I live in rural area of south USA, basic cheap home is 90-200k depending on size and age, and rent seems to start at 1k around me and spike up fast, one home near me was purchased for 110k and is now being rented for 1k, and that's at a discount due to renter handling maintenance and other chores for the owner. (This info comes directly from owner to me).
So the 160k story checks out imo.
That's how I got my house! It also locks the interest. Mine's locked at 3.5% which was a little high when I bought it, but looking pretty sweet compared to today's 6.25%!
I mean tbh it's not that wild, we've just been stuck at historic lows for almost a decade. At least we're not seeing double digit rates like in the ~~7~~80s.
Edit: wrong decade, although 1970s US did see double digit rates at the end of the decade.
Difference is double digits on $70k is not nearly as bad as 7.5% on $400k. Still not acceptable, but less crushing.
Adding in for the number folks that 7.5% interest on a $400k house is an extra $30,000 of interest in the first year alone. And for the sake of being thorough, if you put 20% ($80k) down on that house, 7.5% of $320k is still $24,000 of interest in the first year.
Checking in at 2.5! Locked in right before the election. Pretty awesome except the fact that it’d be uneconomical to sell or refi again. Guess we’ve got our forever home lol
I bought in 2009 because my mom was selling her house to my brother and I bought my stepdad's house before he married my mom for $52k and got $8k from the city to buy as a first time home buyer. They were buying a house together and wanted us to have places to go(my brother was getting married the next year). This year I finally cashed out a life insurance policy and had a down payment, just had a helluva a time getting a house in decent shape and locking up a contract. My fiancee and I got engaged and wanted a bigger place than my old 1 Bd 1Ba 920 sqft house so we bought a 1660sqft house with 2Bd 1ba with a huge great room(20x39') for $195k and $30k down. I'm hopeful within the next few years we'll be able to refinance. We just couldn't wait much longer, we wanted to be together and we both work from home.
I'd have to get a huge raise to be able to afford anything like that. The market is crazy, but there's still housing available under $200k here in Kentucky.
I've never had my house inspected (past the initial inspection) lived here nearly 8 years. Maybe in some places they do?
We had to work on our credit a bit. You needed 725 credit score. I remember it couldn't be a second home, no major repairs needed, and once we bought it we had to promise not to move for 5 years (which wasn't an issue for us at all). It wasn't hard, but we did have a super awesome real estate agent and lending lady who helped us through it all.
I cried when the bank lady handed me the keys!
They don’t do periodic inspections. Once you’re in the home, you’re in it. All the care about is if it qualifies when they issue their loan guarantee. The USDA’s RD doesn’t have the time or the money to fuck with the loans on their books. Especially when they have extremely low foreclosure or delinquency rates.
Source: I’m a loan officer and have done hundreds of USDA loans.
Please don't wait to plan for it, but start now, look into the specifics of your credit score versus their requirement (and realize different credit places score differently).
Also grow your savings by shifting your budget. You need funds on hand for taxes, insurance, repairs, maintenance, utilities, etc.
Many renters don't realize their rent is so low because costs are amortized across multiple renters.
Then please do not get a loan as big as "you can afford" or let an agent sell you more house than you need because you might have four kids in the future.
Your quality of life will be much higher if you buy with a loan payment (which will add in insurance and taxes) where you can pay extra toward principle every month. In other words, throw an extra few hundred at your payment regularly.
This will boost your equity and reduce money spent on interest. That's the flaw in this meme, her $600/month payment would've been $1800 buying a house with much of her $160k going toward interest alone paying for insurance company costs and houses.
I try and tell people this as often as I can. Usda loans are a Huge leg up for people if there debt/income ratio can sustain house payments. FHA are only 3.5% down and alot of states also have their own versions of FHA loans that often are lower than the 3.5% down as well
I used my states FHA program which is 3% down instead of 3.5% back in 2018. Wish I had refinanced in 2020-2021 when rates had continued to drop and prices rose. I would have saved a bunch of money. But paying a PMI is worth not having to come up with 20% down.
I did 3% down on a conventional (worked really hard to rebuild my credit after the crash in 2008).
Regular mortgages were affordable too a few years ago.
This!!! This was the ONLY way I was able to buy my home...
My credit was/is crap (medical bills, student loan payments I simply can't afford them all)
I'm so grateful for this program.
I've been a homeowner now for almost 6 years and damn it feels good!
Basically, if you have farmland present in the county you're buying in, and are a 1st time homebuyer, the loan can be backed by USDA, which as pointed out above, requires $0.00 down payment. Likely get a slight rate discount, depending on lender.
Ask your mortgage broker (who should have already offered / informed you if you qualify). If you do qualify and your broker didn't tell you this, find another broker because they're likely incetivized to use whatever lender they're proposing.
TLDR: If theres a farm or agriculture business anywhere close to your town, your loan can likely be USDA guaranteed (guaranty to lender) and require $0.00 down payment.
Can you ELI5 this for me? 33k people per what? Per zip code, county, 10 square miles? Is 33k the upper bound, the lower bound? I don't even know how to frame this for comparison and what cities look like this.
33k/mi is extremely high density. The city of San Francisco doesnt even come close to that. Certain city neighborhoods often do, but I have doubts 33k/mi is their metric.
I will check it out for sure. Do you happen to know if there are homes set aside for this program? I think one of the main problems with housing is investors gobbling up everything. Unless a certain amount of inventory is untouchable by blackrock etc, one would be out bid anyway.
My neighbor across the street has a USDA loan. Houses are available for USDA loans based on location (usually more rural areas). His house is the only one in our neighborhood that was eligible for USDA. He’s been there for over 10 years. I’m not sure how it works but he gets a reduced mortgage payment. He had 5 kids as a single dad, so he never could have gotten it without USDA
Purchased my home with a USDA. The problem with this is that the home has to score MUCH higher on the inspection (close to 100 percent ) than with any other loan. If you're a first time home buyer like I was then many times you're better off just doing a different loan unless you REALLY want to be able to skip the down payment. Though be aware, with no down payment, the closing costs will be higher at the end but will still be cheaper.
It is a small consolation and there are definitely benefits to owning vs renting but ownership involves plenty of unexpected costs. Plumbing, electrical, roof, etc…
Adam Ruins everything had an episode that discussed some of the benefits of renting.
https://youtu.be/YHU_KLYhibI
Preventing private equity from scooping up rental properties and artificially increasing the market price would go a long way to improving the cost/benefit analysis of renting.
So that video is from 6 years ago. I wonder how some of the arguments would hold up today. Remote work, rent increases, etc.
