, but the stats don't lie. Homes are going down in value here in Florida with no signs of stopping. When I do the math it simply makes no sense to buy right now. $7000 a year depreciation on a 100k house. No matter how I run the numbers renting is better.

Well there's your problem, you're comparing prices from before the real estate market collapse to after. And using that same comparison to buying a house today. That would only make sense if the market were to collapse a second time, just as bad as the first - come on man....

Choker · 07-25-2012, 10:19 PM

Quote:

Originally Posted by potter

Well there's your problem, you're comparing prices from before the real estate market collapse to after. And using that same comparison to buying a house today. That would only make sense if the market were to collapse a second time, just as bad as the first - come on man....

Homes are still depreciating at over 7% a year here and show no signs of slowing down. In fact if last quarters depreciation continues for the rest of the year the depreciation rate is accelerating. The last 5 years depreciation has wiped out the last 15 years gains. Yes I realize depreciation HAS TO SLOW down eventualy but it is very possible it won't for another 5 years. Do the math on that. A 100k house would be worth 77,378 in 5 years with 5% depreciation, and it's actually over 7% here. Even if she got a 3% mortgage she would be in the hole big time in 5 years. Yes rent is the same as a mortgage but depreciation wipes that out plus a lot. Pay the same for rent or mortgage in 5 years you would have to bring over 15k to the table to sell your home. If you rented you could just walk away owing nothing. Does anyone else here get this?

lazycash · 07-25-2012, 10:53 PM

Quote:

Originally Posted by Choker

Homes are still depreciating at over 7% a year here and show no signs of slowing down. In fact if last quarters depreciation continues for the rest of the year the depreciation rate is accelerating. The last 5 years depreciation has wiped out the last 15 years gains. Yes I realize depreciation HAS TO SLOW down eventualy but it is very possible it won't for another 5 years. Do the math on that. A 100k house would be worth 77,378 in 5 years with 5% depreciation, and it's actually over 7% here. Even if she got a 3% mortgage she would be in the hole big time in 5 years. Yes rent is the same as a mortgage but depreciation wipes that out plus a lot. Pay the same for rent or mortgage in 5 years you would have to bring over 15k to the table to sell your home. If you rented you could just walk away owing nothing. Does anyone else here get this?

So she can go ahead and instead pay 1200/mo to rent the same house and after 5 years have paid 72k with absolutely nothing to show for it. Whereas with buying she would have a much lower monthly payment and if after 5 years she is underwater on the house and needs to move she can simply short sale it and have saved herself thousands vs renting.

Choker · 07-25-2012, 11:16 PM

Quote:

Originally Posted by lazycash

So she can go ahead and instead pay 1200/mo to rent the same house and after 5 years have paid 72k with absolutely nothing to show for it. Whereas with buying she would have a much lower monthly payment and if after 5 years she is underwater on the house and needs to move she can simply short sale it and have saved herself thousands vs renting.

Having nothing to show for it is better than having to bring 18k to the table to close a sell on it, or like you suggest let the bank take the hit for the 18k she would be upside down on and walk away? Do you really think banks will still be doing short sells in 5 years? As far as I know it has the same effect on a debtor as a foreclosure does, if not it should in my opinion. Rent would be about $900 to $1000 for the home anyway.

I advised her to rent until there are signs of depreciation slowing down or reversing. She won't listen to me though, she's got my hard head. LOL

Sunny Day · 07-26-2012, 12:41 AM

Quote:

Originally Posted by Choker

Having nothing to show for it is better than having to bring 18k to the table to close a sell on it, or like you suggest let the bank take the hit for the 18k she would be upside down on and walk away? Do you really think banks will still be doing short sells in 5 years? As far as I know it has the same effect on a debtor as a foreclosure does, if not it should in my opinion. Rent would be about $900 to $1000 for the home anyway.

