The most prestigious law school admissions discussion board in the world.
|
 |
 
|
Do people realize that when they get a mortgage they're paying 2x the price?
Poast new message in this thread
Date: May 11th, 2018 9:17 PM Author: clear glittery base For example, if you buy a $500k house and get a $400k mortgage, you'll end up paying something like $750k in principal and interest over 30 years.
Do people not realize this? |
Date: May 11th, 2018 9:25 PM Author: jet provocative wagecucks As opposed to paying even more in rent over 30 years....
You can always live in a shack in Montana Unabomber style. |
|
Date: May 11th, 2018 9:38 PM Author: unholy son of senegal candlestick maker Why don't people just live with their parents rent free until they can save up $500k cash? (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36033821) |
|
Date: May 11th, 2018 9:40 PM Author: Laughsome windowlicker Lol at this goy understanding of finance (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36033843) |
 |
Date: May 11th, 2018 10:03 PM Author: Ruby beady-eyed mood hospital (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36033953) |
|
Date: May 11th, 2018 10:45 PM Author: clear glittery base Bro, you think paying $750k in principal & interest + $225k in property taxes + $150k in overall maintenance over a 30 year period is good?
After 30 years, you'd basically have to sell that same home you bought for $500k for $1.125mm just to break even. |
|
Date: May 11th, 2018 11:00 PM Author: marvelous confused menage lol
(Dave Ramsey's retarded brother) |
|
Date: May 11th, 2018 11:01 PM Author: clear glittery base You probably won't even break even. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034315) |
|
Date: May 11th, 2018 11:01 PM Author: motley mahogany haunted graveyard generalized bond Or you could not buy the house and pay nothing, right? (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034316) |
|
Date: May 11th, 2018 11:04 PM Author: clear glittery base Buy one of those micro homes for $40k, all-cash, and call it a day. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034331) |
|
Date: May 11th, 2018 11:06 PM Author: motley mahogany haunted graveyard generalized bond So your solution to the expenses of buying a nice house is to buy a really shitty house? And this saves money? I'm shocked. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034335) |
|
Date: May 11th, 2018 11:09 PM Author: clear glittery base https://www.realtor.com/realestateandhomes-detail/5629-Idlewild-Rd-N_Charlotte_NC_28227_M62785-38977
That's all you need. You apes are paying out the ass on something that barely gets you a return after 30 yrs. |
|
Date: May 11th, 2018 11:11 PM Author: motley mahogany haunted graveyard generalized bond LMAO, I get to live in a nice house. You live in a shack in the middle of nowhere (I assume you don't work or something). (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034352) |
|
Date: May 11th, 2018 11:12 PM Author: clear glittery base I work alright. I see not point in putting money into a money pit called a house. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034357) |
|
Date: May 11th, 2018 11:13 PM Author: boyish nofapping karate theater stage you’ve picked a nonsensical way to make this nonsensical point. just stop. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034362) |
|
Date: May 11th, 2018 11:14 PM Author: motley mahogany haunted graveyard generalized bond (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034366) |
|
Date: May 12th, 2018 6:03 PM Author: spectacular chest-beating knife What the fuck Charlotte is that cheap?? I could buy that (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36038010) |
|
Date: May 11th, 2018 10:02 PM Author: vivacious infuriating laser beams feces suppose you had enough cash such that you could buy the house all-cash. interest rates are 4.5% right now. subtract inflation and it's around 2.2%. over the long term, the rate of return of that cash in the stock market is around 7%. so it makes sense to get a mortgage even if you have the cash. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36033949) |
|
Date: May 11th, 2018 10:48 PM Author: Dull house thats jew finance. lots of people buy all cash. are they stupid? no! they are rich as fuck and they just throw the money on the table and say give me the keys. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034229) |
|
Date: May 11th, 2018 10:57 PM Author: boyish nofapping karate theater stage you’re going to break op’s mind in half with this (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034291) |
|
Date: May 11th, 2018 11:01 PM Author: marvelous confused menage (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034311) |
|
Date: May 11th, 2018 11:01 PM Author: clear glittery base No, it makes sense to not even buy a $500k home in the first place. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034310) |
|
Date: May 11th, 2018 11:10 PM Author: motley mahogany haunted graveyard generalized bond $500k? You're not getting a nice house for that cheap in a major city or one of the nice suburbs around that city for that little. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034348) |
