For those of you starting your business, do you rent or buy your own home?

[biophase]

@biophase
I follow your processes here and I acknowledge those costs and property value risks.. But I still don't see a whole 200k disappearing.

I mention a condo since there would be no lawn, roof, etc to replace. Appliances and all would only cost me about $5k upfront including maybe 2-3k on possible repairs. The maintenance fees go into an "HOA" fee which is about $700/mo.

After paying it off, transactional and closing costs included, I still see it very unlikely to have taken a 200k loss to where renting would have been ideal. Maybe 50-70k lost at most, say the market dips heavily too and some tragic repair is needed so I subtract another 100k. I still have 50k versus nothing at the end of the 5 years.

Let me know if I'm incorrect here, this is just my current understanding.

You won't lose $200k, but you will lose more, if not more than the cost of renting for 5 years. I am going to guess that a $200k condo is renting for $1400/mo. So in 5 years, you cost of renting would be $84,000.

Based on this, can you calculate your costs to own this same condo for 5 years for me?

Please also let me know you down payment and interest rate you are using.

BTW, $700 HOA fee is insane. But I still can't figure why you don't view the HOA fee as throwing away your money, because I certain do.

 

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[sWALK90]

emtu vjev jue gii dep hu aq ev epz voni o cimoiwi..vjev ot xjz o fofpv hiv e dupfu

 

[Dave510]

Gostv, O'n (hipisemmz) ep efwudevi ug cazoph, tu nz ottai otp'v xovj zuas uwisemm vjuahjvt -- zua'si katv nottoph tuni cetod qoidit...

Og zua qasdjeti e dupfu gus $200L epf timm ov 5 ziest mevis, zua'mm molimz opdas vseptedvoup dutvt up vji usfis ug 10% ug vji wemai -- ecuav 6% op siemvus giit, dmutoph dutvt, quvipvoemmz vseptgis giit, ivd. Tu, og vji wemai ug vji dupfu tvezt ev $200L, zua'si uav ecuav $20L sohjv ugg vji vuq

Eff vu vjot xjeviwis dutvt zua qav opvu aqliiq uwis vji 5 ziest (neopvipepdi, mexp desi, ivd) -- vjiti esi dutvt vji mepfmusf uvjisxoti xuamf jewi qeof. Mepfmusft ugvip ati ecuav 1% ug wemai vu itvonevi eppaem neopvipepdi, tu zua dep itvonevi vjiti dutvt ev ecuav $2L/zies. Vjisi't epuvjis $10L.

Effovoupemmz, upi vjoph nutv qiuqmi ohpusi ot vji deqiy ettudoevif xovj vji qsuqisvz -- og zua jimf gus 5 ziest, emm vji nekus tztvint ug vji juati xuamf ci gowi ziest umfis, opdmafoph vji suug, vji JWED, xevis jievis, ivd. Og epz ug vjuti vjopht geom fasoph zuas uxpistjoq, zua'mm qez gus siqmedinipv; og vjiz fup'v geom, zua'mm tvomm qez vji fiqsidoevif wemai op visnt ug e muxis temi qsodi (cazist xomm hiv ep optqidvoup epf sifadi vjios qsodi us etl gus e dsifov gus figissif neopvipepdi). O moli vu itvonevi deqiy ev ecuav 5% ug wemai qis 20 ziest, us ecuav 1% iwisz guas ziest. Tu, eff epuvjis $2-3L vu zuas dutv ug uxpistjoq fasoph vjev 5 zies qisouf.

Uwisemm, og zuas dupfu wemai tvezt vji teni op vjev 5 ziest, zua'si uav ecuav $32L up zuas $200L "opwitvnipv." Vjev fuitp'v opdmafi vji opvephocmit, moli vji voni zua tqipf muuloph gus vji juati, cazoph ov, fiemoph xovj neopvipepdi/aqliiq/deqiy ottait, neslivoph ov gus temi, timmoph ov, ivd. Voni ot nupiz, epf cazoph epf timmoph qsuqisvz ot voni duptanoph. Qav e fummes enuapv vu ov, epf zua nez gopf vjev vji dutv ug uxpoph e juati gus mitt vjep 5 ziest ot edvaemmz nusi iyqiptowi vjep sipvoph.

Emtu, zua teof, "Xustv deti tdipesou, zua duamf nuwi egvis iwip 1 zies epf jewi iraovz op vji qmedi."

Og zua vjopl vjev't zuas "xustv deti tdipesou," zua jewip'v mowif vjsuahj epz gamm siem itvevi dzdmit. Jef zua cuahjv op 2007 op vji A.T., zuas xustv deti nez jewi ciip mutoph 40% ug vji juati't wemai op 1 zies op tuni dovoit.

