Zillow, who had aBsOLuTeLy NoTHiNg tO Do WiTh ThEsE pRiCeS now has some thoughts on it huh
Yeah it’s always wild when we get comments like this. It’s like interviewing a serial killer about the uncontrollable violence people feel over [insert their MO]
Break even? That’s not even a concern. I just wanna have a place to live where I don’t have neighbors on the other side of the wall.
This is legitimately something I fantasize about. All I want is a small standalone structure to myself, nothing too big or fancy. I’m so damn sick of being held hostage by my neighbors ridiculously odd sleep schedule and lack of basic human decency.
Even though I’m single with a decent job, it’s never gonna happen. But I can dream. Well actually I can’t dream, because my neighbors don’t let me stay asleep long enough to reach a REM state.
A single tiny home on a small property would be amazing at this point.
If prices are going up, then it’s going to be less than 13.5 years because the value of the house will grow on the meantime and you will own more than you owe
The question is, will prices continue to go up? Or will rates push prices down? What impact will that have on rents?
Hopefully all of that is included in this estimate. I expect housing prices to cool as rates go up, which means a longer time for the initial investment to pay back for itself.
There wouldn’t even be a payback period at all if they weren’t calculating for anticipated value growth.
That’s not true, you eventually win due to not paying rent in perpetuity
Nah the 13.5 accounts for a continued increase in home prices. If it didn’t it would be more than that.
Oh, that’s surprising, then
But then again, I would not be surprised if the rates fell in the future, so if your mortgage is a few years locked in rates and then goes floating this may be still fine
I’m talking more likely 7 years in the future, not like one or two, though
or… just dont buy real estate? there are other options.
Buying is oftentimes preferable to renting. Right now is probably not one of those times, depending on where you live.
over the long term yeah, and I agree. the problem with a purchase is that you have to have the funds and it’s a lot. no, not renting either - that’s what I do now & of course and it’s not the right answer though it’s the only option for many. there are of course other options - rv/van life/car camping, moving elsewhere (ie: internationally/illegally), or even being a traveler (aka vanlife without a vehicle).
personally, I’m working on building my own RV. it’s a lot cheaper than buying property, but I’ll be the first to admit that there’s still a sizeable upfront cost
All of your alternatives require specific lifestyles, personalities, and paradigms. Car camping (of all varieties) presents a bunch of new risks. Moving elsewhere has the potential for incredible startup costs unless you’re able to start over and move with nothing. Traveling makes a lot of skill sets unusable for primary income.
You don’t need any funds to buy a house. First time homebuyers can buy with 0% down and roll the closing costs into the mortgage. The tricky part is having enough income and a high enough credit score, which is easy on a McDonalds salary in some parts of the US and impossible with a 6 figure salary in other parts. I do think that the vast majority of people overcomplicate the house buying process and needlessly lock themselves into renting when they could be building equity for the same cost.
needlessly lock themselves into renting when they could be building equity for the same cost.
As long as you’re recognizing that: rent payment =/= mortgage payment
Home ownership comes with its own costs over and above the mortgage payment for upkeep and repairs which are already inside the rent payment.
My landlord never once fixed a single thing at my rentals. I bought a condo and now my condo fees cover everything from hot water to heat and the roof, and I’m saving a couple hundred per month over renting.
Do the math tho.
First months last months rent and matching 1month sec dep on a place that’s 4k a month is 12k
5% down on a 240k house is…12k. Or 10% down on a 120k house.
