• 2 Posts
  • 194 Comments
Joined 1 year ago
cake
Cake day: July 7th, 2023

help-circle










  • 380k with a 30 year mortgage and something like $25k down. Amortization on 5.89% will show at the end of it, you’ll pay over 774k for it. Mortgage payment would be $2150. That’s after closing costs. Property insurance and property taxes about $700/mo. And I live in a high property tax area.

    Utilities aren’t included, but I haven’t seen many rentals that include utilities either. The house may be bigger and use more utilities though.

    The lowest rent in my area for 3 bedrooms is 2.2k/mo and that’s an outlier. Most are $2,700+/mo. If I were to pay the $2.7k for 30 years, that’s just shy of $1 million. And at $2200, it’s just shy of $800k in 30 years. That’s break even.

    This isn’t even addressing the instability of rental prices. My mortgage payment is locked in, at a fixed interest rate. If I were to rent, there is no guarantee that the rent i am paying today is the rent I’ll be paying in 5 years.

    Renters should be getting renters insurance too, so add that to the renters side.

    Yea, I will have home repairs I’ll need to pay for. But I’ll also have equity that I can leverage for them if I need to. I’d have to put in $200k in the course of 30 years to match what a renter in my area would be spending. And that’s just repairs, if I were to spend on renovations and/or additions than it would raise the property value.

    As for capital gains, that’s only when I sell, but if I have to pay taxes because I made money. Well, then I made money instead of… Only spent money?

    If the house doesn’t appreciate and only holds it’s value, it’s an asset that protects against inflation.







  • One: Using a card means all transactions are tied to my financial history. For better or worse, I don’t want all my personal habits in a ledger somewhere.

    Two: Fees. Merchants have to pay fees on credit transactions.

    Three: Consolidating financial institutions between a handful of company’s. (Visa, MasterCard, Amex, etc)

    Four: Complexity. At least one side of the transaction must setup a system to interact with banks or credit cards. Cash is as simple as counting and handing it over.

    Five: Budgets. It’s been shown that people spend less when they use cash. When someone can see the money actually leave and what they have dwindles they are more responsible with their spending.

    Six: Tax evasion. Sometimes, if the waiter/waitress is struggling tipping in cash means it’s easier for them not to report that income.

    Seven: It makes it much harder to make financial transactions that aren’t “approved.” Whether or not you like it, some people want to be able to buy drugs or something else that isn’t legal. Or even worse, the whims of whatever payment processor they use. A private company shouldn’t get to say who can be a merchant and what they are allowed to sell.

    Eight: Gifts. Cash is just a simple, nice gift that Zelle or Venmo can’t replace.

    Nine: No chance of overdrafting and getting hit with bullshit fees.