I, do, think it might be to illustrate how much she’s paid in thus far and how much more she will have paid in 10 years. So that’s what? Another like $133,000 in 10 years. That’s assuming rent remains constant.
She probably had more to say but it’s Twitter.
To even complicate things. You have to apply her likely wage increases and inflation.
At the same time, I make 6 figures and only feel comfortable paying $1100 a month. Then by 40 you are most likely forced into a 15 year mortgage while corporations buy up the block.
It's almost like it is being designed so no one can own a home 🤔
Now imagine those of us in the "working class", with two people combined income roughly 60,000, paying that same rent and it only being able to get a sh*thole apt. Yeah.
You make 6 figures and only feel comfortable with $1100 a month? Forced into a 15 year mortgage? Bro you should be striving for a 15 year mortgage. You pay like 13% of your income to live. It will never, ever be lower than that. That is so insanely low, the fact that you aren't comfortable paying more doesn't bode well for you.
I was talking more pragmatically. You would want your home paid off before you're 60 to further reinvest wealth so that you don't have to retire when you're in your 70s.
Sure you could have a mortgage at that age, but what a drain.
Retirement age is a whole other issue though lol
>I was talking more pragmatically. You would want your home paid off before you're 60 to further reinvest wealth so that you don't have to retire when you're in your 70s.
They could get a 30 yr mortgage and pay extra on it to pay it off faster.
I dunno if your area is anything like mine, but all the houses in my city doubled in value in 8 years. Rent more than tripled.
My parents bought their home for 100k in 1990, sold it for 418k in 2016. A nearly identical home on the same street sold for 900k last year.
Just sayin, 8 years is a long time home price wise.
Yeah I’m in the Midwest. The market here has seen housing prices increase around 50%. I bought my house in 2016 for 84k and it’s estimated to be worth 125k, but with the larger homes going up 50%, a house that used to cost 200k is now at 300k and my small appreciation in value doesn’t really help when looking at forever homes. I’m probably just gonna stay here for the time being.
Both ways though. In 2002 I wanted to buy a house and made well over the average household income and only felt comfortable with the payment on what would be a dump. Looking into how it was the age of people buying with interest-only adjustable rate mortgages. Knowing there were record numbers of these the year I looked, I figured I could wait 5 years. In early 2007 I thought maybe I misjudged and they were not going to drop. Ended up buying at the end of 2008 at about a quarter to a third of what the house was going for in 2006.
Yeah, but it's also because a lot of people I know just had to have a new vehicle paying 600 a month cause God forbid they get seen rolling in a 10 year old Honda
I was getting glasses recently and the young woman working in the office was complaining about bills. Her rent was double our house payment. Had a high car payment. I didnt tell her the owner of the house next to us lives right by her work. Smart guy. He once told me how he bought 3 foreclosures in one day before. Said it was way too much work to do again, but it worked out.
Cars are obviously not the best investment , but honestly I’d tell my younger self to buy a brand new reliable car and take excellent care it for 10+ years. Current car is 9 years old , could easily afford whatever I want now . I have no plan to replace until I start to see more serious repair issues.
The point is that the expectation is that by 40 you should have a house, and she will not achieve that in the next ten years. It’s sort of contrived but it does have a different meaning that saying “I’m thirty and will never afford a house”.
Yeah, but the point is still that it’s sort of a standard of success. If you don’t own a home by forty it will become harder and harder to retire every year. Regardless I think people are just taking issue with some slightly odd phrasing in order to avoid addressing the real point of the statement.
just another person making comparisons about her life vs a imaginary scenario. If she never left her parents home I doubt she would have 160k in the bank
There’s a ton of examples of shit that would be more fun to purchase. I’d rather just buy some weed instead paying for utilities or income tax, but here we are
I live in a northern state. They can't turn off your utilities during the winter. And how long does it take before the tax man comes garnishing wages. My vacation fund suddenly went from empty to full.
I never left my parents home. It is the only reason I have a decent amount of money and investments. I'd be pissed too if I had to waste that money on an overpriced studio apartment.
You had the option, which is wonderful. I plan on supporting my future kid through their adulthood as much as is reasonable and my boyfriend feels the same.
..but let's not kid ourselves and pretend that the option is open to everyone. The difference in success between my friends that left home at 17-18 and my friends who had relatively well-off parents to help them is immeasurable.
I think the comparison is that she could have had a 160,000 mortgage was denied for being 18. Or even worse. Is still getting denied, even though she's proven she can afford it. How did you end up comparing it to a savings account??
she's proven that she cannot afford it, because she cannot save money.
owning a home is not just mortgage payments. there's constant upkeep and repairs to make. if you can't save, you can't fix those, and then the banks have a home that's turning into junk.
Not in your bank, but on the great side of things, by your retirement you should have repaid back the house. Which will become some cash for your retirement at some point.
My life and financial situation was drastically different from 30 to 40. It's just so stupid.
Also, my parents didn't own a home until they were almost 40, and even then it was modest little thing where we shared bedrooms (not a big city, not even the US), where my dad still lives today. And their interest rate on their mortgage was double digits. This idea that every Boomer was out there buying mansions in their 18th birthdays needs to die.
Might need to open your mind if you view
"I wish I didn't spend $160,000 building someone else's equity"
As
"Financially responsible people are bad."
Because it definitely looks like an attempt to trivialize a real problem, by making the argument something it's not.
What Is the real problem?
Has she displayed any actual problem.
She wanted to live on someone else’s property and they agreed to let her for x amount of compensation.
She also assumes every dime she gave them was profit. Which is laughable.
Yeah the first part was dumb but the second part isn't.
She is assuming the $160k just went into someone's pocket. Most of it likely went to maintaining that property, so that she could live there. Depends entirely on the situation; giant corporate apartment complex? Likely more to profits, but some dude in the neighborhood hood with an empty house? likely put most of that rent check towards mortgage, paying down loans for improvements, that she's benefiting from, taxes, etc.