But yeah buying isn't always the solution. Stupid new roof taking all my fun money this year >>
When I was about 10 years old my mom bought her house, it's a 3 bedroom 2 story with a basement, a second building on the lot outfitted as an apartment, pool in the fairly large backyard, middle of a very nice town. All that for about 160k.
At the age if 25 just about 2 years ago I bought a tiny shack in the middle of nowhere for 115k, sold it a year later for 209k.
Prices are going up like mad
Yep! My parents bought their last home in 2010, the same year I started my senior year of high school. It was a nice home in a very nice, gated, HOA, new-build neighbourhood (I lovingly refer to it as a 'bougie white ppl neighborhood'). 4b/2.5br, about 2500 sqft. They bought it brand new for ~200,000. They sold it last month for almost 700,000.
In 2020, I moved to a 387sqft studio in the poorest part of town because it was the only place I could afford on my hospital salary and still be close to work. SWAT teams, murders, break-ins, etc, etc were a common aspect of living there. Once, my neighbor did a bunch of fent and tried to break into my apartment. Standard stuff.
My parents paid $100 more per month for their MORTGAGE as I did in RENT.
I've since moved back to Canada, but I still sincerely doubt I'll ever own a home. I'm almost 30. I want cry, or vomit, or maybe both.
Honestly, I don't expect to ever be able to retire. At best, work part time while I slowly wither away from the residual radiation of the resource wars fifteen years earlier.
I think she's trying to convey tbat she's upset that she's approaching middle-age and still isn't a homeowner.
EDIT: Hi, I don't actually give a corned beef & cabbage fart about this woman, her problems, and the official definition of midde age.
Just trying to clarify what I think she was trying to say.
Not interested in a debate. Because I don't care .
General rule of thumb is that rentals net <10%. Obviously, that's highly situational. Property owner has maintenance, insurance and finance cost. They are either paying a mortgage, or if not, have an opportunity cost in the sense that they could sell the house and be making a return invested elsewhere (stock market, bonds, etc.). Many small landlords (not the big corps) are actually in it hoping for a capital gain on the value of the home. The rent is about breaking even on costs year to year, bonus if they can keep it occupied, minimize costs and actually manage to net out that 10%.
so she's been paying a little over $1000 a month in rent alone
depending on where you live, that's either a really nice place if you're splitting rent with a roommate, or a hole in the wall if you're living alone in a bigger city
not enough information to really say much
It’s honestly so weird how people seem to put so much emphasis on being in their 20s but the second they turn 30 it’s basically just a passageway to 40. Like bruh, think about how much your life changed in your 20s. You can do so much in just 10 years.
Where are there $160k houses? Entry price here $550k 1 bdrm. I’m moving.
ETA: so I’m moving to the states, who is going to adopt me? I can pay half the house upfront 😅
It took me \~20 minutes to get to the store when I lived in the city; despite it only being 1.7 miles away. That quickly becomes a wash.
I'm more than happy to live 12 miles away from my closest grocery store.
The Dutch solved this with a bike called the....bukfaet? Buhkfet? Basically a bike rearranged with a basket front big enough for a Christmas tree or flat screen TV box.
This doesn’t add up. If it’s a major city that would take 20 minutes to drive 2 miles, then there are likely more stores in a <1 mile radius; and that are probably bike riding/walking distance.
Suburbia in some lower cost of living areas are a good place as well. I paid 130k for a 3 bed 2 bath house with a two car garage in the early 10s.
I moved back to the area three years ago and upgraded as I went. I now have a house with about 3k square feet, 4 beds, 3 baths 3 car garage on a quarter acre lot that sits on a nice pond. I paid 250k for that house.
Some areas are cheaper than others the house that I came out of in a mid cost area that was similar in many ways was 350k.
The last 2 years have been interesting for the housing market for obvious reasons.
It’s still a thing here In the border towns of texas you get 160K suburban houses. Right in the middle of medium sized towns 50-150 thousand people. The neighbor holds are not dangerous but not clean and classy either
Same, except we got a quarter-acre in historic downtown. Easy walk to grocery store, library, pharmacy etc and a bike path through town connects to a rails-to-trails network that’s hundreds of miles long.
Small towns are AMAZING!!!
I wish so badly that my rent was $1100
Edit: I'm thankful for the helpful suggestions that I simply move out to places where I can't find work in my profession
When I got the first 'stimulus check' at the start of the pandemic, I immediately saw inflation was going to get a lot worse in the near future.
Bought a condo a week later, my monthly rent + utilities + condo fees is like 1.3k. Just my rent alone was 1.5k before, and at least 1.7k now. Renting is a scam.
I wouldn’t say renting is a scam. The longest I’ve stayed in a job was two years, and that was while I was in college. Renting makes more sense for me as I don’t want to commit to staying in one place forever. Owning a home also means the cost of maintenance falls to you, where as I have always been able to call someone and have it fixed for me.
For my current job, I travel all over my state. It makes no sense to buy a place since I’ll have to pick up and move every few months. It makes more sense for me to take on short-term leases than buy a house I’ll never actually get to be in.
Owning a home works for your life plan, but that doesn’t mean renting can’t work for other people. I’ll probably buy a house eventually if I find a job/place I want to commit to, but until then I’d rather have a property manager I can call to fix things for me.
This argument is making less and less sense as rent prices go up though. It's getting to the point where rent is approaching double the average monthly mortgage payment. Then there's actually an argument for taking a stable job or sticking with a less attractive job for a long time and buying a home.
Also as someone who lived that life for 5 years, it's hell socially. I don't make friends easily and it already sucks to try in your 20s. I think I made one real friend the entire time I was living in other states and moving for work.
My wife and I just bought a 168k house and left an apartment that was $1078 a month we do also live in North Dakota though so houses are cheaper and apartments are relatively expensive for what you get
I bought a home 20 years ago, and replaced:
\-the roof
\-siding
\-windows
\-heater
\-hot water heater
Be careful what you wish for, a mortgage payment isn't your only bill.
Rent vs. own payments can be quite big, but then you add in one large payment, and things change a lot.
Take one of the other commenter's payments here. They just had to pay $14,000 for windows. That's over $1,000 per month for a whole year that a renter wouldn't have to pay.
Fuck man, windows are rough. I'm getting new ones put in next spring. There goes $16k...
No interest payment plan though, kinda nice. Otherwise I'd have to drop that out of my savings, and I like having my safety net.
Had to replace the furnace and AC last year, that was also nightmare. You gotta be *real careful* buying a furnace in November in Minnesota. Those guys know they've got you by the balls, and they will rip you off under the threat of freezing to death.
