Honestly just found out that condos in my area are cheaper than renting. But the hard part is the initial down payment of 20 percent. And 30 year old mortgages seem like they don't let you break even. Any time soon, so you need to be making enough to make it a 10-20 year mortgage.
Any thoughts, Zig Forums??
>buying property permanently attached to someone else's property
>a good investment
Consider the following --
The average home price here is 600k. The city has a monotorium on building, so condos move with housing prices.
I'm building absolutely no equity and im paying 900 bucks a month to rent a shitty apartment when if I could come up wth the down payment, could afford to get a condo instead. I'm not worried about the value of a condo when home ownership is so far fetched for me. I could maybe get the money together in two years, whereas it would take me 5 years to get anywhere close to a cheap home in my city.
>monotorium
Shut the fuck up you pajeet retard
Where are you at op?
Sorry friend. I don't know why I wrote that I meant moratorium
>Where are you at op?
Boulder, CO.
>He doesn't know what a condo is
Based and americapilled
The right thing to do is leave that shithole. Let the boomers enjoy their overheated real estate and move somewhere where you aren't priced out.
FHA only requires 3.5
Perhaps. But there's not a lot of great places in Colorado to live if you don't want nogs and similar. I'd rather live here than Denver, tbqh. Maybe golden as well
Stop accepting the false dilemma that only rich whites get to live around other whites
But then where to move? I don't wanna move too far from here, it's where I work.
Boulder is full of fags, frat boys, and hippies. Move a half hour into the hills and live small town life like a true aryan.
> Honestly just found out that condos in my area are cheaper than renting
You did not at all factor in the risk of the investment. That's why buying seems like free money/ a no-brainer to you. A lot of brainlets don't get this (no offense).
You shouldn't be comparing buying a condo for $X to renting.
You should be comparing buying a condo for $X to renting AND investing $X in other assets (e.g. a mix of stocks and bonds).
It might not seem that way right now, but real estate is FAR FROM a risk free investment. If you put down $100k for a $500k condo and the market tanks 25% (could easily happen) then you lose $125k: your $100k equity in the condo + $25k. You still owe the bank the $400k but your condo is now only worth $375k.
The longer mortgage you can get the better. Just cash out refinance and buy more property while paying minimal interest.
Inflation is also a good reason to go with a 30 year mortgage. If shit keeps going the way it is, your monthly payment will be half as much in 20 years inflation adjusted.
>You shouldn't be comparing buying a condo for $X to renting.
>You should be comparing buying a condo for $X to renting AND investing $X in other assets (e.g. a mix of stocks and bonds).
Often the mortage payment is LOWER than the rent payment, so there isn't any difference to invest elsewhere, there is only the fact that you aren't accumulating any equity
You're probably still buying the top of the market here so tread carefully fren
I’m assuming there are a LOT of Airbnb’s in Boulder that are currently going tits up. Just look on Zillow at the rate housing inventory is increasing, and also look at the deep discounts getting applied across the board. Wait OP. It’s not time yet, but it will be very soon.
>I don't think you get it. You're comparing cashflows with completely different levels of systematic risk. Renting has zero/ negative systematic risk (you save money when markets go down). Buying a property with 5x leverage has TONS of systematic risk.
Saying that that buying is better than renting because rent payment > mortgage payment is not an economically sound argument. It's the equivalent of saying that investing in 5x leveraged stock ETF is better than holding risk free government bonds. Sure, the average/ expected return is much higher for the second option, but so is the level of systematic risk (the risk of you losing a lot/ all of your money when the market turns sour).
You should be comparing investment strategies with the SAME levels of systematic risk. As I said, OP should be comparing buying a condo to renting AND making a (leveraged) investment in other assets. If he has $100k he can easily get cheap leverage with a good stock broker and/ or invest in leveraged ETFs.
> Sure, the average/ expected return is much higher for the second option
Meant to write that the expected return and risk are higher for the first option
>(you save money when markets go down)
Something that happens never
Idk I struggle to believe that even if a property goes down a bit, it makes renting worthwhile
Idiots. Absolute brain dead idiots.
Boulder CO is an extremely nice area to live in. Most of you faggots couldn’t afford it.
Happened in 2008. People were renting their places at a loss just to get some kind of cash flow. And they couldn’t afford to sell
Boulder is the worst city in the state. Go back to California you nigger faggot.
Kek shut the fuck up you little whining shithead you’ve obviously never been to Boulder or any other city in Colorado.
This is a bad plan until you hop off the hedonist treadmill and actually save some fucking money. You live in a HCOL area and you probably would be homeless after 2-3 missed paychecks. You’re shallow and animalistic with your desires to impress women and urges for new toys. If you don’t plan holding at LEAST 6 months living expenses in cash at all times for emergencies, this plan will go very wrong for you. What happens if you get laid off, or the recession doesn’t end for 2-3 years? You’d be fucked because you’re too busy buying daily coffees and ordering McDonald’s on grub hub to even think about the consequences of your actions.
Boulder is yuppie trash, frats on the hill, and hippies at the bottom. It’s as deranged as Portland, just wealthier and it’s a stain on the state.
Anyone living in the front range is living in Kansas not Colorado, and the rest of us would gladly give you away to not have to deal with you. What’s the matter with you? You have the most beautiful state 30 minutes west of you and you decide to live in a flat featureless city full of fags.
>in before muh flat irons
They’re as gay as the garden of the gods
Op here. As a Pueblo native you're wrong as fuck lol.
But I do have six months of living expenses. All my money goes to crypto right now and I drive a 30 year old car.
Your house is permanently attached to the government's land and they can take it at any time
All I'm saying is that you can't compare renting to buying a property with 5x leverage without factoring in the risk.
Real estate has been performing way above expectations for a long time which makes it seem a lot safer than it really is.
If you use 5x leverage (down payment of 20%) and the market drops 20% then you will lose 100% of your initial investment/ equity.
That being said, it's highly unlikely that the market won't be higher in 20+ years. Same can be said about the stock market. If you're in it for the long term and can stomach/ afford the swings then it can make a lot of sense to use leverage and buy risky assets such as real estate and stocks.