hey guys i figured out how to get rich irl

[Hess]

I bought a few houses in GTA.  Made bank son.

[Joshjrn]

Alright, I'll just shut up about my personal experience and keep my success to myself. Because theory always beats actual proven results, right?

 

Certainly not, but anecdotal results arising from a very specific situation don't constitute "actual proven results" in the general sense. If you posted a thread talking about your success, I would pat you on the ass. But, when you tell every renter in the god damned world that they would be better off buying, which you have now done twice, I'm going to call you out on the bullshit. 

Edited September 24, 2013 by Joshjrn

[Memphus]

 you tell every renter in the god damned world

you have now done twice

 

2 ? ?

 

You have yet to explain to me why you think renting (which is metaphorically "flushing money down the toilet") would ever, in any situation, be superior to owning? If you're going to be spending an amount of money biweekly for shelter, wouldn't it make more sense to get a percentage of that money back in equity?

Unless you are anticipating another market crash where you are, resulting a huge interest rate correction that sinks people who were in over their heads. But even with a 25-year mortage, where someone is paying roughly 2x their purchase price to the bank over the course of those 25 years, that's basically like saying "Hmmm is my property going to be worth 2x what it's worth today, in 25 years?". Given how our government and banks love to create inflation, I think that question is a no-brainer. As long as you can stay afloat through the potential interest-rate increases in a theoretical market correction, in the long run, after 25 years you have something, and the guy who rented for 25 years has nothing.

[Joshjrn]

No, two doesn't equal infinity. Never said it did. What I did say was that you've made the general statement that everyone should rent, i.e. "Renting is a fools game." on two separate occasions, which you have. 

 

And yes, I have already explained to you why renting is superior unless you plan on owning the property for five years or more. Once you take into consideration the opportunity cost of the capital used as a down payment (5% per annum, conservatively), Realtor fees, bank closing costs, and initial taxes, it typically takes about five years to break even, unless your property undergoes explosive appreciation. That's basic arithmetic. 

 

As for your 25 year example, I never contradicted that. Again, if you plan on holding the property for longer than five years, it likely makes financial sense to buy as opposed to rent. That's been the central tenet of this entire conversation. 

Edited September 24, 2013 by Joshjrn

[Andrewski]

You guys missed the lesson i'm trying to tell.

 

Buy it

 

Rent it out

 

Easy $$$

 

Even if i paid market price for my house and sold it in a year for the same price i would make a little bit of money off the equity built by other people. If i rent out the single moms room and half of my room for $700+$400 my total revenue is $3200 for about $2200 worth of expenses. Yeah some money will be used for maintenance and fixing stuff, but i really doubt i'll spend 12k a year on that. Plus right now i'm spending $600 to rent a room. That expense is waived and more of my hard earned money goes to savings.

Edited September 24, 2013 by Andrewski

[Joshjrn]

As someone who has dealt quite a bit in rental property, I don't know if I can sign off on it as being "easy" money haha. Make sure to invest some time into learning how to do basic repairs yourself, or that will eat into your profits. Also, make sure you put money aside to replace items worn out due to increased wear and tear. If you have to start using unsecured credit for repairs, you'll end up in a hole quickly.

But, ultimately, as long as you are smart about it, rental property can be a great investment.

[Andrewski]

As someone who has dealt quite a bit in rental property, I don't know if I can sign off on it as being "easy" money haha. Make sure to invest some time into learning how to do basic repairs yourself, or that will eat into your profits. Also, make sure you put money aside to replace items worn out due to increased wear and tear. If you have to start using unsecured credit for repairs, you'll end up in a hole quickly.

But, ultimately, as long as you are smart about it, rental property can be a great investment.

It's a lot easier to collect rent than busting my balls building scaffolds lol

[James]

i do too! this is what she looks like:

 

 

if i could hit that every day and night my life will be complete

 

i don't do drugs, high on life maybe!

Back on topic: Let us know how this one goes. Preferably with video evidence. 

[Joshjrn]

The main difficulty of being a landlord is that you are never really off the clock or on vacation. If you aren't available 24/7, they will let your shit deteriorate very quickly.