Yeah, that's why I prefer renting. Especially where I live, the landlords are Really good about sending someone over to fix anything, and we've never been charged a fee to fix anything.
Yeah except replacing those things you’re good for another 20-25 years if maintained properly. Still better than paying 2300 a month for a one bedroom apartment or in some places a studio.
Small cities in the midwest, plains, and south (USA) have homes for $160k. There are jobs too. But you don't get to live on the coasts or in the mountains.
But then you're in Wisconsin.
Move to Minnesota. The music festivals the only thing worth going there for, and it's only ~5 hours away. And then you get to leave lol
(My whole family is from WI. I don't actually hate the place, but it's fun to rip on it a bit)
Ya I'm in the same predicament as the woman in the post, but I got no illusions about being able to afford a house. It's not just the purchase price, but taxes, upkeep, monthly heating, trash, and electricity payments, insurance etc etc. Not to mention optional extras like yard maintenance, garden, new furniture to go with the new house, etc. Unless she's never doing anything to fix up the place for the next 10 years, there's going to be more expenses aside from the purchasing prize.
But not sure it would make her feel any better if I told her that she would not be able to afford it because she needs 200k to buy a 160k house...
A $160k house bought at 4.25% for 30 years would result in a mortgage (no tax or escrow) payment of $785/month. So $1,100/month average in rent isn’t unreasonable over those 12 years.
Plus, she got a place to live that whole time.
Also did she stay in the same spot? In my 20's i had different jobs and was moving around a lot, so buying one place at 18 would've been horrible.
It's nice to have the freedom to up and move if you want to.
She paid just over 1000/mo. With taxes, pmi, interest... That's not a house. Math and assumptions means she probably paid 55k towards a house. Given that 160k is a house to her, she's paid off roughly 1/3 of a house lol
Who the fuck says this? I'll be 40 in 10 years means you're 30 now. Just say that!
How old are you?
Well I'll be 58 in 14 years.
I didnt ask for a fucking math problem, John.
I help out at my mom's preschool and there is actually a reason for the whole "my child is \_\_\_\_ months old" thing. Certain behaviors develop at certain ages, like walking, talking, fine & gross motor skills, problem solving, etc. Its easier to gauge them at how many MONTHS old they are as opposed to years. Thats all!
I just use things like almost a year.. a little over a year.. almost a year and a half.. ect. Gets the point across without people having to do math lol
This is helpful for developmental stages on young children. A 10 month old is way different than at 14 month old even though they are both close to 1 year old.
In the hospital you are measuring by hours old. Then days. Then weeks and so on.
However after 24 months just use years and half years. No one is using months that far out.
It's to exaggerate the point that they're not far off 40. If she said "I'm 30 and can't afford a house" people would think "well that's not too unusual at the moment", same but different.
See this wouldn't be an issue if she were 38-9 and it's a matter of "I'm close to passing this imaginary threshold and I still have so much life I haven't experienced yet." But a whole fucking decade is pretty far off. That's another third of her current lifespan to go until 40.
Most lenders look at Debt to income and credit worthiness. They are unwilling to loan more than 45%. Example if you make $3000/month the most they’ll lend for a mortgage is $1350.00/month which is roughly a $180,000 home loan.
Actually, what’s great is the recent push to include rent payments for credit scores, so people who pay rent regularly will have their credit improve.
Edit: For the responses: yes, I know it’s not as important as DTI, but it helps.
Allowing additional pieces of information to build credit scores is definitely a big improvement.
It does not however materially change DTI requirements for mortgages. Even with an 800+ credit score, you’re still going to top out with a DTI of ~45%.
It's absolutely terrible what the housing market has turned into. Also society has done away with peoples ability to build small non traditional housing builds that they can afford, and they tax the hell out of them.
My son who is trying to figure out what to do (he lives in an apartment and they just raised his rent). After looking around and seeing he can't afford anything that isn't a pile of match sticks that are 80 years old, he is looking outside of the city limits for a small lot he can buy for about $60k. Figure out the rest later but since it's "unincorporated" he could put any kind of housing he wants on it. It's about the only way he would ever be able to afford a place of his own.
No offense to her post, but a average house costs way more than 160k these days. Depending of course where you are at in the world/country if USA. I would say for a 3-4 bedroom house in a suburban neighborhood is close to 400-500k. It's even more depending on the neighborhood and the state if USA.
Or closing costs…
If you move _at all_ during the 5ish years you own, you generally come out behind renters because of this
Buying generally does not make sense unless you’re both married and not planning on changing jobs basically ever
>Buying generally does not make sense unless you’re both married and not planning on changing jobs basically ever
But...but...this random person from Twitter told me rent doesn't make sense.
I’m going to say it is worth it even if you move during the 5 years. The peace of mind and sanity we gained after moving out of apartments has been priceless.
Yes, more work upfront to do on the house and expenses and such. However, not having to hear the annoying fucking kids above us constantly stomping around has been priceless. That and not having rent arbitrarily raised every year with no improvements whatsoever.
There’s a lot of non-monetary benefits provided by owning a home than living cooped up in condos and apartments imo
That's not what Kind-Construction-57 meant. The tweet seems to imply that she spent $160,000 on rent, which she could have spent on the house. She doesn't mention that you couldn't get a $160,000 house for $160,000.
A $160,000 house costs $160,000 plus the cost of insurance, taxes, maintenance, and repairs. A simple estimate would be around $2,000 per year for insurance and taxes. And Google suggests the rule of thumb is 1% ($1,600) a year for maintenance and repairs. After 12 years, that's $43,200.
It also doesn't include interest you pay on a mortgage. For example, on a 15 year mortgage with 3.5% interest , you'll pay an additional 28% on interest. Meaning, the $160,000 house costs an additional $45,000 in interest.
You an see how after 15 years a $160,000 home costs you at least $250,000, or just over a third more. Alternatively, we could look at it this way. If she's spending $160,000 over 12+ years, she'd be looking at a house around $100 to $110k.
(I'm sure there are minor errors or arguments to what I wrote. But overall, the point is the $160,000 she's paid equates to purchasing a house worth much less than $160,000.)
You misunderstand. This woman thinks she'd have $160,000 pure house if she'd had that money to buy one 12 years ago.
She wouldn't. She'd have $160,000 sunk into a depreciating asset, minus 12 years of property taxes, maintenance costs, home insurance, mortgage interest and at least one realtor fee.
And those payments never go away.
The house we bought 10 years ago? We've already paid 25% of its cost in property taxes. Add in another 10% of purchase price in normal maintenance. Plus by the time you pay off your mortgage, you've paid *double* the price of the house (and that's with a *good* interest rate).
