How broke are you?

[R8RFAN]

Instead of hijacking a thread lets make our own...
How far up to your ass are you in debt are you?
How close are you to filing for Bankruptcy.
How many of you borrow from Mom and Dad because you are sorry as hell and have to drive that car that sounds like a pissed off bumble bee?



Let's get it on you broke dick bastards...

It's on


I will start the thread

0 Mortgage debt
0 Consumer debt
0 Car payments

Bills I owe
Directv
Insurance
Taxes
Utilities
Food
and Cell Phone (thanks luv)

[ReynardMuldrake]

We just paid off our house this year that we bought in 2008 right before the crash. I don't hold any debt aside from month to month credit cards. We should hit $1MM net worth as soon as next year.

[BWillie]

Originally Posted by SuperBowl4

”I don’t clean”? how is your personal hygiene?

I'm a poker player, man. It's well known we stink. Can't leave the table on a heater.

I pay a housekeeper. But if they could figure out some water bed I can lay in that would clean me while I sleep - sign me up.

[BWillie]

Originally Posted by ReynardMuldrake

We just paid off our house this year that we bought in 2008 right before the crash. I don't hold any debt aside from month to month credit cards. We should hit $1MM net worth as soon as next year.

13 year paying off a house. Very nice. I think that is about the sweet spot versus going at it for 30 years. Congrats.

[Buehler445]

Originally Posted by BWillie

Other than cryptocurrency, buying property has been the best thing financially I've ever done. I bought a house in 2008 for 160k that is now worth 275k. I bought a property in 2010 for 250k that is now worth damn near 500k. I bought the house I live in now just 4 years ago for 250k and it's now worth 375k. I lived in them for a bit, then moved out & just rented them. Why you would ever rent is beyond me. Just flushing money down the toilet. Think long term not short term.

The dumbest thing I'm doing right now is some Dave Ramsey shit, just letting my 10 BTC I cashed in on May 12 sit and rot in my bank account. I haven't figured out what I'm going to do with it yet. Might start flipping houses like a buddy of mine is doing making money hand over fist - doing no work himself.

Yeah. Dave Ramsey shit won’t work on anything business related. At least in a competitive environment.

For personal expenditures it’s not a bad strategy who wouldn’t otherwise manage it.

[Buehler445]

Originally Posted by DaFace

He's backed off on it a bit, but it's still just such a ludicrous position to take that people should avoid all debt at all costs. Granted, I kind of got lucky in buying to a housing market that has been red hot ever since I bought our place, but I calculated it up the other day, and the value of my house has appreciated more than the sum total of all of the money I have put into it (principal, interest, and repairs/upgrades/maintenance). It's like I've literally been able to live rent free in my own house for a decade.

To put it another way, if I'd rented all of this time, I still probably wouldn't have saved enough to pay cash for my place even in 2009 values, and the price has nearly tripled since then.

My net worth would literally be $300k+ lower right now if I'd followed R8ers advice.

Right on man. I was too chicken shit. I put 10% down.

I have come to terms with the idea that from a practical perspective Ramsey’s stuff is probably good for those who would be irresponsible or otherwise wouldn’t manage personal expenses at all. From a technical perspective it’s inefficient at best. Garbage at worst.

As far as the zealots, I manage to tune them out. Most of them shut up when I tell them I have an MBA and make capital and debt decisions based on perspective returns.

Of all the shit that makes me ****ing crazy, Ramsey should be on it. But somehow it doesn’t ping the sonar.

[KCUnited]

EDIT: Is there an advantage to not putting 20% down?

[Bearcat]

Originally Posted by DaFace

Again, there's a huge caveat that I got really lucky and bought in the bottom of the housing bubble's burst. And another bubble bursting could cut that down dramatically.

But yeah. I have friends who are paying $500 more per month in rent on a 1000 sf apartment than I'm paying for my mortgage on my 2500 sf house.

Yeah, I would see that in KC a lot, and the housing market is insanely cheap compared to out here. You could find a decent apartment (several years ago) for ~600-750/month, but friends would want the fancy $1100+/month place while I was paying $700 on a 15 year mortgage (and I wouldn't do the 15 year again when I could just pay extra on a 30, but whatever)..... I didn't do much more than break even overall, but at least got 5 years of equity back, whch was still far better than renting.