I advised her to rent until there are signs of depreciation slowing down or reversing. She won't listen to me though, she's got my hard head. LOL

Short Sales are a bargain. The bank knows they have a troubled property and that's the best way out. If the owner is foreclosed, the bank has to buy it at the courthouse steps at the amount of mortgage owed. Basically buying it from themselves. Then turn around and put the property on the market for a lot less than the current mortgage. Short sales means the house isn't trashed and most foreclosed houses are and the bank is willing to get what would the current price.
House behind me is appraised at $105K went for $22,500. Worth $150K a few years ago. Prices might go lower but this is a hell of a good time to buy. In 10 years you'll be going "why didn't I buy those houses?" Nobody is smart enough to know the exact moment of a bottom market, being houses or stocks. But you can see the trend.
Last year, I helped a almost homeless friend buy 2 houses for $17,200 he borrowed from family. Got him 2 houses at the tax sale. Now worth close to $100K and has a place to sleep, not a friend's sofa. Found a house for GF's brother $17,500 fixed & flipped for $85,000. He blew a $50K profit on a house I asked him to buy.

potter · 07-26-2012, 06:27 AM

Quote:

Originally Posted by Choker

Homes are still depreciating at over 7% a year here and show no signs of slowing down. In fact if last quarters depreciation continues for the rest of the year the depreciation rate is accelerating. The last 5 years depreciation has wiped out the last 15 years gains. Yes I realize depreciation HAS TO SLOW down eventualy but it is very possible it won't for another 5 years. Do the math on that. A 100k house would be worth 77,378 in 5 years with 5% depreciation, and it's actually over 7% here. Even if she got a 3% mortgage she would be in the hole big time in 5 years. Yes rent is the same as a mortgage but depreciation wipes that out plus a lot. Pay the same for rent or mortgage in 5 years you would have to bring over 15k to the table to sell your home. If you rented you could just walk away owing nothing. Does anyone else here get this?

I have a feeling homes aren't depreciating at 5-7% a year anymore. The market crashed in 2008, to 2009 then 2010 then 2011, then 2012 yes I would believe that. However across the country many areas have hit bottom. There isn't a single state in the country that is still depreciating at 5-7%, not a single one.

In fact, here is an article from yesterday stating Phoenix is expected to be the highest appreciation in the country from this year to next year: http://www.huffingtonpost.com/dr-sta...b_1699455.html

MrBottomTooth · 07-26-2012, 06:50 AM

Quote:

Originally Posted by beemk

Your thinking is flawed unless she somehow found a bank that loans money with no interest rate. The $1,000 payment goes towards mostly interest. Even if it was 3% interest she would still only pay $60k against principal in 10 years. That's with a payment of $1054.

Weekly mortgage payments instead of monthly, increasing principal payments slightly or doing a lump sum once a year will go a long way to getting rid of that high interest you pay.

I've already knocked 9 years off my 25 year mortgage just by paying a little extra. Saves me tens of thousands of dollars in interest.

Phoenix · 07-26-2012, 06:53 AM

Quote:

Originally Posted by MrBottomTooth

Weekly mortgage payments instead of monthly, increasing principal payments slightly or doing a lump sum once a year will go a long way to getting rid of that high interest you pay.

I've already knocked 9 years off my 25 year mortgage just by paying a little extra. Saves me tens of thousands of dollars in interest.

agreed...you need to pay down extra all the time.
it adds up.

pornguy · 07-26-2012, 06:57 AM

I would also say that buying now to over the next year would be a great time providing they have the money to support the purchase. also make sure to go with a solid lender

lazycash · 07-26-2012, 08:05 AM

Quote:

Originally Posted by Choker

Having nothing to show for it is better than having to bring 18k to the table to close a sell on it, or like you suggest let the bank take the hit for the 18k she would be upside down on and walk away? Do you really think banks will still be doing short sells in 5 years? As far as I know it has the same effect on a debtor as a foreclosure does, if not it should in my opinion. Rent would be about $900 to $1000 for the home anyway.

I advised her to rent until there are signs of depreciation slowing down or reversing. She won't listen to me though, she's got my hard head. LOL

Even at 1k a month over those 5 years that would be 60k she would pay in rent with nothing to show for it. Instead she can have a $600/mo mortgage payment and save 5k a year. A short sale does not have the same effect as a foreclosure. So I'm guessing since you didn't buy in 2007 you've been renting ever since, is that correct?

Kenny B! · 07-26-2012, 10:02 AM

This will be a fun thread to re-visit 5 years down the road, we can bump this and the ones on buying silver and see how good everyone's crystal ball is.

If I had the time I'd look for pimple dog's thread in 07 or 08 on how he invested his proceeds from the sale of epic cash into real estate and stock in both fannie mae and freddie mac.

beemk · 07-26-2012, 10:07 AM

Quote:

Originally Posted by MrBottomTooth

Weekly mortgage payments instead of monthly, increasing principal payments slightly or doing a lump sum once a year will go a long way to getting rid of that high interest you pay.

