ITT advice to you men considering a mortgage.

[X11Spectator 4520]

ETA, Title should be YOUNG men.

Prolly the biggest financial investment in your life.

Pros; appreciation in value, eg many in my parents generation were not innovators or that well educated. They got land, adjusted for inflation, dirt (pun intended) cheap. They did not much with it and they have stupid amounts of money now in assets to retire on. Their then worthless beach huts are prime real estate worth up to millions, they paid thousands.

Stability, its forced savings so to speak. Instead of partying and slacking you dump your excess cash into it and seek better employment.

Cons; you are in lock down for decades.
You don’t have the cash to throw around at whatever anymore.
You limit your lifestyle and opportunities to take adventures and risks. Stress of not meeting payments. You become old and normal. You might have to wait a long time to make a return or even lose money. Lots of extra things to pay for eg maintainence, local fees, insurances….etc.

Thoughts?

[Anonymous 43]

Because I just can’t seem to get my s~~~ together at a job for more than a year, a towable camper seems so appealing to me. I can pick up go when I want, and connect in an rv park for a while.

I used to look at that lifestyle with distain and laugh at those suckers who live that way, but after living in a minivan, having to move every year and the stress of dumping furniture, double rent payments to break leases early and other bulls~~~, maybe there is something there for me.

Maybe that is the ultimate in MGTOW lifestyle.

[MGTOW_MikeParticipant 6253]

Owning a house, in this modern time, is just an illusion that only benefits one system, the banking system. You spend your whole life slaving away to pay off the mortgage, after which you die and leave everything behind. If your job location changes, you will need to move out and rent. What was once considered a basic necessity, has now become a commodity. The biggest stress in a person’s life is paying off the mortgage. On the other hand, the price of food and services is not bad, imo.

I have an investment property myself and I may end up selling it because I do not want to feed into the system any more. I have had enough. As a MGTOW, I want to build a small cabin in a rural area and be out of debt. Life simply and peacefully.

A tranquil mind is neither happy nor sad, it is uninfluenced by external conditions.

[Binary LogicParticipant 2351]

I’m actually working on obtaining my first mortgage as we speak. As per my research and by the good guidance given by some fellow MGTOW , I’ll be looking to buy investment property.

I think most first time homeowners fail for a few reasons. First, they buy a home based upon the maximum amount the lender is willing to give. Let’s say said member earns $45k a year. Paid bi-weekly. Is single. Gross pay would be at or about 1730. After Fed/State/Soc/Med/Sdi net pay comes out to $1277 or $2554 a month.

So new house guy’s lender approves him for up to $150,000 mortgage.. the home they are purchasing can be financed as ‘owner-occupant’, which calls for a 3.5% down payment . So a down payment of $5250 is required. On a typical 30 year loan that house would cost them $691 a month. That’s 27% of their monthly pay.. gone. Now, since the house was purchased w/ an FHA Loan, the loan is going to require carrying primary mortgage insurance (PMI) , so that another $138 tacked on to that payment. So now that house cost him $829 a month.

Start tacking on all the other living expenses (i.e. utilities, car payments/repairs, incidentals) and you can start to see where one might be lucky if they can save a few hundred at the end of the month. While it’s a good investment (especially if the property has equity in it), there is still the idea that owner doesn’t know WTF is going to happen in 15 to 30 years while he is paying off that property.

Instead, try putting down 20% and purchasing the property as investment property. That $829 payment is now knocked down to about $572. Turn around and rent it out for lets say $900 to $1100 a month, and now not only do you have the mortgage paying for itself, but you can either pocket what’s leftover (while still getting all the perks/write-offs associated with home ownership), or you can save what’s leftover as a down payment to rinse and repeat to obtain another property later down the road.

I personally am opting for the later method. My intent is to have these homes paid off in 18 months instead of 18 years. I will let the precious snowflake pay my mortgage and invest in my future, willingly and unknowingly. Oh, sweet, sweet justice. Lol.