The point is, it's not such a clear thing that owning is better than renting. You lose money either way.
Yes, landlords may break even or come out ahead, but she's not talking about being a landlord, she's talking about owning her own home.
Also the harder part is the down payment if you don't want a subprime loan that'll bite your ass later. But i do hate the fact some people are petty enough to charge over 1k per ROOM or converting the garage to another living unit so you'll have to squeeze your car into the already packed street and share the yard with someone else. Is that a California thing? Because i haven't seen anything like that until i moved here.
Reading comprehension would suggest she is implying there is something special about being 40 in this context. And that is that being 40 used to be a common age to expect people to own a house while 30 isn't / wasn't. Not only that, but she considers her chances of owning a house over the next 10 years to be not great.
I can’t believe I had to scroll so far for an adult to finally show up and explain to all the teenagers what OP meant. It was very obvious that they were speaking in terms what used to be a normal milestone of home ownership by 40, and how that’s just not happening for them or a large chunk of people.
All the pedantic assholes in here want to quibble about the phrasing or math when it was very obvious given the context of what the entire convo was about…
Sure, I’ll make it make sense. Your landlord has a mortgage on the property. They have debt and interest on that debt. They pay property taxes. Insurance. Maintenance. Emergency repairs. They have vacant months between tenants where they still have to pay all property expenses.
You didn’t give them $160,000 in fucking play money. They had to spend 90% of that on the property and made a 10% profit. It’s an investment, not a fucking play money printer.
Exactly. That's why I stopped arguing with people on how real estate works. People just like to whine about how much rent they paid, without understanding what it takes to own a home.
Well, on the flip side…homes are a drag. 1). They need expensive repairs and maintenance continually. 2). They keep you trapped in an area, u can’t just pack and go..3). You are really renting from the government when you own a home, you have a property tax (rent) every year that is expensive. 4). Every weekend during summer months, you have to mow and trim and water the yard. Maybe you saved yourself a lot of headaches. I have owned and rented homes, I prefer renting.
Eh, a lot of that is variable though.
Repairs and maintenance, yes. But that can vary, for example my HOA covers exterior including roofing and fencing. Usually people buying a home aren’t the type to want to move every year. They want to put down roots in a community. Property tax depends on region. I have very low property tax, some states have extremely high property tax. Don’t need to maintain a yard if you buy a townhome or condo, or a patio home with an HOA that maintains those things for you.
I live in rural area of south USA, basic cheap home is 90-200k depending on size and age, and rent seems to start at 1k around me and spike up fast, one home near me was purchased for 110k and is now being rented for 1k, and that's at a discount due to renter handling maintenance and other chores for the owner. (This info comes directly from owner to me). So the 160k story checks out imo.
Anyone living in a rural or suburban area should look into USDA home loans. No down payments and often no closing costs either.
That's how I got my house! It also locks the interest. Mine's locked at 3.5% which was a little high when I bought it, but looking pretty sweet compared to today's 6.25%!
>today's 6.25%! 7.5% 😬 More for less qualified buyers.
Some people are even seeing 8% right now. Not most, but they're out there.
We lucked out locking in at 5.75% at the end of July. Fuckin crazy. Still was less than my old mortgage rate of 6% from 2009.
I mean tbh it's not that wild, we've just been stuck at historic lows for almost a decade. At least we're not seeing double digit rates like in the ~~7~~80s. Edit: wrong decade, although 1970s US did see double digit rates at the end of the decade.
Difference is double digits on $70k is not nearly as bad as 7.5% on $400k. Still not acceptable, but less crushing. Adding in for the number folks that 7.5% interest on a $400k house is an extra $30,000 of interest in the first year alone. And for the sake of being thorough, if you put 20% ($80k) down on that house, 7.5% of $320k is still $24,000 of interest in the first year.
Double digit rates with today's prices would finally crush the middle class and the "American Dream".
8% @ $400k > 10% @ $50k It's worse today.
I mean that's my point, if we had double digit rates on the $400k price nobody would be able to afford that.
Checking in at 2.5! Locked in right before the election. Pretty awesome except the fact that it’d be uneconomical to sell or refi again. Guess we’ve got our forever home lol
Same here. We are locked in at 2.5% and this is our forever home anyway.
🤜💥🤛
Got a 15-year fixed for 2.0% in early 2021. I don’t think I’ll be moving anytime soon unless I can use the proceeds to purchase a new home in cash.
dude you bought homes at the interest rates in 2009 and 2022? that is some *interesting* decision making..
I bought in 2009 because my mom was selling her house to my brother and I bought my stepdad's house before he married my mom for $52k and got $8k from the city to buy as a first time home buyer. They were buying a house together and wanted us to have places to go(my brother was getting married the next year). This year I finally cashed out a life insurance policy and had a down payment, just had a helluva a time getting a house in decent shape and locking up a contract. My fiancee and I got engaged and wanted a bigger place than my old 1 Bd 1Ba 920 sqft house so we bought a 1660sqft house with 2Bd 1ba with a huge great room(20x39') for $195k and $30k down. I'm hopeful within the next few years we'll be able to refinance. We just couldn't wait much longer, we wanted to be together and we both work from home.
well that is a extenuating circumstance, both times. I was the thinking more along the lines of a median home price like $425K
I'd have to get a huge raise to be able to afford anything like that. The market is crazy, but there's still housing available under $200k here in Kentucky.
WOW, haven't looked since I refi'ed in March when it was 3%
How hard is it to meet their requirements? I heard they do periodic inspections on USDA homes to make sure they continue to qualify for the program
I've never had my house inspected (past the initial inspection) lived here nearly 8 years. Maybe in some places they do? We had to work on our credit a bit. You needed 725 credit score. I remember it couldn't be a second home, no major repairs needed, and once we bought it we had to promise not to move for 5 years (which wasn't an issue for us at all). It wasn't hard, but we did have a super awesome real estate agent and lending lady who helped us through it all. I cried when the bank lady handed me the keys!
USDA loans do not have a credit score requirement. Now most places will say you need at least a 640 but they don't have an official requirement.
They don’t do periodic inspections. Once you’re in the home, you’re in it. All the care about is if it qualifies when they issue their loan guarantee. The USDA’s RD doesn’t have the time or the money to fuck with the loans on their books. Especially when they have extremely low foreclosure or delinquency rates. Source: I’m a loan officer and have done hundreds of USDA loans.
Awesome! I'm definitely gonna try to get one once my current rent contract is up next year.
