Reply to I know why Millenials can't afford houses and pay off their student loans..

Forum Index » Money and Finances

Reply to "I know why Millenials can't afford houses and pay off their student loans.."

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]When you look at buying houses, it is best to think of it from a cash-flow perspective.

Lets say, after taxes, the house is neutral cost compared with an apartment (I do not know if this is the case today).  In 30 years, no matter what happens to the price, you have paid off the mortgage.  You have value.

Now, while the price of the rental usually goes up, the mortgage is constant.  So, as things inflate, the percentage of my income (which inflates) going to housing drops.  Today, it is 9% of my income, down from 29%....
[/quote]

So dumb. Do you think people who don't buy houses just let their down payment sit and gather 0% interest? Your mortgage might be constant but the tradeoff is that you are drowning in opportunity costs. There is nothing stupider than investing 30%+ of your net worth in a single asset. Most people are better off renting and investing the down payment in REITs to hedge for real estate appreciation. [/quote]

This is why I used a [b]down payment assistance program[/b] (in DC it's available to anyone making under $125k, assets didn't matter). Buying was CHEAPER than renting for me, which is why I did it as soon as I did. I had extra cash at closing too which went to the PMI, so I don't pay that monthly either (I used the low income tax abatement, which meant the sellers transfer taxes were paid to me and provided the extra cash). And the sellers paid my closing costs.

I came out ahead I think. And I can save more money now because my housing costs are lower than they otherwise would be. [/quote]

I am shocked at this program. http://www.dchfa.org/DCHFAHome/Homebuyers/DownPaymentAssistance/tabid/276/Default.aspx

The amount is repayable ONLY if the owner sells , refinances, or no longer occupies the property within the first 5 years.  No interest.  Where does this money come from? 
Another gag me http://mmp.maryland.gov/Pages/Downpayment.aspx

I suppose all of this comes out of my tax dollars.  No more generosity for my kids. On their own since I now realize I pay twice-via taxes and direct. I wasn't aware of the breadth of BS-  the DC one even mentions ridiculous amounts of DP like 3.5 or 5 % as might even be required.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics