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View Poll Results: Is a home an asset or liability? | |||
Asset |
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17 | 56.67% |
Liability |
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7 | 23.33% |
I live in tater's whore of an ex-wife's chlamydia infested vag. |
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6 | 20.00% |
Voters: 30. You may not vote on this poll |
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#41 |
Let's do another U-turn
Join Date: Feb 2008
Location: Indiana
Moto: 2009 V-Strom
Posts: 3,816
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Unless it's somehow generating income, it's a liability. Sure, it can possibly build equity, but I don't consider it an asset until it's somehow generating income. I, unfortunately, have very few assets.
Oh, and Tigger, I bought a small house, so I'm actually paying less for my mortgage, property taxes, and insurance than I'd pay for rent each month. However, I am doing some remodeling, so I can't say for sure if I'm getting a better deal until I sell the house. The length of time I stay in the house and how much I spend on remodels and repairs will determine whether or not I'm better off vs. renting. Unless, of course, I turn it into a rental property and let someone else pay the mortgage, taxes, insurance, etc. Last edited by Captain Morgan; 12-14-2009 at 06:48 PM.. |
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#42 | |
Serious Business
Join Date: Nov 2008
Location: New York
Moto: 1993 ZX-11 2008 CBR1000rr
Posts: 9,723
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In the short term owning a home outweighs those cost and in the long term it is not even worth discussing. We can toss in special circumstances and turn this into a pointless conversation but at the core, owning a home is better than the alternative. This of course is about primary residences. |
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#43 | |
AMA Supersport
Join Date: Nov 2008
Location: Halifax, Nova Scotia
Posts: 2,698
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I don't know how you do roofs in your area but roofs last longer then 5-10 years hear. My roof is 13 years old and going strong. The money you have invested could have also been invested by the home owner. So that means the home owner has the same amount from the investment and the value of the home. My math tells me the home owner came out ahead. A neighborhood you are renting in can go to shit. Yes you can move but other areas can increase the rent because of the flood of new renters banging on their door. If you like to move around a lot then renting would be the better option in my opinion. If not the home owner wins in most cases. Doing upgrades doesn't cost that much. You can do things as you go. A little bit here and there. Yes that cost you money but you are doing it to change the look and/or make iprovements. Don't screw up and you maintain or increase the value of the home. Which means you can get something back for that money unless you don't sell until after that item is passed its life. If its hardwood floors they can be refinished so they maintain value for a long time. When I bought my house it was $200-400 cheaper then any apartment. I have a yard and a garage with that. I think I made a good choice. In the end it comes down to what makes you happy. You and I have very different math when it comes to houses. James
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"Bust a nut inside your eye, to show you where I come from" "f youre horny, lets do it, Ride it, my pony, My saddles waitin, Come and jump on it, If youre horny, lets do it" "I'm not a playa I just fuck a lot" "Round two, I'm down to Do, what it takes to make you Understand I'm the Candyman And I melt in your mouth, not in your hands Hard as rock, yes I'm no sucka The boots I knock make me one bad mutha" |
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#44 |
Moto GP Star
Join Date: Mar 2008
Posts: 14,556
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Oh I'm sure, and I was doing the "thing" where I disagree with the majority. The honest truth is that you will almost never realize your total investment in a house IMHO. Oh and I did mention "special" circumstances, right? Buying a undervalued house and repairing it as you live there is not the norm. Take my math and match it up against a new house in a typical development,for example.
They bought it for $250,000 with 20% down which put the loan @ $200,000 with a 4.5% interest rate. Forgetting about compounding, etc, you are still looking at a pay back of over $400,000 not to mention the property tax (min $6,000/year) and insurance. About $1,600 per month. How exactly do you turn a profit in this scenario, even if you do sell in 10 years? Be honest, how many people on this board own a house, that wasn't a shit hole when they bought it, that is worth more than what they owe on it? Then of those people, how many can honestly say that if they add up ALL the money that they have spent on the house payment, taxes, upkeep, etc and subtract that from the amount that the house would sell for, they would still have enough to pay off the loan and put money in the bank. I'm not trying to say that owning a house is a bad idea, per se' but touting it as a "good investment" is ludicrous imho. |
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#45 | |
Follower
Join Date: Nov 2008
Posts: 5,549
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You just attempted to turn a quantitative question into a qualitative discussion. You fail finance.
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Racing For Smiles |
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#46 |
Vrooom
Join Date: Nov 2008
Moto: 06 ZX6R
Posts: 4,427
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Well aside from the definitions.....
personally I consider a house a liability (remember I'm not talking definitions here). A house would tie me down to one place and I don't want to be tied down. ![]() |
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#47 | |
SFL Expatriate #2
Join Date: Nov 2008
Location: Raleigh, NC
Moto: CBR1000
Posts: 2,043
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As for the rest of what you're saying, you're going WAY out of the way to make an argument against home-ownership. But you already knew that. Owning a home doesn't qualify as "free room and board plus money in your pocket when you move". It is, however, a better investment than paying a similar monthly fee to rent an apartment you'll never own. With few exceptions, most places I've lived in the US have had rental rates very similar to what you pay in a mortgage per sq. ft. of space. (in other words, your $1600/month calculation on a $200,000 loan at 4.5% is... inaccurate) Last edited by fasternyou929; 12-14-2009 at 10:54 PM.. |
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#48 |
Moto GP Star
Join Date: Mar 2008
Posts: 14,556
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Exactly my point, saying that it makes you feel good or happy doesn't make it a good investment and this damn equity everyone is always on about is only worth something if you plan on taking out a loan. I mean great, you're $20,000 to the good on your house...Are you going to sell it and buy a nice used car? Are you going to sell and use that money for a down payment on another house? When do you stop having a house payment? When you're 60, 70, 80? What about that aforementioned property tax? Some of you might pay enough in taxes to pay my rent for the year!
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#49 | |
Moto GP Star
Join Date: Mar 2008
Posts: 14,556
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I was including property tax and insurance in that figure. If you paid $250,000 for your house, it's a good bet that you're going to pay a pretty penny in taxes, no? |
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#50 |
Soul Man
Join Date: Nov 2008
Location: Everywhere, all the time.
Moto: '0000 Custom Turbo Cross (with jet kit).
Posts: 6,481
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Because he slept in a tent once, and figured out the difference.
If you're not getting divorced, or fleeing the country, a house is an asset. JC
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The way things are going, they're gonna crucify me. |
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