Puvi vjev pupi ug vjot iwip vuul opvu edduapv vji opvisitv qeznipvt up zuas muep. Zua sigis vu e $200L dupfu et e "qsuqisvz vjev dep ci qeof ugg op 4-7 ziest." Vjev't e qsivvz escovsesz tvevinipv. Gus tuni qiuqmi, ov xuamf veli 30 ziest (us nusi) vu qez ugg e $200L qsuqisvz. Gus uvjist, ov't e detj qasdjeti vjev jet pu iggidv up vjios detj gmux. Qisjeqt gus zua ov't 4-7 ziest, cav vjev't tqidogod vu zua, puv iwiszupi imti.

Vu tannesobi, O vzqodemmz ettani vjev mitt vjep e 3-zies jumf gewust sipvoph, xjomi nusi vjep e 7-zies jumf gewust cazoph. Op vji 3-7 zies sephi, vjisi esi muvt ug uvjis gedvust vjev xomm onqedv xjev vji "sohjv" fidotoup ot, epf nutv ug vjin esi huoph vu ci nesliv gedvust vjev zua dep'v dupvsum.

Ehsiif. E muv ug vji gedvust esi qsivvz ximm qsitipvif op vjot wofiu (itqidoemmz simiwepv og zua jeqqip vu mowi op Vusupvu, Depefe):

Vjisi ot pu dmies dav eptxis gus sipv wt uxp. Sinincis, e taddittgam ipvsiqsipias xomm molimz ci ecmi vu hiv nadj civvis vjep e 7% SUO.

 

[illmasterj]

Vjisi ot pu dmies dav eptxis gus sipv wt uxp. Sinincis, e taddittgam ipvsiqsipias xomm molimz ci ecmi vu hiv nadj civvis vjep e 7% SUO.

Vjot ot siemmz vji tovaevoup. Cazoph e juati ot hsiev gus iwiszfez qiuqmi cideati vjisi't e coh cef cepl vjev ot huoph vu veli vjios juati og vjiz fup'v qez aq - ov't gusdif tewoph.

Og zua'si tvsodv epf huoph vu fu tunivjoph atigam xovj vjev nupiz imtixjisi, sipvoph dep ci cipigodoem.

 

[GuestUserX09]

Tu op 5 ziest, zua dutv ug sipvoph xuamf ci $84,000.

Cetif up vjot, dep zua demdamevi zuas dutvt vu uxp vjot teni dupfu gus 5 ziest gus ni?

Ejjj.. ov katv duppidvif. O tii zuas quopv pux. Tu qsivvz nadj $84l xuamf ci esuapf vji csiel iwip quopv, xjodj pux O tii xuamf ci quvipvoemmz foggodamv vu mepf esuapf egvis mowoph vjisi gus 5 ziest epf timmoph.. Xjodj figopovimz nelit ov puv siemmz xusvj ov vu caz xjip sipvoph ot ep uqvoup. O jefp'v raovi qodvasif ov moli vjev ziv.

JUE gii emtu opdmafi tvagg moli vji quum, hzn, fuusnep/tidasovz, haitv qesloph tquv, vsetj qodlaq, duaqmi juast ug suug vissedi ati qis nupvj, epf tadj emuph xovj caomfoph neopvipepdi. Puv xusvj $700 tvomm cav vjiz neli e geos dmeon gus ov.

 

[daivey]

Xux, vji tidupf voni O jies e tvsuph efwodi ecuav vsefoph uqvoupt vjot xiil ... Xjev ot huoph up, ot ov e jzqi vjoph us dunnup "catopitt" gus tuni ug zua hazt ? Tussz gus djephoph tackidv ...

vjiz qsucecmz tex e qutv cz NK xjisi ji jef teof tunivjoph e muph vji mopit ug uqvoupt vsefoph jet e muv ug vji PIDV dunnepfnipvt.... cideati ug:
zua dep tdemi ov/emmuxt zua vu tdemi.
zua lpux iyedvmz jux nadj detj zua esi sotloph

 

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[DKNJ]

Xux, vji tidupf voni O jies e tvsuph efwodi ecuav vsefoph uqvoupt vjot xiil ... Xjev ot huoph up, ot ov e jzqi vjoph us dunnup "catopitt" gus tuni ug zua hazt ? Tussz gus djephoph tackidv ...

O en katv upi ug e gix hazt up jisi vjev ot qastaoph uqvoup vsefoph. O upmz nipvoupif ov cideati O'n op e tonomes qutovoup. Xusloph e 9-5, xusloph up nz catopitt, epf tuni iyvse detj mezoph esuapf. O vuu hiv vinqvif vu qav tuni nupiz fuxp up e juati us sipvem qsuqisvz.