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+--- Thread: Your morning commute~ (/showthread.php?tid=5244)
- Mike - 11-01-2007
HAULN-SS Wrote:Mike Wrote:oh, derrick, don't try to pull the "i'm making so much money by buying a house" angle.
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You know what the rent investment looks like? --- <-something like that, right along the X axis
![[Image: 0527home_7.jpg]](http://images.forbes.com/images/2005/05/26/0527home_7.jpg)
Yep, you missed the point. Rent < Mortgage. I pay less than $600/mo. You know where all that extra money goes? You've got it! Investments, which are better places for one's money than a house... Did you even read the links I posted?
- Mike - 11-01-2007
HAULN-SS Wrote:Right, that's my point. I can't buy around here on one income, so I sacrifice 2 hours of my day driving. I would probably still do that even if I COULD afford half a mil mortgage, because to me saving the money is worth more than saving the time. If i bought the same house around here, it'd probably cost 300k more. Also - for hours, i'd call it more like 3 * 200 = 600 hours. 600 hours times say...4 years that I stay there. = 2400 hours. So basically keeping the math simple, I'm paying myself 125$/hour to make the drive. Not including equity being built into the house.
where in the heck was your math? 2400 lost hours * $125 = you really think you're going to come out $300k on top after four years? you're soooooo far off it's not even funny... its shocking.
- .RJ - 11-01-2007
Go mikey rules!
- Mike - 11-01-2007
.RJ Wrote:Go mikey rules!
:?:
- HAULN-SS - 11-01-2007
I did read your links. I understand that you can invest it, but you have to win double investing to make up the difference. Also, my mortgage payment will stay the same through the life of the loan. at 3% inflation, every year, i'm basically paying less and less for my mortage. There will come a time that I can invest AND pay my mortgage. I've already beat inflation by being in the house, which usually make around a 1% gain over inflation, long term. Then I start investing, and i don't have to make up any ground, just beat inflation.
- HAULN-SS - 11-01-2007
Mike Wrote:HAULN-SS Wrote:Right, that's my point. I can't buy around here on one income, so I sacrifice 2 hours of my day driving. I would probably still do that even if I COULD afford half a mil mortgage, because to me saving the money is worth more than saving the time. If i bought the same house around here, it'd probably cost 300k more. Also - for hours, i'd call it more like 3 * 200 = 600 hours. 600 hours times say...4 years that I stay there. = 2400 hours. So basically keeping the math simple, I'm paying myself 125$/hour to make the drive. Not including equity being built into the house.
where in the heck was your math? 2400 lost hours * $125 = you really think you're going to come out $300k on top after four years? you're soooooo far off it's not even funny... its shocking.
300k is the difference between buying this house where it sits, and buying it next to the beltway.
- Mike - 11-01-2007
HAULN-SS Wrote:I did read your links. I understand that you can invest it, but you have to win double investing to make up the difference. Also, my mortgage payment will stay the same through the life of the loan. at 3% inflation, every year, i'm basically paying less and less for my mortage. There will come a time that I can invest AND pay my mortgage. I've already beat inflation by being in the house, which usually make around a 1% gain over inflation, long term. Then I start investing, and i don't have to make up any ground, just beat inflation.
and commute at least 2 hours a day, and pay for gas on that commute, and live in the middle of nowhere.
you have to look at the whole picture, not just the bits and pieces that are favorable at the time.
- Mike - 11-01-2007
HAULN-SS Wrote:Mike Wrote:HAULN-SS Wrote:Right, that's my point. I can't buy around here on one income, so I sacrifice 2 hours of my day driving. I would probably still do that even if I COULD afford half a mil mortgage, because to me saving the money is worth more than saving the time. If i bought the same house around here, it'd probably cost 300k more. Also - for hours, i'd call it more like 3 * 200 = 600 hours. 600 hours times say...4 years that I stay there. = 2400 hours. So basically keeping the math simple, I'm paying myself 125$/hour to make the drive. Not including equity being built into the house.
where in the heck was your math? 2400 lost hours * $125 = you really think you're going to come out $300k on top after four years? you're soooooo far off it's not even funny... its shocking.