I've already knocked 9 years off my 25 year mortgage just by paying a little extra. Saves me tens of thousands of dollars in interest.

I agree. I was only trying to make the point that when you pay $1,000 for a payment you can't be under the impression that all of it goes towards the principal.

DamageX · 07-26-2012, 10:10 AM

Quote:

Originally Posted by Kenny B!

If I had the time I'd look for pimple dog's thread in 07 or 08 on how he invested his proceeds from the sale of epic cash into real estate and stock in both fannie mae and freddie mac.

HAHAHAHAHA ROTFLMAO you owe me a coffee and new monitor, fucker!

Jel · 07-26-2012, 10:13 AM

thing is, if you 'lose' by selling at less than what you paid, the house you move to has also 'lost' for their owners. It's not like your house loses x% and all other real estate goes up. At the end of your property ladder career, you ALWAYS come out in front, simply because you can sell and downsize - you can't do that with renting.

SuckOnThis · 07-26-2012, 10:20 AM

Quote:

Originally Posted by lazycash

Even at 1k a month over those 5 years that would be 60k she would pay in rent with nothing to show for it. Instead she can have a $600/mo mortgage payment and save 5k a year. A short sale does not have the same effect as a foreclosure. So I'm guessing since you didn't buy in 2007 you've been renting ever since, is that correct?

Short sales do effect your ability to qualify for a mortgage. After a deed-in-lieu of foreclosure, preforeclosure sale, or short sale, there is a mandatory waiting period of two years for a loan with an 80% maximum LTV (loan-to-value ratio), or four years for a loan with a 90% LTV. If the borrower can document extenuating circumstances, the waiting period for a loan with a 90% LTV drops to two years.

Yngwie · 07-26-2012, 12:27 PM

Quote:

Originally Posted by BlackCrayon

its so crazy to see the difference between the canadian and american real estate market. prices here just go up and up and up for the past 10 years or so. i'm sure they'll come down at some point but i don't see any signs yet.

Back in 2008 I sold the house that I bought for $60 000 to my sister and her husband for $135 000.. Hell of a profit.

BlackCrayon · 07-26-2012, 12:52 PM

Quote:

Originally Posted by Yngwie

Back in 2008 I sold the house that I bought for $60 000 to my sister and her husband for $135 000.. Hell of a profit.

indeed. the house we bought in ottawa, they bought brand new in 1994 and sold it to us for nearly 300,000. i can only imagine what they paid...but people shouldn't view a home as an investment. its a place to live, something we all need. chances are most people will lose money one way or another, no matter if its with renovations or whatever.

Sunny Day · 07-26-2012, 02:57 PM

Quote:

Originally Posted by Kenny B!

This will be a fun thread to re-visit 5 years down the road, we can bump this and the ones on buying silver and see how good everyone's crystal ball is.

If I had the time I'd look for pimple dog's thread in 07 or 08 on how he invested his proceeds from the sale of epic cash into real estate and stock in both fannie mae and freddie mac.

Years ago Forbes Magazine (70's or 80's) had a contest like this. Predict the Dow, price of gold etc. in a certain year never saw the results. Probably the wildest answers won.

lazycash · 07-26-2012, 03:16 PM

Quote:

Originally Posted by Kenny B!

This will be a fun thread to re-visit 5 years down the road, we can bump this and the ones on buying silver and see how good everyone's crystal ball is.

If I had the time I'd look for pimple dog's thread in 07 or 08 on how he invested his proceeds from the sale of epic cash into real estate and stock in both fannie mae and freddie mac.

Yeah I can only imagine how much Pimpdogg lost on the Vegas condo, which is why he was back on the adult forums last year looking for a job. He owned a tattoo parlor, not sure if its still in business.

iwantchixx · 07-26-2012, 08:15 PM

Here's an idea.. just a brainfart... probably makes no sense to many but..

Why not just buy a house because you want to live in it and raise your family, etc and because it's the one you can afford in the long term.

My oh my that would save so many people losing their asses.

I NEVER understood why anyone would need a house that costs up to 50% of their income. So many do now.

Keep in mind, my geographical location has low cost of living and low wages but there are 1000's of great sub-100k homes up for grabs that are more than adequate for new families to buy, live comfortably and add onto over the years as their family grows, moves out and brings the grand-kids back for family soirees.

