How more vulnerable would I be in a house ?

[SandalsParticipant 4253]

SpiderHerder wrote:

I’m not interested in starting and running a business.

I didn’t suggest you do.

SpiderHerder wrote:

I’m not interested in starting and running a business. I just wanna work then go home without worrying about a thing. That kind of thing just isn’t for me.

So you’re going to take out quarter of a million dollar loan to not worry about a thing?

Then at least take head of what bstoffers says about the “underwater” market and what ForeverDone says about mold.

SpiderHerder wrote:

Since an apartment is not an asset, I believe it’s easier to ghost while renting. But at some point I’d like to stop giving my money away to some landlord never to be seen again.

I know that buying a house would “expose” me quite a bit more. In the sense that it is an asset and also I’d have to maintain it which means I’d be outside more, being more visible to unwanted parasites.

You’re initial assumptions are flatly incorrect on the face of it, and they also depend on your particular situation, and your knowledge of and experience in real estate. My advice is to read good books to learn about real estate, so you can understand how things will apply to your specific situation.

If you want to dive right in without taking the time to study, then do that. This board is full of smart folks, but the subject is beyond the scope of one thread to make a fully informed decision, in my opinion.

I do know it is unwise for a brick-maker to get into the business of purchasing jewelry, though.

[SpiderHerderParticipant 3767]

Ok, ok. The thing is, my initial question was “would buying a house make me more of a target for gold diggers.”

It sounded off-topic to suggest I’d start a business. Anyway, I get it. I take things literally quite often.

Thanks, man. I’ll have a look at the books you suggested. Better to be too informed than not enough. Just know that I’m still years away from making a real decision about buying a house.

[SandalsParticipant 4253]

SpiderHerder wrote:

Ok, ok. The thing is, my initial question was “would buying a house make me more of a target for gold diggers.”

I did not get that from your question, sorry.

Why, are you planning on getting married? I wouldn’t suggest doing that. I wouldn’t suggest moving in with any girl either.

[sidecarParticipant 35837]

OldBill wrote:

When you “own” a house you’re doing the same.

Except it’s your bills you’re paying, not someone else’s so the landlord’s profit goes to yourself. Which is why, apples to apples in an even market, it’s cheapest in the long run to buy, not rent. The perceived price difference between renting and buying almost always comes from comparing apples to oranges. In other words, people generally buy more than they rent. You rent an apartment, but you buy a house. Nobody buys an apartment. He might buy a small, one bedroom condo, but that’s not the same thing (and the worst of both worlds in my experience).

There’s no single answer to SpiderHerder’s question.

But there are some general rules of thumb like these:

1) Never buy or rent more than you need.
2) Never borrow more than you must. Saving up ten dollars now for a down payment beats spending ten dollars later in principle plus interest (and interest and interest).
3) Short term? Rent. Long term? Buy.
4) The land is more important than the house. Location location location.
5) Any tax incentive you get almost never covers the interest you pay.
6) Prices can be way to high for no good reason. But if the price seems too low, there generally is a reason. Find out what that reason is. In other words, there are no good real estate deals to be had in Detroit.
7) Whether you rent or buy, ALWAYS AT HER PLACE, NEVER AT YOURS.

[OldBillParticipant]

sidecar wrote:

Except it’s your bills you’re paying…

Paying those “bills” provide you with same result; a place to live.

Owning a home isn’t the right thing for everyone all the time. Renting an apartment isn’t the right thing for everyone all the time. There is no one answer that fits everyone in every situation.

You rent an apartment, but you buy a house. Nobody buys an apartment.

I did. I bought 1.5 apartments as an investment. Held onto to them for a little over three years, sold them, and made a nice bit of money.

One size doesn’t fit all. Once answer doesn’t suit all. SpiderHerder needs to examine his personal situation and options before making a decision.

Do not date. Do not impregnate. Do not co-habitate. Above all, do not marry. Reclaim and never again surrender your personal sovereignty.

[Anonymous 38]

Buy something that will make a good rental should you need or decide to move elsewhere, or take a drop in salary. So good location, relatively good condition, generally attractive to professionals.

[It’sallbsParticipant]

Anonymous wrote:

I’m gonna go against the grain here.
I am debt free and chose to rent.

First home/land ownership is a myth. Don’t pay your taxes and see how long you remain owner.

For me owning a house means I get a part-time job(s) of handy-man, landscaper, plumber, etc.

He’s right particularly in UK with council tax.