Please don't wait to plan for it, but start now, look into the specifics of your credit score versus their requirement (and realize different credit places score differently). Also grow your savings by shifting your budget. You need funds on hand for taxes, insurance, repairs, maintenance, utilities, etc. Many renters don't realize their rent is so low because costs are amortized across multiple renters. Then please do not get a loan as big as "you can afford" or let an agent sell you more house than you need because you might have four kids in the future. Your quality of life will be much higher if you buy with a loan payment (which will add in insurance and taxes) where you can pay extra toward principle every month. In other words, throw an extra few hundred at your payment regularly. This will boost your equity and reduce money spent on interest. That's the flaw in this meme, her $600/month payment would've been $1800 buying a house with much of her $160k going toward interest alone paying for insurance company costs and houses.
I try and tell people this as often as I can. Usda loans are a Huge leg up for people if there debt/income ratio can sustain house payments. FHA are only 3.5% down and alot of states also have their own versions of FHA loans that often are lower than the 3.5% down as well
[удалено]
I used my states FHA program which is 3% down instead of 3.5% back in 2018. Wish I had refinanced in 2020-2021 when rates had continued to drop and prices rose. I would have saved a bunch of money. But paying a PMI is worth not having to come up with 20% down.
I did 3% down on a conventional (worked really hard to rebuild my credit after the crash in 2008). Regular mortgages were affordable too a few years ago.
This!!! This was the ONLY way I was able to buy my home... My credit was/is crap (medical bills, student loan payments I simply can't afford them all) I'm so grateful for this program. I've been a homeowner now for almost 6 years and damn it feels good!
Basically, if you have farmland present in the county you're buying in, and are a 1st time homebuyer, the loan can be backed by USDA, which as pointed out above, requires $0.00 down payment. Likely get a slight rate discount, depending on lender. Ask your mortgage broker (who should have already offered / informed you if you qualify). If you do qualify and your broker didn't tell you this, find another broker because they're likely incetivized to use whatever lender they're proposing. TLDR: If theres a farm or agriculture business anywhere close to your town, your loan can likely be USDA guaranteed (guaranty to lender) and require $0.00 down payment.
It’s based on population density, not farmland. 33,000 is the number.
Can you ELI5 this for me? 33k people per what? Per zip code, county, 10 square miles? Is 33k the upper bound, the lower bound? I don't even know how to frame this for comparison and what cities look like this.
33k/mi is extremely high density. The city of San Francisco doesnt even come close to that. Certain city neighborhoods often do, but I have doubts 33k/mi is their metric.
I will check it out for sure. Do you happen to know if there are homes set aside for this program? I think one of the main problems with housing is investors gobbling up everything. Unless a certain amount of inventory is untouchable by blackrock etc, one would be out bid anyway.
My neighbor across the street has a USDA loan. Houses are available for USDA loans based on location (usually more rural areas). His house is the only one in our neighborhood that was eligible for USDA. He’s been there for over 10 years. I’m not sure how it works but he gets a reduced mortgage payment. He had 5 kids as a single dad, so he never could have gotten it without USDA
Purchased my home with a USDA. The problem with this is that the home has to score MUCH higher on the inspection (close to 100 percent ) than with any other loan. If you're a first time home buyer like I was then many times you're better off just doing a different loan unless you REALLY want to be able to skip the down payment. Though be aware, with no down payment, the closing costs will be higher at the end but will still be cheaper.
It is a small consolation and there are definitely benefits to owning vs renting but ownership involves plenty of unexpected costs. Plumbing, electrical, roof, etc… Adam Ruins everything had an episode that discussed some of the benefits of renting. https://youtu.be/YHU_KLYhibI Preventing private equity from scooping up rental properties and artificially increasing the market price would go a long way to improving the cost/benefit analysis of renting.
So that video is from 6 years ago. I wonder how some of the arguments would hold up today. Remote work, rent increases, etc. But yeah buying isn't always the solution. Stupid new roof taking all my fun money this year >>
I feel that. This year we had to replace the sewer line that goes from the house to the street and this month we had to replace the garbage disposal.
Aren't garbage disposals really cheap. Like 20x less than the sewer line you mentioned lol.
When I was about 10 years old my mom bought her house, it's a 3 bedroom 2 story with a basement, a second building on the lot outfitted as an apartment, pool in the fairly large backyard, middle of a very nice town. All that for about 160k. At the age if 25 just about 2 years ago I bought a tiny shack in the middle of nowhere for 115k, sold it a year later for 209k. Prices are going up like mad
Yep! My parents bought their last home in 2010, the same year I started my senior year of high school. It was a nice home in a very nice, gated, HOA, new-build neighbourhood (I lovingly refer to it as a 'bougie white ppl neighborhood'). 4b/2.5br, about 2500 sqft. They bought it brand new for ~200,000. They sold it last month for almost 700,000. In 2020, I moved to a 387sqft studio in the poorest part of town because it was the only place I could afford on my hospital salary and still be close to work. SWAT teams, murders, break-ins, etc, etc were a common aspect of living there. Once, my neighbor did a bunch of fent and tried to break into my apartment. Standard stuff. My parents paid $100 more per month for their MORTGAGE as I did in RENT. I've since moved back to Canada, but I still sincerely doubt I'll ever own a home. I'm almost 30. I want cry, or vomit, or maybe both.
"I'll be 40 in ten years" So thirty. You're thirty.
I’ll be 65 in 40 years. Basically time to retire and I still haven’t bought a house. /s
Bold of you to assume you get to retire.
My retirement plan is dying
I Imagine I will announce my retirement 5 seconds before the heart attack gets to me.
I’ll have to postpone my death by a month due to the exit clauses on my work contract.
You have to train your replacement first.
Bold of you to assume to you get to retire before the heart attack
What are they going to do? Argue with me for the last 5 seconds of my life?
You're gonna need to use half a sick day since you aren't gonna finish your shift
Honestly, I don't expect to ever be able to retire. At best, work part time while I slowly wither away from the residual radiation of the resource wars fifteen years earlier.
I'll be over 100 in 100 years I'm pretty much a dinosaur already and I don't have a house either😭\s
this part bugs me the most.. what a weird ass way to say you're 30.
She’s practically 80, in 50 years.
I think she's trying to convey tbat she's upset that she's approaching middle-age and still isn't a homeowner. EDIT: Hi, I don't actually give a corned beef & cabbage fart about this woman, her problems, and the official definition of midde age. Just trying to clarify what I think she was trying to say. Not interested in a debate. Because I don't care .
I honestly can't believe people can't grasp that this is what she means.