Nowadays though, they're all still sitting on the market while brand new constructions worth over 250k keep going up on the market and being sold quickly.. ten resold.. and resold.. and resold again and again as everyone looses their asses on them. Everyone wants instant-awesome. Nobody is willing to be responsible and do things the smart way.

This is why the home market and economy all across North America is a complete fucking mess. Everyone wants to buy what they cant afford and ends up needing to make up for it by buying in the walmartz. Hence economy going overseas and the economies here dying.

There is nothing wrong with buying a house, yesterday, today or tomorrow. SO saying it's not a good idea to buy a house is just horseshit. Be responsible.. if she buys what she only needs and can grow upon it in years to come.. then what's the big deal? Or is she a princess and wants instant-perfect-awesome right away?

Just last year we almost bought a house with land for 10k. It wasn't much to look at.. trust me.. but after 15 years of upgrades buying this and that over time.. it would have been 100x better of a house than what we could have bought with all the money invested into upgrades up front instead.

videobunch · 07-26-2012, 11:15 PM

The house is only worth less if you sell it. My guess is they are looking for a house to live in, not as a short term investment. It is always better to own, then to rent most of the time. If u are concerned about divorce, put it in her name and co-sign. My

Marcus · 07-27-2012, 01:40 AM

Even Mark Zuckerberg rents his house

DamageX · 07-27-2012, 03:17 AM

Quote:

Originally Posted by Marcus

Even Mark Zuckerberg rents his house

He can afford to piss away money.

TubeSubmitters · 07-27-2012, 03:23 AM

Owning a house is never cheap but who wants to rent and not be sure of how long you can rent? What if you have to move out after a year from your dream home?

Bryan G · 07-27-2012, 08:33 AM

I own my house in Toronto. I bought it in 2009 for $320,000, I just had it appraised and can sell it for $405,000. Buying a house was not a bad idea for me lol

SuckOnThis · 07-27-2012, 09:10 AM

Quote:

Originally Posted by Marcus

Even Mark Zuckerberg rents his house

Orly?

The Facebook Inc. (FB) founder refinanced a $5.95 million mortgage on his Palo Alto, California, home with a 30-year adjustable-rate loan starting at 1.05 percent, according to public records for the property.

http://www.bloomberg.com/news/2012-0...mortgages.html

JFK · 07-27-2012, 10:36 AM

it is a good time to buy, over time she will look pretty smart

DO IT

Major (Tom) · 07-27-2012, 11:34 AM

Quote:

Originally Posted by Choker

Homes are still depreciating at over 7% a year here and show no signs of slowing down. In fact if last quarters depreciation continues for the rest of the year the depreciation rate is accelerating. The last 5 years depreciation has wiped out the last 15 years gains. Yes I realize depreciation HAS TO SLOW down eventualy but it is very possible it won't for another 5 years. Do the math on that. A 100k house would be worth 77,378 in 5 years with 5% depreciation, and it's actually over 7% here. Even if she got a 3% mortgage she would be in the hole big time in 5 years. Yes rent is the same as a mortgage but depreciation wipes that out plus a lot. Pay the same for rent or mortgage in 5 years you would have to bring over 15k to the table to sell your home. If you rented you could just walk away owing nothing. Does anyone else here get this?

but you're talking florida. real estate got hit very hard there. Use states that werent hit that hard & crunch the same numbers.
ds

07-25-2012, 06:33 PM	#102
mce Confirmed User Industry Role: Join Date: Jun 2012 Location: All Over Posts: 3,917	Buy it if you're going to live in it for a long time.... __________________ Pay Virtual Assistants Based on RESULTS instead of TIME STOP getting FUCKED IN THE ASS by your VA

07-26-2012, 06:57 AM	#111
pornguy Too lazy to set a custom title Industry Role: Join Date: Mar 2003 Location: Homeless Posts: 62,911	I would also say that buying now to over the next year would be a great time providing they have the money to support the purchase. also make sure to go with a solid lender __________________ PornGuy skype me pornguy_epic AmateurDough The Hottes Shemales online! TChicks.com \| Angeles Cid \| Mariana Cordoba \| MAILERS WELCOME!

