Buying a house. Should you do it?

[SFRL]

 

Is it a smart idea to buy a house? 

What are the pros and cons? 

This guy makes some interesting points. No matter what you think. 

Edited July 22, 2018 by SFRL

[Leo Gura]

This is the dumbest logic I've ever heard. By this logic, you shouldn't own anything because everything is made by someone else to make money.

Homes are a far safer investment than commercial real estate.

[aurum]

1 hour ago, SFRL said:

 

Is it a smart idea to buy a house? 

What are the pros and cons? 

This guy makes some interesting points. No matter what you think. 

"Should you buy a home?" is not a good question to ask in the first place, it's too broad.

Are you going to live in the home? Rent the home? Are you married? Single? Ambitious? Someone who likes to travel?

Personally, I'm with Grant. I have no intention of ever buying a home. I like living in the city, I like being mobile and I like the convenience of being in an apartment. I've never invested in real estate so no comment on whether it's a good financial investment.

[SFRL]

I like being mobile at this point in my life as well. I am gone a lot anyways.

The old logic is that you can buy a home, then the price goes up and you sell it for money, making money in the process. On top of that one's the mortgage is paid off it's yours and now you are set for life as far as having a roof over your head. 

My main thing is, I see this all the time, people buy a house and now it's all about the house. Because that's where a major part of their capital went. 

I think he got a point in so far that it has become something that everyone is believed they have to do now. Another box to check. 

He does seem like a bit of a conartist though. Easy to say for him, don't buy rent from me. 

Maybe buying and Airbnb it would be the best way to go. Stay there when you want, make some money of it when you are gone. 

[aurum]

20 minutes ago, SFRL said:

The old logic is that you can buy a home, then the price goes up and you sell it for money, making money in the process. On top of that one's the mortgage is paid off it's yours and now you are set for life as far as having a roof over your head. 

Which is flawed because it's assuming housing prices just keep rising forever. 2008 proved that's not a guarantee.

I know little about this but I know in Rich Dad, Poor Dad, Robert famously said that a house is a liability, not an asset. Meaning he doesn't see a house as something you buy in order to make money.

22 minutes ago, SFRL said:

He does seem like a bit of a conartist though. Easy to say for him, don't buy rent from me. 

Grant is not a conartist, he's one of the biggest entrepreneurs on the planet right now. One of my good friends works for him out here in Miami Beach.

[SFRL]

11 minutes ago, aurum said:

Which is flawed because it's assuming housing prices just keep rising forever. 2008 proved that's not a guarantee.

I know little about this but I know in Rich Dad, Poor Dad, Robert famously said that a house is a liability, not an asset. Meaning he doesn't see a house as something you buy in order to make money.

True. I was thinking about this in terms of 'spiritual development' and living the life that you want to live. I see this all the time. People owning a house and it seems like a major source of stress. 

I still might do it in the future. But I have my concerns about that part. 

11 minutes ago, aurum said:

Grant is not a conartist, he's one of the biggest entrepreneurs on the planet right now. One of my good friends works for him out here in Miami Beach.

Well he is a smooth talker which I would expect from a successful entrepreneur. I honestly don't know anything about the guy, the video just showed up in my YouTube feed. 

Actually being in real estate always seems like an interesting side career. Set your own schedule, and can be very profitable. Also not locked in an office all the time. 

Edited July 22, 2018 by SFRL

[RawJudah]

I keep thinking about this. Get a mortgage on a place or just rent? I don’t want anything to be completely permanent in my life, so maybe rent is the best way to go? I’m in the U.K., house prices are rediculously high but sometimes the mortgage payment can be lower than renting somewhere. Which is why I’m confused as what to do. 

Also I think it’s pretty vital about where you move to. 

[Brittany]

I highly highly highly recommend not getting into debt - if it forces you into a 9-5 job until you are 60 years old.

If you get a mortgage, will you be chained to a 9-5 job until you are 60? If so, I don't recommend it.

Don't hand cuff yourself on the spiritual path. You want to have the freedom for travel.

If you are financially abundant or are an entrepreneur, a mortgage is fine. But if it forces you into a 9-5 job until you are 60, it will hold back your spiritual progress.

