Propaganda: people regret buying a house now
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Why? Rent is more expensive in the long run, and control over said property would not rest solely with you. I own my home. My loan is paid off. Anyone screwing with me in that regard will be shot.
Anyone that bought a house in the last 2-3 years pretty much bought on top of the bubble. Rent is more expensive in the long run, but 5 years of rent and then buying the same home at 70% of what they paid is a net win….. assuming there’s ever a dip
Why? Single point of contact for any issue.
I had a rental property some years back that I had a property manager for, and it was really nice to have someone on retainer who knew who all the good contractors were, what the going rate was for them so you don't get swindled, deal with scheduling, etc...
I wish I had that for my own home for stuff I don't want to take care of myself. Any property managers reading this: untapped market for some extra cash. Take invoices for services you coordinate and tack on 10% as a service fee. Maybe with a monthly/annual retainer.
Just call the guy and ask for advice.
Having friends is free.
I don't live where that was, but even if I did there's a big difference between asking who the good roofers are and telling someone "I have this problem: fix it" and they coordinate 2-3 different contractors to fix it without me having to do anything except pay the bill.
That's not how being the rentor works dog.
Me: "This is broken, fix it"
Landlord: "ok but you'll have to wait 2 months and then they'll be there an inconvenient amount of time and we won't be fixing it the way you want"
Perhaps, but it's how being the landlord works if you're paying the property manager. Which is way closer to how it would work if you were a homeowner paying a property manager to manage your own home.
I bought my first house when I was in my early 20s with interest rates comparable to what you can get now. I'd call it my number one best financial decision I've ever made and I could trace back tons of great things about my financial situation to that house purchase--everything from the profit when I sold it to the benefits of keeping my housing cost low when rents were shooting up. This all despite the fact that having an actual house is so much better than dealing with apartments.
The person they interviewed in this article is just stupid. Bought a house and won't even live in it? I mean really?
Probably listened to Boomers bang on about houses being an "investment" that only goes up.
They are investments that only go up, but you're supposed to live in it as part of the value proposition.
Currently the Brits are removing their mortgage requirements for home loans, the US banks have fired tens of thousands (north of 50-60,000) of their mortgage lending staff, and now this article has sellers offering renovation to sweeten the deal. All of that points to people not buying enough homes. The bank of england changed their requirements because not enough borrowers met it. The US banks have laid off their mortgage lenders because not enough people are borrowing money from them, and the home sellers at the ground level are adjusting their offers because, again, nobody is buying.
I got a mortgage preapproval mid-December. Over 250 cold calls from various lenders to date, all trying desperately to get a commission and save their job.
Nobody is expecting that much permanency to own a home.
That's because the asking price for these homes is just too damn high.
I can believe it. Buying a house because of mass panic over inflation at a freakish 7% interest rate comes off as someone who has no idea what they're doing. If you saw the inflation coming, you should have bought a house at 2.9% when everyone was panicking over the coronavirus. If you didn't, you should have split up your cash between gold, energy, paid off your debts and cut spending habits, instead of buying a house at 7% when everyone is panicking over hyperinflation.
So when should I buy a house now?
I actually go with buy a house when you need a house and don't plan to move around all that much, and not to worry about "the market" as much. Yeah, you know what you might buy when it's high and it might lose some value. You can still live in the house though, it's not like if it loses some value you have to move out.
What I'd rather settle on is making sure you actually know the costs and buy what you can afford or a little cheaper. Like the idiot in this article could have bothered to do some math. Figured could find a home with a mortgage payment comparable to $3,000 rent, so buy a $585,000 house?! I mean it's simple math that if she put 20% down (doubtful) at 6.99% the mortgage alone is over $3,100. Add at least a few hundred a month onto that for insurance, property tax, etc. So this dumbass bought too expensive of a house. She probably shouldn't have spent much more than $400k. Can't find one for that? Be glad you're landlord is taking the loss (they aren't) and keep renting cheap. Or, buy a house you can afford.
The mortgage guy I talked to said get in when you can, and while he obviously has his own interests in mind it makes sense. After the fight I had with my landlord over the summer I can't imagine not working towards owning property. Besides, it makes sense to build equity with your monthly payments instead of paying off some other guy's mortgage.
Lol $500k McMansion. Dude that barely gets you a starter home in some parts of the country.
$500k will buy you a shack or a townhouse around here. It's pretty demoralizing.
The old "Fixed at 3% and adjust to 12% after 2 years"
"Moving out at 18" is a subversive attempt at destroying generational families and forcing young adults into lifelong debt bondage.
I can understand some people regretting buying certain houses
Indeed that is bad. At this point it appears to be you should wait, if you can, because rates are going to go up more. You need the market to break first and maybe you'll get a discount on the house.
A terminal leftist I know expressed the sentiment of regretting purchasing a home. When he moved across the country he sold his home and went back to renting.