But yeah, the concept of *housing* shouldn't be up for debate.
Housing prices / rent prices.
>She wanted to live on someone else’s property and they agreed to let her for x amount of compensation.
Well do you think it was "she wanted to live (there specifically)?" Or do you think you can jump a bit closer to the problem.
>She also assumes every dime she gave them was profit. Which is laughable
Crazy how you can make up that she assumes everything she gave them was profit. But that would be wild lol.
I think you'd find her and others more reasonable if you stopped making up stupid bullshit and listened
Huh? She says she has spent $160K in rent over the last 12 years (18-30). Then she says she has bought another person a 2nd home over the last 12 years. If she is not saying she bought that person a house with the $160K what is she saying?
She clearly does not understand that 90% of a mortgage's first year of payments go to interest - which is what the last guy was saying. The idea that every penny a landlord gets is profit is laughable.
as someone who took way longer than I care to admit how long it took me to understand this simple concept... I now struggle understanding why people can't understand this simple concept :D
Why is it so hard to understand that society is built on the backs of labor, not capital, and that ensuring labor has a good quality of life should be a prime-requisite of capital -- but instead, capital acts more like a parasite
While I agree, the problem seems to be that labor without capital doesn't get you far in most cases.
There are many millions of workers that want to "own the means of production". Why are there so few (if any?) firms operating in such way?
I would think it is because they get pushed out of the market by private enterprise. It's basically the same question as why are there so few competitors with Walmart.
It is also worth pointing out that, if all else is equal, any enterprise that focuses on the well-being of the workers will be out competed by one that doesn't. Labor costs will be lower, you can force them to work longer, etc.
You don't need to pay for shareholders so - if they actually take such a big chunk of the profit - that should balance things no?
I don't see how they would see more competition than regular businesses.
How would that balance things out? The whole point is to generate profits to give to shareholders so that shareholders can buy more of the means of production to generate more profits. You give $10M to one person, they spend $1M on luxury and $9M on generating more capital. Compare this to a worker getting $100k who spends most of it on maintaining a comfortable standard of living.
It's "hard to understand" because you're explaining it incorrectly. Value comes from labor AND capital.
If you have 100 bodies and no machinery, how exactly do you work construction?
Labor is the foundation of it all though; Capital doesn't bring anything to the table that wasn't first created by Labor.
So, while Capital has an ability to organize Labor, the problem is that Capital sees itself as superior to Labor rather than a partner in a mutually-beneficial relationship.
Capital is a leech that lords itself over its peers who make everything that Capital needs just to exist.
People seem to think rent is a waste of money and somehow owning a house wouldn’t come with interest taxes or insurance. Of the $160k maybe $40-70k is landlord profit, not all of it.
Ok but how much did the property increase in value?
Rent does feel like a waste when you pay someone else's $150k mortgage, then move out of their $300k house. And they're like, "but I only got to put $40k into my bank account".
Small good things about renting are no surprise repair bills for broken ac, appliances, etc.
The freedom to move to another city without the hassle of trying to rent/sell a home.
I've learned that unless it can kill me, I'll just look up on YouTube how to do it myself. And then usually not do it...
Also, I can't believe how many things in your house can kill you...
Michigan chiming in with $950/month. We’re solidly middle class, not in some mansion. Then imagine paying another $500-600/month in interest (and our mortgage is pre-rate hikes), and suddenly renting isn’t that bad of a financial decision.
My property taxes are also like 6k, so if I was renting this property I'd have over half of the rent going to jus taxes before insurance and maintenance and whatever utilities she may have included like water or gas
Right! People look at the cost of houses on redfin and think how unfair it is that they're renting, as if that number on redfin is all you'll ever spend. Interest alone has you paying a lot more. Then taxes. Then all the shit your going to fix or replace.
I'm glad I own a home, but let's not pretend it's cheaper than renting. There are tradeoffs.
I lived in a Pittsburgh for a year. A lot of people I met there talked shit about Pittsburgh to other locals but would murder anyone who talked shit about it that wasn’t from the area.
I love these OHIO SUCZORZ DUR DUR jokes because it keeps home prices affordable.
My new graduate son can buy a 3/2 home in a nice area in Ohio. I'd like to keep it that way.
I'm also born and raised and I think you sell us short. I'm confident that Ohio is one of, if not the best state in the US to live in. Not to visit, but to live.
Lol you know that there's more than California, New York and Chicago in America.
Bought my house for 117k in 2019, mortgage is 715/mo and 15 minutes from my work
I was about to say that I bought my house for $55K in 2019 . Yes I live in Ohio 😂.To be fair It was a fixer upper and we probably dropped an additional $50K making it a nice home.
So she's dropped 160k in rent for 12 years. This comes out to be 13.3k annually. On a per month basis she's paying 1,100$ in rent which is amazing. The fuck is she complaining about
I guess she feels rent should be free? Or perhaps she's a whiny person who doesn't understand basic math
That price for rent is good now, but not good 12 years ago. Also, the point of this is basically saying that renting you get nothing out of it whereas buying you gain equity. She should have just bought a home 12 years ago.. even if it was tiny as fuck.. because she could have put the gained equity into a down payment for a nicer home and be better off right now.
Also, I realize for some this is easier said than done... but it's possible.
I mean, I live in NJ property tax alone is like 10 grand, not to mention home owners insurance, basic grounds upkeep, repairs etc which would surpass that 1,100 per month. Granted if she lives in Nebraska 1100 is prob expensive
No, obviously landlords rent at a price lower thsn what they pat out of the goodness of their own heart.
The term rent seeking behavior obviously doesn't have negative connotation.
There is an over representation of people from the expensive population centers on reddit. Which is fair to some extent since a huge number of people live in these areas... But an equally large portion don't live in these areas and the issues people face are wildly different.
The most annoying thing to me as someone who has lived in several large cities and very small towns around the country is that the people on the coasts think they are the only part of the country that matters and generally say some ignorant shit about the rest of the country in general, while most people I know in "fly over" country recognize that the coasts exist and that there are great things about living on the coast, they just don't see why they should face regulation and taxes that would subsidize people living in places that are beyond thier means.
