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In my area a nice house that I would want to buy is around 500k, with an interest rate of around 5% (because the rate people "talk" about is never as good as the rate in ink at signing) your looking at least 25000 in interest and 30000 in realitor fees plus all the other fees involved. I can rent for a long time and save for a house outright for almost 60 grand. Even if I went high end on my apt, I could rent for over 3 years on 60 grand, that's more than enough to get a shell put up or even perhaps a really nice place livable. Or if I went a little less low end on the apt I could go almost 5 years in an apt and not be a whipping boy to a bank who has their hands around my throat if I cant pay.
Quote:
Originally Posted by highlife2
The piece of mind knowing I own my home out right and answer to no one and can play hard ball if I ever wanted to sell it. I don't have to care what the "market value" is when I list fsbo if I own it out right because they don't have to buy it, I can hold the price or even raise it when some snotty realtor gripes, then they can walk away if they want or pay.
So you weren't really saving anything, you were paying it to the landlord instead of in interest and commission. Now I understand.
If you had bought a piece of raw land with cash then you would be in the game, then you would only have to worry about the cost of building materials and not "the market" which is a big shell game of flippers and vultures who artificially inflate the cost of housing but raw land is typically in a different sutset of the market because no one wants to take the time to develop raw land other than major construction companies or developers.
Its like these guys that wanted to sell me a hangar for 700k yet the lots are only 100k and I can hire a builder to put up a hangar for 300k and they wonder why they cant sell their property, everyone is trying to make money off of nothing. Everyone is trying to make a quick buck and do very little for it, they are exploiting people that don't know any better.
That is OK. I am fine with what I have and plan on spending the next 50 or more years right where I am.
So you weren't really saving anything, you were paying it to the landlord instead of in interest and commission. Now I understand.
Then if crap hits the fan while your renting and saving you can get out of dodge with no fuss, if your in the middle of paying a mortgage and the market is not so hot when you need to sell (which its probably not if lay offs are happening on any sort of a large scale) they you will be up the creek and everyone else will shrug their shoulders, they got theirs.
Then if crap hits the fan while your renting and saving you can get out of dodge with no fuss, if your in the middle of paying a mortgage and the market is not so hot when you need to sell (which its probably not if lay offs are happening on any sort of a large scale) they you will be up the creek and everyone else will shrug their shoulders, they got theirs.
I have no issue with those that would rather rent, it presents less tie down for sure and makes it easier to just pick up and leave. I have certainly rented before and I don't count out renting again in the future if the right situation presents itself.
My only issue was with presenting it as a savings, in some cases I am sure it may be a little less expensive to rent but in other situations it is not.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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With the hot market here in the Seattle area home prices are about to where they were in 2006 again, but rents are up higher than ever. For a house in a nice area rent is running well over what a house payment would be. Here in my neighborhood for example, on a typical $500,000 house the mortgage would be
about $2,200 with 10% down. If you can find one to rent, it will be $3,200/month.
With the hot market here in the Seattle area home prices are about to where they were in 2006 again, but rents are up higher than ever. For a house in a nice area rent is running well over what a house payment would be. Here in my neighborhood for example, on a typical $500,000 house the mortgage would be
about $2,200 with 10% down. If you can find one to rent, it will be $3,200/month.
Just have to commute a little further, I doubt the suburbs are that high.
Who will "qualify" or afford to buy homes in the near future, especially as the baby boomers downsize? A college degree with a student loan the size of a mortgage and a job at Starbucks ain't going to cut it. When people make less, they can afford less this will push home prices down to a price people can afford. Good for buyers, bad for sellers.
While it is relatively well-known that there are about 28 million federal student loan borrowers in the US, and as we first covered a year ago, about 15% of these are deeply delinquent, what may not be known is that of the total borrowers, a tiny 40%, or 10.8 million of lenders are actually current and paying. Of the remaining 17 million, 7.9 million are still in school (and facing disastrous job prospects which almost certainly means millions more added to the delinquent list upon graduation), while a whopping 9 million, or almost the same number as those who currently repaying, are either in default, in their grace period, or in deferment or some other form of forebearance.
Out of 28 million Americans with federal student loans, 60%, or 17 million, don't pay the US government a single cent!
Out of 28 million Americans with federal student loans, 60%, or 17 million, don't pay the US government a single cent!
Of your 17 million figure 9.8 million are still in or just out of school, another 5 million are in forebearance or deferment which many could have just been taking a semester off from school or some other such thing. To state that 17 million are not paying a single cent is a ridiculous statement, should students be required to repay while still in school?
2.1 million are in default, what is that around 7% or so? Not a great number but you throwing that 60% out there makes absolutely no sense.
You also seem to think no one will be able to get a job coming out of college. What is this based on? Your usual sky is falling rantings?
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