[deleted]
A conundrum
Submitted 8 months ago by ickplant@lemmy.world to [deleted]
https://lemmy.world/pictrs/image/15e46ee1-78e0-4f48-b909-bd21d684306c.jpeg
Comments
fakeplastic@lemmy.dbzer0.com 8 months ago
ChicoSuave@lemmy.world 8 months ago
Covid was the wake up call I needed to realize that while I understand the nuance many others need the point made for them to understand the point of the scenario. We understand Eleanor. Some understand Callum.
BigBenis@lemmy.world 8 months ago
I’d wager a lot more than some need a Callum to explain what they should think about anything, given the state of things.
commie@lemmy.dbzer0.com 8 months ago
I know a lot of you are urbanites, but for anyone who isn’t, check out the USDA 502 direct loan program
onslaught545@lemmy.zip 8 months ago
My house was literally like 100 yards from being eligible for one.
commie@lemmy.dbzer0.com 8 months ago
my municipality fought the USDA redistricting in the 1980s and kept the hamlet where my house is in the program.
betterdeadthanreddit@lemmy.world 8 months ago
The problem here is inability to read between the lines. The [bank?]'s message is pretty clear: “Stop polluting my sight, you filthy poor.”
big_slap@lemmy.world 8 months ago
kibiz0r@midwest.social 8 months ago
Yes, Experian (a company that has had multiple data breaches) is now allowing you to give them more of your personal data for free, and in return they will add your Netflix and Xfinity payments to your credit report.
And then the banks that consider your loan will still do the same process they did before — i.e. not consider your Netflix and Xfinity payments.
lunarul@lemmy.world 8 months ago
That’s just for the “paid on time” section of your report. I helps a bit with your score, but it doesn’t change how banks determine your debt to income ratio.
NotSteve_@piefed.ca 8 months ago
That seems to be for the US when OP is in the UK based on the £ use
otacon239@lemmy.world 8 months ago
Well shoot. Why wasn’t this the case from the start? I’ve only ever had troubles with payments a few times in the 10 years I’ve been renting. Good thing none of that counts for anything and the clock is just now starting.
onslaught545@lemmy.zip 8 months ago
There used to be a service called Williams Paid that would act as a middle man to pay your rent, then report it on your credit.
jubilationtcornpone@sh.itjust.works 8 months ago
Then there’s all the expenses you didn’t know about before you bought the house. If you don’t have at least some DIY skills, you get to pay people a lot of money to fix things for you.
…BTW, the county just did a reassessment on your property and your property taxes have now doubled. In exchange, you get nothing. Congratulations.
Clent@lemmy.dbzer0.com 8 months ago
Also, the 500 is just the mortgage payment. It doesn’t include the insurance and property taxes and, at least in the USA, private-mortgage-insurance (pmi) if the down payment isn’t at least 20%.
The monthly obligation can easily be more than that 1000. The savings is in locking the first half in at a set amount.
arrow74@lemmy.zip 8 months ago
I always find this to be such a poor argument.
Yes unexpected maintenance can sometimes be a huge problem, especially in the first couple of years, but after that you can tap into home equity and repair say a roof. Everything else while expensive is still cheaper than renting. Using the OP’s example 1k vs 500, I can assure you you will never have consistent 500 repairs per month.
As for the taxes my city nearly went ballistic when the city increase the rate by 5%. At the end of the year it costed me $200. Per month that’s about $16. I’ve never lived in any apartment anywhere where rent didn’t increase by at least $50 per month each year. Even if someone had a home twice as valuable that’s still a very small monthly cost.
Additional once you get past the first 3ish years rent prices have greatly outpaced your mortgage and you will be saving a lot of money compared to of you were renting.
I’d like to wrap up with a question. If owning a home was such a sink of resources why do people become landlords?
Blue_Morpho@lemmy.world 8 months ago
after that you can tap into home equity and repair say a roof.
There’s no, “tapping into home equity.” There’s only extending the mortgage with more debt.
20 years ago my sister did all sorts of home improvements that she said were free because she was “tapping into equity”. Now she’s nearing retirement and complains she still has giant mortgage payments.
KnightontheSun@sh.itjust.works 8 months ago
Speaking to the post, I feel like there is a tipping point between OP and your points and the post is showing that. If you can convince the bank to loan you the money somehow you then start to build more capital which can pull you out of being “poor”. There are many variables and wildly varying degrees of this scenario, but once you start your ownership experience, some people can work it quite hard and build enough capital to own multiple residences and rent them out. (Those already in possession of capital are out of scope of OPs post.)
Rent is paying the landlord for everything every month. No repairs lately? Too bad, you’ll still pay for the possibility. The exchange is that you should never worry about repairs (or taxes) as the landlord handles everything. Once the landlord figures his margins are too tight, they raise the rent. Lots of variables here too and that makes blanket statements about which is better more difficult. I advocate home ownership, but I feel terrible for young people. Runaway greed by those that already had the capital has changed things. The young folks I know that are able to manage it all had help from relatives.
