What if you just don't buy a home? - aka. "Housing market is dogshit" general

[DamnWolves!]

I literally said add interest in the part of my post you didn't quote.

Yeah, well, the interest is like 40% of the cost of a mortgage, so your "quick and dirty calculations" are off by like 60% after adding everything else in.

Not really useful information at that point.

 

[Fanatical Pragmatist]

If you're gonna live in a trailer, it's better to buy the land outright and then plop a trailer on it until you can build an actual home, right?

Yeah that's why I meant.
I wasn't thinking of renting a trailer, I meant like rent an apartment OR live in a trailer on the property you are building the house on.

My point was to compare "renting forever" to "rent for 1-3 years or live in a trailer on the property 1 - 3 years while the house gets built"

 

[NoReturn]

Did you account for the capital gains of the owner v renter?
no

Teach me more.

 

[Freshly Baked Socks]

Teach me more.

I have a wonderful investment opportunity for you. Please, take a brochure and a seat - the seminar starts in an hour.

 

[NoReturn]

I have a wonderful investment opportunity for you. Please, take a brochure and a seat - the seminar starts in an hour.

Get out of here with that timeshare

 

[Save the Loli]

If you're gonna live in a trailer, it's better to buy the land outright and then plop a trailer on it until you can build an actual home, right?

No. A new single-wide will run you like 40-50K and they don't appreciate in value. Also, sometimes you'll have to sign a contract that bans you from putting up a mobile home, or occasionally anything smaller than a double-wide. This limits your options as to what you'll be able to do. These aren't nice suburbs or rural subdivisions either with rules like this, these are empty lots in the middle of nowhere like an hour from any decent-sized city. I wouldn't do it unless you have the money to spend and plan to repurpose the trailer for something when your actual house is built.

If you're okay with a trailer, the best option is buying someone else's, because if you check real estate listings sometimes they come with a good property. Then you can live in the trailer while they build your home.

 

[HOMO FOR LIFE]

Too many boomers don't want their children to inherent their houses. Too many. Their house is literally their retirement plan.

 

[Kosher Dill]

OR live in a trailer on the property you are building the house on.

Typically what you do is use the trailer as the nucleus of your house and build out from it until it reaches full size. The most traditional approach is for this process to ultimately result in the original trailer being completely demolished and replaced over time. But it's becoming more popular to give your decor a bit of a quirky personalized touch by leaving parts of the trailer nucleus in-place and incorporating it into your design. For example you could have the half-wall between your kitchen and dining room actually be the original outer wall of the trailer, cut down. Some people also like to do things like subtly marking out the original outline of the trailer by having the floor's parquet or tile slightly change orientation along a certain line.

 

[Vlinny-kun]

If you have so much as a half acre of land and a tent to your name, then you are still better off than someone who rents. That shit is yours for as long as you live. Meanwhile, the eternal wage slave's rent is always due and is always slowly going up, no matter their personal circumstance.

 

[Kermit Jizz]

Let's say I have $30k for a down payment. According to traditional home-buying-wisdom that means my home budget would be ~150,000.

I have to ask you guys with home buying experience, does this scale? Obviously if you have 30k for a down payment you have to be looking at houses upwards of 5x that investment because nothing cheaper exists. But let's say you had the 100k upfront, do you still shoot for a house 500k house or do you drop the 100k down payment on a cheaper house and pay off the difference quickly?

I've always found the scaling people do on their down payments to be pretty crazy. Is there any financial benefit or is it people just trying to get the absolute best house they can?

 

[Getwhatyou]

I have to ask you guys with home buying experience, does this scale? Obviously if you have 30k for a down payment you have to be looking at houses upwards of 5x that investment because nothing cheaper exists. But let's say you had the 100k upfront, do you still shoot for a house 500k house or do you drop the 100k down payment on a cheaper house and pay off the difference quickly?

I've always found the scaling people do on their down payments to be pretty crazy. Is there any financial benefit or is it people just trying to get the absolute best house they can?

Consider with capital gain the more the home is worth the more to take advantage of capital gains.

However buying the cheaper home gets paid off sooner and less interest. But one home won't make you rich.

Depends on your plans. To have a home forever and invest the rest in investment funds perhaps.

Or leverage and buy another. International interest rates are rising however putting pressure on home prices. But materials from overseas are limited thanks too covid so you can't build a home without materials pushing prices up.

That and they aren't making any more land

 

[NoReturn]

If you have so much as a half acre of land and a tent to your name, then you are still better off than someone who rents. That shit is yours for as long as you live. Meanwhile, the eternal wage slave's rent is always due and is always slowly going up, no matter their personal circumstance.

That and they aren't making any more land

Thoughts on buying land with thr intention to build and continuing to rent until you can afford to do so?

I have to ask you guys with home buying experience, does this scale? Obviously if you have 30k for a down payment you have to be looking at houses upwards of 5x that investment because nothing cheaper exists. But let's say you had the 100k upfront, do you still shoot for a house 500k house or do you drop the 100k down payment on a cheaper house and pay off the difference quickly?

I've always found the scaling people do on their down payments to be pretty crazy. Is there any financial benefit or is it people just trying to get the absolute best house they can?

It used to scale, but recently I've been seeing more mortgage companies that won't accept scaling the way they used to.
E.g. One person I spoke with had a lender state that they had a limit on how low they'd allow the mortgage payments to be, regardless of how much money you had. When they asked about why, the lender just said "If you have that money, just pay the mortgage faster."

 

[DDBCAE CBAADCBE]

Lol poor people problems.

 

[Kermit Jizz]

It used to scale, but recently I've been seeing more mortgage companies that won't accept scaling the way they used to.
E.g. One person I spoke with had a lender state that they had a limit on how low they'd allow the mortgage payments to be, regardless of how much money you had. When they asked about why, the lender just said "If you have that money, just pay the mortgage faster."

Interesting, but I'm more asking if the mortgage to down payment should scale on a practical level. Like if I had x dollars and was content with a 2x house, is there anyone reason for me to search for a 5x house? Alternatively, if you can afford x on a 2x house, is there any reason to only put down 2/5x and keep the rest as savings?

Seems like for a personal house you should just go with the 2x and put down as much as feasible upfront, but everyone seems to recommend to not do that.

 

[Fanatical Pragmatist]

If you have so much as a half acre of land and a tent to your name, then you are still better off than someone who rents. That shit is yours for as long as you live. Meanwhile, the eternal wage slave's rent is always due and is always slowly going up, no matter their personal circumstance.

Unfortunately we live in an unjust world where property tax is a thing that exists and nobody has been tarred & feathered for it...

 

[NoReturn]

Lol poor people problems.

Spoiler

Interesting, but I'm more asking if the mortgage to down payment should scale on a practical level. Like if I had x dollars and was content with a 2x house, is there anyone reason for me to search for a 5x house? Alternatively, if you can afford x on a 2x house, is there any reason to only put down 2/5x and keep the rest as savings?

The others can correct me, but I think you should be content with a 2x house so long as it's livable. There are a lot of places in the US right now where homes in certain ranges are mostly teardowns and or "sweat equity opportunities" so if it costs more to get a home that's livable that's probably the better route.

E.g.
Home #1 is $250,000 but needs septic installed.
Home #2 is $300,00 but can be used immediately.

You should probably get Home #2 because the mortgage company usually wont pay for things like septic installation, and you'd have to pay that out of pocket.

 

[Volvo240]

Spoiler: Responses to the above

Have you seen the price of huts recently?
View attachment 2879990


The majority of millennials are the children of boomers. For many of them there is no family home to inherit in the first place.


Stop hoarding all the houses!

If you pull up that "hut" listing it includes 50 acres of land so I'd say that's actually well worth it. Renting it out on Airbnb that would likely be 800-1000 a night .

 

[NoReturn]

If you pull up that "hut" listing it includes 50 acres of land so I'd say that's actually well worth it. Renting it out on Airbnb that would likely be 800-1000 a night .

Ok, fair point, that was a bad example. So, here's this instead:

This one has no land at all.

 

[Getwhatyou]

Land banking is a thing. What I'm seeing people do in my country is secure the land an live in a tiny home while saving for house over time.

You get a house and also the capital gains for owning land but I im not sure what your country is like for that sort of thing.

Secondly generally the cheaper land isn't around cities and you should expect long transit times to work

But its all for the greater good (your wallet)

Because a brand new home on land will always sell for more than you invested every single time.

Its a marathon home boy.

 

[NoReturn]

You get a house and also the capital gains for owning land but I im not sure what your country is like for that sort of thing.

Can anyone elaborate on this? I'm curious to learn more.

Secondly generally the cheaper land isn't around cities and you should expect long transit times to work

That's why I was wondering about "buy land in a rural area now, use later".

Because a brand new home on land will always sell for more than you invested every single time.

How much land? In suburbs and stuff I've always figured it's just middle-class people's version of a trailer park since you don't actually own the land, you just have a plot in a bigger subdivision.

home boy.

Eey