300k is the difference between buying this house where it sits, and buying it next to the beltway.
ah ok, so renting is an impossibility in your book...
ooooook!
- .RJ - 11-01-2007
Mike Wrote:.RJ Wrote:Go mikey rules!
:?:
"I dont think its a good idea so you're retarded for doing it"
From a financial standpoint, buying a house out in the sticks makes sense if you're willing to commute an hour each way. Most of us arent... so houses are cheap.
- Mike - 11-01-2007
.RJ Wrote:Mike Wrote:.RJ Wrote:Go mikey rules!
:?:
"I dont think its a good idea so you're retarded for doing it"
From a financial standpoint, buying a house out in the sticks makes sense if you're willing to commute an hour each way. Most of us arent... so houses are cheap.
if the feel-good of knowing you own a home is greater than the sacrifices made (possibly lost money, tons of lost time, and living in the middle of nowhere), sure i guess some people are wired that way.
now... i'm not saying that living in the middle of nowhere is always a bad thing. IF you live in the mountains, woods, something lifestyle like that, that's cool. you can't honestly say people want to live in an artificial community in bumfuck...
- .RJ - 11-01-2007
Mike Wrote:if the feel-good of knowing you own a home is greater than the sacrifices made (possibly lost money, tons of lost time, and living in the middle of nowhere), sure i guess some people are wired that way.
Whats good for Derek is not whats good for Chris is not whats good for Mikey. Why is that so difficult? Diff'rent strokes.
If you can make the commute work, then more power to you. I cant do it... my 10 minute commute is about right for me.
- HAULN-SS - 11-01-2007
Mike Wrote:HAULN-SS Wrote:I did read your links. I understand that you can invest it, but you have to win double investing to make up the difference. Also, my mortgage payment will stay the same through the life of the loan. at 3% inflation, every year, i'm basically paying less and less for my mortage. There will come a time that I can invest AND pay my mortgage. I've already beat inflation by being in the house, which usually make around a 1% gain over inflation, long term. Then I start investing, and i don't have to make up any ground, just beat inflation.
and commute at least 2 hours a day, and pay for gas on that commute, and live in the middle of nowhere.
you have to look at the whole picture, not just the bits and pieces that are favorable at the time.
I already did look at the whole picture. The ONLY argument you have is that you don't want to drive so far, as I said, because gas is paid for when you itemize and deduct your interest payments, which, for the next 4 years will be primarily what I am paying into the house.
- Mike - 11-01-2007
.RJ Wrote:Mike Wrote:if the feel-good of knowing you own a home is greater than the sacrifices made (possibly lost money, tons of lost time, and living in the middle of nowhere), sure i guess some people are wired that way.
Whats good for Derek is not whats good for Chris is not whats good for Mikey. Why is that so difficult? Diff'rent strokes.
i can't find anything positive about what's good for derek... it wreaks all over of "i jumped in to something without knowing the whole story."
every positive he tries to bring up is severely flawed.
- .RJ - 11-01-2007
Mike Wrote:i can't find anything positive about what's good for derek...
I'm sure he cant find anything positive about renting in north arlington either.
mikey rules!
Mike Wrote:every positive he tries to bring up is severely flawed.
Mikey != Deersty.
I cant believe I'm defending Deersty's housing choice.
- .paul - 11-01-2007
i bought my house in september, everyone says i should continue to wait. I waited 1 1/2 years to buy my house, I feel my choice in buying > renting.
- HAULN-SS - 11-01-2007
lol - nevermind that I spent a lot of time since last november exploring a ton of options. A few of which I even posted on this board to get thoughts on. My total monthly payments, including utils on a bigger place, house payment, gas, etc went up about 650$/month. The guy i have interested in the place will be paying 500$/month + half utils. call it 600. So it's effectively costing me 50$/month to own.