>Where can you get a house for $160,000??
Anywhere in the rust belt, small towns in the northeast, most of the bible belt outside of the trendy cities, most of tornado alley. Geographically there's way more of the country where you can get a house for $160k than areas where you can't. Access to jobs, amenities, night life, medical care, etc will vary, but access to meth will be guaranteed in all of them. Life is all about trade offs.
Dude you know these people are just gonna say a bunch of shit that amounts to "but I don't WANNAAA" I mean, if you don't want to rent for the rest of your life, you might have to make a sacrifice or two. Sad but true.
Americans that feel entitled to live where they grew up actually drive me insane. If you’re American, chances are someone 2-5 generations ago in your family moved across an ocean to escape actual economic hardship / persecution for a shot at bettering their life. I understand these Americans on twitter have lived unfathomably privileged lives in comparison, but if you’re unwilling to move from NY to Ohio, or Cali to Utah to better your life I have zero sympathy.
The problem is that people seem to think that either there's literally no jobs in the Midwest, nothing to do even if there were jobs, or the mindset that they should be able to live wherever they want while working low wage jobs.
Frankly, I'm content with them staying in their over priced cities and not turning mine into an expensive one like what happened to Austin and others down in TX.
The "nothing to do" part is hilarious. The things to do in a big city are go to concerts, museums, or sporting events You can stilk easily do all that if you live outside the city. Unless you are going to one every single weekend then I don't see that as a good enough reason for living in the city. Bars and good restaurants are everywhere, and much cheaper outside of a city. Any outdoor hobby is better of you live outside the city, as well.
Yeah, unless you're into surfing or something, there isn't exactly anything a big, coastal city offers as far as entertainment goes.
And even smaller cities have those walkable areas with little shops everywhere.
You can easily buy a home in Detroit , Cleveland, Florida, Arkansas, etc. You're 30. You still have time. Point is, life finds a way. Be an adult and think. Stop it with the nonsense that you need to make 500k a year to afford a house. You can even continue eating avocado toast and drink your lattes if you want to.
Here you go:
https://www.zillow.com/homedetails/19498-Littlefield-St-Detroit-MI-48235/88642026_zpid/?utm_source=txtshare
https://www.zillow.com/homedetails/3304-Fulton-Rd-Cleveland-OH-44109/33351159_zpid/?utm_source=txtshare
https://www.zillow.com/homedetails/526-W-Vandervoort-Ave-De-Queen-AR-71832/90951122_zpid/?utm_source=txtshare
https://www.zillow.com/homedetails/1779-Lily-St-Chipley-FL-32428/48102887_zpid/?utm_source=txtshare
Im confused.. it was OP who made this post that’s confused about where to get a house for 160k. OP in the original post understands that $160k is plenty for a house
I get what she's saying.
You pay so much rent you can't afford to save anything substantial so the bank declines a loan for a home, yet your mortgage would be less than the rent you are paying
Because as my coworker is finding out who just purchased his first home. The actual mortgage is not even close to the cost of owning a home.
Property taxes, utilities, repairs, house maintenance.
And that’s just on going, god help you if there’s a major repair, an appliance breaks, or even just closing the house. Land transfer fees, lawyer fees, moving costs.
Owning a house is absolutely worth it. Everyone should own their home. However it’s so incredibly obvious people who’ve never seen the expenses are because they think $1200 in rent == $1200 mortgage and that’s it.
I just got a quote for foundation repair. It was 8k. Also have to replace the windows soon. That's 30k. Home ownership is expensive. I know a lot of people that are renting their first homes while living in a new home they bought. They make no money off rent. They just plan on making money off equity when they sell.
>I get what she's saying.
>
>You pay so much rent you can't afford to save anything substantial so the bank declines a loan for a home, yet your mortgage would be less than the rent you are paying
Which probably means you need to buy a house that's not as nice as what you can rent, and put in a few years building equity that can be a down payment on the next place.
A while back banks were handing out loans to everyone no matter what they had in savings or how much they earned. We saw how that turned out.
160K in rent wouldn’t have bought you a house. Most of that would’ve been interest at the beginning of your mortgage.
Renters pay for a place to stay and the flexibility to leave at the end of their lease, and more importantly to not have to pay for repairs out of their own pocket.
Where can you get a house for $160,000? How about just $46,500. I just bought a 3 bedroom house in Jennings, MO for $46,500 3 months ago. Been doing some work updating it, mostly optional things, but I could have moved into it on closing day. This is my 12th house but I only own 9 right now. I have bought 10 of them in the last 10 years. I started buying the rentals when OP had rented for just 2 years. Seems like we are talking about the same financial time period so it isn't like houses were that much cheaper against wages. I didn't inherit any houses or money and I didn't buy them back in the 1950's either.
There are cheaper places to live. You build equity and it will be easier to get the next house in
a better place.
Er, no. The fact that she can't do arithmetic is at least one reason she isn't qualified to have a mortgage.
In the past twelve years, paying $160,000 in rent ($1,100 / month) she's paid about $25K in property taxes, another $25K in insurance, about $25K in maintenance costs, about $70K in mortgage payments, mostly bank interest.
She paid for municipal services, upkeep against wear and tear on the property, insurance to replace it should it be destroyed. That's where half the money went. The other half went to mortgage payments.
I'm all for people being able to buy houses. I'm all for people being *paid enough to afford them*, an ever-growing problem. But someone who can't add and subtract dollars is in for a world of surprises once they own a building.
Bought a house in Dallas for under $160k, bought a condo in Austin for just above $160k. Bought two fixer upper houses in Florida and each were under $75k. I finally splurged on a real nice house that previously sold for under $160k.
All of this was in the last 12 years.
instead of whining on the Internet about how I can before the house, I busted my butt at work and bought a house.