07-26-2012, 10:02 AM	#113
Kenny B! Confirmed Abuser Industry Role: Join Date: Jun 2003 Location: Montreal Posts: 5,717	This will be a fun thread to re-visit 5 years down the road, we can bump this and the ones on buying silver and see how good everyone's crystal ball is. If I had the time I'd look for pimple dog's thread in 07 or 08 on how he invested his proceeds from the sale of epic cash into real estate and stock in both fannie mae and freddie mac. __________________ Kenny -at- YourPaysitePartner.com Skype: kennyb514 Do business with us: Your Paysite Partner Kenny's Pennies Sticky Dollars Radical Cash Indie Bucks Stand Ahead Read My Ambush Interview Here

07-26-2012, 08:15 PM	#122
iwantchixx Too lazy to set a custom title Industry Role: Join Date: Oct 2002 Location: The Boonies Posts: 12,860	Here's an idea.. just a brainfart... probably makes no sense to many but.. Why not just buy a house because you want to live in it and raise your family, etc and because it's the one you can afford in the long term. My oh my that would save so many people losing their asses. I NEVER understood why anyone would need a house that costs up to 50% of their income. So many do now. Keep in mind, my geographical location has low cost of living and low wages but there are 1000's of great sub-100k homes up for grabs that are more than adequate for new families to buy, live comfortably and add onto over the years as their family grows, moves out and brings the grand-kids back for family soirees. Nowadays though, they're all still sitting on the market while brand new constructions worth over 250k keep going up on the market and being sold quickly.. ten resold.. and resold.. and resold again and again as everyone looses their asses on them. Everyone wants instant-awesome. Nobody is willing to be responsible and do things the smart way. This is why the home market and economy all across North America is a complete fucking mess. Everyone wants to buy what they cant afford and ends up needing to make up for it by buying in the walmartz. Hence economy going overseas and the economies here dying. There is nothing wrong with buying a house, yesterday, today or tomorrow. SO saying it's not a good idea to buy a house is just horseshit. Be responsible.. if she buys what she only needs and can grow upon it in years to come.. then what's the big deal? Or is she a princess and wants instant-perfect-awesome right away? Just last year we almost bought a house with land for 10k. It wasn't much to look at.. trust me.. but after 15 years of upgrades buying this and that over time.. it would have been 100x better of a house than what we could have bought with all the money invested into upgrades up front instead. Last edited by iwantchixx; 07-26-2012 at 08:17 PM..

07-26-2012, 11:15 PM	#123
videobunch Largest Content Provider Industry Role: Join Date: Apr 2008 Location: www.VideoBunch.com Posts: 778	The house is only worth less if you sell it. My guess is they are looking for a house to live in, not as a short term investment. It is always better to own, then to rent most of the time. If u are concerned about divorce, put it in her name and co-sign. My __________________ Kevin www.VideoBunch.com Email - Kevin @@ Aned .com or Team - videobunch

07-26-2012, 10:13 AM	#116
Jel Confirmed User Industry Role: Join Date: Feb 2007 Posts: 6,904	thing is, if you 'lose' by selling at less than what you paid, the house you move to has also 'lost' for their owners. It's not like your house loses x% and all other real estate goes up. At the end of your property ladder career, you ALWAYS come out in front, simply because you can sell and downsize - you can't do that with renting.

07-27-2012, 01:40 AM	#124
Marcus Confirmed User Industry Role: Join Date: Jul 2001 Posts: 3,472	Even Mark Zuckerberg rents his house

07-27-2012, 03:23 AM	#126
TubeSubmitters Confirmed User Industry Role: Join Date: Aug 2006 Posts: 2,683	Owning a house is never cheap but who wants to rent and not be sure of how long you can rent? What if you have to move out after a year from your dream home? __________________ Buying sites with income, paying by paxum, hit me up

07-27-2012, 08:33 AM	#127
Bryan G Confirmed User Join Date: Aug 2005 Location: Toronto Posts: 8,338	I own my house in Toronto. I bought it in 2009 for $320,000, I just had it appraised and can sell it for $405,000. Buying a house was not a bad idea for me lol __________________ Bryan skype: bryan.glass3 \| ICQ 302999591

07-27-2012, 10:36 AM	#129
JFK FUBAR the ORIGINATOR Industry Role: Join Date: Jan 2002 Location: FUBARLAND Posts: 67,374	it is a good time to buy, over time she will look pretty smart DO IT __________________ FUBAR Webmasters - The FUBAR Times - FUBAR Webmasters Mobile - FUBARTV.XXX For promo opps contact jfk at fubarwebmasters dot com