Good point. I hate these rent or own conversations because they always end up in one of two places. The real answer for mofos that actually know how to read and manage money is,"it depends". It depends on your situation. Do you need to be very mobile? Interest rates? Taxes in your area? Are you single or do you have 5 kids? What's the average return on your portfolio? Do you have an investment portfolio? I mean all this shit matters big time. But folks catering to the masses like to give people microwave solutions that don't necessarily make sense for each individual.He owned a home when he was married with children 30 years ago. Shit is paid off now and his wife left him and his kids are grown. Any 60 year old single dude taking out a 30 year mortgage is a fool, but that same investment advice wouldn’t work for him 30 years ago.
So, what agenda rich people are pushing? Home ownership is wealth. Didn't Knowles say he owned property? This is a crazy backward world. If you pay cash and own the property then you are in good shape. Just pay taxes and insurance.
If you buy a house with cash, it does bring you wealth. The money you save on mortgage or rent has no comparison. Thing is. We are always pushed toward the mortgage route, but there are numerous ways to get a house that you don't have to pay a arm and a leg for. (i.e. get the cheap shit and live in it about five years and save your money like you are paying rent every month. Sell the cheap house which will be more than what you paid for it, and use the money you saved and the house sale money to buy an good house. Shit, build one from the ground up. You will come out better.)You buy enough of these properties, then you will get rich. You buy it the regular way, yeah, you will pay three times what the house is worth. Still, it you take certain routes. Pay a few payments a year extra a year toward the principle, then you will cut the loan people out of their money. You just got to know the game. Land, they can't make any of that. So, it will always be valuable and make you income. You just got to know how to do it.No wealth in home ownership, wealth is in buying property. The ROI on a house is small compared to the S&p 500. Rich people buy after making wealth and to move away from black people. A house purchased may fluctuate based on crime schools city growth. May buy a house for $200k and after taxes and interest you pay $480k in the end. A piece of property undeveloped has very few fees and well placed can grow 10 times the value in 10 years.
My example. Paid 225, 000 for a house in the Atlanta area that now appraises for 90,000. I can wait for another 5 to 10 years for the house to regain it's value, but my situation has changed, and I don't need a house anymore. Let's not even discuss all the maintenance expenses I have incurred. Could have been renting, writing that shit off thru my business and investing that bread in crypto, and would probably be up 500,000. That ownership shit can go either way especially if you are just buying a home and are not super educated. Never again. My plan is not to be in the US anyways.
No wealth in home ownership, wealth is in buying property. The ROI on a house is small compared to the S&p 500. Rich people buy after making wealth and to move away from black people. A house purchased may fluctuate based on crime schools city growth. May buy a house for $200k and after taxes and interest you pay $480k in the end. A piece of property undeveloped has very few fees and well placed can grow 10 times the value in 10 years.
How could you write off the renting expense of a house that you are living in? I would really like to know this.
If you are upside down, then you can just short sale the house and go rent a house somewhere else.
U coulds also invested in bitcoin at 18k and lost half ur moneyMy example. Paid 225, 000 for a house in the Atlanta area that now appraises for 90,000. I can wait for another 5 to 10 years for the house to regain it's value, but my situation has changed, and I don't need a house anymore. Let's not even discuss all the maintenance expenses I have incurred. Could have been renting, writing that shit off thru my business and investing that bread in crypto, and would probably be up 500,000. That ownership shit can go either way especially if you are just buying a home and are not super educated. Never again. My plan is not to be in the US anyways.
They eat into at least 10% of any income. If you have the time and contractors to do it, you might as well manage it yourself. Fuck that, I manage my commercial office building myself with Mexican contractors who are always on time and inexpensive.
Yes, you are correct. If you are a novice at it, you should get a property manager.but jagu, you're a lawyer tho...that help immensely i would think. like when you gotta write up leases for your tenants and stuff, protocol on how to evict bum tenants etc...i mean, if u take a layman like me who doesn't know much about real estate law, i mean i can only focus on the maintenance part...but the other legal stuff, it's just easier for me to hire a property manager, ya dig?
You no longer want to own your residence but you own rental properties? That’s weird as hell.
U coulds also invested in bitcoin at 18k and lost half ur money
Nobody with the means and sense to buy a multi unit rental property desires to live in them unless you are financially stressed. There is nothing fun about living in an apartment when you can buy a single family home. There is also no financial advantage to it since you're occupying a unit that could be generating income. I can understand if you have to do it , yes that's fine.No its not and I've read this before. You can live in a nice apartment and keep your name free to purchase rental properties. All the tax benefits, gaining equity, and also owning stuff. A lot of people do that. For what I could spent to buy me a nice house I can purchase 2 rental properties. The income would pay for my apartment where I live free while gaining equity etc.