|
Date: May 11th, 2018 11:10 PM Author: clear glittery base Then MOVE. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034349) |
|
Date: May 11th, 2018 11:15 PM Author: motley mahogany haunted graveyard generalized bond Wife and I have two high paying jobs. We're not going anywhere. More financially advantageous to keep high paying jobs and pay for nice house. As an aside, we also get the benefit of living in a nice neighborhood and in a nice house. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034369) |
|
Date: May 11th, 2018 11:17 PM Author: clear glittery base I'd rather live in a $40k micro house and put all the cash into stocks. I'd come out FAR ahead. I do not care about dinner parties. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034380) |
|
Date: May 11th, 2018 11:18 PM Author: motley mahogany haunted graveyard generalized bond No one cares. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034382) |
|
Date: May 11th, 2018 11:19 PM Author: clear glittery base Just admit you're getting barebacked and creampied by the bank. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034387) |
|
Date: May 11th, 2018 11:21 PM Author: motley mahogany haunted graveyard generalized bond Not really. I'm looking at a 4.25% mortgage that is tax deductible. As another poster explained to you, even if I had the cash to buy my house cash, I wouldn't come out ahead. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034394) |
|
Date: May 11th, 2018 11:22 PM Author: clear glittery base LOL @ tax deductible. Hey question, give me $1k now and I'll give you back $300 at the end of the year...deal? (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034406) |
|
Date: May 11th, 2018 11:29 PM Author: motley mahogany haunted graveyard generalized bond You don't get that when comparing financing to cash you're also comparing the opportunity cost of that money, right? So you have two options:
Option 1: pay cash, have no money to invest
Option 2: finance at 4.25% (which is 30% less because tax benefit), invest and get 7-8% growth
Option 2 is better. |
|
Date: May 11th, 2018 11:32 PM Author: clear glittery base Option 3: Figure out a way to buy a home for $150k, pay cash, and don't even bother with this mortgage nonsense.
|
|
Date: May 11th, 2018 11:38 PM Author: motley mahogany haunted graveyard generalized bond Oh, not much to figure out.
1) Live in a shitty, undesirable place (for example, you can get a $150k house close to NYC in a place called Newark); and/or
2) Buy a house that no normal human would ever want to live in.
There's no mystery here. Enjoy! |
|
Date: May 11th, 2018 11:40 PM Author: clear glittery base https://www.realtor.com/realestateandhomes-detail/5629-Idlewild-Rd-N_Charlotte_NC_28227_M62785-38977#photo0
Bro, what more do you need? Copp Charlotte Biglaw and it's all yours. |
|
Date: May 11th, 2018 11:42 PM Author: motley mahogany haunted graveyard generalized bond 1) No interest in living in Charlotte
2) No interest in working biglaw anywhere
3) We would need 2 good jobs in our area of law in Charlotte, which wouldn't happen, certainly nowhere near the salaries we make now
4) Those houses are way shittier than the one we're buying |
|
Date: May 11th, 2018 11:46 PM Author: clear glittery base They may be shittier, but they won't make you a slave to your job for 30 years.
Also, we have totally different mindsets as youre going for status and comfort while I'm going for ROI. |
|
Date: May 11th, 2018 11:46 PM Author: motley mahogany haunted graveyard generalized bond Sure they will. Because they'll still have to live on something and the salaries are lower. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034556) |
|
Date: May 11th, 2018 11:48 PM Author: clear glittery base Charlotte biglaw pays $145-160k starting, bro. But you continue to slave away in NYC and overpay for everything. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034564) |
|
Date: May 11th, 2018 11:48 PM Author: motley mahogany haunted graveyard generalized bond Biglaw isn't a long-term anything unless you completely hate yourself. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034571) |
|
Date: May 11th, 2018 11:50 PM Author: clear glittery base Charlotte biglaw -----> Large bank in Charlotte.....and house paid off. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034581) |
|
Date: May 11th, 2018 11:51 PM Author: motley mahogany haunted graveyard generalized bond Bank in-house sucks too. This doesn't seem like a credited life at all. And you still live in a shitty house. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034587) |
|
Date: May 11th, 2018 11:57 PM Author: clear glittery base lol...youre all about status, even if it's a poor financial decision. It all makes sense now. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034629) |
|
Date: May 11th, 2018 11:59 PM Author: motley mahogany haunted graveyard generalized bond No, it is about living a decent life instead of penny-pinching and living in some shitty place just so you can accumulate shekels. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034634) |
|