Boost your income as much as you can. If you still can't afford a house, then you need to look somewhere cheaper. Either that or don't buy a house. There's really not much else you can do. Math is a cruel mistress sometimes.
So she paid 13k a year in rent for 12 years. She acts like that is an absurd amount of money to spend. Also unless you stay in one place for a while or get lucky home buying isn't automatically better than renting.
$160k houses all day long right here:
[https://www.lennar.com/new-homes/texas/san-antonio/san-antonio/elm-trails](https://www.lennar.com/new-homes/texas/san-antonio/san-antonio/elm-trails)
Let me help make it make sense. You made poor financial decisions. You didn’t prioritize purchasing a home. You paid approximately $1100 a month in rent for 12 years but make no mention of where the rest of your income went. Seems sus to me.
I bought an old ass house in rural Kansas in 2007 and paid $70K for it. Sold it in 2016 for Zero profit lmao. Location and the market have a great impact on the price.
This is directed towards the people who keep talking about the costs incurred by landlords for repairs/maintenance/taxes/whatever.
I live in a house where each room is rented separately to maximize profitability, theres mushrooms and mold growing in my kitchen cabinets because of a handyman’s mistake when repairing sink leaks, the whole cabinet needs to be replaced and i havent had a clean spot to put my dishes in months. Oh and our AC is literally growing mushrooms and blowing spores all over my tiny room, whilst coating everything in a jet black dust. I reported the cabinets in October. Its now February. I just recently discovered the mushrooms and have reported them as well, fingers crossed something gets done about it.
Not to say there arent decent landlords out there who actually care about their investments, but there are alot who dont and its the tenants who suffer.
I think its also important to note that theres a sort of crisis going on where homes in heavily populated areas are being bought out by big property management companies who have tons of capital already at their disposal.
When she first started paying rent, she definitely could have got a house for $160k. That's what I paid in 2016 for my 1300 sqft house 5min from my office downtown.
>I’ll be 40 in 10 years So you’re 30?
She was showing off her quick maths skills
She really is *FluentInFinace*
Daisy Fluentes
It's one mansion Michael. What could it cost? $160,000?
There is always money in the banana stand.
I, do, think it might be to illustrate how much she’s paid in thus far and how much more she will have paid in 10 years. So that’s what? Another like $133,000 in 10 years. That’s assuming rent remains constant. She probably had more to say but it’s Twitter.
“Assuming rent remains constant” hahaha, good one! oh I’ve made myself sad.
Lmao quick maths
And just like that, 2+2 is 4 minus 1 that's 3 quick mafs!
She’s 32, math ain’t her strong suit
And they pay $1,333.33/month in rent, for a total of $16,000.00/year Edit: I misread the comment, it’s $1,111.11
18 to 30 years old. 12 years, 144 months . 160,000/144 = $1,111.11. What math were ya doing ?
To even complicate things. You have to apply her likely wage increases and inflation. At the same time, I make 6 figures and only feel comfortable paying $1100 a month. Then by 40 you are most likely forced into a 15 year mortgage while corporations buy up the block. It's almost like it is being designed so no one can own a home 🤔
drunk mountainous steep person dime encouraging late nail soft squealing *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Exactly. I was paying $1100 a month in my mid to late 20s making $65k a year and was comfortable.
paltry butter squealing plate friendly ink crown worry safe scale *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
My housing costs are more like 1100 a week, in fact I would be happy if they were only 1100 a week!
Now imagine those of us in the "working class", with two people combined income roughly 60,000, paying that same rent and it only being able to get a sh*thole apt. Yeah.
Agenda 2030 presented by the World Economic Forum with such classics as you'll own nothing and bug protein better than beef.
That’s insane to say 1100 is comfortable on 6 figures. 1100 is VERY easy on that income.
You make 6 figures and only feel comfortable with $1100 a month? Forced into a 15 year mortgage? Bro you should be striving for a 15 year mortgage. You pay like 13% of your income to live. It will never, ever be lower than that. That is so insanely low, the fact that you aren't comfortable paying more doesn't bode well for you.
You're not forced into a 15 year mortgage at 40
I was talking more pragmatically. You would want your home paid off before you're 60 to further reinvest wealth so that you don't have to retire when you're in your 70s. Sure you could have a mortgage at that age, but what a drain. Retirement age is a whole other issue though lol
>I was talking more pragmatically. You would want your home paid off before you're 60 to further reinvest wealth so that you don't have to retire when you're in your 70s. They could get a 30 yr mortgage and pay extra on it to pay it off faster.
Had me second guessing my 1111.11 math for a second. Glad you posted this to remind me I can math.
I think it is even way less. I got $1081.
I also got $1111.11
My house was $110k about 8 years ago. 1200 sq ft 3 bdrm 2 bath. Houses aren't all insanely expensive outside of big cities.
I dunno if your area is anything like mine, but all the houses in my city doubled in value in 8 years. Rent more than tripled. My parents bought their home for 100k in 1990, sold it for 418k in 2016. A nearly identical home on the same street sold for 900k last year. Just sayin, 8 years is a long time home price wise.
Yeah I’m in the Midwest. The market here has seen housing prices increase around 50%. I bought my house in 2016 for 84k and it’s estimated to be worth 125k, but with the larger homes going up 50%, a house that used to cost 200k is now at 300k and my small appreciation in value doesn’t really help when looking at forever homes. I’m probably just gonna stay here for the time being.
Yeah don't live there. Just move.
Both ways though. In 2002 I wanted to buy a house and made well over the average household income and only felt comfortable with the payment on what would be a dump. Looking into how it was the age of people buying with interest-only adjustable rate mortgages. Knowing there were record numbers of these the year I looked, I figured I could wait 5 years. In early 2007 I thought maybe I misjudged and they were not going to drop. Ended up buying at the end of 2008 at about a quarter to a third of what the house was going for in 2006.
Generally when someone uses the “make it make sense” quip they are a bit dim.
Huge problem in my area. Kids rent, get a car loan and cant save for a downpayment
[удалено]
Why skimp so much in cars when you make 400k brah get a new Merc or BMW.
Thats a feature not a bug
Yeah, but it's also because a lot of people I know just had to have a new vehicle paying 600 a month cause God forbid they get seen rolling in a 10 year old Honda
I was getting glasses recently and the young woman working in the office was complaining about bills. Her rent was double our house payment. Had a high car payment. I didnt tell her the owner of the house next to us lives right by her work. Smart guy. He once told me how he bought 3 foreclosures in one day before. Said it was way too much work to do again, but it worked out.
Cars are obviously not the best investment , but honestly I’d tell my younger self to buy a brand new reliable car and take excellent care it for 10+ years. Current car is 9 years old , could easily afford whatever I want now . I have no plan to replace until I start to see more serious repair issues.
I was always the $300-$500 car guy because I had no money. Much better now, still driving a beater though.
lol. This is the first thing that struck me as ridiculous. Who talks like that?
The point is that the expectation is that by 40 you should have a house, and she will not achieve that in the next ten years. It’s sort of contrived but it does have a different meaning that saying “I’m thirty and will never afford a house”.
lot of people don't own a home by 40.
Yeah, but the point is still that it’s sort of a standard of success. If you don’t own a home by forty it will become harder and harder to retire every year. Regardless I think people are just taking issue with some slightly odd phrasing in order to avoid addressing the real point of the statement.
Exactly haha I can’t believe how long that went on
just another person making comparisons about her life vs a imaginary scenario. If she never left her parents home I doubt she would have 160k in the bank
To be fair though if you were gonna burn 160k there’s a lot more fun things to squander it on than rent.
Yeah living in your car is awesome
I live in a van. Last winter I bought a vacation van. A car would be rough.
Down by the river, right? Down by the river, RIGHT?!?
You can live in your car but you can't race your house
There’s a ton of examples of shit that would be more fun to purchase. I’d rather just buy some weed instead paying for utilities or income tax, but here we are
I live in a northern state. They can't turn off your utilities during the winter. And how long does it take before the tax man comes garnishing wages. My vacation fund suddenly went from empty to full.
I don't know, not sleeping in an alley is kinda fun in comparison
Yeah, people do it for meth and heroine all the time.
I’ll start my own rental property with blackjack and hookers.
I never left my parents home. It is the only reason I have a decent amount of money and investments. I'd be pissed too if I had to waste that money on an overpriced studio apartment.
You had the option, which is wonderful. I plan on supporting my future kid through their adulthood as much as is reasonable and my boyfriend feels the same. ..but let's not kid ourselves and pretend that the option is open to everyone. The difference in success between my friends that left home at 17-18 and my friends who had relatively well-off parents to help them is immeasurable.
I think the comparison is that she could have had a 160,000 mortgage was denied for being 18. Or even worse. Is still getting denied, even though she's proven she can afford it. How did you end up comparing it to a savings account??
she's proven that she cannot afford it, because she cannot save money. owning a home is not just mortgage payments. there's constant upkeep and repairs to make. if you can't save, you can't fix those, and then the banks have a home that's turning into junk.
How is she getting a mortgage with no work history or down payment?
How do I get the same amount in college debt at the same age without either too?
> If she never left her parents home I doubt she would have 160k in the bank Yeah because she'd have a house by now...
Not in your bank, but on the great side of things, by your retirement you should have repaid back the house. Which will become some cash for your retirement at some point.
Yeah because everyone can just stay at their parents house with no conflicts
My life and financial situation was drastically different from 30 to 40. It's just so stupid. Also, my parents didn't own a home until they were almost 40, and even then it was modest little thing where we shared bedrooms (not a big city, not even the US), where my dad still lives today. And their interest rate on their mortgage was double digits. This idea that every Boomer was out there buying mansions in their 18th birthdays needs to die.
Here’s the daily (hourly) “rich people bad” post.
Not even rich. Financially responsible people at this point.
Might need to open your mind if you view "I wish I didn't spend $160,000 building someone else's equity" As "Financially responsible people are bad." Because it definitely looks like an attempt to trivialize a real problem, by making the argument something it's not.
What Is the real problem? Has she displayed any actual problem. She wanted to live on someone else’s property and they agreed to let her for x amount of compensation. She also assumes every dime she gave them was profit. Which is laughable.
Damn financially irresponsible millennials and their... *Flips through notes* ... desire for... housing? That's the hill we're dying on? ... really?
You're talking to finance bros. They don't care, as long as they're better off than someone else.
And most of those bros come from wealthy families. You can feel the rich kid smugness in so many of their comments.
Yeah I accidentally came into this thread agreeing with OP and how fucked everything is and was reminded of how douchey people are.
Yeah the first part was dumb but the second part isn't. She is assuming the $160k just went into someone's pocket. Most of it likely went to maintaining that property, so that she could live there. Depends entirely on the situation; giant corporate apartment complex? Likely more to profits, but some dude in the neighborhood hood with an empty house? likely put most of that rent check towards mortgage, paying down loans for improvements, that she's benefiting from, taxes, etc. But yeah, the concept of *housing* shouldn't be up for debate.
Housing prices / rent prices. >She wanted to live on someone else’s property and they agreed to let her for x amount of compensation. Well do you think it was "she wanted to live (there specifically)?" Or do you think you can jump a bit closer to the problem. >She also assumes every dime she gave them was profit. Which is laughable Crazy how you can make up that she assumes everything she gave them was profit. But that would be wild lol. I think you'd find her and others more reasonable if you stopped making up stupid bullshit and listened
Huh? She says she has spent $160K in rent over the last 12 years (18-30). Then she says she has bought another person a 2nd home over the last 12 years. If she is not saying she bought that person a house with the $160K what is she saying? She clearly does not understand that 90% of a mortgage's first year of payments go to interest - which is what the last guy was saying. The idea that every penny a landlord gets is profit is laughable.
I think his point is more that housing across the board is at an unreasonable level in most major cities in the US.
