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Investing in the Stock Market (pg. 3)
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| metalgearsolid |
| quote: | Originally posted by pkcRAISTLIN
i will make this as simple as i fvcking can you absolute fvcking moron. you obviously have no idea what youre talking about, and your less than average grammar shows you have little education, so how about you listen to other people that actually have some experience?
you buy house.
you put tenants in.
tenants pay your mortgage (or majority of).
people *always* need somewhere to live.
house prices *always* go up- if you look over a long period of time. there isnt a house in the civilised world that is cheaper today than it was 20 years ago.
yes, there are market crashes, however as long as you can afford to service the loan, it wont matter in the long run.
now, over the time period, be it 10 or 20 years, the principle of your loan goes down, whilst the value of your property goes up. remember that you are putting in little of your own money. and unlike stocks, youre actually buying something that will always be worth something.
there are tons of tax concessions you can use in the property market.
its that simple. if you buy smart & dont over-extend yourself its a really easy way to make retirement more appealing. thus, my friend owes the banks $2M, yet his property is worth $3.5M or so.
now, quit parading your obvious ignorance and perhaps you might learn something. fvcking child :rolleyes: |
You did not say that at first which was what I was trying to help you you poor bastard. And I have little education? Good man good I don't need to have a good education to have be richer than a ing like you. |
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| che |
| quote: | Originally posted by metalgearsolid
You did not say that at first which was what I was trying to help you you poor bastard. And I have little education? Good man good I don't need to have a good education to have be richer than a ing like you. |
You are lame:rolleyes: |
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| metalgearsolid |
| quote: | Originally posted by che
You are lame:rolleyes: |
Truly I am and that is nothing wrong with being yourself. |
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| pkcRAISTLIN |
| quote: | Originally posted by metalgearsolid
You did not say that at first which was what I was trying to help you you poor bastard. |
wtf do you think this says then, moron?
| quote: | Originally posted by pkcRAISTLIN
you buy an average house, rent it out for ten years; and even if that house hasnt gone up in value at all, youve got 10 years worth of equity built into it that you have contributed very little from your own pocket.
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just be smart and buy somewhere that people will be happy to live and youre laughing imo, esp if you have a decent salary backing you up and can afford several loans. as each property's equity increases you can afford to borrow more money.
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| quote: | Originally posted by metalgearsolid
And I have little education? Good man good I don't need to have a good education to have be richer than a ing like you. |
um yes, you need everything spoon-fed to you coz youre too simple to grasp it yourself, yet youre gonna go out there and do better than all those people that know more than you. good luck simpleton. |
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| metalgearsolid |
| quote: | Originally posted by pkcRAISTLIN
wtf do you think this says then, moron?
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I was refering to your "property>stock market" :rolleyes: enough of this you are bringing me down to your intellect and that is something I can not risk.:o Have a good night sleeping in your little room waking up and working your ass off for something so unnecessary that is why you will always be there. |
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| Lepanto |
wait wait, pkcRAISTLIN, you're going to sit there and tell me that if you buy a house for 200,000 dollars (american or australian or canadian, doesn't matter) then "rent it out" you're going to make some money back without spending MUCH? what are you talking about? for example, here a nice 2 bedroom in a nice place will cost about 300,000 (if ur lucky), you can rent it out for 2,000 MAX (i'm doing this to show you the maximum), 2,000 x 12 = 24,000 a year x 10 = 240,000 dollars. so how did you break even OR make ANY money? you haven't you only lost. especially when u have to think about the fact that the building could be co-oped and a condo and if other people besides you are allowed to move in. if it's not a condo, maintenance could be about 600 bucks, so you're only making 1,500 (if you're lucky again) a month.
oh and what do you consider a decent salary? for one person i'd say about 40,000 - 50,000 and you're telling me a person like that can afford to take out a loan for couple of hundred g's? |
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| Q5echo |
| quote: | Originally posted by Lepanto
wait wait, pkcRAISTLIN, you're going to sit there and tell me that if you buy a house for 200,000 dollars (american or australian or canadian, doesn't matter) then "rent it out" you're going to make some money back without spending MUCH? what are you talking about? for example, here a nice 2 bedroom in a nice place will cost about 300,000 (if ur lucky), you can rent it out for 2,000 MAX (i'm doing this to show you the maximum), 2,000 x 12 = 24,000 a year x 10 = 240,000 dollars. so how did you break even OR make ANY money? you haven't you only lost. especially when u have to think about the fact that the building could be co-oped and a condo and if other people besides you are allowed to move in. if it's not a condo, maintenance could be about 600 bucks, so you're only making 1,500 (if you're lucky again) a month. |
don't forget the insurance!
anyway, it's over the life of not just the loan (mortgage) for the property, but property as well. after ten years of someone else (the renter) paying the mortgage for you, you are now that much closer to paying off the mortgage. in your case, about 80% the $300,000 over what would normally would be a 30yr. life in about 30% of that life. in other words, your 30 yr. mortgage is 80% paid off in 10yrs and you haven't paid a thing! aside from normal expences i.e. maintenance, insurance, taxes ect.
