Investing 40% of your total money on renting a house.

[Suspens]

And you can take that money back after you leave the house. It's basically a one year leasing contract (That's how it works where I live).


With that amount of money locked down on leasing, and inflation going up, I'll be certainly left behind. Buying a house is an investment and I won't have to worry about inflation. But i must invest everything I have to buy a sh1tty flat in the downtown, while leasing is easier and I can rent a decent flat in the better parts of my city and invest the rest of the money on a small business.


Help me with this decision folks.

 

[prison/con.net]

you're out of your gd mind if you pay 20%, mortgage or rent, actually. It's just a place to lay your head and there's MUCH better things in which to invest your money and time, unless you are going to use it not just to live there, but also rent out weekly rooms as your income/job.

 

[bigneil]

Never pay more than 25% of your TAKE HOME money on rent. The 1/4 rule predates the income tax.

 

[:-)]

Never pay more than 25% of your TAKE HOME money on rent. The 1/4 rule predates the income tax.

Lol. I'm working on increasing my income but in the meantime I'll have a word with my landlord. See if he'll accept a reduction in rent every month.

 

[Skyline]

You said 'investment' even though houses are the biggest liability known to man, you said you will get your money back which means high interest written all over it. You could drop $50k and end up paying $65k by the time your lease is up. Stay with mommy, the only liability you have to worry about with mommy is your car.

40% is a big number too, I agree with Neil. You're gonna spend 40% of your expenses for a roof over your head and then the rest on actually investing in businessess? What about living expenses? 40% was just rent/leasing right? You could end up paying more than 50% of your net gain just on living, that's a lot.

I doubt your landlord will accept a reduction every month... That kind of doesn't make any sense especially if you're gonna be there for 'x' amount of time. That would make you a liability living there.

 

[prison/con.net]

until you CAN rent at 20% of your income, you'd better change where/how you live. You are not making savings/investments if you're blowing that much of your income on a mere rathole , which ALL single family housing is. A hole thaat you stuff money into and never see it again.

 

[Suspens]

You're gonna spend 40% of your expenses for a roof over your head and then the rest on actually investing in businessess? What about living expenses? 40% was just rent/leasing right? You could end up paying more than 50% of your net gain just on living, that's a lot.

Yes the 40% will be held by the house owner till the contract is over, then I will get it back. I just can't cope with my family, they are extremely toxic and mentally unstable. Also it is affecting my confidence, being a 30yo boy living with his mom.


I don't have a place to phuck either. Hotels etc are not an option. The last place where I could do anything physical was a cold remote mountain around one year ago.

 

[Skyline]

Yes the 40% will be held by the house owner till the contract is over, then I will get it back. I just can't cope with my family, they are extremely toxic and mentally unstable. Also it is affecting my confidence, being a 30yo boy living with his mom.


I don't have a place to phuck either. Hotels etc are not an option. The last place where I could do anything physical was a cold remote mountain around one year ago.

All business and finances aside, if you think it will truly make you a happier/more confident person, then do it. Just be careful managing your money, the last thing you need is ending up on the street.

 

[Suspens]

All business and finances aside, if you think it will truly make you a happier/more confident person, then do it. Just be careful managing your money, the last thing you need is ending up on the street.

Living in my own place will definitely help me improve in all areas of my life. Right now my mother and sister are the main source of my stress. So much toxic negativiy.


Yeah that's what I fear actually. For me, that's a lot of money and could be invested on trade etc. But I have to decide between peace of mind or profit. Long term happiness vs short term relief.

 

[Suspens]

I've never been so clueless and undetermined in my life. The poll results are adding up to my confusion.

 

[marmel75]

You said 'investment' even though houses are the biggest liability known to man

Right, because noone has gotten rich off real estate investments...

 

[bigneil]

No one since 2008. Aka Housing Bubble Crash.

 

[Albatross953]

Consider transaction costs of both. Here its still 6% to sell a house.

Get some roomates no matter which you decide.

 

[marmel75]

No one since 2008. Aka Housing Bubble Crash.

Bullsh!t...that's where all the money is being made...people snapping up homes for next to nothing or buying them foreclosed and making a killing by renting them out and/or reselling them...real estate has rebounded pretty nicely in most places...

Milionaires are made from market crashes...stock and real estate...buy cheap, and hold them to sell high.

 

[HeadLightsOn]

Bullsh!t...that's where all the money is being made...people snapping up homes for next to nothing or buying them foreclosed and making a killing by renting them out and/or reselling them...real estate has rebounded pretty nicely in most places...

Milionaires are made from market crashes...stock and real estate...buy cheap, and hold them to sell high.

^^^ This is true, I've been involved in this.

ALL investments have a sine wave curve, up and down, etc. It's when you decide to realise the asset and cash out that effects your pocket.

Real estate investment (not trading) has been the best thing that's ever happened to me financially. I've been through a couple of 'crashes.' Only regret I have is that I didnt buy more (blue chip) properties when the market was down.

Enter Warren Buffet, "Be greedy when others are fearful, and fearful when others are greedy."

 

[playa99]

I can relate exactly to how your feeling. I am still at home myself, and the biggest stress's are mine and my gfs parent's.

We want to move out, however I am growing a business and she isn't earning a lot of money doing what she does.

You gotta put a plan in place man. I personally wouldn't rent, It is dead money. A house is a good investment in the long run as 20+ years down the line you have an asset which is yours!

Get a plan together to get out of the house your in, which is affordable and you know you can stick to. I've just done this recently and its motivated me to hit the targets I've set out. Do some heavy research in the area and get a feel for good prices for differing house types.

You may have done this and I could be telling you to suck eggs, but for me having a set in stone plan of exit from parents houses is golden and does wonders for my mindset.

If you rent now you could have nothing to show for it in ten years, whereas if you get a deposit together and get an affordable house you could be nearly half way through the mortgage.

 

[prison/con.net]

A house can be a TERRIBLE waste of your money and often, you have no control over itt. the city decides to put thru a highway, there's a riot or a flood and you lose, really big time. I'd never touch a single family residence, myself. Only buy big old places that you can rent out rooms from, by the week. THAT is good money, IF you use somebody's VA home loan to aquire it (saving 25% of needed money).