if i have $100k in stocks should i ever even CONSIDER renting? why should i not immediately mortgage on a house with it?
i've had these stocks since i was born, they are worth a lot now. my wagecuck gig clears $350/week (barely) and i kinda thought i wanted to get an apartment. apartments are for cool people, people my age, you know? houses are for boomers... and isnt it cheating to skip the rent step and go straight for home ownership? what if im not ready for that yet, and all the maintenance stuff that goes along with it?
anyway what if i want to just get a year lease on an apartment first to really "feel" living along managing all of my costs? how stupid would that be on a scale of 1-10? again i only make $350/week, it would be wasting a year and washing money down the sink, but i wouldnt have made hardly anything that year anyway, so what does it matter?
buy a house babe you will be really cool and you can rent to your most responsible friends. only rent to responsible friends you do have responsible friends, right?
I'm 30 and i wish I owned a house. spent close to 100k on rent so far
Logan Bell
you should focus on getting a higher paying job buddy, if renting an apartment will drain your whole income, you're clearly not making enough. And if renting will drain your whole income, home ownership + mortgage will drain more than you make.
Justin Bell
but the point here is that i have money already
Jackson Carter
Are you me? >22 w/ 100k (cash not stocks) >Wagecuck for 700-800 every 2 weeks. >+1200 from state every month >Live with mom. I have decided that I will not move out until I can afford a mortgage on my work income alone. I was about to land a job at Tesla before they froze hiring, now I hope that position still exists when they reopen.
Luke Williams
>I have decided that I will not move out until I can afford a mortgage on my work income alone well, im going crazy here and really need to leave. i cant take it anymore especially with my sister back here from college, having boyfriends over and shit. and my mom annoys the fuck out of me, i hate to say it, but thats how it is. renting is financial masochism and ive been struggling with these thouhgts for a while which is why i havent moved out yet. im honestly fine with living paycheck to paycheck. i think i would even be happy. but there would also be the nagging feeling of being a chump. with a mortgage rather than rent, secured with my stocks, that feeling wouldnt be there even if i still dont make shit for income.
Daniel Powell
That money will get chewed up very quickly by living expenses. You need to either earn a lot more money or you have to have a lot more existing money.
Instead of living in an apartment to see how things go, you can do it "on paper." Find an apartment that you think you would live in if you were to live on your own and determine what the monthly rent is. Then, on paper, keep track of how much money you'd be paying out if you lived on your own. These costs would be:
1. Rent 2. Electricity (you can figure this out by looking at your mother's bill) 3. Water 4. Natural gas 5. Automobile (Even if you have a car free and clear, understand that it will eventually break down and require repair or replacement) 6. Gasoline 7. Automobile insurance 8. Food 9. Mobile phone 10. Internet 11. Clothing
et cetera. You'll find that your monthly gross of $1,400 is probably going to be entirely chewed up by the above expenses leaving you with no additional savings to further invest or to save for when something bad happens.
Austin Howard
Even if you own a house outright (no mortgage), you will have to pay property taxes and, potentially, homeowner association fees. Depending on where you live, property taxes can range from 1% all the way up to 5% or so. I very seriously doubt you live in a state where the property taxes are 1% because real estate in those states is very expensive.
If you can't pay the property taxes, you lose the house as the state will seize it from you.
Elijah Ross
No. Rent is like 1k. Your shit will be gone in less than a decade with the excess bills and requirements for living.
David Green
Like you’re going to be burned out of that 100k in 6 years minimum.
Brandon Wright
How much dividends do you collect from these stocks?
Hunter Bailey
I wouldn't rent. You can always buy a trailer home for a few grand if you look around or if you're lucky and can snag a good deal on land, build a tiny home for less then $10k. I got lucky and bought a trailer home back at the start of 2019 for $1000 and lived in it for a year, sold it for $2000 when I left. Power+water+internet+lot rent equaled out to be $350/mo. I didn't pay for food, I'm a very stingy guy so I'd go to churches and get weeks worth of food from food drives and have churches pay my power bill occasionally. I spent around $5000 throughout 2019 occasionally eating out and splurging on upgrades for my PC. If you're able to be very stingy you can save an absurd amount of money.
