People Can't Pay Rent, Debt Is Insane, and the Economy Is Somehow 'Great'

[TBoneTX 45,273]

2 hours ago, yuna628 said:

a home that was about $100,000 vs a home two blocks up that was $219,000. Both a similar size and age, but vastly different neighborhood.

Whether it's motel/hotel rooms, apartments, or whatever, "your rent buys your neighbors."

[The Nature Boy 7,659]

Just now, TBoneTX said:

Whether it's motel/hotel rooms, apartments, or whatever, "your rent buys your neighbors."

I have a garage apt that pays about 75% of my total Mortgage including insurance and taxes. Works out great for me 

[yuna628 9,676]

6 minutes ago, Nature Boy Flair said:

I have a garage apt that pays about 75% of my total Mortgage including insurance and taxes. Works out great for me 

If someone did that around here, likely the renter is very shady or the renter and the rentee is very shady. You'd be taking a risk to life.

 

Glad it works for you though, and back in the day my sister would be a tenant in several garage/basement apartments to the elderly (it worked but there were issues). Nowadays though, it's not worth the risk.

 

Rent costs about $1200-2000 in these parts if you want a decent place at a complex that isn't rat/bug infested. Just not worth it compared to owning a home.

Edited August 30, 2018 by yuna628

[AshMarty 360]

30 minutes ago, Nature Boy Flair said:

I have a garage apt that pays about 75% of my total Mortgage including insurance and taxes. Works out great for me 

I used to rent out my spare guest bedroom/bathroom to students (veterinary ( my dog loved the veterinary students haha) or physical therapist students) doing clinician rotations in the area for about 60% of my mortgage. This would pay for my visits to Australia to see my now husband. It is something I had to do as a student during rotations. They come for about 2 to 3 months at a time  and you can decide when you want one to come in or not. 

Edited August 30, 2018 by AshMarty

[Voice of Reason 10,298]

18 minutes ago, yuna628 said:

If someone did that around here, likely the renter is very shady or the renter and the rentee is very shady. You'd be taking a risk to life.

 

Glad it works for you though, and back in the day my sister would be a tenant in several garage/basement apartments to the elderly (it worked but there were issues). Nowadays though, it's not worth the risk.

 

Rent costs about $1200-2000 in these parts if you want a decent place at a complex that isn't rat/bug infested. Just not worth it compared to owning a home.

$850 a month buys you a house in 30 years.  Total cost would be $306,000 (estimating escrow here). 

 

$1500 a month rent in 30 years gets you nothing, but your landlord took $540,000 of your hard earned money.

 

The difference is staggering ($234,000 in your pocket plus no more payments for life) and exactly why people should FIGHT to own a home if at all possible.

[The Nature Boy 7,659]

23 minutes ago, yuna628 said:

If someone did that around here, likely the renter is very shady or the renter and the rentee is very shady. You'd be taking a risk to life.

 

Glad it works for you though, and back in the day my sister would be a tenant in several garage/basement apartments to the elderly (it worked but there were issues). Nowadays though, it's not worth the risk.

 

Rent costs about $1200-2000 in these parts if you want a decent place at a complex that isn't rat/bug infested. Just not worth it compared to owning a home.

Its a totally separate  building from my house. we share a driveway. Tennant has been with me about 3.5 years. Quite traveling sales guy, who is not usually there .

[The Nature Boy 7,659]

2 minutes ago, Satisfied said:

$850 a month buys you a house in 30 years.  Total cost would be $306,000 (estimating escrow here). 

 

$1500 a month rent in 30 years gets you nothing, but your landlord took $540,000 of your hard earned money.

 

The difference is staggering ($234,000 in your pocket plus no more payments for life) and exactly why people should FIGHT to own a home if at all possible.

I have so hard tried to  explain that to a young  coworker that just bought this instead of moving out of his apartment

 

 

[Voice of Reason 10,298]

Just now, Nature Boy Flair said:

I have so hard tried to  explain that to a young  coworker that just bought this instead of moving out of his apartment

 

 

Sad, indeed.  I just saved a coworker from buying a brand new car.   Told him to double his current car payments, pay it off in a few months, then put ALL that extra money into a downpayment account for a house in a year or two.  28 years old.  Thankfully, he listened.