He owned a home when he was married with children 30 years ago. Shit is paid off now and his wife left him and his kids are grown. Any 60 year old single dude taking out a 30 year mortgage is a fool, but that same investment advice wouldn’t work for him 30 years ago.
U coulds also invested in bitcoin at 18k and lost half ur money
How could you write off the renting expense of a house that you are living in? I would really like to know this.
If you are upside down, then you can just short sale the house and go rent a house somewhere else.
Nobody with the means and sense to buy a multi unit rental property desires to live in them unless you are financially stressed. There is nothing fun about living in an apartment when you can buy a single family home. There is also no financial advantage to it since you're occupying a unit that could be generating income. I can understand if you have to do it , yes that's fine.
Second, this is exactly what he said "I no longer wanted to live in a house that I owned. Especially with so many great apartments available".
I have real estate that allows me to take advantage of the tax breaks, but I don’t have to deal with maintenance or any of the stress of homeownership like leaky roof or plumbing.
This suggests that he does not want to live in a house with a deed in his name. He would rather go rent from somebody else but he would still own one rental property in his name.
He doesn't want to deal with his residence maintenance but he thinks rental maintenance is easier? LOL
Upgrade? Nah, more like a lateral move.
Upgrade? Nah, more like a lateral move.
Interest vs what the home is actually worth. For example if a home was purchased for $150,000 and had a 30 year note, by the time the last payment is mailed in the owner would have paid about $350,000 for that home.Why is that
Short selling goes on your credit and could possibly owe the deficiencies balance which could be well over $100,000. So that could be a gambleHow could you write off the renting expense of a house that you are living in? I would really like to know this.
If you are upside down, then you can just short sale the house and go rent a house somewhere else.
They put a lot of time and money into her.See your daughter has talents allow her to drop out of high school to pursue them and boom you made your first million
got itInterest vs what the home is actually worth. For example if a home was purchased for $150,000 and had a 30 year note, by the time the last payment is mailed in the owner would have paid about $350,000 for that home.
Now if the home increases is value from $150,000 to $300,000 the person would have still lost $50,000.
If you are passing on your wealth to each generation than it will definitely become very lucrative. Just not may be during your life time
So pretty much those who purchased a house just because they wanted one, to feel accomplished or sold the dream of generating wealth from it without understanding real estate and learning (studying) will most likely lose. Which is most people that buy a house. Raises my hand...because that was me.got it
like the video i posted basically if you want to make moeny you have to buy 2 or 3 houses and rent them out. live in 1So pretty much those who purchased a house just because they wanted one, to feel accomplished or sold the dream of generating wealth from it without understanding real estate and learning (studying) will most likely lose. Which is most people that buy a house. Raises my hand...because that was me.
People who study and learn the game will more than likely come out on top.
Usual BGOL basic thinking. So we are just going to ignore the fact that the home buyer got loads of tax and interest deductions, ignore the fact that he’s not paying rent to a landlord, ignore the fact that he can payoff the house at anytime unlike paying off a landlord , etc.So pretty much those who purchased a house just because they wanted one, to feel accomplished or sold the dream of generating wealth from it without understanding real estate and learning (studying) will most likely lose. Which is most people that buy a house. Raises my hand...because that was me.
People who study and learn the game will more than likely come out on top.
How is that a loss. You need somewhere to liveInterest vs what the home is actually worth. For example if a home was purchased for $150,000 and had a 30 year note, by the time the last payment is mailed in the owner would have paid about $350,000 for that home.
Now if the home increases is value from $150,000 to $300,000 the person would have still lost $50,000.
If you are passing on your wealth to each generation than it will definitely become very lucrative. Just not may be during your life time
If he’s upside down and doesn’t want it anymore, do you suggest that he just walks away?Short selling goes on your credit and could possibly owe the deficiencies balance which could be well over $100,000. So that could be a gamble
Again, for those who understand like yourself they will do fine in most cases.Usual BGOL basic thinking. So we are just going to ignore the fact that the home buyer got loads of tax and interest deductions, ignore the fact that he’s not paying rent to a landlord, ignore the fact that he can payoff the house at anytime unlike paying off a landlord , etc.