Oh indent know, home ownership has a lot of advantages over renting.

- my payment (P&I + taxes) is less than the rent on the crappy apartment I had.
- The payments are worth it for utility value alone.
- My home is an appreciating asset.
- I don't share walls + ceiling and floor with anyone.
- Should I ever find it necessary, I can borrow against the equity.
- I can do anything I like with the interior and exterior.

(December 6, 2016 at 11:14 am)mh.brewer Wrote:

(December 6, 2016 at 10:53 am)Shell B Wrote: That's just insane. You could pay out a ton and have nothing yet to show for it. It's like paying interest on money you haven't even received yet. Sure, you live in the house, but you're essentially only paying rent on it for however long that takes. Ugh. I'm really considering buying a cheap house and then saving all of our money for a few years until we can buy a better house.

The interest is a tax deduction. 

Not sure what it's like in the Boston area but here you can buy a house just as cheap as rent a house and build equity. 

Just look at the house payment like a credit card payment, you never pay the minimum. You pay extra each month and tell the bank (and you do have to tell the bank) that the extra goes to the principle. Try to make twice the monthly payment in principle payment each year.

Yeah, but a tax deduction isn't the same as not paying the interest. It's not going to balance out, so I would much rather just buy a cheap ass house and then save, never paying a dime in interest. Tibby doesn't want to do that. He likes big houses.

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(December 6, 2016 at 11:15 am)Cthulhu Dreaming Wrote: Oh indent know, home ownership has a lot of advantages over renting.

- my payment (P&I + taxes) is less than the rent on the crappy apartment I had.  
- The payments are worth it for utility value alone.
- My home is an appreciating asset.
- I don't share walls + ceiling and floor with anyone.
- Should I ever find it necessary, I can borrow against the equity.
- I can do anything I like with the interior and exterior.

Yeah, I think maybe I'm paranoid because I watched tons of people lose their houses not too long ago. Their houses were worth way less than they paid.

As it stands, we're waiting to see what happens to the housing market under Trump. It's not clear anything will happen, but I'm definitely not doing shit until I'm sure.

(December 6, 2016 at 11:31 am)Shell B Wrote:

(December 6, 2016 at 11:14 am)mh.brewer Wrote: The interest is a tax deduction. 

Not sure what it's like in the Boston area but here you can buy a house just as cheap as rent a house and build equity. 

Just look at the house payment like a credit card payment, you never pay the minimum. You pay extra each month and tell the bank (and you do have to tell the bank) that the extra goes to the principle. Try to make twice the monthly payment in principle payment each year.

Yeah, but a tax deduction isn't the same as not paying the interest. It's not going to balance out, so I would much rather just buy a cheap ass house and then save, never paying a dime in interest. Tibby doesn't want to do that. He likes big houses.

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(December 6, 2016 at 11:15 am)Cthulhu Dreaming Wrote: Oh indent know, home ownership has a lot of advantages over renting.

- my payment (P&I + taxes) is less than the rent on the crappy apartment I had.  
- The payments are worth it for utility value alone.
- My home is an appreciating asset.
- I don't share walls + ceiling and floor with anyone.
- Should I ever find it necessary, I can borrow against the equity.
- I can do anything I like with the interior and exterior.

Yeah, I think maybe I'm paranoid because I watched tons of people lose their houses not too long ago. Their houses were worth way less than they paid.

As it stands, we're waiting to see what happens to the housing market under Trump. It's not clear anything will happen, but I'm definitely not doing shit until I'm sure.

If you have the ability to pay cash, by all means, pay cash.

(December 6, 2016 at 11:15 am)Cthulhu Dreaming Wrote: - I don't share walls + ceiling and floor with anyone.

Having grown up mostly in either slums or housing projects, I can't stress enough how big this is. Oh, the stories I could tell.

The only downside is that every noise and smell isn't coming from the next-door neighbor so I have to run around and try to find the source. :p

(December 6, 2016 at 11:36 am)mh.brewer Wrote: If you have the ability to pay cash, by all means, pay cash.

Not really the ability. It would have to be a huge sacrifice.

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(December 6, 2016 at 11:43 am)Tonus Wrote:

(December 6, 2016 at 11:15 am)Cthulhu Dreaming Wrote: - I don't share walls + ceiling and floor with anyone.

Having grown up mostly in either slums or housing projects, I can't stress enough how big this is.  Oh, the stories I could tell.

The only downside is that every noise and smell isn't coming from the next-door neighbor so I have to run around and try to find the source. :p

I'm with you there. I grew up in the projects for the first part of my life. We moved into a huge old house that was on the brink of being condemned when I was about 10. It was a shit hole, but I loved it.

(December 6, 2016 at 11:54 am)Shell B Wrote:

(December 6, 2016 at 11:36 am)mh.brewer Wrote: If you have the ability to pay cash, by all means, pay cash.

Not really the ability. It would have to be a huge sacrifice.

Save up as much as you can for the down payment, you can borrow against 401K's if they allow, (you're paying yourself back on the interest), buy a starter house and sell/move every 5 to 10 years to a larger house. The equity from house one goes into the down for house two, the payments stay relatively the same.

(December 6, 2016 at 12:08 pm)mh.brewer Wrote: Save up as much as you can for the down payment, you can borrow against 401K's if they allow, (you're paying yourself back on the interest), buy a starter house and sell/move every 5 to 10 years to a larger house. The equity from house one goes into the down for house two, the payments stay relatively the same.

The problem with this is I'd rather find a house that I love and want to spend the rest of my life in. I don't really want to move every 5 to 10 years; that sounds awful.

Our current plan is to save for a couple of years to get a big downpayment.

(December 6, 2016 at 12:39 pm)Tiberius Wrote:

(December 6, 2016 at 12:08 pm)mh.brewer Wrote: Save up as much as you can for the down payment, you can borrow against 401K's if they allow, (you're paying yourself back on the interest), buy a starter house and sell/move every 5 to 10 years to a larger house. The equity from house one goes into the down for house two, the payments stay relatively the same.

The problem with this is I'd rather find a house that I love and want to spend the rest of my life in. I don't really want to move every 5 to 10 years; that sounds awful.

Our current plan is to save for a couple of years to get a big downpayment.

Yep, you're willing to take the plunge. I'll plunge with you and then teach you how to be broke as fuck if it all falls apart.

The question of whether you should pay cash (for those able to) or finance is a complex question that depends on the whole financial picture.

For my situation, rent vs own was a no-brainer, the tax advantages result in a situation where my housing costs are lower than any rental in the region - I could scarcely rent half an apartment for the same - and I have a highly leveraged investment in an are with strong real estate growth.

It's a huge enough decision that consulting a financial planner is advisable.

(December 6, 2016 at 1:22 pm)Cthulhu Dreaming Wrote: The question of whether you should pay cash (for those able to) or finance is a complex question that depends on the whole financial picture.

For my situation, rent vs own was a no-brainer, the tax advantages result in a situation where my housing costs are lower than any rental in the region - I could scarcely rent half an apartment for the same - and I have a highly leveraged investment in an are with strong real estate growth.

It's a huge enough decision that consulting a financial planner is advisable.

We intend to talk to a fiduciary about our retirement plan and buying a home.