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I'd rather get paid to get in the grave sooner while having no debt on a home. I find most of existence boring, but don't enjoy the process of leaving this real

I'd rather get paid to get in the grave sooner while having no debt on a home. I find most of existence boring, but don't enjoy the process of leaving this realm. Therefore I'd rather have a nice prison that I own as quickly as possible than to have freedom to stew in this hell hole with debt.

pjmlp 4y ago
The first step is to avoid debt in first place. Only buy what one can afford, subscriptions only for infrastructure, credits only those that one can afford to pay from saving and no longer than 3 years. I have been doing this for quite a while, no need to get rich, not even money can cure everything, only make it less painful.
- Xylakant 4y ago
  That’s going to be hard to buy a flat/house then, or at least inefficient. The mortgage I paid on my flat was initially higher than the rent for a comparable flat. Within a few years, it evened out, and now it’s less. Financially, this has been a good decision to take on that debt. The important part is that the mortgage was backed by an asset - I could have decided to sell the flat and pay back the debt at any time.
  - scarface74 4y ago
    Even today, your average enterprise CRUD developer with 3-5 years of experience in many major cities in the US can afford home using the standard metric of 3.5x your income. Not everyone needs or wants to live on the west coast.
    - Xylakant 4y ago
      Obviously it’s great of you can save huge chunks of you income for multiple years, but even then it may be the financially better decision to buy at a good time and mortgage rather than buying when you have the money. For example, my remaining mortgage is at a lower interest rate than what I can have if I invest. So it makes sense to not exercise my early repayment option. Debt, as long as it’s backed by a sufficiently good asset can be a good option.
      - lupire 4y ago
        You have a negative interest rate mortgage?
        Xylakant 4y ago
        No, at around 1% fixed for 10 years. You can get up to 2% on very short term investments in Germany right now with interests rising.
        Lio 4y ago
        No but we do have inflation eroding the value of savings and also the cost of fixed rate mortgage debt. Right now you need a pretty good rate of return just to keep pace with inflation if you're saving. Meanwhile that same inflation is reducing the value you the debt you've taken on to buy a house and you get to live in the house as it pays off.
      - scarface74 4y ago
        You can get an FHA loan with 3.5% down and they are easy to qualify for.
  - deleted 4y ago
    [deleted]
  - pjmlp 4y ago
    That only works out if there is a buyer and not all countries are like US.
lupire 4y ago
Why?? Dying in debt on a home == a discounted price on a home. Always remember that the Mortgage Bankers Association defaulted on their mortgage.
- gadflyinyoureye 4y ago
  I don't want them to be able to take it from me in the mean time. It's far easier to pay $1000/year in taxes than $26000/year in mortgage/taxes.
- tw98521358 4y ago
  Yeah no… debt is like rent especially early in the mortgage. The above is only a good deal if the rent to own ratio is in favor of owning and that’s mostly not the case right now

pjmlp 4y ago

The first step is to avoid debt in first place. Only buy what one can afford, subscriptions only for infrastructure, credits only those that one can afford to pay from saving and no longer than 3 years. I have been doing this for quite a while, no need to get rich, not even money can cure everything, only make it less painful.

Xylakant 4y ago
That’s going to be hard to buy a flat/house then, or at least inefficient. The mortgage I paid on my flat was initially higher than the rent for a comparable flat. Within a few years, it evened out, and now it’s less. Financially, this has been a good decision to take on that debt. The important part is that the mortgage was backed by an asset - I could have decided to sell the flat and pay back the debt at any time.
- scarface74 4y ago
  Even today, your average enterprise CRUD developer with 3-5 years of experience in many major cities in the US can afford home using the standard metric of 3.5x your income. Not everyone needs or wants to live on the west coast.
  - Xylakant 4y ago
    Obviously it’s great of you can save huge chunks of you income for multiple years, but even then it may be the financially better decision to buy at a good time and mortgage rather than buying when you have the money. For example, my remaining mortgage is at a lower interest rate than what I can have if I invest. So it makes sense to not exercise my early repayment option. Debt, as long as it’s backed by a sufficiently good asset can be a good option.
    - lupire 4y ago
      You have a negative interest rate mortgage?
      - Xylakant 4y ago
        No, at around 1% fixed for 10 years. You can get up to 2% on very short term investments in Germany right now with interests rising.
      - Lio 4y ago
        No but we do have inflation eroding the value of savings and also the cost of fixed rate mortgage debt. Right now you need a pretty good rate of return just to keep pace with inflation if you're saving. Meanwhile that same inflation is reducing the value you the debt you've taken on to buy a house and you get to live in the house as it pays off.
    - scarface74 4y ago
      You can get an FHA loan with 3.5% down and they are easy to qualify for.
- deleted 4y ago
  [deleted]
- pjmlp 4y ago
  That only works out if there is a buyer and not all countries are like US.

lupire 4y ago

Why?? Dying in debt on a home == a discounted price on a home. Always remember that the Mortgage Bankers Association defaulted on their mortgage.

gadflyinyoureye 4y ago
I don't want them to be able to take it from me in the mean time. It's far easier to pay $1000/year in taxes than $26000/year in mortgage/taxes.
tw98521358 4y ago
Yeah no… debt is like rent especially early in the mortgage. The above is only a good deal if the rent to own ratio is in favor of owning and that’s mostly not the case right now