Plus most new built homes now are leasehold not free hold as virtually all flats are so technically owning a flat all I own is a lease for the next 140 years.

Then there is ground rent which is often just peppercorn but in my case is over £300 per year and they can put it up if they feel like it.

Flats also have monthly maintenance charges attached which they put up as they please and trust me these management companies are always crap.

I’d still say it gives more security than renting though-generally speaking.

http://www.leavemeansleave.eu

[narwhalParticipant]

sidecar wrote:

In my experience it’s easiest in a house in the far suburbs. Most of my neighbors think I’m just the guy who mows the lawn.

I want to second this. Generally speaking, society expects singles or young married folk to live in an apartment. Houses are for the married with kids, or older retired class. If you break the rules and get a house a single guy, people assume there is something odd about you and stay a way….at least in suburbia.

You also have to account that the people in the local stores around you are also going to assume you’re married, and leave you alone. In some way, you could say you’re hiding in plain sight.

I would say though that I don’t have all the privacy I would like, due to the small lots you’ll tend to find in suburbia.

Anther downside is that you will likely want to spend more on your house, and stuff in your house, than you would on an apartment. I believe the government pushes home ownership so much because they know that home owners make better consumers.

Honestly, I think what area you live in is a more important choice than house or rent.

Ok. Then do it.

[ForeverDoneParticipant 2928]

narwhal wrote:

sidecar wrote:

In my experience it’s easiest in a house in the far suburbs. Most of my neighbors think I’m just the guy who mows the lawn.

I want to second this. Generally speaking, society expects singles or young married folk to live in an apartment. Houses are for the married with kids, or older retired class. If you break the rules and get a house a single guy, people assume there is something odd about you and stay a way….at least in suburbia.

You also have to account that the people in the local stores around you are also going to assume you’re married, and leave you alone. In some way, you could say you’re hiding in plain sight.

I would say though that I don’t have all the privacy I would like, due to the small lots you’ll tend to find in suburbia.

Anther downside is that you will likely want to spend more on your house, and stuff in your house, than you would on an apartment. I believe the government pushes home ownership so much because they know that home owners make better consumers.

Honestly, I think what area you live in is a more important choice than house or rent.

Yea, I moved out of the city over a decade ago to the suburbs of NYC. I could no longer stand the traffic, sounds at all hours of the night and really bad neighbors with paper thin walls; and this was in a good area. I can only tell you my experience. When I moved up here, I was mostly alone with not too many families around me. Now, there are families all around and I’m the only single dude. The neighbors do not bother me and I do not bother them. I had to add a fence as the many kids in the area used to walk on my property to get to the lake. If they fell or got hurt, I’d be sued and held liable. Now, if they go over the fence on to my property, it would be trespassing. As for upgrades, not much. Since it was a foreclosure, I had to deal with mold (took all sheetrock down to the studs and rented an industrial dehumidifier. Aside from that, I added some Nest Cameras so I can see what’s going on, installed an alarm system, replaced the smoke detectors, upgraded the lights myself, patched a few holes, replaced a few doors and had to rebuild the garage that a hurricane knocked down (detached). I had to get some new furniture as my ex-wife took hers (it was junk anyway). I am muling over painting the walls of the house this year or next.

My only qualm is since I am about an hour out of the city, I do not get to see my “friends” anymore unless I go see them. As for a social life, it tends to hurt that I am so far from the city. If neither are an issue to you, then you’ll be fine. Just depends on what you want out of YOUR life. The other thing would be what you want now may not be what you want 10 years from now.

If you are really risk adverse and able to do so, get a multi-family. Live in one, rent the other. Therefore, your renters pay your expenses and you’re living at your house basically for free.

As for being vulnerable to woman, as long as you do not marry or cohabitate (without a cohabitation agreement) with them. Nothing wrong with inviting them over and having some fun. Just make sure you have a VAR on you, just in case…

[sidecarParticipant 35837]

OldBill wrote:

Owning a home isn’t the right thing for everyone all the time. Renting an apartment isn’t the right thing for everyone all the time.

But there again you are comparing owning a house to renting an apartment. The real comparison would be renting a house to owning a house.

I did. I bought 1.5 apartments as an investment.

Not to split hairs, but I believe those were technically condos, which, as I mentioned, are not really the same thing.

And those were investments, not a place to live, which is also an entirely different situation, however it does bring up another rule of thumb:

8) Don’t depend on making money in real estate unless you already have some other place to live. selling your home in a bubble means buying your next home in the same bubble.

narwhal wrote:

If you break the rules and get a house a single guy, people assume there is something odd about you and stay a way….at least in suburbia.

