| General > General Technical Chat |
| First house for a young man |
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| tszaboo:
The housing market varies from continent to continent, country to country, town to town and time and luck. It requires local knowledge to tell you whether a deal is good or not. Right now, I pay about 0.2% of the value of my flat as my monthly rent. Meanwhile the interest rate is some 2-3% yearly. It makes no financial sense to purchase it. I know the market in another country few years ago. There the monthly rent is higher percentage, but the interest rate was insanely high. Everyone bought a house. The renting market was less than 3% of the total. Everyone got the rent nominated in Swiss franks, because the rent was cheaper. Some 10 years ago. Before 2008. Now they feel stupid. It required government intervention to avoid complete collapse of the market. One thing for sure, I would never buy a house 100% cash. Money can be used better way than a piece of dirt and some bricks. And there is the thing: It is very stupid thing to buy a house before your life makes a mayor change. And before means 5 years. And change I mean kids in or out, marrige, retirement, work, going expat (AKA immigrate). |
| WastelandTek:
not even joking |
| tronde:
--- Quote from: WastelandTek on July 03, 2017, 01:36:37 pm --- not even joking --- End quote --- I think we must consider one most important thing "bluescull" said: I plan to buy a house, for both investigation and to reduce cost of living. As someone might have heard, economy bubble is collapsing in China, and my parents' want me to buy a house in US as a safe deposit in case Chinese currency collapses. This is not only about to find a place to sleep. |
| WastelandTek:
A "young man" should not be totally tied down to his parents wishes. Have them buy a managed rental, or invest in a REIT, gold or Bitcoin. Get out there and climb some hills, meet some girls, swim in the ocean. |
| nctnico:
--- Quote from: IanB on July 03, 2017, 04:16:31 am ---Keep in mind that the costs of owning a house do not stop after you have bought it. Unless you are buying a brand new house there will be routine and not-so-routine maintenance costs that crop up. Such costs can occur anywhere from yard work, painting, fences, plumbing, roof, garage doors, appliances, termites, all sorts of things. Everything you expect the landlord to take care of when you are renting, you now become responsible for. Not to mention annual costs like insurance and property taxes. Before buying, get some estimates of typical annual operating costs from homeowners you know or work with, and make sure you will have sufficient income to cover them. Owning a house when you do not have a full time job can be a recipe for poverty. --- End quote --- I agree! Also get the house checked from top to bottom to look for problems with rot and other potential money pits. To be honest: I wouldn't buy a typical US wooden frame house at all (except in earthquake areas)! Also check for things like quality of the sinks, taps, door handles, etc. That way you can see the current owners take care of their home or patch things up. BTW another option is to have a house build so everything is new. |
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