The act of convincing the bank and owning a home is getting more and more difficult. Impossible in many places and improbable in others without Herculean efforts. OPs post expresses this perspective.
rc__buggy@sh.itjust.works 8 months ago
I tell my soon-to-leave-the-nest kids:
Rent is the most you will pay every month. The mortgage is the least you will pay every month.
I’m loving them being here as full grown adults and enjoy my time with them and with our particular house they are seeing that lesson play out in real time. Some big expenses and I am the DIY dude. I don’t fuck with (big) electric or gas though, that shit can really backfire.
Bgugi@lemmy.world 8 months ago
That decision is true today, but realistically your rent will grow much faster than your mortgage (plus escrow) payment, and your mortgage payment goes away.
The_v@lemmy.world 8 months ago
Rent vs mortgage - gotta put a caveat on that one.
Renting = landlord gets all the money but has to maintain the property.
Mortgage - bank gets all the money and you get a partial refund if you sell. You pay for the upkeep. A mortgage is not really an “investment”, you usually lose money on the deal if you live there. It’s cheap rent from the bank.
It basic math to see which one is better long term. Usually the mortgage wins because of of the partial return. However if you can’t do the upkeep yourself, renting is often a better financial decision.
There have been times when renting was the smarter financial decision. Like the housing bubble in 2003-2007. You could rent places for 1/2 what it would cost to buy them per month.
prettybunnys@sh.itjust.works 8 months ago
The other side of that is that my mortgage, even with rising property taxes and my house appreciating wildly in value, tracks less than renting.
If I could rent a place for the price of my mortgage with the cost rising at the level my mortgage does … I’d rent all day long
UnderpantsWeevil@lemmy.world 8 months ago
Then there’s all the expenses you didn’t know about before you bought the house.
The cost of owning is significantly less than renting over the life of the unit. Repairs happen, but most of the time they aren’t time critical, so you can budget out the repairs over months.
…BTW, the county just did a reassessment on your property and your property taxes have now doubled
Idk where you live, but most states limit the rate at which an acessor can raise your housing price. In Texas, the cap is 10%. So your property taxes can rise, but the won’t double overnight.
You can also contest the increase. Harris has been fairly receptive to a simple “my neighbor’s house sold for X so my house should be worth about X, not X+20%”
FireRetardant@lemmy.world 8 months ago
The cost of owning vs renting can be very different depending on where you live and work and the amenities you want access to. Renting somewhere centrally located with good access to high quality transit and other amenities would likely be cheaper than owning. Unless we can start normalizing owning apartments again. You could own for cheaper on the outskirts of downtown, but you’ll likely be sacraficing access to some amenities by doing so.
onslaught545@lemmy.zip 8 months ago
I wouldn’t say you get nothing from paying property taxes.
Comrade_Spood@slrpnk.net 8 months ago
Depends where you live. Where I live we just get more funded cops to more expensively harass houseless people.
rc__buggy@sh.itjust.works 8 months ago
That’s true but when they double over 10 years and four schools in the area shut down due to “lack of enrollment”? Streets sure aren’t any better and my neighbor who works for the city has only had COL raises for the same past decade?
c’mon… something is going on.
Lemmyoutofhere@lemmy.ca 8 months ago
Yup. Oops, you need a new roof and a water heater, that will be $34,000.
HeyJoe@lemmy.world 8 months ago
Hey, I just did these things! Water heater i was ripped off, which cost me $2600, and the roof i actually thought was a good deal at 17k. Not fun but the roof made me happy. The water heater actually destroyed my basement by leaking out…
Noite_Etion@lemmy.world 8 months ago
Come back with some inheritance and then we will talk.
MudMan@fedia.io 8 months ago
Yeeeeah, I was too adult in 2008 to go "you know the real problem? We check too hard for solvency when giving out mortgages".
Not that I have a silver bullet for solving a housing crisis. There probably isn't one. You need a lot more public housing as a percentage of the total pool, that much I can tell. How you fix a job market where nobody holds the same position for more than a handful of years is beyond me. You probbly need to make it much more expensive to own a house without living in it or renting it out. You definitely want to make it much more expensive for corporations to own housing.
Guessing that's harder to fit in a pithy, viralt tweet, though.
KombatWombat@lemmy.world 8 months ago
I’m glad someone mentioned the 2008 financial crisis. Banks need to be fairly confident the person they are giving the mortgage to can afford the payment now and for the next thirty years. There are plenty of unfair reasons why someone may not be able to buy a home today, but not being able to afford a down payment is not one of them.
FireRetardant@lemmy.world 8 months ago
The biggest thing we can do for the housing crisis is making density legal again and allocating more space in cities to housing instead of parking cars.
MudMan@fedia.io 8 months ago
Yeah, that'd work a lot better for me if I was American and not painfully aware of similar issues happening in cities where cars fold like umbrellas and are almost entirely parked underground.