[quote=patientrenter][quote=peterb]Just remember, the term “buying” a house has been twisted. Almost no one buys a house, they take out a huge debt to get the title. That aint buying. You pay cash and own it outright, that’s buying. The rest is a strange fantasy people have. So if the payment’s lower, great, but that’s about sustaining debt. Not owning.[/quote]
I dunno, peter. If you go with the standard 3% down, and maybe throw in first-time buyer credits and a little kickback from the agent or broker or one of the other parties getting paid in the deal, you effectively get a very cheap option to (really) buy) at a fixed price. And you can do what you want with the property while you’re considering whether to actually buy. If the prices come down, you go get a modification. If they go up, you can cash in. You pay for the option in small installments. It’s pretty attractive. Hey, if I didn’t know better, I’d say it’s the greatest scam we’ve ever had! Better than mere owning, where you can gain or lose.[/quote]
Patientrenter take this scenario: You buy a house worth of 600K in this time with around 4.5% of mortgage. Eventually you pay 20% down (120K) and you start paying mortgage for 417K (assume now you down more than 20% in this case(183K) – you gave back to the system 183K and hold the house worth of 600K. What do you expect to get a good return on this house after 5 years at the most? – If you get sold your house at the worth of 750K after 5 years then I can say you got your money whatever you paid on this house. If you don’t get sell this house with the worth of 750K after 5 years. But if your situation is still to sell your house after 5 years then prepare you got lose on this house investment as a total. To avoid this much risk and keep you in benifitable a decent rental would give this. Now I will leave the rest of solution to you all by asking this:
How much you expect your home will be sold after 5 years? Keep in mind all the factors like our economy was really spoiled, in future interest rates demand to jump but fed is sacrificing still, any minimal outbrakes of flu,or a small stone throwing in those glass doors of wall st would also keep our paper economy sure to down. A major shift of golbal economy trend would likeley to be occur as per China and Russia slogans on Gold and find of other uninversal level of currency instead of Dollar. Where you keep this big 417K liability on your back with that turmoil situations. Future is bit blink with the ongoing trend- they (Fed) says recovery is the term as math changes every quarter. But here you are the one to do your own math but not look at the Fed math.