[The Nature Boy 7,659]

Just now, Satisfied said:

Sad, indeed.  I just saved a coworker from buying a brand new car.   Told him to double his current car payments, pay it off in a few months, then put ALL that extra money into a downpayment account for a house in a year or two.  28 years old.  Thankfully, he listened.

 

1 minute ago, Satisfied said:

Sad, indeed.  I just saved a coworker from buying a brand new car.   Told him to double his current car payments, pay it off in a few months, then put ALL that extra money into a downpayment account for a house in a year or two.  28 years old.  Thankfully, he listened.

that abut a 160K car

[AshMarty 360]

11 minutes ago, Satisfied said:

$850 a month buys you a house in 30 years.  Total cost would be $306,000 (estimating escrow here). 

 

$1500 a month rent in 30 years gets you nothing, but your landlord took $540,000 of your hard earned money.

 

The difference is staggering ($234,000 in your pocket plus no more payments for life) and exactly why people should FIGHT to own a home if at all possible.

Of course there are a lot of decisions and research that goes into buying a house but I bought a house 5  years ago and if I were to sell it today I would get 40,000 - 50,000 because of market growth and grant money from the city for the down payment.

 

My husband has also purchased a house in Australia and has been renting it for 10 years while he has been living back and forth in the states.

 

It is def nice to know we have made these investments. We were in our mid-late 20s at the time but I am thankful that it was the way I went because we talk a lot about how we want to retire. (I was working crazy hours when I first purchased the house to make it work, especially that  first year). 

Edited August 30, 2018 by AshMarty

[The Nature Boy 7,659]

55 minutes ago, AshMarty said:

Of course there are a lot of decisions and research that goes into buying a house but I bought a house 5  years ago and if I were to sell it today I would get 40,000 - 50,000 because of market growth and grant money from the city for the down payment.

 

My husband has also purchased a house in Australia and has been renting it for 10 years while he has been living back and forth in the states.

 

It is def nice to know we have made these investments. We were in our mid-late 20s at the time but I am thankful that it was the way I went because we talk a lot about how we want to retire. (I was working crazy hours when I first purchased the house to make it work, especially that  first year). 

grant money for down payment from the city >What the heck ?

[AshMarty 360]

16 minutes ago, Nature Boy Flair said:

grant money for down payment from the city >What the heck ?

Baltimore City. They want tax payers to stay in the city. Haha. I live in a nice neighborhood and love my neighbors. 

 

Haha. I actually got the perfect storm of grants. Even my realtor was impressed when I came to closing, she had never seen anything like it. 

 

I got live near my work - a program with some companies/hospitals in Baltimore City to live in the city: $3, 000

 

Vacant to Values: My house was vacant for a year while it was being renovated (it was actually condemned before reno though) - if a house is not lived in for a year the city will give you $10,000 dollars as a down payment.  The deal is I have to live in the house for 5 years (which I have already done). I had to inform that city my house qualified for this grant, and file appropriate paperwork. Since then it has become harder to obtain this grant, it has to be qualified before renovations start.

 

The city was giving a $5,000 grant the month I bought my house to first time home owners that went through an 8 hour course and did a one on one counselling session. 

 

I also got a CHAP tax in the city: Meaning my taxes are essentially capped for 10 years because when the house was renovated, it was renovated back to its historical look. My CHAP assessment was actually delayed so it will be capped for closer to 13 years because of the city assessment timelines. 

 

I wanted to buy a house so I did some research and made it work. Haha. 

 

Edited August 30, 2018 by AshMarty

[Voice of Reason 10,298]

1 hour ago, Nature Boy Flair said:

grant money for down payment from the city >What the heck ?

Detroit offered something similar a couple of years back.

[Randyandyuni 2,682]

Savannah Ga did it in the 70's it's fairly common, 1st time homebuyer programs are in many areas

[yuna628 9,676]

1 hour ago, Nature Boy Flair said:

grant money for down payment from the city >What the heck ?

It's B'more man. They are desperate to get people to stay. And the thing is there are so many beautiful houses in the city, it's just... everything else that comes with it.