Hey there crypto nation, I’m turning to y’all for some advice. My girlfriend and I are really trying to get our own place. She is pushing for us to get a loan to buy a house. This is my least favorite scenario as I think the debt system is slavery. Having said that, if I can get favorable conditions like no penalty for paying it off early and a very low fixed interest is it worth doing despite my feelings on the matter. Or should I convince her we should figure something else out? If so what would that something else be? I’ve explained that with what the down payment would be we could rent for a little over 2 years, but she is very big into buying a place and having it be “ours”. Also her and both of our families push the it is an investment angle, but I think the money can be better put to use somewhere else even if not all in crypto. Thank you for the help cryptonation.
Im in the same boat…curious what the pub says
And what doesn’t help is even before crypto I’ve always had the dream of just going buying my place in cash and now BTC
i personally vote for buying the house.
its always nice to have an asset to add to your portfolio at the end of your loan or even something you can borrow against should an emergency come up.
additionally, just because you are renting doesn’t mean you are out of debt slavery. if you are renting you’ve just been sub-contracted into paying for someone else’s debt slavery.
lastly, paying your own mortgage is always cheaper than rent prices, plus you have tax breaks as well.
Obviously rent. If you need a credit to buy something, you can’t afford it and you will become a debt slave.
With the everything bubble going on right now I would feel extra uncomfortable as a individual in debt right now.
In case of a deflation, which is a very likely scenario in the coming years, it would be even worse for you.
A overleveraged investment bank will get bailed out by your local government, a common individual won’t.
I chose to go the route of buying a house two years ago when I was in this situation. It has had its up and down’s, but I would make the same choice again. Owning your house at least you are paying towards something vs renting is just thowing your money out the window, but if you know you are going to be moving in 5-6 years I hear the math states you should rent.
If I was single I would still be renting an apartment, but the old school in me wants a house for our future family and have a nice size yard to play in.
Better put your capital to work! Bitconnect for example is super cheap right now. Maybe put your savings in there and be independially, financially independially buy a mansion with the earned money.
Paying rent to pay someone elses mortgage is painful. As long as you dont go out of control with the house purchase and have extra fiat after your monthly mortgage I’d say buy.
Dude, you should at least calculate what is the most beneficial as it is right now before you decide
It depends on your age and your geographical location.
Some countries have very low rental costs and exceptionally high mortgage rates.
Renting gives you much more flexibility.
If you and your GF are in your nineties then the banks are going to want you to put 90%+ deposit down.
I’m 26 and she 28. @Hulpos that rent calculator is very interesting. For what I am looking at buying it is cheaper after being there for 4 years according to that calculator.
Buy the house, get a mortgage & pay it off as quickly as you can while still having some quality of life.
I paid mine off about 5 years ago when I hit 50 & its the best feeling in the world to think you are no longer a slave to the debt system, if your boss is giving you shit you can give him it back without fear that you wont have a roof over your head if he fire’s you.
It empowers you & you will also have an asset at the end that is appreciating all of the time & can provide you with options in later life if you want to cash out and downsize.
Buy the house, pay it off quick, be happy, free & the master of your own destiny.
You should go under details and fill out everything that is possible, to make it more accurate. In case you didn’t already.
Stayed the same even after lowering down payment $10k and adding som HOA fees.
“death pledge” "´´´´
There are a lot more to consider than just the conventional “paying rent for someone’s mortgage”.
1. Current housing market
Depending on your location, housing market may be highly inflated (i.e., it would crash soon). If the housing market in that area is not highly inflated, yes, buying a house should be strongly considered.
2. Property tax(es) and miscellaneous fees
The good thing with owning versus renting a house is that it’s your property. The thing that sucks is that you are responsible for all associated property tax(es), administrative fees and county/city charges. Those fees do add up. Beyond the fees, you are responsible for all damages, should there be any minor accidents or major natural disasters. As renters, there aren’t any incidental, unexpected expenses.
3. Down payment, mortgage interest & length of mortgage
Depending on your age, urgency, and the aforementioned items, you may want to consider saving up a chunk of money for the initial down payment. The golden rule is 20% minimum, but I would suggest a minimum 40%, especially if the mortgage interest rate is high.
4. Other considerations
My comment is more applicable in the US because different countries have different housing (renting versus owning) policies. I would consider weighing in your: (I) long-term goals, (II) investment portfolio, (III) school district neighborhood.
All good info here @cryptowine
@powerofknowledge - I would highly recommend staying away from HOA’s. This is basically a tax that you are paying someone to tell you what you can and cannot do with your property. In Texas they are getting extremely out of control. They are to the point they are trying to control the floor plan and inside of your house with inspections.