Home Buying / Housing Market Griefing Thread - You're going to rent until you die.

[Muskie]

Another thing to keep in mind is owning a condo is the same as owning a home, you have a mortgage, so if you wanna move you need to be ready to deal with either selling it or renting it and everything that comes with that process.

What would that all entail? I've never been through this process before.

I'm aware that the HOA fees eat into equity but that would still be better than getting nothing from renting correct? Like I said unless the market or my own situation changes significantly (unlikely?) a small single family will still be out of my budget.

 

[ObeseScreamingBlackMan]

If you're at a condo complex - even a nice one - and you see Dodge Chargers/Challengers and those little Mercedes suvs in the parking area, just move on.

 

[Mister Fister]

You forgot the best cars ever, nissan Altimas. Deadass!

 

[ObeseScreamingBlackMan]

The Mercedes SUV drivers are Altima owners that moved on up (out of Section 8 and out of the Altima).

But they still dropped roaches and bedbugs all in the building.

 

[reptile baht spaniard rid]

Looking for some advice on buying a condo.

If you're single AND everything works, a condo might be ok.

But I would look long and hard and hard and long at it for a number of reasons.

1. They appreciate slower and drop faster than SFH in most areas.
2. You are subject to HOA rules in addition to the laws and regulations of the area.
3. HOA costs can be insane especially if they've been poochscrewing and hit you with a number of "special assessments" right after buying.
4. You're living right up someone's ass guaranteed. Condos can be all the downsides of renting with all the downsides of owning.
5. Even if everything above is good, it can all change 2-3 years in and you can get fucked.
6. I don't know if FHA and other advantaged loans are as easy to obtain.

If you're young, dumb, and full of cum, you may want to look at something like an FHA loan on a duplex crackshack (the deal is always to buy the worst property in a good location, not the best property in cracktown) and househack. FHA loan is assumable and can be like 5% down which can be baller if you can put any sweat equity into the place.

 

[Irregardless]

What would that all entail? I've never been through this process before.

I'm aware that the HOA fees eat into equity but that would still be better than getting nothing from renting correct? Like I said unless the market or my own situation changes significantly (unlikely?) a small single family will still be out of my budget.

I'll be honest, I'm not the best person to ask this since I've only ever bought homes, I haven't sold any yet.
The point I was trying to get across though is that while a condo might feel like an apartment, it is not, when you have a condo, you have a mortgage, and when you have a mortgage, you can't just move out like you can when you're renting.
Basically I'm saying be aware of the commitment you'd be getting in to.

On your second point, yes it's still probably better than renting, depending on how much the HOA fees cost.
The reason for this is because even if your HOA eats all the equity, when/if you sell, the profit - HOA fees could put you at a net $0 if not some profit made/lost. This isn't counting repairs though.
Compare that to renting where it is a net loss 100% of the time, you're losing $15k-$20k.
So as long as you don't lose $15k-$20k in the eventual sale you're better off owning, but a lot of that is on the backend of ownership.

IMO what matters most in this situation is what makes you happiest since this is gunna be where you're living and you don't wanna put yourself in a position of hating where you are for extended periods of time like that.

 

[reptile baht spaniard rid]

People overcomplicate this shit (for various reasons) but what it comes down to is renting is paying someone to use their thing, buying is obtaining the thing yourself. The thing that complicates the formula is that most people, when they buy, aren't actually buying - they're "renting the money and buying the house".

A quick look around will give you the local details (assuming you can find "what you want" both available for rent and purchase, roughly).

If rents are about the same as mortgage payments (estimate 20% down, etc, zillow is good) it's going to be close to a 50/50 (though remember that buying AND selling a house costs you 10%, so you kinda need to live in the same house for about 7 years to get above break even).

But lots of places in the US are absolutely fucked right now, where you can rent a house for $2k that would cost $4-6k a month to buy. In those cases, renting and "throwing away" your money starts looking real good (also look at the 30 year amortization schedule on a mortgage, you're "throwing away" most of your payments for years and years - what covers it is appreciation assuming it occurs.).

 

[Mister Fister]

People overcomplicate this shit (for various reasons) but what it comes down to is renting is paying someone to use their thing, buying is obtaining the thing yourself. The thing that complicates the formula is that most people, when they buy, aren't actually buying - they're "renting the money and buying the house".

A quick look around will give you the local details (assuming you can find "what you want" both available for rent and purchase, roughly).

If rents are about the same as mortgage payments (estimate 20% down, etc, zillow is good) it's going to be close to a 50/50 (though remember that buying AND selling a house costs you 10%, so you kinda need to live in the same house for about 7 years to get above break even).

But lots of places in the US are absolutely fucked right now, where you can rent a house for $2k that would cost $4-6k a month to buy. In those cases, renting and "throwing away" your money starts looking real good (also look at the 30 year amortization schedule on a mortgage, you're "throwing away" most of your payments for years and years - what covers it is appreciation assuming it occurs.).

1% of the house price per month is a good guideline for rental prices. We’re looking at some markets at a 0.5%.

 

[Audit]

But lots of places in the US are absolutely fucked right now, where you can rent a house for $2k that would cost $4-6k a month to buy. In those cases, renting and "throwing away" your money starts looking real good (also look at the 30 year amortization schedule on a mortgage, you're "throwing away" most of your payments for years and years - what covers it is appreciation assuming it occurs.).