- WRXtranceformed - 11-01-2007
.RJ Wrote:WRXtranceformed Wrote:If you can afford a townhouse in a big city, it's either going to be REALLY expensive or REALLY shitty.
I hate misconceptions about property prices. Do some research... this took 30 seconds. There's ritzy areas in DC that will cost you $1+ mil to buy, just like there are in the 'burbs too.
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None of those places are particularly cheap in the grand scheme, but the prices are comparable to arlington/fairfax county. You give up parking and space but do you really need a 3000 sq foot pad?
WRXtranceformed Wrote:Plus, I like being able to walk outside at night and go for a walk or something without having to worry about being mugged or shot at.
I've spent quite a bit of time in DC, seeing as how I've grown up here - including some seedy spots from time to time when I was less smart. Never been mugged/shot/etc and never once felt like I was in some sort of danger. But I've been held up at gunpoint twice in the middle of vienna - cookie cutter suburbia. Go figure.
Maybe I'm spoiled because I grew up in / have lived in rural, rich areas. Aside from the fact that our townhouse in Hunter's Ridge was one of the nicest ones in there, I hated living in that shithole...that was probably the worst place I've ever spent significant time in. If I personally felt the need to bring up a family in the city, it would have to be in those $1million+ townhome areas. And even then, like you said, rich areas don't necessarily mean less dangerous.
Also, those first two homes are from the fucking 1930s. You do realize they didn't exactly use the most innovative townhome building techniques during the Pre-WWII era right? I would never buy a townhouse that old as an investment nor to live in. I would hate to see what happens to that place if the neighbor's house catches on fire
hock: The neighborhood on that first one doesn't exactly look like somewhere I'd feel comfortable letting my kids run around in either.The last one looks decent, but 2 upstairs owner's suites are not exactly desireable for resale. And I do consider $530,000 for a 3 bedroom townhome to be expensive. I mean you could pick apart any listing on the market, but let me put it this way. If you had a family, with kids and you worked in DC, for $530,000 would you prefer this:
![[Image: 010105011509010210200710288c24929ec1628d2a79007b25.jpg]](http://images.craigslist.org/010105011509010210200710288c24929ec1628d2a79007b25.jpg)
or extend your commute by 30-45 minutes and have this:
![[Image: Remington.jpg]](http://img.photobucket.com/albums/v402/WRXTranceformed/Remington.jpg)
Like Evan said, it's personal preference. I personally consider a place where I have to spend as much for a townhouse as it costs for a single family in a nicer, safer area to not be desireable...but some people are willing to sacrifice some peace of mind for commute time I guess!! Not that you're any safer driving to and from work around here :lol:
- .RJ - 11-01-2007
They were just quick examples I pulled off of craigslist - I'm sure that if you had a little time and motivation you could find 'better' places for resale/renovation/kids/etc. But you get the idea... you just trade commute/proximity for parking/space and most of the houses are older.
- Evan - 11-01-2007
.RJ Wrote:If thats not what you want to do, then dont do it - but your fantasy land comment was a bit 'mikey rules' (i.e., i dont think its a good idea so its bad for everyone).no RJ, I was talking about my conversation with Anne. To which you replied that I was somehow wrong in what I wanted.
- WRXtranceformed - 11-01-2007
As far as real estate investment, it is a cyclical market. It will go up again, you can quote me on that. I'll likely be out of the business by then, but I can guarantee that within the next few years..barring some huge economic disaster...house prices will increase again. This happened in the 80s when interest rates were like 19% and again in the early 90s.
FWIW, I dislike stocks tremenedously. The nature of how you make money on them is not conducive to keeping much of it in your pocket. IF IF IF you can buy a home in an appreciating area, or live in it long enough to see an appreciation, there are ways around paying out the majority of your profits to Uncle Sam. That's the way it works for a lot of people.