Serious question. Are you really a homeowner if you have a mortgage?

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eastsideTT

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NY'ers ima raise you one better...

Are you really a homeowner if you own a co-op apartment?
 
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Gimini00

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Larry Lambo said:
I agree with some of the premise, but at the same time it usually doesn't work that way. Most people's homes don't appreciate that quickly, but if you're lucky enough to get in the right place at the right time, it can happen. There's people that clean up, and there's people that whose property values decline.

Appreciation of the property is nice but not guaranteed in the short/medium term. There are some houses that today are still worth less than what they were worth 10 years ago. However regardless of the market, the equity you pay down yourself is yours. So even if your house doesn't appreciate in 20 years, and you pay off the mortgage, you still have the equity of what you paid off, whereas during renting you get nothing back.

The rent vs. buy decision has many different aspects to it. Some people try to make it a no-brainer but it's more complex than that. The situation has to be right for the individual.
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Buying a house is a investment, and like any investment you need to do some research because every investment is risky, if someone is buying a house without doing any research on the area and the market, of course he's going to lose, it's like openning a restaurant somewhere without doing a market research, that's stupid.
 
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Larry Lambo

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The Black James Bond said:
:dahell: are yall not understanding what I'm trying to say?
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I understand what you're trying to say. I just disagree.

If I borrow money to purchase something it's still mine. Regardless of whether the bank can come take it if I don't repay my loan.

What you're implying is similar to saying a business owner doesn't own his business because he borrowed money to finance it.

If people don't own their homes while owing on a mortgage because the bank can take it, then they still don't own their homes after paying off the mortgage, because the IRS can take it they don't pay taxes.

Ownership doesn't mean an entitlement to permanent possession. It just means that something is in your name at the current time. Assets can always be seized.
 
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ultraflexed

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Larry Lambo said:
I agree with some of the premise, but at the same time it usually doesn't work that way. Most people's homes don't appreciate that quickly, but if you're lucky enough to get in the right place at the right time, it can happen.

Appreciation of the property is nice but not guaranteed in the short/medium term. There are some houses that today are still worth less than what they were worth 10 years ago. However regardless of the market, the equity you pay down yourself is yours. So even if your house doesn't appreciate in 20 years, and you pay off the mortgage, you still have the equity of what you paid off, whereas during renting you get nothing back.

The rent vs. buy decision has many different aspects to it. Some people try to make it a no-brainer but it's more complex than that. The situation has to be right for the individual.
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Everything I did was planned their was no luck involved, I researched, I projected, I estimated, I knew the value would increase for example

When I bout my first house I bout it for 190k in 2010.
That house originally sold for 540k in 2006.
So I bout it really lower then what it originally sold for. Remember the economic recession collapsed home values from 2007-2010 so almost every house at that time was lower then what it was bout for.

I knew the housing market would bounce back, especially in california especially in the bay area I always knew it was going to bounce back so I set 4 year plan to sell when equity got to my magic number then buy a brand new house at a great price right before home prices were going to get out of control like it has now.....
 
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ultraflexed

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The Black James Bond said:
Yea I know about equity breh you're going off on a different subject. Let's be real most black people will take home equity loans and spend it on BS. So let me ask you a question. Say I bought a house for 140k. In three years it went up in value to 200k. Say I still owe 120 even though it's worth 200. If I stop paying my mortgage will the bank take my house?
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Well, if you didn't own the house they would have nothing to take from you?
They bank isn't taking the house away from itself, their taking it from the owner.
 
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Larry Lambo

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ultraflexed said:
Everything I did was planned their was no luck involved, I researched, I projected, I estimated, I knew the value would increase for example

When I bout my first house I bout it for 190k in 2010.
That house originally sold for 540k in 2006.
So I bout it really lower then what it originally sold for. Remember the economic recession collapsed home values from 2007-2010 so almost every house at that time was lower then what it was bout for.

I knew the housing market would bounce back, especially in california especially in the bay area I always knew it was going to bounce back so I set 4 year plan to sell when equity got to my magic number then buy a brand new house at a great price right before home prices were going to get out of control like it has now.....
Click to expand...

The economic and housing market collapse that caused prices to drop that low was something you did not create. You took advantage of it but the fact that those opportunities existed, when they have never existed before in recent history, is historically lucky. The fact you lived in California was fortuitous as well, because the same return would probably not have been possible in St. Louis or Cincinnati.

You were smart enough to take advantage of a situation. However, someone who just turned 18 years old will not have that same opportunity. A 60 year old retiree who bought their house 30 years before, may not have had a real reason to purchase a home in 2010 as well. You were in prime age and location to make it happen.

The explosion, collapse, and rebound of the housing market that occured between 2000 - 2015 had never happened before and will probably not happen again. There mere fact that someone was at an age where they could purchase a home at the market bottom and in a situation that it made sense, is good fortune.

To imply that someone can now double their money on a house in 4-5 years, because it occured in the craziest housing market downfall and rebound in U.S. history, is a stretch. It's already happened. I don't see lightning striking again. Lessons have been learned.
 
Reginald Noble

Reginald Noble

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It depends. If the home value increased by 25% over 10 years it's somewhat of a come up over just putting your funds in a zero interest savings account or volatile investment :manny:

Plus you get some privileges on a home loan you don't get with just renting. If you have trouble making mortgage payments and have a good track record they will cut you some slack in hard times, particularly with low interest FHA subsidies.

If you can, a mortgage is always a better deal than renting because if you sell the home before you pay in full you get that money back as long as the value of the home stays the same.
 
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