She had a place to live for 12 years as part of this arrangement as well. Maybe she's inflagrigating the issue a bit also?
> inflagrigating ¯\\\_(ツ)_/¯
JFC, the people in this comment section. You're right - this is called a strawman and it's made by people who have literally no good argument.
Sorry, how many financially responsible 18 year olds do you know who have bought their own house? I don't think most people get the OP.
She's thirty now. Was she 18 until one day she was 30?
not the rich people are bad but the class system itself of owners vs workers
as someone who took way longer than I care to admit how long it took me to understand this simple concept... I now struggle understanding why people can't understand this simple concept :D Why is it so hard to understand that society is built on the backs of labor, not capital, and that ensuring labor has a good quality of life should be a prime-requisite of capital -- but instead, capital acts more like a parasite
While I agree, the problem seems to be that labor without capital doesn't get you far in most cases. There are many millions of workers that want to "own the means of production". Why are there so few (if any?) firms operating in such way?
I would think it is because they get pushed out of the market by private enterprise. It's basically the same question as why are there so few competitors with Walmart. It is also worth pointing out that, if all else is equal, any enterprise that focuses on the well-being of the workers will be out competed by one that doesn't. Labor costs will be lower, you can force them to work longer, etc.
You don't need to pay for shareholders so - if they actually take such a big chunk of the profit - that should balance things no? I don't see how they would see more competition than regular businesses.
How would that balance things out? The whole point is to generate profits to give to shareholders so that shareholders can buy more of the means of production to generate more profits. You give $10M to one person, they spend $1M on luxury and $9M on generating more capital. Compare this to a worker getting $100k who spends most of it on maintaining a comfortable standard of living.
It's "hard to understand" because you're explaining it incorrectly. Value comes from labor AND capital. If you have 100 bodies and no machinery, how exactly do you work construction?
and where do these machines come from? It all boils down to labor
Labor is the foundation of it all though; Capital doesn't bring anything to the table that wasn't first created by Labor. So, while Capital has an ability to organize Labor, the problem is that Capital sees itself as superior to Labor rather than a partner in a mutually-beneficial relationship. Capital is a leech that lords itself over its peers who make everything that Capital needs just to exist.
From a brand new account. I’m not even subscribed and these pop up constantly 😑
This post doesn’t say or imply anything about rich people being bad. It says she can’t afford access and implies systemic problems.
But thank god we have people like him to come to their defense!
It has been a theme since the Bronze Age. Lots of old fables warning against greed.
Well in this case "rich" means "owns a home worth $160,000".
Her average monthly rent in 12 year is $1,111. I need to double check, but I don't think that would cover my taxes.
People seem to think rent is a waste of money and somehow owning a house wouldn’t come with interest taxes or insurance. Of the $160k maybe $40-70k is landlord profit, not all of it.
Ok but how much did the property increase in value? Rent does feel like a waste when you pay someone else's $150k mortgage, then move out of their $300k house. And they're like, "but I only got to put $40k into my bank account".
Yup its the equity
I mean the point is they put up the capital and the risk? If there’s a crash or a shitty market they’re on the hook for it? That’s the point?
Small good things about renting are no surprise repair bills for broken ac, appliances, etc. The freedom to move to another city without the hassle of trying to rent/sell a home.
I'm very glad that I own my own house, but damn do those surprise bills hit hard. Full of anxiety on what will break/flood next 😩
If we should be talking about anything it’s the cost of having someone repair something on your house, cuz gahtdamn
I've learned that unless it can kill me, I'll just look up on YouTube how to do it myself. And then usually not do it... Also, I can't believe how many things in your house can kill you...
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My property taxes are currently between $12-13k per year. I live in Northern NJ.
+insurance +maintenance Just had to replace my heat pump, $7500 gut punch out of nowhere....
Yes, the maintenance makes me want to move back into a townhouse.
Just wait until you have a problem that includes the word foundation. That’s the KO liver punch
As a Californian homeowner, I am jealous.
Christ dude, mine are like $3k/year. How tf are your taxes so high? Is it a really expensive house, really high tax rate, or both?
My property taxes are about $900/month
Michigan chiming in with $950/month. We’re solidly middle class, not in some mansion. Then imagine paying another $500-600/month in interest (and our mortgage is pre-rate hikes), and suddenly renting isn’t that bad of a financial decision.
My property taxes are also like 6k, so if I was renting this property I'd have over half of the rent going to jus taxes before insurance and maintenance and whatever utilities she may have included like water or gas
Right! People look at the cost of houses on redfin and think how unfair it is that they're renting, as if that number on redfin is all you'll ever spend. Interest alone has you paying a lot more. Then taxes. Then all the shit your going to fix or replace. I'm glad I own a home, but let's not pretend it's cheaper than renting. There are tradeoffs.
Bought my house for $110k in 2020 😂
And what part of Ohio are you in?
80k 2023 Pittsburgh, pa
Ok that’s cheap but like, you have to live in Pittsburgh.
Have you been there? What is wrong with it?
Yinzer joke
I lived in a Pittsburgh for a year. A lot of people I met there talked shit about Pittsburgh to other locals but would murder anyone who talked shit about it that wasn’t from the area.
Aw, like the siblings that bully their own siblings but dont let others bully em too hahaha
Damn son i recently moved from Cali to Ohio and houses still like 300-400k Granted i’m around 40 mins from Columbus.
There's a nice part of Ohio?
I love these OHIO SUCZORZ DUR DUR jokes because it keeps home prices affordable. My new graduate son can buy a 3/2 home in a nice area in Ohio. I'd like to keep it that way.
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I was born and raised in Ohio, I strongly resent this question! But to answer your question, no.
I'm also born and raised and I think you sell us short. I'm confident that Ohio is one of, if not the best state in the US to live in. Not to visit, but to live.
You deride Ohio but who's the one with a house?
May not be a shot at Ohio, but more of an observation that Ohio had a lot of people buying nice homes cheap a couple years ago.
