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> yet people just buy once they have a down-payment without considering the financial repercussions. My desired location is in an anomalous realestate market.

by Swizec 10y ago

> yet people just buy once they have a down-payment without considering the financial repercussions. My desired location is in an anomalous realestate market. Mortgage for the place I live in would cost me about $6k/month, rent is about $3.5k/month. Even if that wasn't the case, do I really want an illiquid investment that ties me down with a loan for 30 years when there are so many other investments I could make? Just considering a downpayment of, say, $200k ... for that kinda money I could take 2 or 3 years off work and build a business that makes much more than that. Riskier investment, sure, but also a lot more profitable and more fun. Quicker returns too. Dunno, the arguments for buying never made sense to me. Unless of course you have high leverage (can buy cash, but choose not to). Then it's a whole different game.

metaphor 10y ago
> My desired location is in an anomalous realestate market. > Just considering a downpayment of, say, $200k ... > Dunno, the arguments for buying never made sense to me. Makes complete sense to me: cost of living for your desired location is outrageously expensive!
- Swizec 10y ago
  Eh cost of living is fine. Cost of buying an apartment, lulz.
  - metaphor 10y ago
    For the sake of analysis, I tend to lump considerations of purchasing a home in with the cost of living, even if I am a bachelor and currently lease...call it posturing to make the traditional American dream a reality, if you will. Completely OT but just realized you're that guy[1]. =) [1] https://www.youtube.com/watch?v=OAcOjTks9Ew https://www.youtube.com/watch?v=OAcOjTks9Ew
    - Swizec 10y ago
      Hehe yep that's me. Buying never really appealed to me for reasons that go beyond the financial bit so I guess it never occurred to me that people consider it part of cost of living. Call me "grew up at a time when getting loans sounded crazy and kinda still does"
pjc50 10y ago
> My desired location is in an anomalous realestate market. > the arguments for buying never made sense to me Well, there you go. I live in a market that's anomalous in the other direction: there's exactly one four-bedroom house advertised for rent in the city at the moment, and its price is about 20% higher than the mortgage would be. (Mortgage >> rent implies a really strange market where the landlords must be experiencing negative ROI?)
- xyzzy123 10y ago
  Not necessarily; remember that someone renting a place out might have bought at a much lower price than the house would sell for now. Some people don't want to fully "mark to market" and are happy as long as the mortgage on their investment gets paid.
- ohwello 10y ago
  The statistic measuring this property is the price-to-rent ratio: https://smartasset.com/mortgage/price-to-rent-ratio-in-us-cities https://smartasset.com/mortgage/price-to-rent-ratio-in-us-ci... Landlords in California have a great reason not to sell - prop 13, a tax benefit for people and corporations who bought low.

by Swizec 10y ago

metaphor 10y ago

> My desired location is in an anomalous realestate market. > Just considering a downpayment of, say, $200k ... > Dunno, the arguments for buying never made sense to me. Makes complete sense to me: cost of living for your desired location is outrageously expensive!

Swizec 10y ago
Eh cost of living is fine. Cost of buying an apartment, lulz.
- metaphor 10y ago
  For the sake of analysis, I tend to lump considerations of purchasing a home in with the cost of living, even if I am a bachelor and currently lease...call it posturing to make the traditional American dream a reality, if you will. Completely OT but just realized you're that guy[1]. =) [1] https://www.youtube.com/watch?v=OAcOjTks9Ew https://www.youtube.com/watch?v=OAcOjTks9Ew
  - Swizec 10y ago
    Hehe yep that's me. Buying never really appealed to me for reasons that go beyond the financial bit so I guess it never occurred to me that people consider it part of cost of living. Call me "grew up at a time when getting loans sounded crazy and kinda still does"

pjc50 10y ago

> My desired location is in an anomalous realestate market. > the arguments for buying never made sense to me Well, there you go. I live in a market that's anomalous in the other direction: there's exactly one four-bedroom house advertised for rent in the city at the moment, and its price is about 20% higher than the mortgage would be. (Mortgage >> rent implies a really strange market where the landlords must be experiencing negative ROI?)

xyzzy123 10y ago
Not necessarily; remember that someone renting a place out might have bought at a much lower price than the house would sell for now. Some people don't want to fully "mark to market" and are happy as long as the mortgage on their investment gets paid.
ohwello 10y ago
The statistic measuring this property is the price-to-rent ratio: https://smartasset.com/mortgage/price-to-rent-ratio-in-us-cities https://smartasset.com/mortgage/price-to-rent-ratio-in-us-ci... Landlords in California have a great reason not to sell - prop 13, a tax benefit for people and corporations who bought low.