58 KB JPGI have done the math, I’ve used every evaluation technique on the book…. I’ve run regressions, cash flow valuations, multiples analysis… all of it.Buying a house is a colossal waste of money, regardless of whether it’s cash or mortgage. With cash it’s definitely a waste. Why buy an asset yielding a before tax return of 3.9% when there’s very sturdy dividend stocks paying 5-6%???The argument from home buying fags is that you can use leverage… but even with leverage it’s still an inferior return to the market. I used the most cheap house I could find on the market relative to its going rent (based on similar duplexes in the same neighbourhood). It cost $350k and yielded a gross return of 6.8%. After deducting property tax, maintenance fee, and insurance, it yielded less than 4%. The lowest interest rate for a mortgage as it stands is a 4.5% fixed five year loan. Total payments come to 5.9% of the outstanding mortgage when you include compulsory principle repayments. Assuming 2.5% yearly increases in rental income and operating costs, you’re bleeding equity for the first 5 year until the rental income eclipses interest expense… then you’re cash flow negative for another 7 years. It’s 12 years before you’re seeing any money. By the time you’ve fully paid off the mortgage at the end of 30 years, your home value will pale in comparison to if you invested the down payment in an unlevered S&P500 fundAnd this is assuming nothing goes wrong, no vandalism, no floods, no squatters, no bullshit that could screw this up. If you are mad about not being able to buy a house, don’t be. They suck and they are a money pit for boomers
The canadian cuck spirit in you as warped your brain and convinced you the only reaosn to buy a house is for the money. Sometimes people just like the house and want to live in it, have you considered that?
>>59234297you're right.instead pay $2000/month for a return of...-100%
>>59234327Yes, sure, pay all your money to banks in interest for a return of -2000%
Why does your post start with 58 KB JPG, especially when the image you attached is 372 KB? You didn't find some retarded thread in the archive to copy/paste and then upload a different image, did you?
>>59234297Shalom
>>59234297Someone need to buy the houses in order to rent them for us, OP. Let them do it.
>>59234539If the bulk of your monthly payment is interest then maybe you should look at houses you can actually afford. You're mostly buying equity in an appreciating asset, as opposed to pissing your money away if you rent. There aren't any reasons to rent over buying a house. People rent because they can't buy a house, it's that simple.
>>59234297> you will own nothing
>>59234297>be me>Bought house in 2017>If i bought today i would have to pay more than double >I could sell now if i didnt want it and already be in massive profit if i wanted to (but i wont because i need someplace to live)Im really grateful I bought a house lol Had i been renting i would be absolutely raped and priced out of the market
>>59234789Anon, the cheapest house on the market will be more than 100% of your monthly income, even if you put a 50% down payment
>>59234901If you're some cuck living in a tech city dystopia then yes. I own my house outright, my mortgage payments were around £600 per month only (3 bedroom house) helped by low interest rates 2008-2022. Helping a friend buy a house right now, her payments are around £1100 per month on an income of 50k per yea (£42500 post tax) , mortgage worth £180k. It works out at around 30% of her monthly income post-tax, which is about the upper limit anyone should be paying. I don't know anyone spending literally 100% of the monthly income on a mortgage and if you are maybe you should move to somewhere less dystopian?
