100% financing..... you gota be kidding right?? with an adjustable short term morgage too boot?
you dont get something for nothing.
i dont have to worry about property tax at 1/2% of 600,000-1 million ( you cant touch anything for under 600K in cali ). Also no maintaince, upkeep, cutting the lawn, high energy costs to heat a house + the rediculous morgage payment. 1/2 of the total goes in to the pocket of the bank.
Dont look at the monthly rates. Thats the lube before the rape. Look at what you pay over the life of your loan. If you borrow 500,000$ over 30 years at a fixed rate of 6.75% your ACTURALLY going to pay over 960,000$ ( this is with a 10% DOWN!... or was it 20%? its one of these 2 figures. If you got 0% down... your well beyond 2X the purchase price. ) for the loan... which means you just about bought your housee TWICE. I dont think so! with a reasonable 7% loan on 30 years at 500K, your looking at about 2500-3000$ a month depending on credit, once again, for the first 20 years what you pay does not even go toward your principle (barely). My rent is 1300, i pay that easily and dont really mind that i dont build equity. In not paying for any of the upkeep and taxes of ownership. If i put an extra 1500 a month in the bank, in 30 years i'll have 500K sitting there + i can enjoy my cars in the mean time and dont have to worry about the preasures of making payment and slaving away for the bank... i can easily put away 1.5K a month thus i'll get there must faster and also enjoy the cars in the mean time. This makes more sense to me.... Also if i put the money in a CD account at lets say 5%. at 500k that nets me over $25,000 a year.... WHICH Would PAY for my rent and than SOME.... so that means... i'll be living at a nice place for FREE and get paid 1000+ dollars a month to live there.... WHY Bother BUYING?!?!?! its higher if you can invest corretly. Not tooo shabby.
If you have cash, you have options. If you have a house with a morage, you dont got much. the saying goes " money talks " if you have all your money tied up in your house, you aint speaking too loud. besides, everyone has a house, not every one has cash. If you see a great business that generates good cash flow... if you have cash in the bank, you can purchase it and make $. If you have a house? with your 3000$ a month in morgage and your slaving away just to save up for that properity tax.... your out of luck my friend. Even if the business is just so awesome that you want to sell your house and purchase it, your looking at month or two to sell it in an average market + broker fees and 30 days to clear escrow.. but that time, someone like me would have already purchased the business leaving you thinking what if......
if you take equity out of your house.. its going to take time. What if you want to have a toy or two? maybe drive that ferrari or lambo?... take equity out of your house?.... lol tack on a few more years and 10s of thousands in interest charges! you cant even play with your toy with out paying a premium.
So the opertunity cost of owning a house is not so appealing if you really think about it. Dont buy into the whole pride of ownership crap, its over rated and it under delivers in performance and ROI. This is the lame duck way of thinking. The realitors and the bankers would love to feed you that story since the bank is getting you to pay for the house twice and the broker gets to take your money when you buy and take it again when you sell... lol if i was a banker or a broker, i would be sing high prases for ownership. Think like a common man and you'll recieve common things. Out think and out perform thats the key.
you can build equity in your bank, or you can build it FOR your bank.
work for the bank for 30 years... or enjoy nice cars for 30 years and buy your house too... hum.....
ofcourse im over looking properity appreciation but i also invest on the side for that 10-20%. for the sake of argument, lets say the appreciation of the house is 10-20% ( which it is far from in todays markets ) so everything brakes even there.
Im waiting for all the idiots doing the 100% financing to eat their idiocy and default. I'll just liquidate my car collection when i need to and get money out and take advantage. if it was not for all the stubid morgage programs like the 100% and 110% loans we would not be in such a state of housing hype. Also i have back up funds in the bank for a down payment... i dont spend every cent i got on cars.. that would be just silly.
yes yes, cars is not a liquid asset.... yes it is if you sell it at below market value. If i wanted to sell both my nsx at 10K each and my ferrari at 50-60k.... im pretty sure ill sell them in 1-2 hours.
Im not a big fan of leverage. My mother taught be better than to buy stuff i cant afford. I play with in my means. Never took out a loan in my life and im not a fan of give some one else my hard earned money. compounded interest is just no no in my books.
yes the lady that purchased the house was a 100% return on investment. 3 years ago. im 23. still got lots of time left to get there. when i was 20, the housing hype started. I didnt have anything to my name and a house of not with in my means.
My analysis is correct. it might be wrong when your in the box, but when your out side..... it looks very right. Im in the black, i have equity in the bank, i dont have a penny worth of loans, no visa, no morage, no car loans, I have very nice cars paid for by my blood and sweat ( 3 years and not no vacation yet or in sight), i have a great business that pays the bills and im working harder everyday to out perform so i dont have to worry when im older and i can enjoy the good things when im young and able.
btw, go find out what your paying for the life time of YOUR home.
down payment + (monthly payment x 12 x # of years ) = WOW your paying too much. :biggrin:
at Ieast n0 damages, but dang, whats up with pe0pIe??
thats crazy, caIi is just crazy; but that d0esn't disc0urage me t0 drive my car every chance i get;
