Join John Adams, world renowned Intl Matchmaker, Monday nights 8:30 EST for Live Webcasts!
And check out Five Reasons why you should attend a FREE AFA Seminar! See locations and dates here.



View Active Topics       View Your Posts       Latest 100 Topics       FAQ Topics       Mobile Friendly Theme


Owning real estate in America = Overrated?

Discuss and talk about any general topic.

Moderators: fschmidt, jamesbond

Robert77
Freshman Poster
Posts: 354
Joined: July 20th, 2012, 10:34 am

Owning real estate in America = Overrated?

Post by Robert77 » June 8th, 2014, 10:59 am

Most folks i know who own property have to work their assess off to pay the monthly mortgage on their property, which means they are enslaved to 9 to 5 jobs and can't afford to explore the world and find themselves because well, they have to work.....

yes owning a house or property is great especially if you have wife and kids, but most of us in this forum are single nomads, we do not want to get married, get a 9 to 5 job and have two kids.... so is it even worth investing into property?

what are your plans as far as your golden years???
World traveler, questions about women from a certain country? Ask!!! I can help




Check out our Dating Sites and International Romance Tours!



User avatar
jamesbond
Elite Upper Class Poster
Posts: 8116
Joined: August 25th, 2007, 6:45 pm
Location: USA

Post by jamesbond » June 8th, 2014, 1:01 pm

Owning real estate is extremely over rated and a waste of money. During the housing crash, real estate went down in value an average of 34%, this was more than it did during the great depression when it went down in value 32%.

There are still millions of Americans who are underwater on their mortgage. This means they can't move, because they can't afford to sell their place and have to wait until their property goes up more in value.

Even with all the talk about how low mortgage rates are now, it's still cheaper to rent. With renting, you don't have to pay any real estate taxes, homeowner association or do any maintenance. Also with renting, you don't have to put down a down payment.

A 30 year mortgage is a trap and keeps you enslaved. Renting is a far better option than owning, especially if you are single. I wish I rented instead of buying a townhouse. I put 20% down and I am still underwater six and a half years after I bought my place.
"When I think about the idea of getting involved with an American woman, I don't know if I should laugh .............. or vomit!"

"Trying to meet women in America is like trying to decipher Egyptian hieroglyphics."

Tsar
Veteran Poster
Posts: 2030
Joined: August 7th, 2012, 8:40 pm
Location: Somwhere, Maine

Post by Tsar » June 9th, 2014, 2:15 am

Most homes are excessively large which is another reason that makes them expensive. Real estate in America is also inflated in price and overpriced.

A 600 square foot home is all a single person or a couple really need. They build larger homes because of zoning rules and to earn more in profits for the builders, more taxes for the government, and more interest for the banks. Housing costs should be 30%-50% lower in most of the country and 60% lower in the northeast. Considering most people are unemployed, underemployed, and the babyboomers are aging that is another reason why the prices are also unreasonable.

S_Parc
Veteran Poster
Posts: 2425
Joined: November 12th, 2010, 8:01 pm

Post by S_Parc » June 9th, 2014, 2:53 am

Tsar wrote:A 600 square foot home is all a single person or a couple really need
I'm going to say 1100-1200 sq, and it's not for the reasons you think.

With a little extra, one can subdivide and rent out a room, for short term workers. And thus, it's a way to lower one's overall mortgage or maintenance bill.

Over 1200 and now we've got that whole McMansion culture of keeping up with the Jones, a total and complete waste.
16 years ago, the Best Picture of 1999, "American Beauty", telegraphed the message of Happier Abroad to the world.

Beware of long term engagements with AWs, you may find yourself in a coffin.

AB discussion thread

BTW, despite settling down with an AW, myself, the warning is still in effect.

SilverEnergy
Junior Poster
Posts: 958
Joined: July 7th, 2013, 10:41 pm

Post by SilverEnergy » June 9th, 2014, 3:47 am

It's good if you are renting out property and collecting cash flow.

It depends on what you want in life.

I personally love and adore real estate but many don't and choose to go with stocks instead.
"Allow me to show you the Power Cosmic!" - Silver Surfer

johnnyderp
Freshman Poster
Posts: 70
Joined: May 11th, 2014, 8:42 am

Post by johnnyderp » June 9th, 2014, 4:00 am

Purchasing a property for your residential needs is a scam IMO, but an investment property can be quite a valid investment strategy.

I don't know about other countries, but in Australia the interest repayments on investment debt provide tax-deductions, and of course the rental income provides a return to offset potential capital risk.

One of the most common arguments the 'buying your own home' supporters always regurgitate is that renting from a landlord is 'dead' money, while concurrently ignoring the fact that paying a shit load of non-deductible interest to a big bank over 30 years is also dead money! Additionally, the homeowner receives no income from their residential property, not to mention the fact that they have become virtual slaves to the financial institutions and government. Seems like a lose-lose situation to me.

User avatar
Winston
Site Admin
Posts: 25365
Joined: August 18th, 2007, 2:16 pm
Contact:

Post by Winston » June 9th, 2014, 4:17 am

But how come so many Chinese people have made lots of money in real estate? Ask Momopi about it. I'm sure if you buy low and sell high and are good at it, you can make a fortune in real estate.
Check out my video series Female Encounters of the Foreign Kind and Full Russia Trip Videos!

Also see my HA Grand Ebook and Join Our Dating Sites to support us!

