Is now a good time to buy a house? Or should I keep renting?
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Is now a good time to buy a house? Or should I keep renting?
Is now a good time to buy a house? Or should I keep renting?
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if you are waiting for a crash, consider this:
even if you had bought the absolute top of the housing market right before the 2008 crash, you would still be in great position right now
you can wait for a price correction if you want, and a correction is well overdue, but as with most things, time in the market is better than timing the market
The question is whether OP can handle the shitstorm that ensues in a housing crash. Lets say the market takes a turn a few months after OP buys a home. Can he handle being underwater on his mortgage for years? Can he handle the costs of maintaining a home even if he were to lose his job in the midst of this?
true
you should do the math based on how much you pay for rent and how much your expected mortgage payment would be
Wouldn't it be better to rent and invest the difference in monthly payments?
depends on the area, where are you looking.
.t somewhat informed anon thats happy to help
also what industry do you work in, how many years experience do you have (i.e. job security and ability to find a new one...)
>great position
>Literally breaking even, maybe worse if you consider inflation
damn, that's grim
but still not bad considering we are looking at the worst possible scenario and you still come out ahead
I did something similar. Basically, Case-Shiller national, July 06 as the top, then the most recent Case Shiller which is December 23. tldr it comes out to making about 10% in 18 years. Kinda loose, but still illustrates my point buying tops is fricking deadly. Furthermore, all that housing "gain" was really just monetary expansion. Grim.
If you were able to keep your job sure. A lot of people couldn't and had to book gigantic losses. It's a shame the ability to buy a house is dependant on heavy investing success or having a secure job where the wage growth outpaces tax increases (you only get one of those, usually neither these days).
That's fricking stupid. I could buy nearly 2x as much house if I just wait out the bottom. I lived through 2008, my parents lost their shirt and the house, dad got laid off, lost savings and retirement accounts. I know the signs to look for. I'm waiting for the bottom.
Can you live knowing your mortgage is nearly 2x higher than what Zillow says your house is worth? That's going to be the true test for all top buyers. You WILL sell me your bags at a deep discount.
*buy nearly 2x more house
If you're old enough to recall that then how many homes do you own now?
>if youre old enough to recall something that happened 15 years ago
are you moronic?
Half this board is a bunch of one-trick pony zoomers who larp as financial wizards. Majority of them were in early elementary school when that happened and the only thing they recall is what the media has regurgitated.
I own my own home and 2 rentals that I purchased in 2017-2018. Have a ton of cash from my business and I'm just sitting on it (high yield savings account) in the mean time. I'm in no hurry. I'm in my mid 30s.
If you own homes and are predicting a crash them why aren't you selling them?
just look at commercial real estate
it catches everone off guard
Now imagine u rented and just invested your savings in spy and averaged 3x return and bought the house outright
Capital gains taxes really hurt SPY in this scenario. No capital gains on a personal residence. Longing a SFH in a white neighborhood with low crime and good schools is a tough investment to beat.
>closing costs to buy (6k)
>mortgage interest (157k over 10 years)
>property tax (35k over 10 years)
>home insurance (15k over 10 years)
>home maintenance/repairs (15k over 10 years)
>transfer taxes + title insurance to sell (9k)
>realtor commissions to sell (32k)
325k profit nets 56k after these fees, you also lose money with forced equity payments
BTC investor keeps 85% of their profits, ends up with 497k, if they rent for less than 3675/mo they come out ahead
>2008
That was 16 years ago and the money in circulation has gone up substantially. It would be insane if they had not gone up since then.
Cost of the median house will rise roughly inline with the monetary base.
Cost of nice houses in white neighborhoods with low crime and good schools will continue to go parabolic.
That is to say it is unlikely housing prices come down anytime soon.
If you have Bitcoin then renting is better
The problem that makes this comparison difficult is the use of leverage in real estate.
>$65,000 Bitcoin 10x over 10 years
>You have $650,000
versus
>$325,000 house
>20% down payment of $65,000
>House goes up 2x over 10x
>your house is now worth $650,000
Same cash on cash return.
Houses need to be maintained. The lawn needs to get mowed. The roof needs replacing. You pay interest on the loan you took out. You pay property tax. Real estate leaks economic energy, Bitcoin preserves it.
Bruh Ive been travelling for 3years now working about 3 months per year while my house in Bitcoin became three houses in Bitcoin. Instantly liquid and I go wherever I want. In your mortgage option you Re literally stuck for 20 to 30 years paying off a loan+interest.
Mort means dead in french (mortgage)
i'm still renting cuz i got confirmation that my grandparents will give me their house cuz i'm the only grandchild but give a lot of possesions and shit inside to my parents, so it's a win win
but i don't want them to die yet, i can wait, but for now, i'll make sure to work hard and spend more time with them, cuz without their kindness and presence in my life i don't know where i would've ended up
i mean, sure i invest on memecoins like mumu and shitcoins BUT i only do it with money i can afford to lose AND have a nice job, i'm not a neet or a moron
Asset prices in general are going to continue going up reguardless of how the economy fairs due to the mega rich buying all the assets, the only way asset prices will crash is if there is a high taxation on the rich, which will not happen.