Buy or Rent?

[G-man]

[G-man]

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[G-man]

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[DinRaat.]

Obviously IDumb has never used this before



WEAPON OF CHOICE FOR ALL SCIENTISTS AND ENGINEERS

[Jadukor]

Originally Posted by BengaliPagol
I'm speaking from the pov that a person doesn't have a house yet but is looking to either rent or buy one. People on this thread are talking from the perspective that buying is better cos at least you have an "asset".

But that is a wrong way to look at it because you are essentially living in the so called "asset" and people think "oh yeah If things go bad at least my house is an asset and I can sell and make money". And in also other circumstances when the price at which the person bought the house was low and they're living in the house and they know that the value of their house is now a lot, people also think "yeah imma make heaps of profit from selling my house", neglecting the fact that if they sell their house i.e. asset they wont have a place to live and they may think that "i can just buy another cheaper house" but then all the houses prices around their area would have also increased as well.

Therefore thinking a house as an "asset" which you live in, is not exactly the same as other types of assets such as shares where your day to day life and livelihood is not affected by you buying and selling shares.

Think of it this way, if you continue to rent till you retire and lets say you dont have sufficient pension then you will have to find that money to rent a place until you die which could be for another 20 years. For most people the safer alternative is to move into their own house or apartment so that after retirement all you need to worry about is your living expenses. Plus land prices will continue to appreciate while you work towards it so if you buy the house knowing where the next city center is going to be then you will be able to sell the place and happily move to a cheaper and quiet neighborhood. Now if you are really disciplined and forward thinking, you could srart saving now for retirement and actually have enough money to rent a house as well as cover your living expenses for 20 years post retirement, but most of us arent that good and tend to blow our excess income on useless things. So for those folks forcing yourself into a mortgage situation actually forces you to keep that money aside and turn it into an asset which might have otherwise gone into a holiday trip to NZ or gadgets or UHD tvs etc.

[BengaliPagol]

Originally Posted by G-man

hahaha you must be enjoying yourself at work

[BengaliPagol]

Originally Posted by Jadukor
Think of it this way, if you continue to rent till you retire and lets say you dont have sufficient pension then you will have to find that money to rent a place until you die which could be for another 20 years. For most people the safer alternative is to move into their own house or apartment so that after retirement all you need to worry about is your living expenses. Plus land prices will continue to appreciate while you work towards it so if you buy the house knowing where the next city center is going to be then you will be able to sell the place and happily move to a cheaper and quiet neighborhood. Now if you are really disciplined and forward thinking, you could srart saving now for retirement and actually have enough money to rent a house as well as cover your living expenses for 20 years post retirement, but most of us arent that good and tend to blow our excess income on useless things. So for those folks forcing yourself into a mortgage situation actually forces you to keep that money aside and turn it into an asset which might have otherwise gone into a holiday trip to NZ or gadgets or UHD tvs etc.

thinking this much for my future and retirement makes me super depressed.

[DinRaat.]

Originally Posted by BengaliPagol
thinking this much for my future and retirement makes me super depressed.

Ditto.

I don't want my youth to be spent on saving money in order to retire and buy a house. I want to avoid the midlife crisis like some BCites on here.

[adamnsu]

Some of you guys need to get a room...wether to buy or rent it is up to both the partners to decide 😁

[Jadukor]

For some of you guys it is definitrly not the time to think about these things. Just enjoy life.

[Yankees]

Originally Posted by DinRaat.
Ditto.

I don't want my youth to be spent on saving money in order to retire and buy a house. I want to avoid the midlife crisis like some BCites on here.

wait till you have the 1/4 life crisis. It will either make you double down on your dreams or make you question why you even bother getting up in the morning.

[iDumb]

Originally Posted by Jadukor
For some of you guys it is definitrly not the time to think about these things. Just enjoy life.

err no. members in this thread are not 5 they are well in their 20s and 30s.
There are 20 years old who are doing so much more. It's the wording of "retirment" that's sticks out and is wrong. Owing properties has nothing to do with retirement - more to do with wealth creation.

[iDumb]

Originally Posted by adamnsu
Some of you guys need to get a room...wether to buy or rent it is up to both the partners to decide 😁

Again NO NO NO. wrong thinking. If you own properties before you have a partner - your partner will look prettier and prettier with gain of each property.

[iDumb]

Originally Posted by BengaliPagol
you must be enjoying yourself at work

yeah carrying coffee for others does tend to get boring.

[mufi_02]

Originally Posted by Yankees
mortgage isn't the only cost. You have to consider property taxes, insurance, utilities, water, and the cost of upkeep, which as your house gets older could significantly cost you money and time.

By age 60, hopefully your kids are out the house, in which case I would rather downsize to a small apartment, pay rent, and enjoy what lttle time i have left on earth.

you will find it hard to move from your home and go to a small apt. for emotional reasons.

I am planning to kick them out once they reach 18. But they don't listen to me already so don't think how they will behave then. I will go back to BD and watch cricket all day. Kids are already spoiled and so I gave up on them.

[Yankees]

Originally Posted by mufi_02
you will find it hard to move from your home and go to a small apt. for emotional reasons.

I am planning to kick them out once they reach 18. But they don't listen to me already so don't think how they will behave then. I will go back to BD and watch cricket all day. Kids are already spoiled and so I gave up on them.

How old are your kids? I don't have any, nor do I want any atm. I will reevaluate in 5 years. But yea, Kick them out and treat them like adults. Coddled adults living on parents dime are the worst.

[DinRaat.]

Originally Posted by mufi_02
you will find it hard to move from your home and go to a small apt. for emotional reasons.