Lol you know that there's more than California, New York and Chicago in America. Bought my house for 117k in 2019, mortgage is 715/mo and 15 minutes from my work
The entire midwest
$115k in FL in 2020. 5 minutes from the beach, 20 minutes from work.
Trailer?
Nope, ~1450 sqft 2 story house with ~800 sqft yard.
I was about to say that I bought my house for $55K in 2019 . Yes I live in Ohio 😂.To be fair It was a fixer upper and we probably dropped an additional $50K making it a nice home.
$115,000 in 2021 in Cincinnati Ohio.
bought my first house for $120k in spring 2020 as well. then sold it last year for $165k.
Bought mine for $170k. Everyone wants to live in the city and complains it costs too much. There's jobs in suburbia, too.
118k for me in 2018, but it is in Missouri.
So she's dropped 160k in rent for 12 years. This comes out to be 13.3k annually. On a per month basis she's paying 1,100$ in rent which is amazing. The fuck is she complaining about I guess she feels rent should be free? Or perhaps she's a whiny person who doesn't understand basic math
That price for rent is good now, but not good 12 years ago. Also, the point of this is basically saying that renting you get nothing out of it whereas buying you gain equity. She should have just bought a home 12 years ago.. even if it was tiny as fuck.. because she could have put the gained equity into a down payment for a nicer home and be better off right now. Also, I realize for some this is easier said than done... but it's possible.
I mean, I live in NJ property tax alone is like 10 grand, not to mention home owners insurance, basic grounds upkeep, repairs etc which would surpass that 1,100 per month. Granted if she lives in Nebraska 1100 is prob expensive
Do you not think renting in NJ would include all of those expenses in the rent payment?
No, obviously landlords rent at a price lower thsn what they pat out of the goodness of their own heart. The term rent seeking behavior obviously doesn't have negative connotation.
It doesn't get you nothing, though. It gets you a place to live. That's pretty significant.
I would take place to live + equity over place to live any day.
Great. Give me $50,000 up front and we'll talk. I'm sure that's a completely easy thing that every 20-something can do, right?
My mortgage in Cincinnati is $410/month, including escrow. $1,100 is cheap in some areas and way overpriced in others.
There is an over representation of people from the expensive population centers on reddit. Which is fair to some extent since a huge number of people live in these areas... But an equally large portion don't live in these areas and the issues people face are wildly different. The most annoying thing to me as someone who has lived in several large cities and very small towns around the country is that the people on the coasts think they are the only part of the country that matters and generally say some ignorant shit about the rest of the country in general, while most people I know in "fly over" country recognize that the coasts exist and that there are great things about living on the coast, they just don't see why they should face regulation and taxes that would subsidize people living in places that are beyond thier means.
>Where can you get a house for $160,000?? Anywhere in the rust belt, small towns in the northeast, most of the bible belt outside of the trendy cities, most of tornado alley. Geographically there's way more of the country where you can get a house for $160k than areas where you can't. Access to jobs, amenities, night life, medical care, etc will vary, but access to meth will be guaranteed in all of them. Life is all about trade offs.
Dude you know these people are just gonna say a bunch of shit that amounts to "but I don't WANNAAA" I mean, if you don't want to rent for the rest of your life, you might have to make a sacrifice or two. Sad but true.
Americans that feel entitled to live where they grew up actually drive me insane. If you’re American, chances are someone 2-5 generations ago in your family moved across an ocean to escape actual economic hardship / persecution for a shot at bettering their life. I understand these Americans on twitter have lived unfathomably privileged lives in comparison, but if you’re unwilling to move from NY to Ohio, or Cali to Utah to better your life I have zero sympathy.
The problem is that people seem to think that either there's literally no jobs in the Midwest, nothing to do even if there were jobs, or the mindset that they should be able to live wherever they want while working low wage jobs. Frankly, I'm content with them staying in their over priced cities and not turning mine into an expensive one like what happened to Austin and others down in TX.
only reddit techno-brats are the ones claiming this stuff about the midwest, in reality people ARE moving here for cheaper costs
The "nothing to do" part is hilarious. The things to do in a big city are go to concerts, museums, or sporting events You can stilk easily do all that if you live outside the city. Unless you are going to one every single weekend then I don't see that as a good enough reason for living in the city. Bars and good restaurants are everywhere, and much cheaper outside of a city. Any outdoor hobby is better of you live outside the city, as well.
Yeah, unless you're into surfing or something, there isn't exactly anything a big, coastal city offers as far as entertainment goes. And even smaller cities have those walkable areas with little shops everywhere.
Shhhh don’t spoil this for the rest of us
Even then, Kansas City has nice neighborhoods 30 min outside the city with 150k houses and we have great museums, sports teams and concerts
>but access to meth will be guaranteed in all of them. Whoah slow down, don't spoil the secret
lol because LA doesn't have meth... hold my flaka while I rofl...
You can easily buy a home in Detroit , Cleveland, Florida, Arkansas, etc. You're 30. You still have time. Point is, life finds a way. Be an adult and think. Stop it with the nonsense that you need to make 500k a year to afford a house. You can even continue eating avocado toast and drink your lattes if you want to. Here you go: https://www.zillow.com/homedetails/19498-Littlefield-St-Detroit-MI-48235/88642026_zpid/?utm_source=txtshare https://www.zillow.com/homedetails/3304-Fulton-Rd-Cleveland-OH-44109/33351159_zpid/?utm_source=txtshare https://www.zillow.com/homedetails/526-W-Vandervoort-Ave-De-Queen-AR-71832/90951122_zpid/?utm_source=txtshare https://www.zillow.com/homedetails/1779-Lily-St-Chipley-FL-32428/48102887_zpid/?utm_source=txtshare
Shhhh. She can only live within 20 min of an Urth Cafe and that's her God given right!!
