Buy or Rent?

[iDumb]

Originally Posted by G-man
Yeah sp500 made 7.9% nasdaq 13% and dow 3%. What's your point?

Do I have to spell out the point for you?

The point is you coudn't beat sp. And that's with margin they allowed for. And it's a freaken game with virtual coins. even with removal of all that, the choices that you made or the amount you put in ..it's just so conservative. there is no way in hell you would win this. it's not the game, it's how you think and approach that is being evident here and that's what I am bringing up.

these are basics of trading and investing. And YOU signed for this GAME and wanted others to participate.

If I made 20 trades, trust me I would be in a lot higher position.

[G-man]

That's great, go make 20 trades then. Bet any money you won't.

Anyway, go buy yourself a prize or something

[iDumb]

Originally Posted by Jadukor
The loan rate on average is about 6%. I don’t know how that compares to US or elsewhere.

US rate is going higher but borrowing has been dirt cheap last decade. This actually fuelled the housing prices. It was as low as 3% for 30 year mortgage.. now climbed up to around 4.5 still historically low. And it's fixed rate. Basically had u gotten a 3% rate loan - u had gotten money that just keeps up with inflation rate. And buying is just common sense unless it is a housing market that has wild swings .. which is not the case for majority of US.

think of what's gonna happen to rent 30 years from now with inflation... whereas your
montly mortgage amount is dead fixed.

[Tigers_eye]

My Head hurts.

I try to read every post but this is too much.

Dear BC Mgmt.,
Can you have single rooms available where two can get together and do their thing? Kissing, hugging, and showing affection in public forums should be curtailed. Modesty folks.

[dolcevita]

Originally Posted by iDumb
awesome. where? thanks for sharing. I think you are making an excellent choice.

Well I will buy it in Paris' suburbs, its near a mega city with affordable price.

But there are some issues, that someone should consider before investing on a house:
-the level of tax, here in France when you buy a house, you have to pay around 8.5% levies.
-If you want to sale, you have to pay 4% to the real estate agent, +30 or 40% tax on the capital gain
-the liquidity of your asset.

But I still think it is good to buy, because it will force us "to save" the money which otherwise we throw for rent.

[iDumb]

Originally Posted by dolcevita
tax,.

US tax code is extremely friendly for homeowners and actually made in a way that encourages buying.

- All interest paid in mortgage are tax deductible. (meaning let's say in a a year u paid mortage of 24K .. and if in beginning that would likely eqaute to ~20k of interest paid). End of the year. You will not have to pay income taxes on 20k of your income

- Any gains upto 500K from sell of a house after living there for 5 years is tax free. This is an amazing one.


France seems to be a bit punishing.

[mufi_02]

LOL looks like this thread went awayyy of topic.

alright, I am not as successful as you guys and officially priced out of NYC real estate.

I went to hunter's point in LIC last weekend and saw some nice apts around the area. Went home and checked the price. 1BR going around $3500. Wth! It is not even in Manhattan.

Forget about buying. I can't even afford renting a decent 1BR in NYC anymore. Ideally, your rent should not exceed 25-35% of your take home pay. I don't know how people survives in this city.

[Yankees]

Originally Posted by mufi_02
LOL looks like this thread went awayyy of topic.

alright, I am not as successful as you guys and officially priced out of NYC real estate.

I went to hunter's point in LIC last weekend and saw some nice apts around the area. Went home and checked the price. 1BR going around $3500. Wth! It is not even in Manhattan.

Forget about buying. I can't even afford renting a decent 1BR in NYC anymore. Ideally, your rent should not exceed 25-35% of your take home pay. I don't know how people survives in this city.

If you have to or want to live in nyc, you can make it work. You basically have to sacrifice some combination of space, cost, or convenience (both work commute and being close enough to actually enjoy the city).

For me, I'm sacrificing space. I have a studio not too far from Hunters point, perfect location and a place to myself. When I have a family, I will have to sacrifice convenience. I have friends who are teachers and make it work. Don't ask me how, but they manage fine. My own parents raised me in a 1BR, and we basically sacrificed all 3.