Don't forget location. Renting means you can live in high density housing in a nice area close to work instead of owning a location far away from work with a long commute. If you're not married with kids, saving time on the commute means a lot more than how much acreage you can acquire for the kids to play on or how good the local school district is. You probably can't afford a single family home in a desirable area near your workplace if you live in a major city but you can afford a nice apartment rental far away from diversity.

 

[reptile baht spaniard rid]

Renting has other valuable advantages - quick to move (yearly leases or shorter are common); "not your problem" if shit goes south you can bail; you can more easily take advantage of job offers/moves, etc.

The biggest downside is it can turn you into a stateless bugman jew with no connection to anything.

And, yes, you can rent a whole house most anywhere, but then you hit the problem where you WANT to remain (usually for stability for the kids) and either get jacked on rent increases or forced out by owners moving back in.

As with anything financial it's a variety of tradeoffs and you have to take it all into account. Anyone who says "always rent" or 'never rent' is going to be wrong; they've not thought about it much, or only base it on their situation.

 

[Fascist Kirk]

if you been stocking up Liquidity you day is coming, You can just look at Lennar 1 month stock https://finance.yahoo.com/quote/LEN/ I saw the Kite in the air bullshit market since 2022. it takes time to correct, with out Fed intervention and a bail out Tarp Quantative easing programs prices will continue to go down, its a good time to get your duckzs in order head on a swivle if you are in the market to get a house with a morguage

 

[Stella d'Oro]

An oft-overlooked option for those trying to get into the market is a small multiplex, and most lenders will give you a conventional mortgage as long as you're living in one of the units. My first property was a stacked triplex, I lived in one unit and rented the other two. Yes, it meant that even though I was a homeowner I was still living the apartment life but it got me on the property ladder. And no, I wasn't living for free, I still paid "rent" to myself but at least I was building equity.

Unfortunately in a lot of cities you can't build new buildings like that thanks to NIMBYs influencing local zoning laws.

 

[FallOfGrumps]

Wait until the housing market crashes and houses go for cheap, its coming.

It's finally happening after 4 years of waiting, guys. I swear.

 

[Audit]

It's finally happening after 4 years of waiting, guys. I swear.

What are you going on about? Housing prices did crash. S&P is hitting all new highs and housing prices are stagnant. For those with money, housing is a bad investment and it's time to sell asap. For those without money, I'm not sure what you want. Do you want a hug? I'm pretty sure there are some furries a few forums over that'll be happy to oblige.

 

[Naproxen Sodium]

Owned a house and it is overrated. Endless reno and repairs, stress, I felt like my whole paycheck was going to Home Depot. Property taxes and insurance always on the rise regardless. Rent now and it is so much less fucking stress and the money is worth it.

Buying a house is a lifestyle choice, rarely a good financial one when you add it all up in the end.

 

[NoReturn]

Owned a house and it is overrated. Endless reno and repairs, stress, I felt like my whole paycheck was going to Home Depot. Property taxes and insurance always on the rise regardless. Rent now and it is so much less fucking stress and the money is worth it.

Buying a house is a lifestyle choice, rarely a good financial one when you add it all up in the end.

Aren't renovations optional?

 

[guidmaker]

I'd only buy a condo in a low-rise building with concrete between the floors, which is very rare sadly. The location also needs to be excellent in terms of walk score, otherwise what's the point.

Being a low-rise, your HOAs will be much less than a high rise and you have a lot more control/flexibility of your things such as your HVAC and you aren't dependent on elevators to come and go. So if they break you can just use the stairs or just when you feel like it or when your face is all fucked up or something and want to avoid neighbors seeing you.

The concrete isolates you from your neighbors in both sounds and smells. It also makes the building feel much more solid, not shake and creak when you walk like wood framed walkups. Fuck that.

 

[Flatline]

Owned a house and it is overrated. Endless reno and repairs, stress, I felt like my whole paycheck was going to Home Depot. Property taxes and insurance always on the rise regardless. Rent now and it is so much less fucking stress and the money is worth it.

Buying a house is a lifestyle choice, rarely a good financial one when you add it all up in the end.

But you did make money from the sale, right?

 

[TheTitKoker]

I'd only buy a condo in a low-rise building with concrete between the floors, which is very rare sadly. The location also needs to be excellent in terms of walk score, otherwise what's the point.

Sandly every condo is typically hit with building maintenance fees and those add up to helluva more than property taxes on a house. Houses are also much easier to sublet to help cut costs, especially if there are 2 entrances so no one has to step over each other each time they go in or out.

 

[The Hardest R]

Owned a house and it is overrated. Endless reno and repairs, stress, I felt like my whole paycheck was going to Home Depot. Property taxes and insurance always on the rise regardless. Rent now and it is so much less fucking stress and the money is worth it.

Buying a house is a lifestyle choice, rarely a good financial one when you add it all up in the end.

Yeah the whole “just throwing money away” by renting is a stale 2000s-era meme. There’s what you pay in a mortgage and there’s the true total cost of owning a house. Very rarely will you get honest answers on the latter because yeah a few hundred dollars and an entire weekend spent at Home Depot and those costs never get talked about. Also the older you get, the more that time is an opportunity cost. Or people just put off repairs because they can’t afford it now and we all know how problems just fix themselves over time.