I am planning to kick them out once they reach 18. But they don't listen to me already so don't think how they will behave then. I will go back to BD and watch cricket all day. Kids are already spoiled and so I gave up on them.

Damn, I don't want this to happen to me.

[Jadukor]

Originally Posted by iDumb
err no. members in this thread are not 5 they are well in their 20s and 30s.
There are 20 years old who are doing so much more. It's the wording of "retirment" that's sticks out and is wrong. Owing properties has nothing to do with retirement - more to do with wealth creation.

I think the conversation is interesting when you draw from your own life experiences rather than point to other successful 20-year-olds, tech billionaires, and facebook interns. As I have said to you before tell me what you have done in your 20s and then we can have a genuine exchange until then just trust that other people can google the Amazon CEO or Mark Zuckerberg's life story too to know what is achievable.

Anyways my point was (again from my personal experience as I am older) if you are studying, living with your parents and single then save up and travel around, experience different cultures and food. The knowledge you gather will help you set your priorities perhaps which region in the world you want to work and settle in also. If you don't travel then you are a frog stuck in a well thinking that the dark confined space is the entire universe.

[zman]

Generally I stay away from these arguments; since folks decided to bring out the big guns to do this simple math, scientific calculators in this case , I had to point out the obvious

Originally Posted by iDumb
If you put in 100K downpayment for a let's say 800k house. The percentage appreciation of the house is on the 800K not your 100k giving you a significan't leverage.

if house prices goes up 3% in one year (which is historically the rate at which it apprecaites annually for some market ). that's 24K apprecaition. But if you invest outside you would need to have 24% appreciation else where to get to that 24K.

I don't see anything wrong in the above argument and I'm referring to this part of the claim alone. If house price goes up 3% why would it gain only on 700k and not 800k? The gain is 3k on the 100k down payment and 21k on 700k loan. The total gain is 3k+21k = 24k.

[adamnsu]

In UK before you buy a house and if you are in your 20s get life insurance policy. This helps with the mortgage application.

[iDumb]

Originally Posted by Jadukor
I think the conversation is interesting when you draw from your own life experiences rather than point to other successful 20-year-olds, tech billionaires, and facebook interns. As I have said to you before tell me what you have done in your 20s and then we can have a genuine exchange until then just trust that other people can google the Amazon CEO or Mark Zuckerberg's life story too to know what is achievable.

Anyways my point was (again from my personal experience as I am older) if you are studying, living with your parents and single then save up and travel around, experience different cultures and food. The knowledge you gather will help you set your priorities perhaps which region in the world you want to work and settle in also. If you don't travel then you are a frog stuck in a well thinking that the dark confined space is the entire universe.

You are going way off topic. Where did I bring amazon ceo or zuckerberg?? we are simply talking about purchasing properties. We are talking about financial education. 20 year old should be aware of it. yes experienceing world is all great but it doesn't take multiple years... you can take a year of break and be done with that check list... End of the day money is a one of the most important factor in how well you live your life. if you don't have enough money, it's not 20s, your whole life will be in a dark confined space.

I think i have been participating in this forum since early teen...and i gave away a lot of infos througout the years. I was ready to purchase 700K plus house in my 20s or atleast the bank thought I was capable. Don't assume too much. Why would I talk about zuckerberg or bezos in this context? and i regret not going through it beacause i played too safe (what if i lose my job i am brand new,, what if something breaks down, what if that happens)

my point was that when you tell a 20 something year old about retirement, they wont take you seriously because it's hard for them to grasp 40 years from now living... but if you talk to them about financial independence then they may give you ears.

There is a trend if you actually read my posts on finance... too many 20 or 30 year old pu$$$&.. ..ppl don't take enough risks... this age is not the time to play safe... it's time to take as much reasonalbe risks as possible....

you have ppl like G -man here advising on purchasing treasury bonds.. ridiculous.

[iDumb]

Originally Posted by zman
I don't see anything wrong in the above argument and I'm referring to this part of the claim alone. If house price goes up 3% why would it gain only on 700k and not 800k?

bhai, thank you for taking the effort to post this. LOL. I am always in troll mode but even I sometimes don't think some posts do not warrant a response because it's just so DUMB.

We are not really arguing with cream of the crop here.

[iDumb]

Originally Posted by Yankees
How old are your kids? I don't have any, nor do I want any atm. I will reevaluate in 5 years. But yea, Kick them out and treat them like adults. Coddled adults living on parents dime are the worst.

you don't have kids yet you are giving some guy online you have no clue whatsoever about advice on kids. Sounds about right.

[G-man]

Originally Posted by iDumb

you have ppl like G -man here advising on purchasing treasury bonds.. ridiculous.

I never said buy bonds. I'm short bonds.

Don't expect you to understand, not exactly the cream of the crop, just a liar

[bujhee kom]

helloo bahis, so what is the verdict?
Kinbo naa bechbo?

BTW what do you guys think of RAJUK onumodito ebong boraddokrito Plot?
Then getting the design plan passed by the State Dept. (of RajUK, not the U.S. State Dept.)
Then build a 7 stories commercial building on a 2 stories residential approved + zoning regulation area. And with a single story foundation.
Then sell it to 7 of you BC bhaiyas an apus for Saudi CASH!!

BTW guys, do anyone of you know anyone at RajUK State dept.?
Or at the Purto Montronaloy? That is the ministry of Public Works. Either RajUk or Works Ministry will do for me. If you can get me a legit, reliable, proven and No Friction Action connection, I will send you overnight commission, within 18 hours, in 100% untraceable CAsh, almost anywhere in the world.