in addition, the value of the property that you now own and rent has risen in value. now, after 10 yrs your $300,000 is now, say worth, $350,000 or may have even doubled, more! (happens all the time. especially the way the market has been recently.)
not including the interest though. but thats partly why the market in America has been so hot because for last 6 or 7 years mortgage interest rates have been their lowest in 40yrs. like at around 1-2% though they've steadily been on the rise, hence the cooling off of the market.
| quote: | | oh and what do you consider a decent salary? for one person i'd say about 40,000 - 50,000 and you're telling me a person like that can afford to take out a loan for couple of hundred g's? |
absolutely! as a matter of fact, i qualify for a V.A. loan of about $300,000. i'm not sure how old you are, but if you have good credit, and a good relationship with your bank, go sit down and have a talk with them. don't go filling out mortgage paperwork the first day! but just see what they have to say and what options you have. i bet you'll be really suprised. the market, naturally, does not want to cool down and banks other lenders still want to drive the market through first time buyers like yourself. although interst rates are climbing and before you know it it will be a renters market again. like i said, don't let them carry you away! |
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| pkcRAISTLIN |
| thanks Q5. couldnt be bothered to explain myself yet again. since when did the PDD become a goddamn creche? |
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| Lepanto |
ummm no it WOULDN'T double because the rates for real estate are SO HIGH RIGHT NOW. they are only going to fall and you're only going to lose money. so all you're really stating is that you'll be able to pay off your loan for a house. what a great investment. no matter how you try to cut it anyone with a brain and experience will tell you real estate is a horrible investment.
where the hell do u get your info from? the market is hot? :haha: the market has never been so cold. the prices are super high, while the value isn't and ok maybe you find some underground bank that will give you a low APR you still have a property that's worth twice it's value. |
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| pkcRAISTLIN |
| quote: | Originally posted by Lepanto
ummm no it WOULDN'T double because the rates for real estate are SO HIGH RIGHT NOW. they are only going to fall and you're only going to lose money. so all you're really stating is that you'll be able to pay off your loan for a house. what a great investment. no matter how you try to cut it anyone with a brain and experience will tell you real estate is a horrible investment. |
have you comprehended anything previously posted? i mean christ!
we're saying SOMEONE ELSE PAYS OFF YOUR FVCKING MORTGAGE. not you. so you get a house for a fraction of the cost. how you think that isnt a good investment is beyond me.
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HOUSING PRICES DO NOT FVCKING FALL. im saying this for the last fvcking time. over a longterm period, housing prices rise. always have, always will. yes, there are market corrections and crashes. but over a mortgage term of 30 years, its highly unlikely itll be worth less. and even if it is, youre not the one forking out for the mortgage, your tenants are.
| quote: | Originally posted by Lepanto
where the hell do u get your info from? the market is hot? :haha: the market has never been so cold. the prices are super high, while the value isn't and ok maybe you find some underground bank that will give you a low APR you still have a property that's worth twice it's value. |
yeah, so you wait til the next correction or crash and start buying then :rolleyes: goddamn spoon feeding babies is getting tiresome. and value & worth are set by market forces, if someone is willing to pay $X for a property, who are you to say its not \"worth\" that amount? obviously the market says it is. if you have sell a property for less than you paid, its still possible to make a profit coz its your tenants paying the mortgage and not you. sheesh.
if youre smart with your investments and can afford to service the loan(s) its money for jam. |
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| Q5echo |
| quote: | Originally posted by Lepanto
ummm no it WOULDN'T double because the rates for real estate are SO HIGH RIGHT NOW. |
okay. the thread is officially hijacked.
even where you are (especially where you are), as a whole, there will always be room for the market to grow and equity thus increases which would be a given in a positive economy. | quote: | | they are only going to fall and you're only going to lose money. so all you're really stating is that you'll be able to pay off your loan for a house. what a great investment. no matter how you try to cut it anyone with a brain and experience will tell you real estate is a horrible investment. |
you are right. there will come a time when the market will be bearish if it hasn't started to happen already, slowly. like i said the market is still warm for people that own property for the simple fact that people will always need a placew to live. without getting too complicated, the diifference in profit margins between what you are talking about (BTW is sounding like to me more and more is that you don't think one can make a profit) and what i am talking about is comparitively small whether the market is a sellers market or a buyers market. either way, one can not only make money but also shield his current investments, lock in equity, and stay in his home for a fraction of what normal slobs like you and me do it for.
thats just the investing side of things. it is still a great time buy a house if you think you aare secure enough whether you want to turn it around or just live in it. equity is a good thing no matter what the market is like. and the sooner you start the better. thats just common knowledge.
| quote: | | where the hell do u get your info from? the market is hot? :haha: the market has never been so cold. the prices are super high, while the value isn't and ok maybe you find some underground bank that will give you a low APR you still have a property that's worth twice it's value. |
what to you consider a low apr? how much are you willing to put down? |
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| LazFX |
| quote: | Originally posted by Q5echo
mind you this is whats called a TSP for Federal empoyees. not a Roth yet. i'll prolly take some penalties when and if i convert this year.
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Hey I am on that as well, what part of the fed do you work for?? |
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