Date: May 12th, 2018 8:54 PM Author: Ocher Frisky Gunner School Brother you’ve got it backwards; it’s not about shekels, it’s about freedom from financial concerns. Your “credited” life makes you a slave to baubles and status. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36038867) |
|
Date: May 12th, 2018 1:07 AM Author: boyish nofapping karate theater stage this was an especially stupid post in a thread riddled with stupid posts (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034904) |
|
Date: May 11th, 2018 10:47 PM Author: Dull house this is why banks rule the world. everyone is their bitch and takes it sitting down. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034226) |
|
Date: May 11th, 2018 10:48 PM Author: razzmatazz property toilet seat do u know wat inflation is (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034234) |
|
Date: May 11th, 2018 10:52 PM Author: clear glittery base Just do buy a $200-250k home in Charlotte/Nashville/Dallas/Phoenix/Boise/Tampa/Orlando all-cash and avoid mortgages. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034258) |
|
Date: May 11th, 2018 10:54 PM Author: razzmatazz property toilet seat i don't think you know what inflation is. i think you have a tiny nigger brain (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034267) |
|
Date: May 11th, 2018 10:57 PM Author: clear glittery base Not sure how that's relevant. At the end of 30 years, you still end up paying $1.125mm for a $500k house that may not even be worth $1mm. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034289) |
|
Date: May 11th, 2018 11:04 PM Author: Green keepsake machete because the dollars 30 years from now won't be worth the same as dollars today, they will be cheaper dollars.
Plus, even though you're only paying for a tiny portion of the house for the first few years, YOU GET TO LIVE IN THE WHOLE THING the entire time.
The house satisfies one of your three basic needs. The house is only collateral for the loan the bank extended to you.
|
|
Date: May 11th, 2018 11:05 PM Author: clear glittery base Bro, buy a micro home instead for $40k, all cash, and screw the $400k mortgages all together. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034334) |
|
Date: May 11th, 2018 11:07 PM Author: Cruel-hearted Lilac Rehab lol (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034339) |
|
Date: May 11th, 2018 11:10 PM Author: razzmatazz property toilet seat wow (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034350) |
|
Date: May 11th, 2018 11:13 PM Author: clear glittery base https://www.ebay.com/i/122815044929?chn=ps
ALL-CASH |
|
Date: May 11th, 2018 11:08 PM Author: boyish nofapping karate theater stage pls don’t tell me you’re black... (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034344) |
|
Date: May 11th, 2018 11:15 PM Author: clear glittery base Bro, get a micro home or move to a place with $700 a month rent. Heck, move overseas and pay $300 a month rent. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034368) |
|
Date: May 11th, 2018 11:16 PM Author: boyish nofapping karate theater stage fuck (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034373) |
|
Date: May 12th, 2018 2:42 PM Author: Sadistic odious alpha (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037214) |
|
Date: May 11th, 2018 10:56 PM Author: boyish nofapping karate theater stage lmao. you’re horrendous at this. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034283) |
|
Date: May 11th, 2018 11:02 PM Author: marvelous confused menage really abysmal math/finance/econ skills on display (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034317) |
|
Date: May 11th, 2018 11:03 PM Author: clear glittery base Not really...my point is to not even buy a $500k house in the first place. Total waste of cash....it is NOT a investment. You probably won't even break even. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034325) |
|
Date: May 12th, 2018 11:15 AM Author: marvelous confused menage The house you live in is not an investment. You still need a place to live. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36036053) |
|
Date: May 12th, 2018 2:38 PM Author: clear glittery base Then get a micro house or small house for like $150k. (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037199) |
|
Date: May 12th, 2018 4:12 PM Author: marvelous confused menage What does that have to do with your OP? (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037540) |
|
Date: May 12th, 2018 4:14 PM Author: boyish nofapping karate theater stage lmao why keep digging like you’ll find something sensical at the bottom of this hole? (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037550) |
|
Date: May 12th, 2018 4:20 PM Author: marvelous confused menage I really like it here? (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037589) |
|
Date: May 11th, 2018 11:01 PM Author: Green keepsake machete finance MASTER MEN itt (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034313) |
|
Date: May 11th, 2018 11:25 PM Author: Laughsome windowlicker (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034415) |
|
Date: May 12th, 2018 10:31 AM Author: Sick Associate Crackhouse (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36035834) |
|
