not buying a house at 7% interest, sorry
Not buying a house at 7% interest, sorry
kek imagine not offering cash only.
Not selling without 50% over what I paid
Sorry
Save up 20%, buy it with 5% down (make sure it’s in a mostly white area with active construction/business investment), take the 15% saved up and put it into renovations/improvements, get it reappraised in a year once those are done, automatically get 30% equity, refinance when interest is lower or sell at major profit and repeat
Save up 20%
make sure it’s in a mostly white area
How Am I going to save $250,000?
Sounds like Cali prices. There’s decent 2000 square foot homes in my zip code (>90% white), suburb of a major American city going for ~$500k. Obviously still a lot to save up, but you don’t necessarily need to have the full 20%. My main point being that putting money into a house up front beyond the minimum is usually a loss, you can get a return multiple times what you put up front by actually investing it into the house directly after it’s in your name because $10,000 in improvements can often mean the price of your home going up $30-40k+ as a result.
Live somewhere else. You got priced out. Draw a 50 mile radius and look for the cheapest white community
Imagine buying anything ever that isn't a good deal. Imagine buying an ambiguous deal for a huge sum of your net worth.
If you have to go into debt to in the first place, then you can't afford it.
You’ll have even more fun when it’s 12% :)
this except turn it into a hud house so you can slurp the rest of the neighborhood when everyone has to leave
Warren Buffett wishes he was renting
Around here profits from a 1 year sell will be taxed lmao, would have to hold 10 years for tax free profits
YOU KIDS ARE GONNA BANKRUPT RAMSEY
YOU HAVE TO BUY A HOUSE
YOU HAVE TO
Imagine renting money to buy a shitbox when I can just rent the shitbox and buy bitcoin
bank finds your 15% renovation is only worth 10%
still stuck paying PMI since >80% LTV
city knows you did renovations due to permit pulls
triggers re-assessment, paying tax on +15% renovation
Better paying your own interests than landlord's interests.
My house has 12 sinks and 4 shitters in it. Can you take a shit in a bitcoin? I don't think so.
7%
Couldn't be me
refinance when interest is lower
rates haven't gone below 6% since 2022
Studies have done the math; if you put all the expenses related to buying property including renovation costs, which many homeowners like to overlook, into rent and stocks instead, you end up with more in the long run. But of course you actually have to invest that money and not just spend more.
EVEN if you could buy the house in cash!
I might consider a 2% interest, same as this gentleman: but any rate that is at least 1.5 times lower than the current 52-week T-bill rate is negotiable
Except that:
You can easily get 5x leverage on real estate
The capital gains are completely tax-free
Houses which aren't too old or new have minimal maintenance expenses which you can mostly do yourself
You're never forced to move because of rent increases or landlords kicking you out
Bonus: you get a home to raise your family in
you will FOMO in at 14% interest, sorry
I bought at 8.75
then I refi'd down to 6
then I refi'd down to 4.5
then I refi'd down to 3.1
If I had waited to buy at 3.1 I would have been priced out of the market entirely since my house went from $100k to $500k by that time.
you might save a few thousand dollars getting a lower rate but you're gonna lose hundreds of thousands of dollars waiting.
boomer (millennial) advice
people who bought the past 3 years have 6%+ rates and little to no equity in their homes and no ability to refinance to cheaper rates
people above 25 have no idea the issues people below 25 face
boomers didn't have kids
boomers can't see their kids' problems
ok zoomer
I bought at almost 9%
cry me a river
It took me 20 years get my rate down from 8+ to around 3
for comparison, you haven't been alive that long.
that sounds like a really bad deal, I won't be buying a house then
but that 3.1% rate that you got in the end doesn't sound too bad, I might consider accepting a mortgage at a bit lower 3% rate
see, this gentleman has a 2% rate: it only makes sense that I get a similar rate
yep.
in the 20 or more years it takes for rates to go that low again, you will have missed out on buying a house. If you're even still alive by then.
you can just refi later
Yea, you'll be buying it at 15% interest in the future, or living forever as a rentoid.
there might be some misunderstanding here, aren't the people selling houses interested in selling them? I'm only interested in buying if it's a good deal for me, but if I get a much worse deal than this gentleman: I can just turn 360 degrees and walk away, leaving the seller with a house they'll have to try selling to someone else
but I doubt they'll find a fool who will accept this bad of a deal, 9%, sheesh, who will agree to that knowing that some gentlemen have 2% mortgages
aren't the people selling houses interested in selling them?
so far nobody has had much trouble selling a house even without your interest.
wait, do you think sellers set the interest rates?
kek
this guy is going to get so wrecked in the next years
of course not, the banks do
I imagine it to go like this: the seller of a house, and me (wearing a classy suit), go to the bank, and meet a bank worker, whom I will give a firm handshake
the worker will tell me that they can give me a 7% interest rate mortgage to purchase the house
I will tell them that I cannot accept this deal, because I know some people who have 2% rate mortgages, but that I am willing to accept any rate that is lower than the current 52-week T-bill interest rate
the worker will say that I must be insane
I will say that I cannot accept such a bad deal, but that they can call me later if they reconsider
the seller of the house will have to find a fool who will accept a deal this bad, and I will wish them luck before we part ways
very close, except the seller doesn't hold your hand to the bank
in fact before I even speak to you I need a letter from your bank saying you already have the loan.
I reckon we will never speak then, unless they give me a good deal, of course
i need to set up a housebobo plush, like the russian domavoy
yes. The seller won't even be aware of the billions of people who AREN'T trying to buy his house.
Rates are 3-4 around here and im still priced out by most
I'm going 80-90% cash when I get mine. Small loan so people don't think I'm too rich lel
lel I'm just memeing, my 1.99% is at the end of a 4-year fixed term that expires in a month. After that it's going up to 5.89% variable.
My ex wife is below 2% but she's on some government program from 2009 for people that almost lost their house.
Thanks Obama