[G-man]

do either as long as you are living within your means and managing your resources (time, money etc) prudently.

I've always believed housing to be a source of shelter and housing, and that's it.

if you want to make "financial investments", there are trillions and gazillions of dollars worth of global financial markets for you to try your luck.

[iDumb]

Originally Posted by G-man

if you want to make "financial investments", there are trillions and gazillions of dollars worth of global financial markets for you to try your luck.

except owning properties are not all about luck. Another poor "advice" . Not pertain to regular folks.

yes in NYC ppl have multiple room mates at the age of 40. that's how they afford it. It's hip apparently. Money in bank is just paper if you can't live the money earned. Our thinking is all messed up... save save save and then enjoy after 70. NO NO NO. It shouldl be invest, take early risks, multiple risks.. and live now.

any teacher living in LIC is likely part of the lottery pool that rents away apartments at subsedized cost to low to mod income ppl for tax breaks for the developers. I know one - earns 60K but lives in a stunning Manhattan view apartment with rent of 1400. Market rate for that apt is somewhere in 5K+/mo.

[mufi_02]

Originally Posted by Yankees
If you have to or want to live in nyc, you can make it work. You basically have to sacrifice some combination of space, cost, or convenience (both work commute and being close enough to actually enjoy the city).

For me, I'm sacrificing space. I have a studio not too far from Hunters point, perfect location and a place to myself. When I have a family, I will have to sacrifice convenience. I have friends who are teachers and make it work. Don't ask me how, but they manage fine. My own parents raised me in a 1BR, and we basically sacrificed all 3.

I also grew up in a 1BR in the city. I think the median income in NYC is around $50-55k. So obviously I am overstating the impact of rent here.

But it is hard to find any new lease in a decent area for less than $2k these days. I think small to mid sizes are the best places to live in US. Cities such as Austin, Colorado, Charlotte, Raleigh, Tampa etc.

[iDumb]

there are part of bronx where housing is still affordable and the commute to Manhattan isn't so bad. I am talking about rent in range of 1200 to 1400 for 1 BR. NOt all gloom and doom.

[mufi_02]

^oh cool. I am not too familiar with Bronx.

Going back to discussion, buy vs rent really depends on the market. In some cities, it makes sense to rent. But on others, it is a better idea to buy a home and start building equity. One also needs to understand state tax implications. For example in NJ, the property taxes will be upwards of $15k/year.

[SportingBD]

What would you guys advise someone who doesn’t want to take out a loan to buy house?

Currently, I’m staying with my parents, and like to buy that house.

The cost of the house is £400,000-450,000 (3 bedroom).
I have around 15% of the money in bank.. that’s about it.

[Yankees]

Originally Posted by SportingBD
What would you guys advise someone who doesn’t want to take out a loan to buy house?

Currently, I’m staying with my parents, and like to buy that house.

The cost of the house is £400,000-450,000 (3 bedroom).
I have around 15% of the money in bank.. that’s about it.

What kinda question is that? If you dont want to take out a loan and have 15% saved, then just wait till you get to 100%. Although I dont understand your aversiion to getting a mortgage.

[SportingBD]

Originally Posted by Yankees
What kinda question is that? If you dont want to take out a loan and have 15% saved, then just wait till you get to 100%. Although I dont understand your aversiion to getting a mortgage.

I don’t like to be in debt to anyone, be it family or financial institution.
It will take time to save 450-k. But let’s see IA.

[adamnsu]

Originally Posted by SportingBD
What would you guys advise someone who doesn’t want to take out a loan to buy house?

Currently, I’m staying with my parents, and like to buy that house.

The cost of the house is £400,000-450,000 (3 bedroom).
I have around 15% of the money in bank.. that’s about it.

Tbh your question and your principles kind of give you the answer really if you dont want to take out a loan then like you said you will need time to save up. If you go down that route you will want to invest it somewhere before you buy a property.

I was chatting with some high level bankers last week and they said it is not a good time to buy before Brexit and elections. They are all expecting certain housing markets to crash as the Pound also takes a battering.

