Here's one way to beat the system. It sounds so easy. (Previously.)
real estate, cities, buying vs. renting
Next they'll be telling us that we can make money by assuming the risk for a massive, long-term financial investment.
Seemed pretty good at first@k
I am disappointed that the answer wasn't "squat in a rich person's home when they're off in the Hamptons" and was rather the normal way
@Megan Patterson@facebook I honestly assumed the article was going to be about something like that, or a way to permanently couch share. Buy a place??? Really? I thought people assuming mortgages they couldn't reasonably afford was at least a significant part of the whole foreclosure crisis?
@Megan Patterson@facebook I was also honestly expecting a squatting how-to.
That is the worst fucking idea I've seen all day.
I like the suggestion that this is something "everyone" should be able to do, as though it weren't a system made possible by income inequality (who would rent your apartment if everyone owned one?).
@dham I'm glad I'm not the only one who was a bit bugged out by that. Don't you love it when "everyone" includes only a certain tax bracket?
@dham Seriously!!! Not "everyone" can do it because then you won't have "anyone" to rent to. Upsetting.
@dham And the sample loan value they cite is 100,000k. Even if we double that amount, getting the monthly "non-rent" up to like 800 bucks (plus HOA/condo fees plus taxes), if you can tell me where I can buy an apartment in Manhattan with very little money for a down payment and only $200k in loans, I will hire you as my realtor IMMEDIATELY.
But when you’re paying eight, or nine hundred bucks, or one thousand, or more, each month, for rent, your destiny seems forever limited to living on the financial edge.
MY GOD! A THOUSAND BUCKS A MONTH FOR RENT IN NYC OR LA?! FETCH ME MY SMELLING SALTS, I HAVE COME OVER ALL A-FLUTTER AT THESE OUTRAGEOUS RENT PRICES!!!!!!!!!
@cherrispryte Yeah I DON'T live in New York, and I'm paying 1100 for a one bedroom thanks. I also don't even live downtown!
@Megan Patterson@facebook I pay so much in rent it is embarrassing.
@cherrispryte - You can live in NYC and have completely reasonable affordable rent! I do it, lots of my friends do! There's even not one but TWO options:
1) Live in a neighborhood with a lot of violent crime.
2)Sacrifice any notion of personal space or quality construction. I do this one! Sure, my bed touches 3 of the 4 walls in my bedroom, my bathroom has no sink (I kneel at the kitchen sink to shave in the morning), my floor is so crooked if you drop a marble you'd need jogging shoes to catch it before it hits a wall, but I can afford it!
(Ugh, I wish this was satire. Option 2 is actually my life).
@cherrispryte Yup. We live in a roach-infested rental with an "amazing price" that eats up an obscene amount of our income, and are supposed to count ourselves lucky because at least we moved out of the 11th-story walkup with no working AC and people perpetually being bent over cop cars out front. And I get that there is some element of adventurous sketchy youth that I'm supposed to contextualize this in, but in Northern VA, I will never ever have enough money to own a place, or even to rent a place that isn't a dump.
Not that I'm bitter!
@leon.saintjean Or, option 3) Live in Queens :D
@Megan Patterson@facebook and cherrispryte and others - this article made me lol so hollowly. I'm in Australia (feel like I always say this but it's needed for context) and I moved from Canberra (a city of 330,000 people) where I was paying $490 A WEEK, that's $1960 A MONTH) with another girl (my share was $235/week), and I moved back to where I grew up (a town of 40,000 people) so I could get away with paying merely $250 a week to live on my own.
Looking at house prices here, because it's a touristy area, you can get a shitty apartment for $200,000 but there aren't many. Most houses are more like 300k.
aaaahahahaha. haha. hahaha.
No love for the tiny house hidden away in an empty lot? :)
@remargaret you mean my car? hey it isn't THAT small!
Worst workshop/advice ever. It's basically akin to, "make a LOTTTT OF MONEY, no more than that...maybe a few more million dollars...and then live off the interest forever!"
Actually, I have a workshop idea. No one steal this, please.
@lalaland I know, step 2 is literally "start saving money." Literally. LITERALLY.
1.) Take large sum of money you don't have yet
2.) Take out loan that will not be paid off until you are 1.5 times your present age
3.) ROLL IN THE DOUGH !
Seems pretty simple to me.
@Carrie Hill Wilner Well? What's your problem? Start Saving Money! What is not obvious about that? It's like I'm talking to peasants here.
@Carrie Hill Wilner EXACTLY!
Opening paragraph: "Life is good, but you’re living paycheck-to-paycheck...month after month. You start to wonder if you’ll ever have any savings"
Several paragraphs later: "This is a “unique point in history,” when the cost of borrowing money has gone down—so, taking out a mortgage is cheaper than it ever has been."
Step 2: Start saving money!
It's foolproof! Save money you don't have anyway; in 10 years you'll be able to afford a down-payment on a house; by that point, interest rates will be through the roof again! BRILLIANT.
@redheaded&crazy And they're like qualify for a really good mortgage rate, everyone can do that, right? Piece of cake!
A friend of mine lived in an apartment that someone had bought as an investment and was renting to him and his housemates. Then the owner sold it to a lady who does the whole AirBnB thing. The new owner's glorious plan was to let 2 people remain in the apartment as permanent tenants, move in her 17 yo deadbeat son, and then rent out the remaining 3 rooms to tourists.
Sounds like a helluva living arrangement all right! Teenager bringing home random girls to bang, tourists coming home drunk and puking all over the bathroom... ahhh, how relaxing!
All I could think about was this horrible story of the woman who rented out her sweet place on airbnb and had it completely trashed, her locked and stored away items stolen, her identity stolen. Ugh. Bad enough if you are subletting, but if that were your home, that you owned?
@no way Oh geez. I hadn't seen that, but that poor woman! I wish there was a more recent update on her situation.
@no way That story is so awful! Good lord. This is why it's so hard to trust another human, ever.
@no way That is why I am not comfortable doing something like that, unless it was maybe a 'Pinner or something, and we had video chatted and the whole shebang. I would need to have A LOT of trust.
Ahhhhh! I know! The worst part is that they emailed her multiple times seeming all normal, thanking her for the lovely place, etc.
Seriously, it's hard enough for established landlords to keep check on certain tenants even with binding contracts involved. The whole buy to short term rent to strangers with very little accountability scam sounds like a nightmare breeding-ground.
The math in that article is bad, too. You are not going to be paying $385 on $100,000 borrowed over 30 years at 3.85%. Thanks to compound interest, it's more like $467 per month.
@marcyfight Additionally, your property taxes and insurance will most likely be rolled into your payment, so that $385 theoretical mortgage payment ends up more like $800-$1000/month, depending on your area
“the year of the landlord”? While landlords might be on par with a dragon in regards to cruelty, they're lacking too much in the "badass" department for comparison.
@whizz_dumb right! more like "year of the slumlord".
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