I am officially a home OWE-er

[jayceheathman]

Do you honestly believe what you're saying or are you argueing just to differ from generally accepted principles?

And considering the turn-over and net profits my company has and it's general stance on the buy v rent arguement i don't think i'll continue this arguement.

Oh and don't think this is just my opinion, i'm a 19 year old trainee that has only been doing this for 12 months, i'm not going to pretend i'm an expert. But what i have learnt is that in probably 80% of cases it's better to buy and if possible, (with a stable income and enough capital to set up a loan) buy a rental property to take advantage of these renters, sure it's more work but from a financial standpoint you're going to be much better off in the long run.

Sure this extra work isn't for everyone, especially not me, as evidenced by the fact i'm quitting in 2 months and travelling the world for a year. This means i'm going to be renting for a while yet, which i know is not the correct financial decision, but i value having fun over being rich at this stage in my life.

Sorry about saying you need to find a new job. I think differently than you on this topic but I took it too far.

[7-11]

Financially no one knows. I did an internship with Fidelity and everyone thinks the stock market will always go up 8%. It doesnt. Some times it goes up more and sometimes less. With the thought of a recession coming it will hurt the stock market and the housing market. Stock market and the housing market (buying a home) is basically the same thing. Try to buy low and sell high. I say if you want the house and will enjoy living in it for years to come then get it but dont do it just try to pull a quick profit.

Sorry about saying you need a new job. I just got into the moment I guess.

Hahaha, i do need a new job, i hate this, you were more correct than you knew.

And i'm not a millionaire cause i'm a 19 year old still attending university with a work production rate of 38%. In other words i have no motivation because i really don't enjoy my job in the slightest

Anyway bringing up ridiculously rare examples is not the way to win an arguement such as this. Of course there is going to be outliers in any study, but when you stand back and look at the property market in most locations around the world you will see a sharp increase in prices in the last 15 years or so (sorry if this isn't exact for the US, i'm kinda basing this off Australia because thats what i know most about). Combine this with the fact that property is argueably the safest investment option (other than maybe bluechip stocks) it really is a good idea to get into the property market as soon as you financially are able.

Anyway, i'm at work now and i really do need to do something so i think i'll stop for a while

[7-11]

And about the spelling; typical American ignorance, believe it or not not every country in the world spells the same as you. We spell mom, mum for example. Shocking i know...

[andyjo672]

Okay then. Can you site many examples of people making a big profit off of real estate this last year? Real Estate is at an all time low. It doesnt look to me like too many people are making a profit "chucko." Outside of the normal NYC whose real estate always goes up and Las Vegas there isnt a huge market right now.

Its not the most "surefire" way to build equity. The most surefire way to build equity is putting your money into a mutual fund. I am not saying you cant be successful at selling real estate but if you chose the wrong location you could have been forced to sell for a loss. If you picked Phoenix, Las Vegas, or Albuquerque then you would be banking probably.

About mutual funds, you're right, you're not going to lose money, but you wont get the level of returns as you do with real estate. And real estate markets run on cycles, generally 7 years or so, so yes, if you bought a house this year, its probably lost some value, but becaues you generally own homes for longer than a year, you'll be just fine in a few years. Oh, and by the way, my 401(k), based mostly on mutual funds, hasnt been positive this year. Leave this kinds of talks to the adults.

[7-11]

Okay then. Can you site many examples of people making a big profit off of real estate this last year? Real Estate is at an all time low. It doesnt look to me like too many people are making a profit "chucko." Outside of the normal NYC whose real estate always goes up and Las Vegas there isnt a huge market right now.

Its not the most "surefire" way to build equity. The most surefire way to build equity is putting your money into a mutual fund. I am not saying you cant be successful at selling real estate but if you chose the wrong location you could have been forced to sell for a loss. If you picked Phoenix, Las Vegas, or Albuquerque then you would be banking probably.

Dude property is a LONG term investment type of thing. Those people selling up this year are more than likely selling only because they are desperate for cashflow, that or they're mildly ********

[7-11]

Leave this kinds of talks to the adults.

I'm no adult, and i know nothing about the subject. But i still would like to talk about it

[jayceheathman]

Hahaha, i do need a new job, i hate this, you were more correct than you knew.

And i'm not a millionaire cause i'm a 19 year old still attending university with a work production rate of 38%. In other words i have no motivation because i really don't enjoy my job in the slightest

Anyway bringing up ridiculously rare examples is not the way to win an arguement such as this. Of course there is going to be outliers in any study, but when you stand back and look at the property market in most locations around the world you will see a sharp increase in prices in the last 15 years or so (sorry if this isn't exact for the US, i'm kinda basing this off Australia because thats what i know most about). Combine this with the fact that property is argueably the safest investment option (other than maybe bluechip stocks) it really is a good idea to get into the property market as soon as you financially are able.