Funny, isn't it? How women thrive on a mans time, attention and resources, while simultaneously telling him he isn't enough...

[FrankOneParticipant 1417]

The house is a huge benefit once it’s paid off. If you don’t want a 20-year mortgage, buy a piece of s~~~ house. Pay it off VERY quickly THEN renovate and fix it inside. Of course, roof must be fixed immediately.

In America, we don’t have property rights. I have to pay several percent of the value of the house to my local ganglords/protection money (Property Taxes) to pay for a ‘school system’ that ‘teaches’ Statism, among other ‘services’. But it’s still better FOR ME than renting.

If I moved all the time, the RV or renting would be better. My property has appreciated over decades, but not as much as other investments such as stocks.

For me, the house is NOT the biggest investment in my life, because I don’t live in a McMansion, but a modest middle-class home which is over 50 years old. As a MGTOW, I don’t have any ‘Jones’s’ to ‘keep up with’.

When colleagues or friends tell me about their new car, I tell them how much I like my paid off car smell and my paid off house smell.

[X11Spectator 4520]

The gurus say buy the worst house in the best street and fix the house up.

Location appreciates more than bricks & mortar.

If scum move into your area the value may go to s~~~.

Apart from my wage cuckery to pay my mortgage I think having my place I can do what I want and build a man cave and keep animals etc outweigh the loss in disposable income, can be more mgtow this way. Although I prolly would have told my boss to go Fuk himself if I wasn’t bound to a mortgage.

[BeerParticipant 11832]

X11 wrote:

You don’t have the cash to throw around at whatever anymore.

Not true. I’ve owned my place for 11 years. Its in a condo building where half the units are owner occupied and the other half are rented by private owners. The average rental for a similar sized unit is about 250 more per month than I’m paying to own mine. When I first bought the place mortgage/rent were about equal but after a refi to a lower rate and rents slowly climbing I’m saving money each month while building equity.

Basically between all the money I’ve saved by having a cheaper monthly payment and equity I’ve built…if I sold this place and moved I’d be probably about 60k ahead of where I’d have been if I had rented this whole time.

If you wanted a new car, you aren’t going to compare buying a fully loaded F-350 to leasing a Hyundai Accent and come to the conclusion leasing is cheaper…your going to compare buying a car to leasing the same model. When considering renting vs buying property though, it seems like a lot of people default to the mind set of owning a house vs renting a small apartment in their cost analysis. To make it legit you’d have to compare buying a house to renting one, or buying a small apartment to renting one.

X11 wrote:

You might have to wait a long time to make a return or even lose money. Lots of extra things to pay for eg maintainence, local fees, insurances….etc.

Lots of people overlook this fact…but I’ll just use my condo for example. If I own it and live here I have to pay all this stuff. If I own it and you live here and pay me rent I still have to pay this stuff…its just getting factored into your rent. There is no way of escaping these costs unless you want to live in a box or under a bridge.

X11 wrote:

you are in lock down for decades.

It all depends what you buy. I bought an 85k condo. Early on in the mortgage I was paying it off aggressively because my rate was 6.5% but after the crash I refinanced to 2.79% so I haven’t bothered paying any extra since then, but had I kept hitting it I could have had it paid off at the 10 year mark. As it stands now I think I have enough in the bank to pay off my balance about 10 times over so I don’t really feel locked down by it. Even if it sat on the market for a few months before I could sell it if I wanted to move its still better than ending a lease and walking away with nothing.

Binary Logic wrote:

I think most first time homeowners fail for a few reasons. First, they buy a home based upon the maximum amount the lender is willing to give.

Exactly. I was making a little under 40k a year when I got my mortgage. Luckily I was smart enough when I was young and living at home for free still save like a madman, so by the time I was 22 I had 25k for a down payment to avoid PMI, closing costs, could keep some as an emergency fund, and knew I wanted to keep it under 100k because that was the only way to keep my mortgage close to rent. When I went to get pre-approved they approved me for like 180k(was about a year before the bubble burst at the peak of the insanity) if I remember correctly. There was no way I was going to be able to pay that back…I’d have to have gotten a third job or spent the next few years living one unexpected bill away from financial ruin.

