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paganlobster t1_j7lvxss wrote

Reply to comment by BovaDesnuts in These housing numbers are insane. In some towns the cost to buy a house is 10x the average salary. by LopsidedWafer3269

Granted I haven't done the math in a few years, but in most cases I found that a mortgage was only cheaper than rent if I took a 40 year loan, which seems insane to me. There's a good chance I won't even live that long.

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B-Roc- t1_j7mbmif wrote

All the more reason to take that loan then.

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paganlobster t1_j7psr5v wrote

Is there a benefit to paying a mortgage company for a house you'll probably die before you own vs. a landlord for an apartment you'll never own?

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ladybug1259 t1_j7q5qr2 wrote

Depending on the housing market and time period--equity. Your estate or heirs can sell the house and keep the difference between the sale price and the mortgage (assuming there is any) versus with an apartment you don't own any of that value.

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paganlobster t1_j7qpdt0 wrote

Good point, thanks. I don't plan on any heirs but I am watching my family dealing with the fallout of my grandparents' estate. Seems like a massive burden to leave them all with even if it is equity they can use. It's still unclear to me whether it's worth it to me personally.

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barry_abides t1_j7r34o3 wrote

In theory, you could build equity the first 10-20 years, once you hit 62 you could get a reverse mortgage (or other financing/home equity loan earlier than that) to tap into the equity to pay for living expenses (sort of an elaborate savings account/retirement plan). Also when calculating whether it's cheaper to buy vs. rent don't forget to factor in taxes - all the interest you pay on the mortgage is tax deductible. If you sell the house after 2 years, the capital gains from any increase in value are also not taxable. Mortgage payment will also stay constant, while rent generally increases (property taxes and insurance will likely go up though).

Plus you have the advantage of not giving all your money to subsidize landlords who are exploiting a basic human need - housing. If you have a decent landlord who keeps up with maintenance and doesn't ask for significant rent increases, it may be better to stay in your current situation.

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BovaDesnuts t1_j7lw4qu wrote

Rent these days is about 16-1800/mo without utilities if you're lucky. Mortgages can be had around 1,400.

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Fishercat5000 t1_j7lwji1 wrote

Rents on the south shore are 2-3.5k per month. I don’t know where rents are that low.

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OccidentallySlain t1_j7lxvw4 wrote

If you bought last year, a $350-400k house is $1400-1600/month for principal and interest. The Merrimack valley area has plenty houses like that, just need work. Taxes and insurance add $400/month.

With today's interest rates, closer to 2k before taxes and insurance.

The minimum price for a 2 bed 2 bath I've seen is $2000/month, closer to $2600 if your building got bought or you're in a nicer area and don't want a shit hole.

$500 less a month to live somewhere, about $500 a month retained in equity. More bedrooms, usable land you own, a permanent end to yearly housing insecurity and shitty landlords that salivate at your money.

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paganlobster t1_j7lyjmg wrote

I see exactly 3 places on Zillow going for less thank $500k, but that's more than I've seen elsewhere. Thanks, I'll keep an eye on this.

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OccidentallySlain t1_j7p9hho wrote

I see 25 total in the 495 belt: Chelmsford, Dracut, Lowell, Tewksbury, Andover, North Andover, Methuen, Lawrence, Haverhill, Groveland, West Newbury, Merrimac, Amesbury. Set to max 500k, houses only. If you include condos there's a lot more.

If you can live farther north and can snag a house in Merrimac/West Newbury/Amesbury, you have easy access to all MA/NH beaches without paying crazy prices, and can be close to some development while still staying more rural. I also really like Haverhill, great food.

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lotusblossom60 t1_j7m28kj wrote

Agree, Merrimack valley area you can still snag something more affordable and I love the area.

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BovaDesnuts t1_j7lwn65 wrote

You can find a solid 1BR in metro West for those prices if you know where to look. Obviously, it'll be higher if there's a family involved.

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whoeve t1_j7m3jt5 wrote

1400 for a mortgage? What? Yeah if you wanna live out in Athol or the middle of Fitchburg.

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BovaDesnuts t1_j7m3y0o wrote

There's plenty of houses you can score at that price point in reasonable locations, especially if you know where to look. In Athol you can go cheaper.

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whoeve t1_j7md1r2 wrote

Redfin shows basically nothing. Where are you looking?

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BovaDesnuts t1_j7mdcw8 wrote

Admittedly, last time I looked was 6 months ago. I looked on all kinds of websites, and also in the flesh.

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