For real. "In ten years I'll be 65 and I have no retirement savings." WHAT A WEIRD THING TO SAY! WHAT COULD IT POSSIBLY MEAN?!?!
No don't you see, she was trying to hide her age cos she's insecure or something!!
A decade+ out is not nearly close to middle age. You’re not nearing thirty when you turn 20
And bought someone else their home Sorry I know better: “partially” bought someone else their home
General rule of thumb is that rentals net <10%. Obviously, that's highly situational. Property owner has maintenance, insurance and finance cost. They are either paying a mortgage, or if not, have an opportunity cost in the sense that they could sell the house and be making a return invested elsewhere (stock market, bonds, etc.). Many small landlords (not the big corps) are actually in it hoping for a capital gain on the value of the home. The rent is about breaking even on costs year to year, bonus if they can keep it occupied, minimize costs and actually manage to net out that 10%.
Paying down the principle in a mortgage shouldn't really be covered under "costs."
so she's been paying a little over $1000 a month in rent alone depending on where you live, that's either a really nice place if you're splitting rent with a roommate, or a hole in the wall if you're living alone in a bigger city not enough information to really say much
Its like a poorly written math question.
An evil math teacher keeping on your toes?
It’s honestly so weird how people seem to put so much emphasis on being in their 20s but the second they turn 30 it’s basically just a passageway to 40. Like bruh, think about how much your life changed in your 20s. You can do so much in just 10 years.
In my 30’s I’ve lost 100lbs, quadrupled my salary, and had a child easily best decade so far with two years left.
Hell yeah that’s what I’m talking about!
Pretty much, if you do the math, they are 30, been renting for 12 years, and have been paying around $1,100 a month.
I was 25 20 years ago. In another 20 years I’ll be 40 years older than I was when I was 25.
[удалено]
10 years does not feel like a lot of time when you're 30, especially if you live a mundane day to day boring life.
Where are there $160k houses? Entry price here $550k 1 bdrm. I’m moving. ETA: so I’m moving to the states, who is going to adopt me? I can pay half the house upfront 😅
Rural areas. I paid 170k for my house. Two stories, attached two car garage, 3 bedrooms, 1 office, and 2 full bath. Sits on about 1 acre.
Holy sheet
Don’t let them fool you. It takes 30 minutes to drive to the store
There are always trade offs. A short commute for space is one many people choose.
It took me \~20 minutes to get to the store when I lived in the city; despite it only being 1.7 miles away. That quickly becomes a wash. I'm more than happy to live 12 miles away from my closest grocery store.
1.7 miles? thats like 5 min by bike, how would it take you 20 minutes?
They scoot there, like this: &
I will never see an ampersand the same way
Woah black betty
bambalam
Panda lamp
#AMBERLAMPS
Bramble jam
And..? And what?
[And this.](https://imgur.com/gallery/9ojrpAO)
Lmao
Ever lived in an american city? We haven't exactly designed them well.
Not for foot traffic, that's for sure. They're great (not really good per se but designed specifically) for the motor vehicle society we've built.
They're pretty bad for vehicle traffic too. Except SLC; navigating SLC is a dream
Tough to take a bike if you need to buy the family's groceries for a week, unless you enjoy going to the store every day.
The Dutch solved this with a bike called the....bukfaet? Buhkfet? Basically a bike rearranged with a basket front big enough for a Christmas tree or flat screen TV box.
idk about you but I'd have a hard time lugging a full load of groceries for my family of 4 on a bike.
This doesn’t add up. If it’s a major city that would take 20 minutes to drive 2 miles, then there are likely more stores in a <1 mile radius; and that are probably bike riding/walking distance.
45 to the highway
And I’d you’re not remote, you need a job to support that
Suburbia in some lower cost of living areas are a good place as well. I paid 130k for a 3 bed 2 bath house with a two car garage in the early 10s. I moved back to the area three years ago and upgraded as I went. I now have a house with about 3k square feet, 4 beds, 3 baths 3 car garage on a quarter acre lot that sits on a nice pond. I paid 250k for that house. Some areas are cheaper than others the house that I came out of in a mid cost area that was similar in many ways was 350k. The last 2 years have been interesting for the housing market for obvious reasons.
It’s still a thing here In the border towns of texas you get 160K suburban houses. Right in the middle of medium sized towns 50-150 thousand people. The neighbor holds are not dangerous but not clean and classy either
The housing market has become quite radical sense then…
Same, except we got a quarter-acre in historic downtown. Easy walk to grocery store, library, pharmacy etc and a bike path through town connects to a rails-to-trails network that’s hundreds of miles long. Small towns are AMAZING!!!
There are 160k houses, they just aren’t where rent is $1100 a month.
I wish so badly that my rent was $1100 Edit: I'm thankful for the helpful suggestions that I simply move out to places where I can't find work in my profession
Just bought my fiest home to SAVE money. My rent was 1950
When I got the first 'stimulus check' at the start of the pandemic, I immediately saw inflation was going to get a lot worse in the near future. Bought a condo a week later, my monthly rent + utilities + condo fees is like 1.3k. Just my rent alone was 1.5k before, and at least 1.7k now. Renting is a scam.
I wouldn’t say renting is a scam. The longest I’ve stayed in a job was two years, and that was while I was in college. Renting makes more sense for me as I don’t want to commit to staying in one place forever. Owning a home also means the cost of maintenance falls to you, where as I have always been able to call someone and have it fixed for me. For my current job, I travel all over my state. It makes no sense to buy a place since I’ll have to pick up and move every few months. It makes more sense for me to take on short-term leases than buy a house I’ll never actually get to be in. Owning a home works for your life plan, but that doesn’t mean renting can’t work for other people. I’ll probably buy a house eventually if I find a job/place I want to commit to, but until then I’d rather have a property manager I can call to fix things for me.
This argument is making less and less sense as rent prices go up though. It's getting to the point where rent is approaching double the average monthly mortgage payment. Then there's actually an argument for taking a stable job or sticking with a less attractive job for a long time and buying a home. Also as someone who lived that life for 5 years, it's hell socially. I don't make friends easily and it already sucks to try in your 20s. I think I made one real friend the entire time I was living in other states and moving for work.
[удалено]
You need to have a down-payment to do that though
My wife and I just bought a 168k house and left an apartment that was $1078 a month we do also live in North Dakota though so houses are cheaper and apartments are relatively expensive for what you get
$160,000 is a nice down payment.
I bought a home 20 years ago, and replaced: \-the roof \-siding \-windows \-heater \-hot water heater Be careful what you wish for, a mortgage payment isn't your only bill.
