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It's not a point of view, it's just math. $5 every day is $150/month, $1800 per year, save that for 30 years and maybe you can have a down payment on a house (a

It's not a point of view, it's just math. $5 every day is $150/month, $1800 per year, save that for 30 years and maybe you can have a down payment on a house (assuming the interest on your savings has kept pace with the increase in housing prices, which is likely but not certain). There's no one weird trick to get rich from no income.

vel0city 2y ago
Saving $1,800/yr for 30 years for a down payment is extremely hyperbolic. Loads of people manage to buy a house for far less than 10% down. The average is 8%, and one can get an FHA loan for only 3.5% down. 3.5% of $200,000 is 7,000, which you'll have more than that in under 4 years. For a $300,000 house you'd have that in under 6 years, assuming you only saved that $5/day and ignored any interest or other gains.
- 1_1xdev1 2y ago
  Using this as a retort is totally missing the point. Ok so I only have to save up 7,000 now, so I can do it in 6 years, I guess. But that extra 1800 a month I'm continuing to save each year afterwards by forgoing my late doesn't actually cover the 7% APR on the additional loaned 33,000 (interest rates only high as of recent, but still)
  - vel0city 2y ago
    Using this as a retort is totally missing the point. The person I was replying to was saying it would take 30 years at that savings rate to have enough money for a down payment. You do agree, it wouldn't take 30 years to have a downpayment right? Like, we've now both done the math, and found its significantly less than 30 years, right? And actually, at 6.96% for a 30 year FHA loan, the added payment for the additional $33,000, is ~$218/mo. $1,800/yr is $150/mo, so it covers 68% of that amount if you're looking at it that way. Cut out another ~$2.26/day or $68/mo and you'll have completely covered it while owning a house. But I'd look at it this way, your mortgage taking out a $293,000 loan is ~$1,950. Property tax rates vary a lot, but we'll add ~$3k/yr to that (250/mo), budget $3k/yr for repairs as well, so $2,450/mo in the end. What are you paying for rent? How much of that are you keeping as equity? And yeah, property taxes will probably tick upwards a bit, you might need more repairs than budgeted here, but chances are you'll refinance your mortgage and cut that part down to like $1,300/mo or even less in several years if interest rates fall to like 4% or lower. Is your rent going to get lower?

vel0city 2y ago

Saving $1,800/yr for 30 years for a down payment is extremely hyperbolic. Loads of people manage to buy a house for far less than 10% down. The average is 8%, and one can get an FHA loan for only 3.5% down. 3.5% of $200,000 is 7,000, which you'll have more than that in under 4 years. For a $300,000 house you'd have that in under 6 years, assuming you only saved that $5/day and ignored any interest or other gains.

1_1xdev1 2y ago
Using this as a retort is totally missing the point. Ok so I only have to save up 7,000 now, so I can do it in 6 years, I guess. But that extra 1800 a month I'm continuing to save each year afterwards by forgoing my late doesn't actually cover the 7% APR on the additional loaned 33,000 (interest rates only high as of recent, but still)
- vel0city 2y ago
  Using this as a retort is totally missing the point. The person I was replying to was saying it would take 30 years at that savings rate to have enough money for a down payment. You do agree, it wouldn't take 30 years to have a downpayment right? Like, we've now both done the math, and found its significantly less than 30 years, right? And actually, at 6.96% for a 30 year FHA loan, the added payment for the additional $33,000, is ~$218/mo. $1,800/yr is $150/mo, so it covers 68% of that amount if you're looking at it that way. Cut out another ~$2.26/day or $68/mo and you'll have completely covered it while owning a house. But I'd look at it this way, your mortgage taking out a $293,000 loan is ~$1,950. Property tax rates vary a lot, but we'll add ~$3k/yr to that (250/mo), budget $3k/yr for repairs as well, so $2,450/mo in the end. What are you paying for rent? How much of that are you keeping as equity? And yeah, property taxes will probably tick upwards a bit, you might need more repairs than budgeted here, but chances are you'll refinance your mortgage and cut that part down to like $1,300/mo or even less in several years if interest rates fall to like 4% or lower. Is your rent going to get lower?