Binary Logic wrote:

Instead, try putting down 20% and purchasing the property as investment property.

It works if you do this and live in it as well…you’ll end up paying less than rent AND building equity.

FrankOne wrote:

The house is a huge benefit once it’s paid off. If you don’t want a 20-year mortgage, buy a piece of s~~~ house. Pay it off VERY quickly THEN renovate and fix it inside. Of course, roof must be fixed immediately.

Not a bad idea…you just have to be willing to do the work on your own. I put in a new floor in my condo recently and the cost of labor to have it installed was going to cost me more than the material, so I said f~~~ it, bought a flooring saw, and went at it. Saved myself about 2,000-2,500 bucks depending how badly they would have tried to shaft me with leveling fees and stuff.

I’ve also been researching kitchen stuff to redo my kitchen, and that is the same deal. I estimate it would take me a day to strip all the old stuff out, paint, and put in a new floor, then I’ll just let it sit for a day to make sure it all dries and settles nice, and then another day with a buddy helping me to get all the new cabinets hung. If I stripped it all out and paid someone to install it its going to hit me for about 3k in labor…3k for a f~~~ing day? I realize people have to make a living but for the size of my kitchen 2 experienced guys walking into a kitchen that is just bare walls/floor that just need to hang cabinets could probably bang it out in a couple hours. If your just a home owner doing a once in a life time project it wouldn’t be the end of the world to just pay to have it done…but if your a landlord this kind of stuff will absolutely kill your profits.

Just for my condo I can pretty much gut and redo the entire thing with nicer than average material and appliances for less than 10k, but if I had contractors do it all, it would probably run me north of 20k.

[Anonymous 14]

I think the biggest problem with buying a house is if you want to move and the market takes a dive, good luck waiting it out until it bounces back, could be a decade or more depending on when/where you buy.

Investment/rental property is an entirely different story…

The bailout bubble may pop in the next few years, who knows, as it stands most everything has been creeping back up in value since the crash of 08.

[ForeverDoneParticipant 2928]

Wish I never bought my place. Rising property taxes that have tripled since I moved here, utilities have doubled, water was 20 a month when I moved in a decade ago, it’s now 50 a month. I love the house and piece of quiet, but I would not do it again. I am far from the city, so that doesn’t help meeting people for activities. It was just a bad decision on my part. I can still get what I paid for the home ten years or so ago before commissions. I am mulling it over, but it’s a tough call. I bought a foreclosure, so it was real cheap. Some of the work I did, other big stuff I had to hire pros.

[1k205kParticipant 11]

I think the investment property approach is very sound.

My plan is 20 year mortgages to buy 3/2 starter home properties near military bases. They rent for $800-1100ish, but the total payments, even with a property management co, typically come out to $600-700 or so. So you’re typically looking at net cash returns around $200-$300/month. Sometimes more if you’re lucky.

Call it $250, and that’s basically $3k/year cashflow. On a, say, $20k down payment, that’s a 15% cash on cash return. And even if the property values stagnate, you’re still gaining a similar amount ($3k ish) or more every year in equity due to the 20 year mortgage.

A cousin of mine and I are planning on cornering the market in particular military neighborhoods ASAP. Paring down our expenses to the minimum and acquiring as many houses as possible in the next 10 years.

Once prices go up to the point where the returns are no longer absurd (which is likely to happen pretty soon, really), we’ll use the snowball method to pay down the mortgages ASAP. That way, in the event of a downturn, we can always liquidate the unleveraged property to keep the rest of our assets intact.

The plan, then, is to have kids on our own terms and leave each of them a paid off house in a neighborhood which is heavily populated by their brothers, sisters, and cousins.

[Author]

Posts