BRAG: Just got approved for a home mortgage

[GooseHinson]

Seems like "living somewhere" costs money, regardless of whether you're renting or buying. This can't be argued. However, that it "costs" less to buy then to rent can. Buying a house may mean you lose in terms of total assets, but it is still +EV, DUCY?

[Kevin Browne]

this thread makes me LOL...I just bought a 1 bedroom, 850 sq ft aprtment in new york (20 miles outside the city) for $333,000.........I probably should be living somewhere else

[RoundGuy]

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Please to explain how buying a home benefits you financially. All I can see is consistent loss of money.

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My friend, if you don't understand that increased equity, and increased market value are financially beneficial (in the long term), then I have neither the time, nor desire, to explain it to you. A basic accounting or finance class will give you all the information you need.


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The home is the asset, the mortgage is the liability.

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This is really all you had to say instead of "this is misleading...." You could have saved everybody a lot of time arguing.

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This is what I was hoping you would clarify, which you still have not done.

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Please tell me you're not trying to compare something with a guaranteed ROI to buying a home.

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Is there guaranteed ROI in the stock market, bond market, or mutual funds? Aren't these investments? Nothing is guaranteed (unless you're investing in CD's). Everything beneficial contains risk -- including buying a home.

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Any liability associated with owning a home or renting an apartment would be considered a cost of living expense.

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You obviously don't understand the difference between an expense and a liability. You think they are the same. They are not. Rent is an expense. Interest is an expense. A principal payment on a mortgage is an asset purchasing another asset. A mortgage is a liability. You own the home, the bank owns a security interest in the home (a mortgage).

These are basic concepts that you fail to grasp.

I'm done. Good luck in your warped financial world.

[RoundGuy]

Actually, I'm not done. You came into this thread purporting to be some kind of expert. It's important that anyone reading this thread realize that you're a financial idiot.

I trust, as you are obviously a real estate guru, that you know what a personal financial statement is, right?

Tell me, based on the OP's situation, how you would account for the following:

$175,000 home
$160,00 mortgage

What would you enter as an asset, liability and net worth?

Now, five years later:

$175,000 home
$140,000 mortgage

What would you enter as an asset, liability and net worth?

Do you see it yet? Do you see the financial benefit?

"Cost of living expenses" of renting or buying are mutually exclusive. They are the same, relatively speaking. Renting a home/apartment (rent payment, utilities, food), is the same as buying a home (mortgage payment, utilities, food).

The difference is that when you are renting, everything is an expense. When you are buying a home, part of your expenses are an investment (the principal portion of the mortgage payment). This investment (asset) increases with each and every month that you own the home.

Jeez.

[sethypooh21]

Grats OP, I close on my first place Aug 10ish. GG bankroll...

[AceLuby]

There's also the fact that due to my situation now (living in a 1 BR apt) and the fact that I have friends to split the housing bills, it will actually cost me less per month to buy vs renting. Plus at least some of that $$$ is going to be saved.

[hamsamich]

Gone...you should abandon ship here. Your biased view of OP's situation and home ownership in general has been well made. Some would agree, others not so much. The fact of the matter is that owning a home has been sold to the American masses as the ultimate goal for generations now and the fact that the system that governs that goal is far from perfect is common knowledge. I think I understand the point(s) you have been trying to make but there is some kind of strange conspiracy theory feel to the way you present it that waters down the message.

[hamsamich]

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this thread makes me LOL...I just bought a 1 bedroom, 850 sq ft aprtment in new york (20 miles outside the city) for $333,000.........I probably should be living somewhere else

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Kevin....Where do you park though???
From a story on Yahoo Finance today.....
Parking spaces in New York cost as much as $225,000 and could soon be going higher still, putting the cost for the prime spots above the price tag of the typical U.S. home price.

These folks in other parts of the Country just don't get it...lol

[AceLuby]

Update:

Just made an offer on a house: $165,000
House is near foreclosure and is taxed at $192,000
W/ roomates owning this house is going to be cheaper month to month than renting.
I'll find out next week about a counter offer (which will inevitably happen)