Quote:
Originally Posted by Zeros and ones
I live in cali and he is way off base.
a cheap shitty place with one bedroom, kitchen, a living room at $1200.
You start adding roommates it starts to go up from their. I have a friend that is living with 3 other room mates. Each room mate pays up 600 every month and that is a good part of town.
I pay only $200 dollars more every month and I have a house and I live in a very nice part of town in Southern California.
So follow me with this for a second. He said that he can afford a couple of M3s. So lets say 2 is a couple. We will assume afford is to lease. To lease and m3 for a term of 36 months, drive 15000 miles annually and put down 2500 come to $787 every month. So with two M3s is about $1574 every month. And lets assume he is also paying 600 every month cause he has roommates. That brings the total to $2174. This is a lot of money just for cars and rent.
But lets stick with one M3. If he takes his rent money, again assuming he is paying 600 (we don't actually know what he is paying very month) and re purpose that for mortgage and getting rid of California ago of, I can afford a couple of M3s and re-purpose that money to Mortgage, that brings that total to $1387. Hmmm... that is a nice chunk of money to be paying for mortgage. That is how much I was paying in California for my mortgage before the housing crisis.
However, if he is referring to owning a house on mount olympus in california, bell air, some parts of Beverly hills or just any house all up in the hills with a exceptional view, than I will agree with him. Till than, I can not say that I can agree with his statement.
Again... this are all assumptions based on information I know from my friends and, from myself being an actual home own for over 7 years, and the statements the OP made. I have no idea how much he actually pays for rent or his M3.
If you are smart about it you can purchase a very nice house with a very low interest rate right now and it would be much better than renting out.
My statement was not about roommates or even geared towards that. It was toward a particular comment that he made about renting is cheaper than owning a house and how he can afford a couple of M3s.
I do know one thing is us Californians have bigger egos and mouths than we can actually afford. I lost count how many people I know that have multiple fast cars yet they live in shitty places spouting off their mouths on how great they are cause they can smoke anyone on the road.
you don't need to buy or live in a 3.5 million dollar house unless you choose too. To each his own though. But if you are as money savvy as you say you are, wouldn't it be better to buy a house that is even $600,000 and than rent it out to three attractive women? But as you said, their is no point in buying a house unless you found a wife or anti-social.
But if you like throwing your money away on renting than that is your choice.
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Judging by your username and analysis of the situation, I can only guess what you do for a living lol.
Anywway, back on topic. I live on LI and to afford a house on the island on a single person income is extremely difficuly (i refuse to live in a shit shack 1950's baby boomer house). Also, anything in the 5 boroughs will run you at least 400k for a small one bedroom. If you are young, its tough to save up a down payment for something like that. In which case I completely agree with what Goat_Rodeo was saying.
Another reason to rent is if you are uncertain of where your future will bring you. As OP seems to be young (just recently graduated) as am I, it makes sense to rent until you figure out where you are going to be located for the long term instead of paying all of the taxes/lawyer fees up front only to sell and have to buy somewhere else within a year or two.