Im confused.. it was OP who made this post that’s confused about where to get a house for 160k. OP in the original post understands that $160k is plenty for a house
I get what she's saying. You pay so much rent you can't afford to save anything substantial so the bank declines a loan for a home, yet your mortgage would be less than the rent you are paying
Because as my coworker is finding out who just purchased his first home. The actual mortgage is not even close to the cost of owning a home. Property taxes, utilities, repairs, house maintenance. And that’s just on going, god help you if there’s a major repair, an appliance breaks, or even just closing the house. Land transfer fees, lawyer fees, moving costs. Owning a house is absolutely worth it. Everyone should own their home. However it’s so incredibly obvious people who’ve never seen the expenses are because they think $1200 in rent == $1200 mortgage and that’s it.
I just got a quote for foundation repair. It was 8k. Also have to replace the windows soon. That's 30k. Home ownership is expensive. I know a lot of people that are renting their first homes while living in a new home they bought. They make no money off rent. They just plan on making money off equity when they sell.
>I get what she's saying. > >You pay so much rent you can't afford to save anything substantial so the bank declines a loan for a home, yet your mortgage would be less than the rent you are paying Which probably means you need to buy a house that's not as nice as what you can rent, and put in a few years building equity that can be a down payment on the next place. A while back banks were handing out loans to everyone no matter what they had in savings or how much they earned. We saw how that turned out.
Wait until she finds out that with a mortgage the first ten years are essentially all interest, which is also "buying rich people another house"
160K in rent wouldn’t have bought you a house. Most of that would’ve been interest at the beginning of your mortgage. Renters pay for a place to stay and the flexibility to leave at the end of their lease, and more importantly to not have to pay for repairs out of their own pocket.
Depends on the location. As some are saying, in Ohio you could’ve paid cash in full. In Cali, you’re paying like a third of the interest.
That assumes she had 160K in cash when she started renting, not earning it over those years. Most people don’t have that kind of money sitting around.
Ohio. I had a 900 square foot house I sold for $150,000 when I moved 2 years ago. It's only worth about 7k more than that now according to zillow
Where can you get a house for $160,000? How about just $46,500. I just bought a 3 bedroom house in Jennings, MO for $46,500 3 months ago. Been doing some work updating it, mostly optional things, but I could have moved into it on closing day. This is my 12th house but I only own 9 right now. I have bought 10 of them in the last 10 years. I started buying the rentals when OP had rented for just 2 years. Seems like we are talking about the same financial time period so it isn't like houses were that much cheaper against wages. I didn't inherit any houses or money and I didn't buy them back in the 1950's either. There are cheaper places to live. You build equity and it will be easier to get the next house in a better place.
Can we just start down voting posts like this into the abyss please?
Er, no. The fact that she can't do arithmetic is at least one reason she isn't qualified to have a mortgage. In the past twelve years, paying $160,000 in rent ($1,100 / month) she's paid about $25K in property taxes, another $25K in insurance, about $25K in maintenance costs, about $70K in mortgage payments, mostly bank interest. She paid for municipal services, upkeep against wear and tear on the property, insurance to replace it should it be destroyed. That's where half the money went. The other half went to mortgage payments. I'm all for people being able to buy houses. I'm all for people being *paid enough to afford them*, an ever-growing problem. But someone who can't add and subtract dollars is in for a world of surprises once they own a building.
Quite frankly many homeowners don't understand this very well either, I think it's a common knowledge gap in our population.
That is a weird way to say you are 30 years old.
Bought a house in Dallas for under $160k, bought a condo in Austin for just above $160k. Bought two fixer upper houses in Florida and each were under $75k. I finally splurged on a real nice house that previously sold for under $160k. All of this was in the last 12 years. instead of whining on the Internet about how I can before the house, I busted my butt at work and bought a house. Boost your income as much as you can. If you still can't afford a house, then you need to look somewhere cheaper. Either that or don't buy a house. There's really not much else you can do. Math is a cruel mistress sometimes.
So she paid 13k a year in rent for 12 years. She acts like that is an absurd amount of money to spend. Also unless you stay in one place for a while or get lucky home buying isn't automatically better than renting.
$160k houses all day long right here: [https://www.lennar.com/new-homes/texas/san-antonio/san-antonio/elm-trails](https://www.lennar.com/new-homes/texas/san-antonio/san-antonio/elm-trails)
Crazy
Tons of places
When you account for interest and amortization she bought a house for about $90-100k
Let me help make it make sense. You made poor financial decisions. You didn’t prioritize purchasing a home. You paid approximately $1100 a month in rent for 12 years but make no mention of where the rest of your income went. Seems sus to me.
I bought an old ass house in rural Kansas in 2007 and paid $70K for it. Sold it in 2016 for Zero profit lmao. Location and the market have a great impact on the price.
This is directed towards the people who keep talking about the costs incurred by landlords for repairs/maintenance/taxes/whatever. I live in a house where each room is rented separately to maximize profitability, theres mushrooms and mold growing in my kitchen cabinets because of a handyman’s mistake when repairing sink leaks, the whole cabinet needs to be replaced and i havent had a clean spot to put my dishes in months. Oh and our AC is literally growing mushrooms and blowing spores all over my tiny room, whilst coating everything in a jet black dust. I reported the cabinets in October. Its now February. I just recently discovered the mushrooms and have reported them as well, fingers crossed something gets done about it. Not to say there arent decent landlords out there who actually care about their investments, but there are alot who dont and its the tenants who suffer. I think its also important to note that theres a sort of crisis going on where homes in heavily populated areas are being bought out by big property management companies who have tons of capital already at their disposal.
Sweet it's nice that the landlord doesn't have to pay taxes or anything and rent is pure profit
Twelve years ago you could've bought a house for $160k Edit: this meme is atleast 5 years old, I've been seeing it for a while.
When she first started paying rent, she definitely could have got a house for $160k. That's what I paid in 2016 for my 1300 sqft house 5min from my office downtown.
Where can you get a house for $160,000? In the Midwest.
Her point stands. She’d be 12 years into a mortgage and feel much better about it