"It takes far less effort to find and move to the society that has what you want than it does to try to reconstruct an existing society to match your standards." - Harry Browne, How I Found Freedom in an Unfree World

Repatriate
Veteran Poster
Posts: 2533
Joined: June 15th, 2008, 7:39 pm

Post by Repatriate » June 9th, 2014, 5:41 am

Winston wrote:But how come so many Chinese people have made lots of money in real estate? Ask Momopi about it. I'm sure if you buy low and sell high and are good at it, you can make a fortune in real estate.
You can also get rich in the stock market, in commodities, or any other speculative venture by "buying low and selling high." The problem is do you know what "low" is relative to the broader market or what the future trend is?

Maybe you should consult that dude who can move glass bowls with his mind on youtube for the answers you seek.

KyleMack
Freshman Poster
Posts: 13
Joined: April 17th, 2014, 5:46 pm
Location: Cincinnati

Post by KyleMack » June 10th, 2014, 1:06 pm

Generally speaking you make money in real estate when you buy. If you buy right you are good to go. You can own a single family house in a nice suburb or attractive urban area, pay the mortgage, live there, and if you want to move then rent it close to or above the mortgage payment. I lived in the Burbs for 15 years. Bought my house for 260K and sold it for 345K. When I did sell I had paid down the debt very well so I walked away with a nice check. All depends where you are at in life, family, job etc.

I am renting a condo in a downtown area, and my next purchase will be an apartment building, smaller one and I will move into one of the units. The rent from other tenants pays the debt service. Use to own 3 4 unit buildings when I was younger. Good model, especially if you find a building where the owner gives the building back to the lender.

NorthAmericanguy
Veteran Poster
Posts: 2199
Joined: November 1st, 2010, 4:16 am

Re: Owning real estate in America = Overrated?

Post by NorthAmericanguy » June 11th, 2014, 1:16 am

Robert77 wrote:Most folks i know who own property have to work their assess off to pay the monthly mortgage on their property, which means they are enslaved to 9 to 5 jobs and can't afford to explore the world and find themselves because well, they have to work.....

yes owning a house or property is great especially if you have wife and kids, but most of us in this forum are single nomads, we do not want to get married, get a 9 to 5 job and have two kids.... so is it even worth investing into property?

what are your plans as far as your golden years???
I have given a few years of thinking in regards to owning a home vs renting, and at the end of the day, it's a personal choice if you decide to rent or buy.

That said, the way you're going to succeed in real estate regardless is to have no emotion about it, don't do things out of keeping up with other people , and just crunch the numbers to see what works out better for you in the long run.

Getting to the heart of the matter, the choice to rent our buy, the situation depends entirely on where you live as the real estate market is different depending on what state you're living in and that determines what direction you need to go in.

So for example, if you're living in NJ, I wouldn't recommend to buy anything as the yearly property tax is the highest in the nation and many of the elderly are forced to sell their homes and flee the state because they can't easily pay their yearly property tax.

On the other hand, if you're living in a state such as Louisiana where the property tax is so low, and if you can find a cheap home to buy, you're better off in the long run being being a homeowner.

At the end of the day, as along as your property tax is low, and you bought a home that was within or below your means, and you live in a nice area, you're better off as a homeowner over being a renter. Why?

1. Worse case scenario, it takes a much longer time as a homeowner to hit the cold streets vs being a renter so you have a greater safety net from being homeless as homeowner.

2. Being a homeowner, you can go to the bank and take out a loan against your house. You can use that money to start a business or buy more property.

3. All of us are going to get old one day, and unless you have a monthly income for life, owning your own home will be the only real stability that will keep you safe even if you're home is falling apart.

4. If you find the right tenant, you can rent out a room for extra income, or your entire home and use that money to sustain yourself overseas!


Addendum:

One other thing, just save up and buy your home with cash! When you take out a mortgage, you're paying all that interest. F*** the banks! I mean, people say you're throwing away money on rent, but those people take out a mortgage and they're now throwing away money on interest.

http://www.getrichslowly.org/blog/2012/ ... irst-home/

Last edited by NorthAmericanguy on June 11th, 2014, 1:33 am, edited 2 times in total.

NorthAmericanguy
Veteran Poster
Posts: 2199
Joined: November 1st, 2010, 4:16 am

Post by NorthAmericanguy » June 11th, 2014, 1:22 am

Winston wrote:But how come so many Chinese people have made lots of money in real estate? Ask Momopi about it. I'm sure if you buy low and sell high and are good at it, you can make a fortune in real estate.
Because they used real estate and ran it like a BUSINESS. It's different then just being a homeowner.

Devil Dog
Freshman Poster
Posts: 470
Joined: February 5th, 2013, 7:55 am

Post by Devil Dog » June 11th, 2014, 3:14 pm

Winston wrote:But how come so many Chinese people have made lots of money in real estate? Ask Momopi about it. I'm sure if you buy low and sell high and are good at it, you can make a fortune in real estate.

Central planning has built a real estate bubble in China. When it bursts it will be ugly.

HouseMD
Experienced Poster
Posts: 1463
Joined: February 14th, 2012, 3:20 am
Location: Buried Under a Pile of Books

Post by HouseMD » June 11th, 2014, 5:22 pm

Being a homeowner is overrated. Owning rental property is not.

Hero
Experienced Poster
Posts: 1708
Joined: July 3rd, 2008, 9:19 pm

Post by Hero » June 11th, 2014, 6:25 pm

I just invested in an international real estate fund. I hope to invest in some REITs soon too. As for buying a house, no freakin' way.

Moretorque
Elite Upper Class Poster
Posts: 4437
Joined: April 28th, 2013, 3:00 pm
Location: USA,FL

Post by Moretorque » June 11th, 2014, 11:25 pm

Most of the property world wide has a hidden lean on it securing it to the creditors. They have twisted property ownership to the point to where you are a glorified renter no matter what unless you are in their good graces.
Time to Hide!

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “General Discussions”