[Zach]

I bought a few houses in GTA.  Made bank son.

 

If you guys want real money-making advice, you want to invest every penny you have in a specific stock. Next, assassinate the CEO of that company's biggest competitor. Finally, watch your shares skyrocket and sell for that cashmoney.

[Andrewski]

i do too! this is what she looks like:

 

 

if i could hit that every day and night my life will be complete

 

i don't do drugs, high on life maybe!

Back on topic: Let us know how this one goes. Preferably with video evidence. 

she hasn't texted me back for 2 days i think i made her mad and it's not happening

 

i have other ho's im trying to make into my dirty slaves but not as hot as the mom

[Andrewski]

The main difficulty of being a landlord is that you are never really off the clock or on vacation. If you aren't available 24/7, they will let your shit deteriorate very quickly.

move better people in. everyone in my house i know already. the only one that will be the stranger is the one i get off kijiji to share a bunk bed with lol

[Joshjrn]

The main difficulty of being a landlord is that you are never really off the clock or on vacation. If you aren't available 24/7, they will let your shit deteriorate very quickly.

move better people in. everyone in my house i know already. the only one that will be the stranger is the one i get off kijiji to share a bunk bed with lol

 

That's a nice thought for someone just starting out with one piece of property. We'll talk about that in a couple of years

[Zach]

she hasn't texted me back for 2 days i think i made her mad and it's not happening

 

Probably because she found out you posted a skanky-looking picture of her on a Runescape clan's forums

[Andrewski]

The main difficulty of being a landlord is that you are never really off the clock or on vacation. If you aren't available 24/7, they will let your shit deteriorate very quickly.

move better people in. everyone in my house i know already. the only one that will be the stranger is the one i get off kijiji to share a bunk bed with lol

 

That's a nice thought for someone just starting out with one piece of property. We'll talk about that in a couple of years

Yeah when we're old and i drive by you in a Ferrari you'll be like dam bro how'd you get the cash for that. And i'll be like i invested in a bunk bed when i was young! In 25 years that top bunk is $120k, put it in the bank and compound the interest and it's like $200k.

[Astraeus G]

she hasn't texted me back for 2 days i think i made her mad and it's not happening

 

Probably because she found out you posted a skanky-looking picture of her on a Runescape clan's forums

In his defense, she gave it to him...wait how'd you get the pic? lmao. Through Fb or what

[Joshjrn]

Andrew, you missed my point entirely. My point was that if you think you are going to be able to only rent to people you know for the rest of your life, you are going to be sorely disappointed

[Hess]

Andrew, you missed my point entirely. My point was that if you think you are going to be able to only rent to people you know for the rest of your life, you are going to be sorely disappointed

 

 

I think we are missing the basic premise.

 

 

Property is essentially a fool proof investment.  How you manage that property on the other hand could result in your own misfortune. 

 

Andrew, I think you may be leading down a path of misfortune if you go in without properly planning and considering all opportunity costs and maintenance costs after x number of years.  Renting a home in which you are living in is one thing, renting out multiple homes is a much larger investment, and when property is on the market for amounts larger then our bank accounts are worth, its hard to have the fronted money to properly manage such properties without digging yourself in a financial hole.

 

So with that in mind, you can flip properties just by sitting on them and then selling them on a market rise, but that is no different then buying large amounts of stocks in the stock market.  The return may be quick, or take years.  Furthermore if you purchase property in the hopes of improving its value and make extra money, such as Memphus claims to have success with, then you need to really consider the market, location, income proportions, and the expected consumers in the area.  Moreover, if you watched "Money Pit" you will know that this is just as much a risk as renting is, although the movie was a little dramatic in its message.

 

 

 

All in all, don't be so gung ho about it.  You had a good opportunity and I congratulate you on finding this house at the right price.  However please don't let that exclude you from considering all the other variables.

[Joshjrn]

Hess

 

Who the fuck are you, and what have you done with Hess?

[Hess]

Hess

 

Who the fuck are you, and what have you done with Hess?