Jeremiah Jackson
well what are you trying to say then? don't move out at all? fuck that. it just seems like the smartest move is moving out via a mortgage on a house rather than rent. kentucky. it's cheap. and arent there homeowner tax credits? no look, i wasnt ever considering chewing into the stocks to pay rent. i was considering living without actually being able to save up- all my income going to living expenses and rent. but i'm thinking rather than that, all my income can similarly go to living expenses and mortgage payments instead. i still don't have a good amount of income, but rent is throwing money away. and then the purpose of this thread is asking if maybe i SHOULD actually rent for a year or so first, because the house-buying process seems really daunting and i can always just put buying a house with the stocks off till later: i wont touch the stocks, they'll still be there, and the meager amount of saving i'd be able make in the next few years if i DID mortgage isn't important because there'd be so little of it.
I think whether you buy or rent comes down to your future job prospects. If you can move to a higher wage position in your current area, buying is not that bad of a thing. If you are worried you won't find a better position in your current area, you should consider rent. Renting out a room, like a friend of mine does, is kinda shitty. The upside is your monthly costs can be significantly lower. You get out of your current living situation and have the freedom to move to a new area very quickly for a future job opportunity. If I had to get out of my current living situation, I would look to rent out a single room. My future job opportunities are in other states, so I wouldn't look to buy in my current area.
Daniel Rivera
On top of this. I think most people see rent as retarded because they have 0 savings. You have $100k. Missing out on the equity of homeownership is not going to cost you the ability to buy a home down the road. Most people rent and then have no savings, so they get stuck renting for a decade.
Aaron Robinson
You'll never be approved for mortgage without sufficient income on top of your networth plus sufficient credit. This is why you might be forced to rent. Thankfully you're american, and your house prices are insanely low compared to ours. Thus all is not lost.
Aaron Miller
shove it up ur ass, take it out then sell it for 90k, taking pride in the fact that someone bought your shit
Zachary Gutierrez
trips commands u user
Juan Flores
>Missing out on the equity of homeownership is not going to cost you the ability to buy a home down the road yeah, this is what I was getting at. if I had no savings, even the meager little bit of income i make is a loss that has missed potential to be going to something permanent, EVEN if it almost wouldnt make a fucking dent. but i do have savings, therefore that same meager little bit of income doesnt matter as much, because while it could still be going towards something permanent, i dont really know what.
Asher Smith
Homeownership is stupid, putting in 100k in stock will net you a higher return. Stay at home and save up about another 300k, then put all of that into different dividend yielding stock.
Elijah Morales
>stay at home no, absolutely cant stand it
Matthew Torres
>Homeownership is stupid, putting in 100k in stock will net you a higher return.
not true, home ownership for the vast majority of people in first world countries has been thier largest asset with stable appreciation
your assuming OP actually knows his shit and can get 10%+ ROIs YOY. If any of us can do that reliably i doubt we'd even be here
Daniel Reyes
Get a better paying job. $350 a week is literally poverty level. After that you can think about buying a house.
Jackson Wilson
Average return on S&P500 is 7% a year. All he has to do is buy indexfunds and hold for long term. Roommate then? Only buy a house if you get married and need the stability of a house.
Justin Moore
Buy a small house and rent it out or buy a multiperson home and rent it out, at the same time live at your moms for another year or so
Ryan Jones
You can't live inside a stock, eat inside a stock, fuck bitches inside a stock. That's why you get the home first.
Remember, numbers on a screen are not real wealth.
Justin Reed
If your living in a shithole like Detroit thats true but chances are OP is living in an area with consistent real estate gains over 7%+ YOY
Justin Murphy
Buying a house chains OP to a 30 year long debt contract with a yearly wage of 16k. Buying stock while staying employed and living more cheaply with a roommate is a far better smarter plan.
If hed a buy a non shithole house the monthly payments would bankrupt him.