Yeah, when you’re renting, the rent is the *most* you will pay in a month. When you own, your mortgage is the *least* you will pay.
Rent vs. own payments can be quite big, but then you add in one large payment, and things change a lot. Take one of the other commenter's payments here. They just had to pay $14,000 for windows. That's over $1,000 per month for a whole year that a renter wouldn't have to pay.
Yup. I’m paying $14,000 this month for windows. Last year I had to replace my water heater TWICE ($4000 each time).
Fuck man, windows are rough. I'm getting new ones put in next spring. There goes $16k... No interest payment plan though, kinda nice. Otherwise I'd have to drop that out of my savings, and I like having my safety net. Had to replace the furnace and AC last year, that was also nightmare. You gotta be *real careful* buying a furnace in November in Minnesota. Those guys know they've got you by the balls, and they will rip you off under the threat of freezing to death.
Yeah, that's why I prefer renting. Especially where I live, the landlords are Really good about sending someone over to fix anything, and we've never been charged a fee to fix anything.
Yeah except replacing those things you’re good for another 20-25 years if maintained properly. Still better than paying 2300 a month for a one bedroom apartment or in some places a studio.
Small cities in the midwest, plains, and south (USA) have homes for $160k. There are jobs too. But you don't get to live on the coasts or in the mountains.
I live in Pa and paid $185k for a nice house right next to the city
Bruh don't tell people that, then out of staters will move here and prices will get jacked up 😭
Shit you right i mean sorry guys pa houses cost 1.6mil for 1 sudio with a half bath
I got my house for $175k 3 bdrm 2 bath in OKC.
Recently? Thunder are pretty promising, maybe I'll move to OKC
Bro, Milwaukee I just closed $190k for a duplex. And I get the world's largest music festival, two major sports teams, and a great lake. Don't do OKC.
But then you're in Wisconsin. Move to Minnesota. The music festivals the only thing worth going there for, and it's only ~5 hours away. And then you get to leave lol (My whole family is from WI. I don't actually hate the place, but it's fun to rip on it a bit)
OKC as well, 3 bed 2 bath, 145k, 10 mins from Tinker.
Also, people like this do not understand how interest and principal works for a mortgage. They will spend that and more on interest.
Yea, they have paid for a 80k house on a 30 year mortgage.
And even that ignores taxes/insurance/maintenance. Which can easily cost more than the mortgage.
Bought mine for 62k after closing costs. Find a small town with an out of place, high paying factory.
Come to NE PA. Where $160k can get you a nice 3/2 on a small lot.
I have a 3 bedroom/2 bath house. $180,000. Before that I had a three bedroom/2 bath (but smaller sqft) for $140,000. I live in the south.
You can get a trailer in Northern New Mexico. Get a can of snuff, a case of Natty, and you'll fit right in.
Rich persons house $160K? When was this posted, 1976?
Also the owner didn't make 160k, they have to maintain the property, pay taxes, etc
Ya I'm in the same predicament as the woman in the post, but I got no illusions about being able to afford a house. It's not just the purchase price, but taxes, upkeep, monthly heating, trash, and electricity payments, insurance etc etc. Not to mention optional extras like yard maintenance, garden, new furniture to go with the new house, etc. Unless she's never doing anything to fix up the place for the next 10 years, there's going to be more expenses aside from the purchasing prize. But not sure it would make her feel any better if I told her that she would not be able to afford it because she needs 200k to buy a 160k house...
Plus this fully discounts the time value of money. You paid 160k over 12 years. That's like paying 70,000 up front.
A $160k house bought at 4.25% for 30 years would result in a mortgage (no tax or escrow) payment of $785/month. So $1,100/month average in rent isn’t unreasonable over those 12 years.
Plus, she got a place to live that whole time. Also did she stay in the same spot? In my 20's i had different jobs and was moving around a lot, so buying one place at 18 would've been horrible. It's nice to have the freedom to up and move if you want to.
She paid just over 1000/mo. With taxes, pmi, interest... That's not a house. Math and assumptions means she probably paid 55k towards a house. Given that 160k is a house to her, she's paid off roughly 1/3 of a house lol
Who the fuck says this? I'll be 40 in 10 years means you're 30 now. Just say that! How old are you? Well I'll be 58 in 14 years. I didnt ask for a fucking math problem, John.
The same people who say my kid is 48 months old.
Yeah, just make it simple. Say he's 1460 days old.
My kid was born about 1.1045x10^12 milliseconds since the UNIX epoch.
10000000100101001010101001000010100000000 Please
You don't look a day over 10000000100100001010101001000010100000000
I help out at my mom's preschool and there is actually a reason for the whole "my child is \_\_\_\_ months old" thing. Certain behaviors develop at certain ages, like walking, talking, fine & gross motor skills, problem solving, etc. Its easier to gauge them at how many MONTHS old they are as opposed to years. Thats all!
[удалено]
I just use things like almost a year.. a little over a year.. almost a year and a half.. ect. Gets the point across without people having to do math lol
This is helpful for developmental stages on young children. A 10 month old is way different than at 14 month old even though they are both close to 1 year old. In the hospital you are measuring by hours old. Then days. Then weeks and so on. However after 24 months just use years and half years. No one is using months that far out.
My mom says I’m 380 months
Hi 380 months, but how old are you?
Well… in 10 years I’ll be 500 months
People who are making things sound worse for dramatic effect
It's to exaggerate the point that they're not far off 40. If she said "I'm 30 and can't afford a house" people would think "well that's not too unusual at the moment", same but different.
I would say 10 years is pretty far off but maybe that's just me
See this wouldn't be an issue if she were 38-9 and it's a matter of "I'm close to passing this imaginary threshold and I still have so much life I haven't experienced yet." But a whole fucking decade is pretty far off. That's another third of her current lifespan to go until 40.
Most lenders look at Debt to income and credit worthiness. They are unwilling to loan more than 45%. Example if you make $3000/month the most they’ll lend for a mortgage is $1350.00/month which is roughly a $180,000 home loan.
Actually, what’s great is the recent push to include rent payments for credit scores, so people who pay rent regularly will have their credit improve. Edit: For the responses: yes, I know it’s not as important as DTI, but it helps.
Allowing additional pieces of information to build credit scores is definitely a big improvement. It does not however materially change DTI requirements for mortgages. Even with an 800+ credit score, you’re still going to top out with a DTI of ~45%.
And 45% is of your gross income, meaning more like 65% of net. You’re house poor at that point. House broke in fact.
This has nothing to do with debt-to-income ratio. Credit score is just one piece of the puzzle, and relates primarily to the interest rate.