 

Edited July 22, 2018 by Brittany

[Samra]

I bought a little place last year with my partner here in South of UK. We are renting out one of the rooms to our friends, so we are making money with it already. We are paying extra on the mortgage, so it will be paid in 10 years time. We are going to rent it if we move to a new city, which will probably happen soon. Does it have its limitations? Yes absolutely. I now have to be way more calculative. Cant just quite my job without a back up plan. But it is making me work harder to be more creative with coming up with more sources of income. Has it stopped my spiritual growth? Not to my knowledge. I have gone to my retreats, doing whatever i can at this stage of my life. However, i was planning to go to Isha school for 6 months, now i can't just do that without planning it properly. So its a hassle in that way. It really depends. I rather not waste money on rent. But I can see how it can be limiting. I recommend doing it with a partner, and looking at it as a source of income and investment. Like any other investments, it has risks. I am in UK, so land and housing here is more valuable than US I believe. 

[Brittany]

25 minutes ago, Samra said:

I bought a little place last year with my partner here in South of UK. We are renting out one of the rooms to our friends, so we are making money with it already. We are paying extra on the mortgage, so it will be paid in 10 years time. We are going to rent it if we move to a new city, which will probably happen soon. Does it have its limitations? Yes absolutely. I now have to be way more calculative. Cant just quite my job without a back up plan. But it is making me work harder to be more creative with coming up with more sources of income. Has it stopped my spiritual growth? Not to my knowledge. I have gone to my retreats, doing whatever i can at this stage of my life. However, i was planning to go to Isha school for 6 months, now i can't just do that without planning it properly. So its a hassle in that way. It really depends. I rather not waste money on rent. But I can see how it can be limiting. I recommend doing it with a partner, and looking at it as a source of income and investment. Like any other investments, it has risks. I am in UK, so land and housing here is more valuable than US I believe. 

I am glad to hear this!

I think I have my shadows and demons to deal with regarding debt and why I view debt as "bad."

Debt is not good or bad - it's neutral. You are right.

[Samra]

3 hours ago, Brittany said:

I am glad to hear this!

I think I have my shadows and demons to deal with regarding debt and why I view debt as "bad."

Debt is not good or bad - it's neutral. You are right.

Well, debt can be a weight on your soul and your freedom. I am not immune to this either. I am still paying my student loan, on top of mortgage. My biggest investment in my life are my skills (personal development, self actualisation) , not assets. Assets such as a house are by-product of my skills. I am worth more now than 4 years ago, meaning companies pay me more for what i have to offer as an artist. So before going into debt, invest in yourself and in your skills, and debt will be easy to handle. 

[Moreira]

If you want to live a long healthy life about 95 years renting will cost you more than owning a house.

[Nahm]

@SFRL He is completely self centered. I felt embarrassed for him watching the video. 

Consider buying a duplex house, living on one floor and renting out the other. A hypothetical example:

House costs $150,000, downpayment 3% & closing costs $7,000, monthly mortgage $700/taxes $250/insurance $50: totaling approx $1,000 / month...rent out one floor for $1,000 / month, and live in the other floor rent free. Go travel all you like, using the money you save from not having to pay rent or a mortgage. If you want to move down the road, rent out the floor you were living in too. Now you have $1,000 / month income, and when the mortgage is paid off, you’d have $2,000 a month income (minus taxes & insurance & occasional repairs). Also, instead of living rent free, you could pay off the mortgage sooner. Housing is a pretty sound investment because even if the market fluctuates like in 2008, bodies need places to live all the same, and rent doesn’t fluctuate with the market. As far as accumulating equity, someone would have only lost money if they sold their house around 2008-2011 in the last 50 years. 

[Nahm]

@Feel Good Coo. I love renters. 

[Nahm]

@Feel Good I will. Thanks. ♥️

[kindayellow]

Personally I plan on saving up and having a mini house, that's a good few years away though I haven't looked at the logistics of this yet. Probably much cheaper than actually buying a house

[CreamCat]

Whether or not to buy a home depends on your situation and your preferences.

Edited April 11, 2019 by CreamCat

[universe]

I think house ownership is an important driving factor for inequality in our society. Needs to be adressed! Especially with the rent going up because of platforms like AirBnB that diminish living space in citys. Regulation or Bubble pop incoming Id say.

Buying a house in the end is not so different than buying other big assets. You need to factor in many things and spend time learning the ins and outs to make a good decision. Also luck.