Most people stay away, period, these days. We socialize through our televisions and computers and phones today, not through our front doors. All except for that one busybody that’s in every neighborhood, be it apartment or suburb or gated community or whatever, who pushes her nose into everyone else’s business. But if you can fool her, the rest is easy.

I would say though that I don’t have all the privacy I would like, due to the small lots you’ll tend to find in suburbia.

Still better than living cheek to jowl in some apartment.

To my thinking, buy land, not a house. Build a nice, big heated garage on it, and put an airstream in it. As the neighborhood around me fills in with increasingly dense McMansions I begin to think that’s what I should have done.

[ZarathustraParticipant 2246]

I think a house is best you just need to find the right house. I had nightmare neighbours at my last house and now I only have one neighbour who is awesome, I call him Flanders because he is generous to a fault. As long as you do research into your neighbours you should be ok. If you are a bachelor buy a small place and the utilities and upkeep won’t even be that much.

[Anonymous 1]

I’m currently renting a house. I’m highly considering buying one, but I’m not sure if I want to stay in the area. Prices seem pretty high right now. I’m not a real estate expert, but the market prices remind me of 2005-2006 leading up to the big crash.

I hope some one, who knows real estate could opine on this. What are market fundamentals looking like for real estate in 2018?

I don’t want to buy a home and see it lose half its value next year. I know too many people, who got wrecked in 2007.

As for Vulnerability, I have been robbed in the City. I have been robbed in the Country. Even nice neighborhoods don’t always stay that way over time. The Crime Rate is always much higher than you might you think. The robberies never seem to make it into the newspaper. I was shocked to find out how many people in my neighborhood have been robbed last year, way more than I would have guessed.

[Prefer Peace to PieceParticipant 10809]

Real Estate tends to move in cycles.
If you purchase near the top of a cycle, you will be under water for a long time. It comes down to why you want the house.

I don’t follow real estate closely, but several analysts believe we are nearing the top of a cycle.

I bought a small beach condo last year, simply because I wanted it. I would not be surprised to see it lose value for a while. But I expect it to do well long term.

I’m sending you a link to “The Great 18-Year Real Estate Cycle.”
https://www.cato.org/publications/commentary/great-18year-real-estate-cycle

[KaidoParticipant 2395]

Its getting to the point where a mortgage is cheaper than rent. But don’t forget property tax yearly.

A house would be your best bet but like Old Bill said, it depends where you buy.

I am sure you will know what to do brother. I wish you best of luck otherwise on your home journey.

What people call "love" is just a chemical reaction that compels animals to breed. It hits hard, then it slowly fades, leaving you stranded in a failing marriage. Your parents are gonna do it. Break the cycle. Rise above. Focus on science.

[DarkRyuParticipant 2354]

Anonymous wrote:

I hope some one, who knows real estate could opine on this. What are market fundamentals looking like for real estate in 2018?

Depends on the area. There are a LOT of overpriced s~~~holes in the US. Generally speaking, if you live in a blue state, your chances of being in the middle of a housing bubble are better. There are a few exceptions though.

Basically what I do is I look at what the house cost to build. I don’t usually buy houses older than 30 years. Go to your city/county website and look up property records. You can see what the house originally sold for.

The house I’m in sold for $286,000 in 1994. Adjusting for the OFFICIAL inflation numbers (which are BS and way too low), the house would sell for $473,000 today. I bought it for $365,000 and it appraised for $529,000. Even if the housing market crashed by 30% I would be fine at these numbers.

But think of it this way. Let’s say the value of my home collapsed 50% and I was “underwater” on my mortgage. It really doesn’t matter because despite fluctuating home prices, rent NEVER goes down. I’m going to have this same payment forever, without having to endure rent increases.

Sure, I sure as hell don’t WANT the value of my home to collapse 50%. Ideally if it was going to do that I would have waited to buy until the value collapsed. But in my mind, I’m still better off than renting because I plan to stay here 20+ years.

Another thing to consider is when housing bubbles pop, fewer people want to sell. You get people that walk away from underwater mortgages, but the banks don’t want to take a loss either. Consider this. Let’s say you bought your home for $250,000 back in 1997. You owe about $100,000 still. The value right now is at $550,000 and keeps going up. One day, the bubble pops and suddenly your home is only worth $300,000. What do you do? Do you sell? Not unless you have no other option. You wait to sell until it increases in value again.

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