Anyway, i'm at work now and i really do need to do something so i think i'll stop for a while

We were citing different examples. I know nothing about how homes have been selling in Australia. In the U.S at the moment its at an all time low. The dollar is down compared to everything, inflation has been rising, and home sales have lowered rediculously.

I'm not stating buying is bad but when you do its a risk just like buying in the stock market. Your not guaranteeing yourself a profit.

[andyjo672]

We were citing different examples. I know nothing about how homes have been selling in Australia. In the U.S at the moment its at an all time low. The dollar is down compared to everything, inflation has been rising, and home sales have lowered rediculously.

I'm not stating buying is bad but when you do its a risk just like buying in the stock market. Your not guaranteeing yourself a profit.

Actually, you are pretty much guaranteed a profit even in relation to inflation.

[7-11]

We were citing different examples. I know nothing about how homes have been selling in Australia. In the U.S at the moment its at an all time low. The dollar is down compared to everything, inflation has been rising, and home sales have lowered rediculously.

I'm not stating buying is bad but when you do its a risk just like buying in the stock market. Your not guaranteeing yourself a profit.

There isn't an investment in the world that is guaranteed. But there are some that are bloody close. And in the long term, an educated purchase in the property market happens to be one of them

The Australian economy is always generally going to follow trends seen in the American economy, but then again, i don't expect you to know that

[jayceheathman]

Dude property is a LONG term investment type of thing. Those people selling up this year are more than likely selling only because they are desperate for cashflow, that or they're mildly ********

Very true but a home is a lot more upkeep. I guess it depends if you are willing to spend a lot of time and money to keep it looking nice or if you would rather be doing something different with your time. I believe more of it is luck and buying into an area where people will want to buy in the future. If you keep your house in a nice and tidy condition then you could make a return off of it. Its tough in the U.S to find out if you would have made a lot of money because you can buy a lot less with your money right now than you could say 10 years ago.

[7-11]

Very true but a home is a lot more upkeep. I guess it depends if you are willing to spend a lot of time and money to keep it looking nice or if you would rather be doing something different with your time. I believe more of it is luck and buying into an area where people will want to buy in the future. If you keep your house in a nice and tidy condition then you could make a return off of it. Its tough in the U.S to find out if you would have made a lot of money because you can buy a lot less with your money right now than you could say 10 years ago.

Well i'm sorry but in my opinion, that arguement is just plain wrong. Upkeep of a house is not as important as you say it is. It's all location, and only location (unless you're buying and renting it out). And doesn't the bit about being able to buy less with your money right now than you could 10 years ago kind of destroy your own arguement?

[jayceheathman]

There isn't an investment in the world that is guaranteed. But there are some that are bloody close. And in the long term, an educated purchase in the property market happens to be one of them

The Australian economy is always generally going to follow trends seen in the American economy, but then again, i don't expect you to know that

You arent going to make a huge amount though unless you get lucky. The opportunity cost would be to put the money in a mutual fund or savings account. My savings account pays out 4.3% a year. If you would keep that house for 5 years then it better pay out 22% more than what you paid or it wouldnt have been worth it.

[jayceheathman]

Well i'm sorry but in my opinion, that arguement is just plain wrong. Upkeep of a house is not as important as you say it is. It's all location, and only location (unless you're buying and renting it out). And doesn't the bit about being able to buy less with your money right now than you could 10 years ago kind of destroy your own arguement?

Time is money my friend, time is money. Have your parents ever made you stay home on a weekend to wait for a repair guy to come? I know I have. They always schedule it to for like 8am and I would much rather be sleeping. I dont even own the house but I get stuck waiting around and the guys never come when they say they would.

[The Legend]

Congratulations and good luck with that...whens the first NFLDC house party? ;)

yeah ill bring the beer with my fake ID



congrads on the house also

[7-11]

You arent going to make a huge amount though unless you get lucky. The opportunity cost would be to put the money in a mutual fund or savings account. My savings account pays out 4.3% a year. If you would keep that house for 5 years then it better pay out 22% more than what you paid or it wouldnt have been worth it.

Yeah but even if you only get a 22% return on a house over 5 years (pretty unlikely really) it's next to gauranteed it's going to outstrip that return by a fair margin in future years.

And lets not even go into the inflationary issues associated with that 4.3% interest on your investment account.