[Bearcat]

Originally Posted by KCUnited

Does PMI kick in at anywhere under 20% down?

If so, that would be interesting to see how it affects the buy under 20% down vs rent until buy with 20% down. I mean, not interesting enough for me to do the math but for one of you guys to post the info.

Yeah, PMI is a ****ing scam and is a thing up to having 20% of the loan paid off... it may still make sense to throw $100-200 down the toilet for a while as opposed to rent, but that's one mental hurdle that's tough for me to get past because the whole concept is so ****ing stupid.

[KCUnited]

Originally Posted by Bearcat

Yeah, PMI is a ****ing scam and is a thing up to having 20% of the loan paid off... it may still make sense to throw $100-200 down the toilet for a while as opposed to rent, but that's one mental hurdle that's tough for me to get past because the whole concept is so ****ing stupid.

Yeah I edited my post as there would be an obvious variable of how close one is to 20% to make that rent/vs buy with less that 20% decision level

EDIT: and also the timing of the housing market similar to '09, could make more sense to dive in without 20%

[BWillie]

Originally Posted by Bearcat

Yeah, PMI is a ****ing scam and is a thing up to having 20% of the loan paid off... it may still make sense to throw $100-200 down the toilet for a while as opposed to rent, but that's one mental hurdle that's tough for me to get past because the whole concept is so ****ing stupid.

For a moment I thought you were talking shit on our lord and savior PMII. I was about ready for a throw down.

[Rain Man]

Originally Posted by BWillie

Other than cryptocurrency, buying property has been the best thing financially I've ever done. I bought a house in 2008 for 160k that is now worth 275k. I bought a property in 2010 for 250k that is now worth damn near 500k. I bought the house I live in now just 4 years ago for 250k and it's now worth 375k. I lived in them for a bit, then moved out & just rented them. Why you would ever rent is beyond me. Just flushing money down the toilet. Think long term not short term.

The dumbest thing I'm doing right now is some Dave Ramsey shit, just letting my 10 BTC I cashed in on May 12 sit and rot in my bank account. I haven't figured out what I'm going to do with it yet. Might start flipping houses like a buddy of mine is doing making money hand over fist - doing no work himself.

Thinking long term has pretty much been the central tenet of my philosophy on life and everything else. Unless the short term is something that will kill me, like an alligator attack or standing in front of a moving train, I've always chosen the path that's best for the long term. For a long time it didn't seem like it was paying off, and then about ten years ago everything kicked in. The past decade has been very very good to me.

[Bearcat]

Originally Posted by KCUnited

Yeah I edited my post as there would be an obvious variable of how close one is to 20% to make that rent/vs buy with less that 20% decision level

EDIT: and also the timing of the housing market similar to '09, could make more sense to dive in without 20%

Yeah, at a high level, I'd say at least you're still building equity, even if you're getting a lower percentage of your payments back when you sell... and if you buy low, then at least there's a decent chance you would more than make up for the money thrown down the toilet.

I'd guess it could be a ~$5-10k thing over a couple to 5 years, maybe... as opposed to renting over that time. Not the worst hurdle to overcome in the long run.

If you already have 20% down available, there's the opportunity cost of what you could invest that money in versus avoiding the cost of PMI... and in that case it might make even more sense to put your money elsewhere and pay PMI (bastards! ).

[BigRedChief]

Originally Posted by Bearcat

You should have dumped all of your money into paying off the house years ago, no matter how much you could have made with it in your 401k/investments during that time!!!

Our house value has went up $240K in the last 2 years. No way a 401K gets that ROI.

[BWillie]

Originally Posted by BigRedChief

Our house value has went up $240K in the last 2 years. No way a 401K gets that ROI.

Life in Tampa or wherever in Floridastan must be good.

Where has housing prices increased the most in the last few years at least in terms of percentage?

[Bearcat]

Originally Posted by BigRedChief

Our house value has went up $240K in the last 2 years. No way a 401K gets that ROI.

Not sure what that has to do with paying off sooner versus investing?