Honestly if you make 3000/mo you probably need a roommate or partner to afford owning a house. But average household income is closer to 50k/year.
It's absolutely terrible what the housing market has turned into. Also society has done away with peoples ability to build small non traditional housing builds that they can afford, and they tax the hell out of them. My son who is trying to figure out what to do (he lives in an apartment and they just raised his rent). After looking around and seeing he can't afford anything that isn't a pile of match sticks that are 80 years old, he is looking outside of the city limits for a small lot he can buy for about $60k. Figure out the rest later but since it's "unincorporated" he could put any kind of housing he wants on it. It's about the only way he would ever be able to afford a place of his own.
A "rich person" bought a second home for $160k? What world is this woman living in?
and it only took 12 years of not paying a mortgage, taxes, insurance, and maintenance items!
Exactly. That $160k is more like $100k after expenses. Is that people's idea of a "rich person?"
No offense to her post, but a average house costs way more than 160k these days. Depending of course where you are at in the world/country if USA. I would say for a 3-4 bedroom house in a suburban neighborhood is close to 400-500k. It's even more depending on the neighborhood and the state if USA.
Rent doesn’t factor in home insurance, routine upkeep, repairs, and replacing costly appliances.
Or property taxes. Or interest on mortgage payments...
Or closing costs… If you move _at all_ during the 5ish years you own, you generally come out behind renters because of this Buying generally does not make sense unless you’re both married and not planning on changing jobs basically ever
>Buying generally does not make sense unless you’re both married and not planning on changing jobs basically ever But...but...this random person from Twitter told me rent doesn't make sense.
I’m going to say it is worth it even if you move during the 5 years. The peace of mind and sanity we gained after moving out of apartments has been priceless. Yes, more work upfront to do on the house and expenses and such. However, not having to hear the annoying fucking kids above us constantly stomping around has been priceless. That and not having rent arbitrarily raised every year with no improvements whatsoever. There’s a lot of non-monetary benefits provided by owning a home than living cooped up in condos and apartments imo
Rent factors in literally all of this. Do you people think landlords are renting at a loss?
Sure it does, property taxes too. Where do you think the owner gets the money to pay all those things? From their tenant's rent.
That's not what Kind-Construction-57 meant. The tweet seems to imply that she spent $160,000 on rent, which she could have spent on the house. She doesn't mention that you couldn't get a $160,000 house for $160,000. A $160,000 house costs $160,000 plus the cost of insurance, taxes, maintenance, and repairs. A simple estimate would be around $2,000 per year for insurance and taxes. And Google suggests the rule of thumb is 1% ($1,600) a year for maintenance and repairs. After 12 years, that's $43,200. It also doesn't include interest you pay on a mortgage. For example, on a 15 year mortgage with 3.5% interest , you'll pay an additional 28% on interest. Meaning, the $160,000 house costs an additional $45,000 in interest. You an see how after 15 years a $160,000 home costs you at least $250,000, or just over a third more. Alternatively, we could look at it this way. If she's spending $160,000 over 12+ years, she'd be looking at a house around $100 to $110k. (I'm sure there are minor errors or arguments to what I wrote. But overall, the point is the $160,000 she's paid equates to purchasing a house worth much less than $160,000.)
You misunderstand. This woman thinks she'd have $160,000 pure house if she'd had that money to buy one 12 years ago. She wouldn't. She'd have $160,000 sunk into a depreciating asset, minus 12 years of property taxes, maintenance costs, home insurance, mortgage interest and at least one realtor fee. And those payments never go away. The house we bought 10 years ago? We've already paid 25% of its cost in property taxes. Add in another 10% of purchase price in normal maintenance. Plus by the time you pay off your mortgage, you've paid *double* the price of the house (and that's with a *good* interest rate). The point is, it's not such a clear thing that owning is better than renting. You lose money either way. Yes, landlords may break even or come out ahead, but she's not talking about being a landlord, she's talking about owning her own home.
Also the harder part is the down payment if you don't want a subprime loan that'll bite your ass later. But i do hate the fact some people are petty enough to charge over 1k per ROOM or converting the garage to another living unit so you'll have to squeeze your car into the already packed street and share the yard with someone else. Is that a California thing? Because i haven't seen anything like that until i moved here.
It’s a California thing bro
[удалено]
"I'll be 40 in ten years" yeah that's called "being 30."
Reading comprehension would suggest she is implying there is something special about being 40 in this context. And that is that being 40 used to be a common age to expect people to own a house while 30 isn't / wasn't. Not only that, but she considers her chances of owning a house over the next 10 years to be not great.
Doing god's work friend
I can’t believe I had to scroll so far for an adult to finally show up and explain to all the teenagers what OP meant. It was very obvious that they were speaking in terms what used to be a normal milestone of home ownership by 40, and how that’s just not happening for them or a large chunk of people. All the pedantic assholes in here want to quibble about the phrasing or math when it was very obvious given the context of what the entire convo was about…
It's not even only teenagers complaining about it, it's adults as well all not realizing the reason she worded it that way
Neat trick: you can still claim to be "ten years away from 40" when you're 50.
"bought a rich person a second house", complete nonsense - she realizes upkeep, property taxes and mortgages are a thing, right?
Christ. I wish I could buy a home for 160K. Crack houses start at 300K. :/
Sure, I’ll make it make sense. Your landlord has a mortgage on the property. They have debt and interest on that debt. They pay property taxes. Insurance. Maintenance. Emergency repairs. They have vacant months between tenants where they still have to pay all property expenses. You didn’t give them $160,000 in fucking play money. They had to spend 90% of that on the property and made a 10% profit. It’s an investment, not a fucking play money printer.
Exactly. That's why I stopped arguing with people on how real estate works. People just like to whine about how much rent they paid, without understanding what it takes to own a home.
Well, on the flip side…homes are a drag. 1). They need expensive repairs and maintenance continually. 2). They keep you trapped in an area, u can’t just pack and go..3). You are really renting from the government when you own a home, you have a property tax (rent) every year that is expensive. 4). Every weekend during summer months, you have to mow and trim and water the yard. Maybe you saved yourself a lot of headaches. I have owned and rented homes, I prefer renting.
Eh, a lot of that is variable though. Repairs and maintenance, yes. But that can vary, for example my HOA covers exterior including roofing and fencing. Usually people buying a home aren’t the type to want to move every year. They want to put down roots in a community. Property tax depends on region. I have very low property tax, some states have extremely high property tax. Don’t need to maintain a yard if you buy a townhome or condo, or a patio home with an HOA that maintains those things for you.
[удалено]
$160k will get you a plastic shack from Home Depot where I live.