Thread: I've been thinking...

It just occurred to me. Why buy a house?

Think about it: If you buy a house, you gotta pay over three times its
worth to the bank as interest, you are a slave to it for the 20-30 years it takes you to pay it off. And you don't just have to pay the bank for the privilege of "owning" a house, you also gotta pay an arm and a leg in property taxes. Worse, after you finish paying it you still gotta keep paying property taxes on it, so it's not like you can just stop paying for your residence after you own it.

So isn't it better to rent your residence and hold liquid assets as a store of value instead of a house that's just gonna anchor you down if you need to move?

-Dr House

Originally Posted by Dr House

It just occurred to me. Why buy a house?

Think about it: If you buy a house, you gotta pay over three times its
worth to the bank as interest, you are a slave to it for the 20-30 years it takes you to pay it off. And you don't just have to pay the bank for the privilege of "owning" a house, you also gotta pay an arm and a leg in property taxes. Worse, after you finish paying it you still gotta keep paying
property taxes on it, so it's not like you can just stop paying for your residence after you own it.

So isn't it better to rent your residence and hold liquid assets as a store of value instead of a house that's just gonna anchor you down if you need to move?

-Dr House

In the good old days real estate was a good investment, it will be again....I hope. With real estate you can borrow, or sale and in a good economy you will make a few bucks. Right now I would advise against buying until the market stabilizes. Many right now are paying for a mortgage that is worth more than the home. Also I don't know of anyone who had their property taxes lowered yet due to falling home prices, and I really doubt that will change.

Originally Posted by Dr House

It just occurred to me. Why buy a house?

Think about it: If you buy a house, you gotta pay over three times its
worth to the bank as interest, ...

Not that much. Closer to 2x. Less, if you exclude taxes.

So isn't it better to rent your residence and hold liquid assets as a store of value instead of a house that's just gonna anchor you down if you need to move?

Depends. These days, many people are paying as much (or more) for their apartment per month as I do on my home. My house is a comfortable two-story home in a suburban neighborhood, and I pay about $1200/mo, including taxes. It's very common these days to see people paying similar rates for their monthly apartment rent. Sure, they don't have to pay property taxes, but then, the house is considerably larger than most apartments, and has more amenities.

Because if you rent youre still paying for all that junk, but you still have to pay market value for housing. If you get yourself in a home at a fixed interest rate you can lock in to paying todays market for the house. You can also gain equity, which means you might be able to pay for that heart transplant you always wanted.

mmmmmm i bought my house because i like things to me MINE

Don't forget all that big ass write off at tax time, most of your interest and property tax....

Real Estate is always a goog investment, even in a bad market. Arpartment rent always goes up, always. You buy a house, after ~7-8 years it will be worth double.

When Obama raises taxes and increases regulation housing will drop 50% in real terms but I have no idea what that will mean in nominal terms. I would go with euros, maybe.

Originally Posted by william the wierd

I would go with euros, maybe.

I would go with Euro-denominated stocks or bonds. That way you get the investment gain PLUS the gain from the rising Euro.

-Dr House

Originally Posted by savannah

mmmmmm i bought my house because i like things to me MINE

If you paid for it in cash, then that's cool. If you have a mortgage, then it's not yours until you pay it off. And don't forget the cost of maintenance on the house.