[SportingBD]

Originally Posted by adamnsu
Tbh your question and your principles kind of give you the answer really if you dont want to take out a loan then like you said you will need time to save up. If you go down that route you will want to invest it somewhere before you buy a property.

I was chatting with some high level bankers last week and they said it is not a good time to buy before Brexit and elections. They are all expecting certain housing markets to crash as the Pound also takes a battering.

Most of those senior level people that work in financial services are Europeans. I wouldn’t look too much into what they say. There maybe short term uncertainty, but things will become normal.

[mufi_02]

it is not financially wise to purchase something so expensive outright. loan/debt is not bad. if you are thinking islamically and worried about interest, then go for islamic loans. you can't live on a capitalistic society and not have debts. not sure how it is in UK, but it is almost impossible in US.

but I agree with the notion that debt should be minimized. one should just not finance their new iPhone X and pay that in installments.

[adamnsu]

Originally Posted by SportingBD
Most of those senior level people that work in financial services are Europeans. I wouldn’t look too much into what they say. There maybe short term uncertainty, but things will become normal.

If you think like that then I dont know what more to say really. Its quite ironic though you are asking advice on a forum with most people having little or no insight rather than trusting senior level European people.

[SportingBD]

Originally Posted by adamnsu
If you think like that then I dont know what more to say really. Its quite ironic though you are asking advice on a forum with most people having little or no insight rather than trusting senior level European people.

I voted leave.
There are members on this forum that have experience in this area. I am opposed to this notion that UK housing market etc will collapse. Too much scaremongers.

But yes, there will be short term impact.

[adamnsu]

All of a sudden I got reminded by a user who was boldly stating that all the cricketers apparently vouch for the wicket keeper to having the best view of an LBW decision. Seems like a good example on this thread who think like "all those cricketers" when it comes to making big financial decisions

[G-man]

Originally Posted by iDumb
except owning properties are not all about luck. Another poor "advice" . Not pertain to regular folks.

yes in NYC ppl have multiple room mates at the age of 40. that's how they afford it. It's hip apparently. Money in bank is just paper if you can't live the money earned. Our thinking is all messed up... save save save and then enjoy after 70. NO NO NO. It shouldl be invest, take early risks, multiple risks.. and live now.

any teacher living in LIC is likely part of the lottery pool that rents away apartments at subsedized cost to low to mod income ppl for tax breaks for the developers. I know one - earns 60K but lives in a stunning Manhattan view apartment with rent of 1400. Market rate for that apt is somewhere in 5K+/mo.

It's not poor advice or irrelevant for regular people. Anyone can legit educate themselves or see an advisor/analyst when it comes to investing in markets. Just because you don't have that capacity doesn't mean no one does.

Also, i never said anything about luck. lastly no one gave you the decree to decide what's good advice or not. If you don't think it's useful, good for you, but you can't speak for others.

[G-man]

Originally Posted by SportingBD
What would you guys advise someone who doesn’t want to take out a loan to buy house?

Currently, I’m staying with my parents, and like to buy that house.

The cost of the house is £400,000-450,000 (3 bedroom).
I have around 15% of the money in bank.. that’s about it.

Sportingbd you should see what multiple the purchase price is relative to your yearly income..3 to 4 times is ok. Beyond 5 is kinda not good..during bubble times this can go beyond 10

As long as your cash outflow..mortgage/upkeep etc is all relatively do able with your income then sounds good. Like i said above "live within your means"

You have done well to save that money, don't do anything rash amd that's half the job done.

Hopefully the almighty bringer of knowledge can sign off on that "advice".

[dolcevita]

People interested by real estate should read Donald Trump's books:
-The art of the deal
-The art of the comeback

This guy is much more smart than the liberal "progressive" media try to make us believe.
I will be very surprised if he doesn't win a second term.

The second book contains some jokes, it will make you laught, in one passage Donald Trump is worried that he won't be able to defend himself against the press after his death (book written in 1996).

The first book is more authentic and it helps to understand his strategy