twostrokenut
Well-Known Member
Good idea, save enough while you are renting to buy a home outright. Let's see, you pay $700 for a single bedroom rental and save another $700 for a house. $5400 a year, in ten years you have about half enough for a shit house if you pay cash. You borrow and you have a place to stay, a morgage deduction and appreciation on the home. So who is the stupid one? I have never paid interest on a new car, so I am renting the car for 6 years but I am using the lender's money and not my own. I love the "save and buy", "credit cards are for suckers" folk. Yeah you got a good deal, and you now own a piece of the American dream. But even if you do own your own home free and clear, you still have taxes to pay or your ownership comes quickly into doubt, yo, are still renting the experience, maybe cheaper than others but the effect is the same.
What I am talking about is not your disdain for the average citizen but the trend to rental of all experience from home ownership to luxury vacations. For many, it makes sense to rent where they live, lease their car, borrow into the future and die in debt. The point is not how clever I am or how tenacious you are but that the trend is obvious and that trend is perpetrated by those who DO own. And those who do are often the equivalent of feudal lords making their those who do as they must, serfs.
And what might you propose is the immediate solution? I am convinced one does NOT exist.
Its like share cropping and were way in the red, and we're all like "yeppers that next season gonna put us in the black, just one more loan".
I suggest the younger generations get stable shit like whole life policies, in which THEY are the loaner and the borrower of their own "money".
Didn't these survive the great depression while growing?
Hard part is you gotta make those big nice car payments to YOURSELF for 2-7 years before you get to enjoy your new ride, and keep making the payments as if you just got it(the "loan").
Hell ppl might even have to get older cars and fix them up a little ZOMG the horror!
Of course anyone thats renting can prolly qualify for a "fixer upper" home, although it seems trace methlab testing is a wise decision these days in addition to the usual structure assessments.
Anywhere that a single bedroom rental is $700 mo. should have "fixer uppers" from $50k-$150k, would you not agree?
I am no math wizard but a $150k home is about 700 bucks a month at current APR of ~4%.
Of course if you are the type that would rent a single bedroom you're more likely to settle for a small two bedroom home which should be significantly less.....whats a good number?
real "dump" out in the county that needs some paint and a new porch.....$75k?
That's like 350 a month giving a 350/mo improvement budget.