Date: May 11th, 2018 11:01 PM Author: rebellious double fault halford who cares (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034314) |
|
Date: May 11th, 2018 11:07 PM Author: Cruel-hearted Lilac Rehab yes (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36034340) |
|
Date: May 12th, 2018 4:06 PM Author: useless cuck "But my money will work harder for me in the stock market!!", Lisped the debt-laden faggot, as he takes out a HELOC on his second mortgage (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037512) |
|
Date: May 12th, 2018 4:10 PM Author: boyish nofapping karate theater stage are you familiar with the idea that debt is cheaper than equity? what do you think this means? it’s not perfectly applicaple here but it’s helpful since people are fucking up elementary finance concepts itt (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037527) |
|
Date: May 12th, 2018 4:15 PM Author: boyish nofapping karate theater stage i used to think lawyers are smarter than bankers but watching people struggle with some elementary shit itt is making me reconsider. holy fucking shit (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037553) |
|
Date: May 12th, 2018 4:17 PM Author: Cruel-hearted Lilac Rehab yeah they know absolutely nothing about investopedia entries, chicken, or sneakers
what dolts |
|
Date: May 12th, 2018 4:20 PM Author: boyish nofapping karate theater stage very quickly how much do you make and what do you do for a living? (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037583) |
|
Date: May 12th, 2018 4:25 PM Author: Cruel-hearted Lilac Rehab soundcloud rapper/$48,000 (benefits) (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037609) |
|
Date: May 12th, 2018 4:17 PM Author: charismatic underhanded resort mental disorder People are willing to overpay that much? Seems like there is a market here. You should found a startup where they only have to pay half as much money over the course of the loan.
Then everyone will use your financing and you will be rich. Pretty clear you've identified some serious arbitrage here. Let me know if I can be on the startup board as an adviser (though I think you have all the advice you need!) |
|
Date: May 12th, 2018 4:21 PM Author: marvelous confused menage (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037592) |
|
Date: May 12th, 2018 4:22 PM Author: boyish nofapping karate theater stage (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037598) |
|
Date: May 15th, 2018 6:10 PM Author: motley mahogany haunted graveyard generalized bond (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36057410) |
|
Date: May 12th, 2018 4:28 PM Author: greedy duck-like queen of the night setting aside better uses of cash, why no comparison to rental costs - there is a large consumption element to home ownership, a big piece of which you have to pay for one way or the other, that is being completely ignored here (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36037616) |
|
Date: May 15th, 2018 8:09 PM Author: Soul-stirring Nursing Home To make it easier for you, let's say that you don't live in the house you bought and you rent it out at the same cost of market rent.
Cost to rent: $2,000 a month (Dallas) with 3% annual increase. Cost of house: $250,000 (Dallas) with 3% annual increase in value. You put $50k down or 20%.
Total cost over 30 years on $200k mortgage is $333k. Principal: $200,000.00 Interest: $133,443.23 Total: $333,443.23
You also pay property taxes and HOA, combined let's be aggressive and say it's 5% of your total house value a year, so you pay $12,500 a year.
Total cost of ownership over 30 years: $758,443 which includes the down payment, total mortgage costs, total property costs, and total HOA costs.
Your total rent received during these 30 years would be $1,141,810.
Oh don't forget that the value of your $250k house in 30 years would be worth $606,816, making the total value of your house + collected rent to be................
$1,748,626 vs, total costs of $758,443.
I used conservative numbers but you can play with the assumptions and see your break-even point which implies a very very low rent $ which means you should almost always buy.
|
|
Date: May 15th, 2018 8:13 PM Author: electric frum shrine What if you live in California and houses cost $1 million (http://www.autoadmit.com/thread.php?thread_id=3974807&forum_id=2#36058109) |
|
Date: May 15th, 2018 8:21 PM Author: Soul-stirring Nursing Home In Northern VA the average house is $1mm in a nice suburb and they rent out for about $6k a month.
However, property taxes and HOA are much lower in VA, they come in about 2-3% total of the house value.
Total cost of 30 year mortgage on $800,000 is $1,333,773. Combined with your down payment of $200k it's $1,533,773. Plus the HOA and property taxes for 30 years and you get $2,433,773 for total cost.
In return, rent at $6,000 * 3% annual increase gets you $3,425,430 over 30 years. Your house of $1mm will be worth $2,427,262 after 30 years.
Total Value: $5,852,692 Total Cost: $2,433,773
If you want to be draconian and assume only $4,000 a month rent, your total value drops to $4,710,882 which is still almost double your cost. |